May/June 2022
AAPN Honors Ed Gribbin And Dr. Lynne Sprugel At Annual Meeting
During its recent annual pro:Americas Annual Conference, the Atlanta-based Americas Apparel Producers’ Network (AAPN) honored Ed Gribbin and Dr. Lynne Sprugel with the newly-renamed AAPN Walter T. Wilhelm Industry Achievement Award. Previously known as the AAPN Industry Acheivement Award, the name change recognizes Wilhelm’s decades of contributions to the organization as well as his leadership. The puzzle globe trophy conferred to the recipient also was renamed “The Walter” in his honor.
Gribbin was selected as a recipient of the award this year for his work when the COVID-19
pandemic began. According to AAPN: “In March 2020, when the virus hit, Ed created a database of over 1,000 producers and literally ran production of billions of masks and millions of gowns across the U.S. Ed was alone in this brilliant initiative and kept many thousands of people working.”
Dr. Sprugel also was chosen to receive the award in 2022. AAPN cited her contributions to the AAPN Future Forums in its reasons for the honor: “In 2020, with all AAPN events canceled, Lynne organized a survey that created the AAPN Future Forums, generating 28 sessions with over 50 people creating over 7 hours of original content. These future-looking insights were an industry exclusive.”
May/June 2022
Bespoke Manufacturing Opens New Facility In Phoenix
Bespoke Manufacturing Co. (BMC), Phoenix, reports it will open a 50,000-square-foot,
state-of-the-art facility in Phoenix employing 250 people. The print and cut-and-sew company specializes in one-off and on-demand garments, as well as home fashion items. BMC uses the latest technology from companies including Kornit Digital Ltd., Lectra, Fetch Robotics and Juki to offer a production capacity of more than five dresses per minute.
“We chose to build our first plant in the heart of Phoenix because of the talented sewers the city has to offer,” said J. Kirby Best, BMC founder.
“Quality is of the utmost importance. We have hired first-rate tailors and sewers from around the world who are eager to show that the United States is a competitive force in apparel manufacturing.”
“With talented fabric and consumer-product innovators, Greater Phoenix continues to attract technology-focused companies and manufacturers,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council. “We’re excited to welcome BMC as the latest high-tech manufacturer choosing to expand in the region and look forward to being a partner in their continued growth and success.”
May/June 2022
New Name For IFAI
After more than 40 years as the Industrial Fabrics Association International (IFAI), the association now goes by the name Advanced Textiles Association (ATA). The change was made after 85.6 percent of its members cast a vote in favor of the new name.
A change had been under discussion for several years as the association sought to position itself in the best way to meet the needs of its members and the overall industry.
“This is an exciting time for our great association,” said IFAI Chairman Amy Bircher. “President and CEO Steve Schiffman and his staff have worked hard to meet the needs
of our members in finding a name that reflects the vision for our future while still honoring the past and recognizing the importance of our history.”
“We wanted a name that is more inclusive, easier to remember, and reflects advances in
and the future of all the industries we currently serve and will serve in the future,” Schiffman noted.
ATA will unveil its new rebranding soon. The association also will transition its website from ifai.com to textiles.org.
In other recent IFAI news, the Upholstery & Trim Group and its members — comprised of manufacturers and distributors of fabrics and accessories for applications in the automotive, marine, industrial and contract markets — have joined IFAI.
May/June 2022
State of the U.S. Textile Industry: Better Than Expected
By Jim Borneman, Editor In Chief
Each year, Textile World editors look forward to the National Council of Textile Organization (NCTO) Chairman’s state of the industry presentation from NCTO’s annual meeting (See “2022 State Of The U.S. Textile Industry,” TW, this issue).
It is not just a recap of NCTO’s activities, which are highlighted, but also a look at the U.S. textile industry’s performance, challenges and future outlook. It paints a solid picture of the U.S. industry featuring a collection of aggregated industry data, as well as opinion of industry members living those data.
The NCTO chairman for 2022-23 and presenter of this year’s address is David Poston, founder and president of Palmetto Synthetics LLC, Kingstree, S.C. (See “Palmetto Synthetics: Custom-Designed Fiber Solutions,” TW, May/June 2021).
Poston points to the positive performance of the U.S. textile industry and a “solid
year in 2021,” referencing “a rebound of remarkable proportions” with increases in overall shipments of U.S. manmade fibers, textiles and apparel; increased U.S. exports; and strong capital expenditures.
Poston stated: “Capital expenditures have remained strong. Investment in yarn, fabric, apparel and sewn product manufacturing in 2020 — the latest figure that we have — hit $1.85 billion. Since 2011, capital investment in U.S. yarn, fabric, apparel and sewn products manufacturing totals $20.2 billion.” Keep in mind those are billions with a “b” and up from the $1.58 billion invested in 2011.
In textile exports, roughly half are within the United States-Mexico-Canada Agreement member countries with Mexico receiving $3.9 billion in U.S. fibers, yarns and fabrics; and Canada receiving $2.0 billion — respectfully the U.S. textile industry’s strongest export markets.
Dominican Republic-Central America Free Trade Agreement members received $3.5 billion in U.S. exports of fibers, yarns and fabrics, with Honduras — the U.S. textile industry’s fourth strongest export partner of those products — taking in $1.3 billion.
Referring to the overall U.S. textile and apparel exports to the Western Hemisphere, Poston stated, “The bottom line is the fundamentals for the U.S. textile industry are sound and a testament to our industry’s resilience in the face of a perfect storm of supply chain disruptions, rising costs and a once-in-a-generation healthcare crisis.”
This one sentence seemingly captures the true “state” of the industry — an industry that always rises to the occasion, whether it’s for personal protective equipment, test kit swabs or any other demand seemingly out-of-the-blue.
“Strong underlying economic fundamentals and expansion in the U.S. and Western Hemisphere in 2021 created a sound business environment for our industry, and we remain optimistic that the business climate will continue this year,” Poston concluded.
In a personal note, Poston added, “I am optimistic about the future, knowing the strength of the industry, buoyed by its incredible trade and lobbying organization in Washington, will overcome emerging challenges and continue to carve out a niche as an important backbone in the U.S. economy and the Western Hemisphere.”
A powerful summation from an industry veteran who has seen it first-hand and continues to voice the optimism of the U.S. textile industry.
May/June 2022
Looking Toward The Future: What’s Next?
By Jim Phillips, Yarn Market Editor
The U.S. textile industry was an industrial powerhouse that led the world in style, volume and quality during the middle of the 20th century. Unfortunately, by the early days of the 21st century, the industry has fallen to where it was a shadow of its former glory, ravaged by imports from government-subsidized Asian companies that paid very low wages.
One by one, spinners, weavers and knitters turned the lights off and shut the doors forever. Some experts and analysts predicted the industry had no future and would eventually all but disappear.
Despite all the naysaying, textile leaders were not ready to throw in the towel. Instead, they transitioned from mass production of commodity products to creating specialty, niche and high-tech products. They espoused a new value proposition that refocused the industry’s priorities. No longer would U.S. companies try to compete on volume and price. Instead, they promised to be world’s best in quality, service and speed to market. They realigned manufacturing capacity to more realistically align with demand. And they saw orders, revenue and profits skyrocket. The U.S. industry reclaimed its place among the world’s elite. All was well — at least until news broke of a highly contagious virus that was decimating China and beginning to spread around the world.
The industry hit bottom during the first half of 2020. Plants shut down. People sheltered in place. Stores and restaurants closed. Container ships full of products and supplies
were lined up at ports across the world with no way to unload their cargo.
Perservering
Ever resolute, the industry persevered, and when the economy began to reopen, spinners and their sister companies once again began to recover. Orders improved — some companies even finished 2020 close to their original projections. Yet, even with a decent degree of recovery, things were not quite the same. Many companies had problems keeping qualified employees even before the pandemic began. After the initial quarantine period, many of those who were temporarily laid off decided not to return to work. A shortage of qualified labor, coupled with a global supply chain in disarray, meant customers were not getting their orders as quickly as before.
“Demand remains solid,” said one industry expert. “The problem is getting product to the customers. Between production problems and shipping problems, the time from order to delivery has increased substantially.”
And that negates two of the three U.S. industry’s foundational advantages. Quality is still there. Service and speed to market are not.
So, that leads to the question: what’s next?
A number of consulting companies and analysts have assessed the current state of manufacturing in America, including the textile industry, and have suggested several steps companies can take to solve the current labor problem, as well as prepare for a secure future.
Recommendations
Consulting company Deloitte, for example, has recommended manufacturers need to watch and act upon specific trends to secure their future. Three of those trends apply specifically to spinners and others in the textile industry. In dealing with the workforce shortage, Deloitte recommends finding ways to add flexibility and work/life balance to manufacturing jobs. Many displaced workers became used to a more balanced lifestyle and chose not to return to a more restrictive manufacturing environment.
Logistics challenges, including shortages of truck drivers, dock workers and others, are likely continue — maybe into the first half of 2023. As a result, spinners will likely incur higher costs, which are likely to be passed on through to customers. Companies should carefully plan and map out their supply networks. Deloitte says, “digital supply networks and data analytics can be powerful enablers for more flexible, multitiered responses to disruptions.”
The third applicable trend is sustainability. Deloitte reports: “The fast rise of environmental, social, and governance factors is redefining and elevating sustainability in manufacturing as never before.” This is something at which many spinners excel. Efforts by such companies as Unifi and Elevate Textiles have gained considerable global attention. More and more companies in the industry are undertaking concerted sustainability initiatives.
May/June 2022
IDEA® 22: Nonwovens In Person
INDA’s IDEA® 22 was one of the first major textile industry trade shows to resume business as usual this year.
TW Special Report
As the world attempts to get back to “normal” following the onset of the COVID-19 pandemic and the subsequent shutdowns, so does the trade show world. No one fully understands how the trade show and event industry will be changed long term as we learn to navigate in the COVID environment, but the one thing that is clear is that people want face-to-face interactions and sales networking opportunities in person. The demand for trade shows exists.
“There is no doubt communicating through digital means helped us get through the pandemic,” said Holger M. Steingraeber, senior vice president, Global Marketing & Communications, Freudenberg Performance Materials. “However, virtual meetings cannot completely replace face-to-face interactions. At Freudenberg Performance Materials, connecting to the customer is vital to better understand challenges, develop solutions, and strengthen our partnerships. Therefore, we are very happy in-person trade shows are possible again.”
The IDEA® 22 nonwovens trade show held recently in Miami Beach and organized by the Cary, N.C.-based Association of the Nonwoven Fabrics Industry (INDA), was one of the first major textile industry trade shows to resume business as usual this year. With its triennial schedule, IDEA luckily avoided any pandemic-related cancellations or reschedules, and the 21st edition of the show took place as planned at the Miami Beach Convention Center. The event was also collocated with INDA’s FiltXPO™ exhibition and conference.
The combined events offered training classes; conference sessions on nonwoven trends, forecasts and market information for China, Asia, South America, North America and Europe, as well as filtration statistics and trends; and a welcome reception. INDA also presented its IDEA Achievement Awards and IDEA Lifetime Achievement Awards. FiltXPO also featured the first “Summit for Global Change.”
According to INDA, approximately 5,000 participants — exhibitor personnel and visitors — took the opportunity to interact face-to-face. “The event attracted a high level of participation among key decision makers despite lingering travel restrictions, which is a testimonial to the show’s importance within the international nonwovens and engineered materials industry,” said INDA President Dave Rousse.
“The size and scope of IDEA and FiltXPO have been excellent for us as both exhibitors and as visitors,” noted Rolk Kammermann, head of sales and marketing, Innovative Swiss Made Nonwovens.
Award Recipients
Val Hollingsworth, board chair and CEO of Hollingsworth & Vose, was recognized as the IDEA 2022 Lifetime Achievement Award winner. The IDEA Entrepreneur Achievement award was presented to Doug Brown, president of Biax-Fiberfilm/5K Fibres.
The IDEA 2022 Achievement Awards were presented in six different categories. Winners included Herrmann Ultrasonics Inc., Rem Brands Inc., LifeSavers Wipes, Mann + Hummel GmbH, Glatfelter Corp./Blue Ocean Closures, and Suominen Corp.
The next IDEA show is planned for April 23-25, 2024, in Miami Beach. FiltXPO will return to an individual event on a new 18-month schedule with the next event taking place October 10-12, 2023, in Chicago.
May/June 2022
SYFA Talks Global Textiles
SYFA recently held a successful spring conference and is preparing for its 50th anniversary celebration this fall.
TW Special Report
The Synthetic Yarn and Fabric Association (SYFA) held its 2022 spring conference recently at the Sheraton Charlotte Airport Hotel, Charlotte, N.C.
The theme for the event was “Global Textiles … It’s a Small World After All.” Presenters came from companies and organizations including Stäubli Corp., Eastman Chemical Co., ClearTrackHR, Wells Fargo, the National Council of Textile Organizations, American Apparel & Footwear Association and Textile Technology Center at Gaston College.
Conference sponsors for the spring event included Gold Sponsors Premiere Fibers Inc. and Jomar Softcorp International Inc.; Silver Sponsors Pulcra Chemicals LLC and Unifi Inc.; Bronze Sponsors Goulston Technologies, PolySpinTex, Milliken & Company and Avient; and Patrons The Association of the Nonwovens Fabrics Industry (INDA) Milliken & Company (facemasks) and Measured Solutions Inc. (hand sanitizers).
The SYFA also introduced new board members — Nikki Brooks, Goulston Technologies; Bart Krulic, Palmetto Synthetics; and Bill Rothermel, Precision Fabrics — and outgoing board President Dan Sistrunk took a bow after serving the association for the past three years as president.
“At our last conference in the fall of 2021, I stated that it was good to be back and emerging from the post-COVID world to a period that resembled a more normal textile environment, but little did we know the next round of challenges that we were going to encounter,” Sistrunk said. “Since the last SYFA conference, we have faced a new set of challenges ranging from labor shortages and growing inflation to geopolitical destabilization. However, I firmly believed then and it remains true today that with these challenges there is great opportunity for the SYFA organization and the industry. By harnessing the power of industry organizations like SYFA, each member, through the networking and collaboration the organization provides, will be able to better understand, uncover, and tap into some of this opportunity amidst the chaos we are all currently facing.”
Incoming President Hardy Sullivan is ready to helm the SYFA for the next two years and had kind words to share about Sistrunk as he stepped down. “Like so many organizations that rely on face-to-face engagement, Covid was a real test,” Sullivan noted. “I’m so thankful for Dan Sistrunk’s leadership and the sustained effort by board volunteers. We maintained relevance by publishing technical and economic-focused papers quarterly, and we navigated the rocky waters of trying to meet virtually and safely.”
Sullivan is especially excited to celebrate the association’s 50th anniversary this year in the fall. “It’s exciting to think that an organization like SYFA can survive 50 years,” Sullivan noted. “The organization began with a focus on textured yarn, but, over time, its reach has broadened, spanning fiber to end-use. It’s a testament to, now as much as ever before, there’s real value in sharing technical, economic, and industrial knowledge.
“The needs for sustainability, innovation, and commercialization are here to stay, so this is just SYFA’s first 50 years. The board is planning a special ‘Past, Present, and Future’ celebration for the fall conference. It will be special and, as always, very worthwhile. We hope to see you there.”
The fall 50th anniversary conference will take place at the Sheraton Charlotte Airport Hotel November 3-4, 2022. Plans for the event include a panel discussion among top-level textile executives, and a cocktail reception followed by an evening sit-down dinner for all attendees. For more details as the event gets closer and to register, visit the association’s website, thesyfa.org.
May/June 2022
Textile Education Circa 2022, Part 3-Ish: The Importance Of Learning “Hand” And “Hands-On”
By Jim Kaufmann, Contributing Editor
Recent issues of Textile World featured “Textile Education Circa 2022,” an article I wrote split into two parts that focused on current textile- related education programs in the United States. Part 1 featured a review of the more formal degreed options provided by colleges and universities for those interested in receiving a degree in some version of textiles — in design, fashion, engineering or management, for example — while part 2 focused more on the assorted training, apprenticeships and other related non-degreed training options being conducted through universities, colleges and industry related organizations.
However, after finishing the two articles, the thought occurred to me that while the editorial provided information on options for degreed and non-degreed offerings, neither article really offered much help in the way of what one should actually try to learn specific to textiles. So, allow me to offer an opinion, or two, derived from close to 45 years of experience in the textile industry. I’ll call it Part three-ish.
It’s All About Hand
First and foremost is the term “hand,” which many would argue is the primary fundamental factor guiding much of the global textile industry. Hand is defined by www.textileglossary.com as “literally, the feel of the goods in the hand.” In essence, it’s the tactile characteristics of a fabric. The desired “hand” for an application or specific end-use will likely influence fabric choices, architecture, construction, manufacturing techniques, processing parameters and any finishes applied.
I doubt I’ll ever forget my first real encounter with fabric hand. It occurred when I was maybe 12 years old, yet I remember it like it was yesterday. I was in the lingerie section of a department store with my father, who at the time ran a small tricot knitting mill. He appeared to be caressing different pieces of lingerie and suggested that I feel this one or look at that one. At 12 I knew enough to know that I should feel uncomfortable, and definitely noticed a few people in the store who were
looking at us curiously. Later, I realized my father was essentially comparing the different tactile aesthetics of these lingerie items to similar fabrics he was producing. “It’s all about the hand,” he said with a wink.
“I still always inquire if there is a sample when engaging in a new project with a customer,” said Bill Christmann, vice president, sales and marketing, Gehring Textiles, Hauppauge, N.Y. “I need something I can touch and handle and get the feel of. Otherwise, we’re just initially guessing at what you might want. If I have something representative to start with, it makes the development and selection process that much easier moving forward.”
A sentiment, I’ve found, that is shared by many others in the textile industry. Granted, the hand of specific fabrics is likely more evident and meaningful to the fashion and perhaps home furnishings industries, but hand also applies to many, if not all, other textile industry segments. The crisp, neat and clean look of a properly assembled printed banner; a composite parts operator who notices the fiberglass fabric in use is too stiff to nest neatly into the crevices of a mold; how a convertible top fabric has to be stretched and conformed properly around its support structure on an expensive new sports car; or the feeling and support of a seating fabric on an office chair are just a few examples of the hand in segments outside of the fashion industry.
And to those involved, each of these examples has respective significance and importance equal to that feel, softness and comfort of my niece’s snuggle blanket.
One concern voiced with greater frequency is the feeling that the use of hand as a formal term and attribute is waning and not entirely appreciated in today’s textile industry. This fear continues to grow given today’s focus on digitization and Industry 4.0, more folks working from home doing business over Microsoft® Teams or Zoom calls, less and less true research and development happening, emphasis on speed-to-market creating a shortened development cycle, and the continued lack of experienced and properly trained next-generation employees at all levels to back-fill for the older ones who either have or are quickly approaching retirement age. Like everything else, the future remains to be seen, but today, a clear understanding of the importance of hand remains a critical factor to every aspect of success in the textile industry, whether the term hand is used or not.
Truly No Substitute For Hands-On Learning
A natural extension of hand specific to textiles and its related facets is being hands-on, or more specifically learning by doing. As Marcia Weiss, director, Textile Design Programs at Thomas Jefferson University, so eloquently stated in Part 2 of the article, “there’s truly no substitute for hands-on learning when it comes to textiles!” I’m certain most industry veterans will agree that Weiss’ statement rings absolutely true. One simply cannot learn certain things from a book or computer screen. Some may equate this to the differences in one being street smart instead of being book smart. A fine differentiation of the two terms was offered by Ashley Fern in a lifestyle article for the website Elite Daily: “Street smarts are what a person learns through their personal endeavors whereas book smarts comes from a lecture or textbook.” The value of either or both can certainly be debated in a number of different ways and forums.
That said, in my humble opinion, one should not only be satisfied with book smart learnings alone! As a newly learned component of the global textile industry, there are just some things you have to experience in person and hands on. I certainly learned this from my father during my days working at his knitting mill. I received my bachelor’s degree in Textile Engineering from the then Philadelphia College of Textiles and Sciences — now part of Jefferson University — but I earned what I affectionately refer to as my unofficial and possibly more valuable Master’s degree from the unlicensed and certainly unstructured “Bubba U.” It was at Bubba U — under the tutelage of folks like Bubba, Harold, Jim, Frank and others who I worked with throughout the years —where I learned so much more about the real world of textiles through mentorships and friendships, not to mentioned various versions of working relationships.
Things like how to handle a fine filament yarn — maybe the size of a human hair at best — that you can barely see, let alone position accurately to thread it into the eye of a 48-gauge tricot knitting machine blade — that’s 48 blades per inch for those not familiar with it. It truly requires a sense of touch that most cannot appreciate. The only viable method of learning this skill, and it is a skill, is to actually do it, which requires figuring out how to grip the fine yarn without losing or breaking it, determine the yarn’s location by its touch on your fingertip and then gently manipulate and guide it into the threading hook and through the hole in the correct blade. Or, why does one fabric style run better on machine #123 instead of machine #321 though each machine is basically identical? Or what affect will a particular setting allow one style to run well, but a similar style won’t run at all? The nuances of working with highly elastic yarns compared to ones with little to no stretch. The useful short-cuts in the design, interface or even ERP programs that are used every day; or the different sounds machines make when they’re running well or right before all hell breaks loose. Some of these examples may be simply attributed to common sense or street smarts, but each is representative of the untold examples of lessons that can only truly be learned through trial and error or with the assistance of an experienced machine technician or operator.
Speaking of which, please allow me a moment here to go on the record and state that some of the most intelligent people I’ve ever met are machine operators and technicians, most of whom truly do not receive the recognition they deserve. Many of these people may not have formal degrees, but they certainly do deserve credit for their knowledge of the machines and systems they operate, in many cases the underpinnings of the companies they work for. And lest we forget or underestimate that little “black book” that many technicians possess containing their most guarded and, in some cases, magical secrets on machine settings for specific products, computer codes, batch formulas and the like. It is definitely worth getting to know a few of these folks.
An additional aspect of learning through a hands-on approach is that one develops a much better understanding of the machines and programs used by the industry and how each relates to a fabric being produced. Directly working with the machines, processes and technologies in the training labs allows one to try and learn different things in a typically more user-friendly environment, without the potential corporate concerns or pressures related to possibly breaking something that could result in shutting down production and impacting customers. Also, from a more practical personal perspective, keep in mind that the more practical experience one gains, the more employable one becomes and the potentially higher wage they can command.
Transition Into The Real World Of Textiles
Understanding the concept of a fabric’s hand and fully embracing the notion of a hands-on work ethic throughout college and on into, if not throughout, one’s textile industry career, will only help to ease the transition into the real world of textiles. Priya Jyotishi, a textile technologist for Propel LLC, Pawtucket, R.I., and graduate of Drexel University with a Masters in Science, Fashion Design and Research, felt her hands-on work during her tenure in school was instrumental to landing her position at Propel. “If I didn’t do that lab work at school, I would likely not have my position at Propel,” Jyotishi said.
“My lab experiences really helped to tie everything together. Drexel teaches both the pattern coding and also working directly on the machine to make the pattern work correctly, which really helped me to understand what works, what to do when you encounter an issue and ultimately how to figure it out. Sometimes it may take a while, but you figure it out and that helps to make the next time much quicker. All very pertinent to my work now at Propel.”
Essentially, today’s textile education experience continues to evolve in order to grow a more well-rounded individual. As noted in Parts 1 and 2 of the original article, various related entities are working towards this through any combination of hands-on lab work, inter-department and industry-specific project collaborations, course work that may require an engineer to take design courses or vice-versa, and internships and apprenticeships. The end goal is to ease an individual’s transition into the textile world and speed up the company on-boarding processes. Companies are responding with increased involvement in these programs along with more direct textile industry support. Here’s to the ongoing success of these efforts and the hope that the fundamentals of hand and hands-on continue to be a vital focus!
May/June 2022
2022 State Of The U.S. Textile Industry
NCTO Chairman David Poston outlined key industry facts and economic data, noting the industry’s rebound in 2021, in his “State of the U.S. Textile Industry” address during NCTO’s 18th annual meeting.
By David Poston
Let me begin by saying what an honor and privilege it is to assume the role of Chairman of the National Council of Textile Organizations (NCTO) after David Roberts stepped down in November.
We all faced a litany of challenges in 2021 but I am proud to stand here today and say that our industry’s resilience and innovative spirit pulled us through and put us on a path of growth.
If 2020 was a year marked by an economic downturn and once-in-a-generation pandemic and health crisis, 2021 was defined by a rebound of remarkable proportions in our industry, nearly on par with the performance of pre-pandemic levels in 2019.
As we are all aware, the headwinds from global supply chain disruptions, rising material costs and labor shortages were strong, but the U.S. textile industry still managed to have a solid year in 2021. Overall, our industry’s performance and growth last year far outpaced the previous year of 2020, and we remain cautiously optimistic.
NCTO has been highly engaged in working with the Biden administration and our allies in Congress to achieve key policy priorities, and we succeeded on many fronts in 2021.
I would like to sincerely thank our staff, led by NCTO President and CEO Kim Glas, as well as our industry leadership for navigating these difficult times and partnering with the administration and key congressional offices on critical policy priorities that impact our daily operations.
As a result of our amazing advocacy efforts, NCTO can point to a long list of accomplishments, ranging from strengthening the Berry Amendment for military contracts to coordinating with agencies on nearshoring and onshoring opportunities and amplifying investment in the hemisphere, fending off proposals to weaken the yarn forward rules of origin in the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and helping secure government contracts to continue producing lifesaving PPE during this ongoing healthcare crisis.
Last month, many of you participated in a number of Zoom calls with House and Senate leadership and with our congressional footprint. Your participation in these discussions matter and are critical to pushing our issues collectively.
Members of Congress demonstrated their interest in helping promote onshoring and nearshoring policies, as well as policies aimed at helping make the domestic and Western Hemisphere PPE supply chain more permanent.
Many thanks to the entire NCTO staff for this enormous effort and to all the NCTO members who participated in these critical discussions.
Before laying out NCTO’s policy wins in 2021, I want to quickly recap how the industry fared last year.
By The Numbers
We began to bounce back strongly from the COVID-19 pandemic in 2021.
Building on innovation, productivity, reciprocal free trade agreements, U.S. trade preference programs and a focus by this administration on domestic manufacturing oriented policies, the U.S. textile industry has maintained its rank as the second largest individual country exporter of fibers, yarns, fabrics and sewn products.
The metrics for our industry were strong last year, as business rebounded from the downturn in 2020.
- In 2021, the value of U.S. man-made fiber, textile and apparel shipments totaled an estimated $65.2 billion, compared with $60.8 billion in shipments in 2021.1
Here are two additional key industry facts:
- U.S exports were also up compared to 2020. Exports of fibers, textiles and apparel were $28.4 billion in 2021, compared with $25.3 billion in 2020.2
- Capital expenditures have remained strong. Investment in yarn, fabric, apparel and sewn product manufacturing in 2020 — the latest figure that we have — hit $1.85 billion. Since 2011, capital investment in U.S. yarn, fabric, apparel and sewn products manufacturing totaled $20.2 billion.
We saw a return to solid growth in our industry and the U.S. manufacturing base as a whole in 2021.
Economic activity in the U.S. manufacturing sector grew in December, marking the 19th consecutive month of overall economic growth, according to a closely watched survey.3
Of the 18 manufacturing industries, textiles and apparel was among the 15 sectors that reported growth in December.
Made in USA production is strengthening as you can see from these metrics, and policies in Washington aimed at expanding Berry and buy American rules are contributing to overall growth in American-made products for the military, PPE and federal agencies.
The Western Hemisphere supply chain remained a key driver behind the industry’s growth and remains a vital economic engine for the textile and apparel sectors.
The U.S. textile industry has made a significant commitment to the region, with an anticipated $1 billion in investments in the CAFTA-DR countries this year alone, as a result of the ongoing supply chain crisis that has forced retailers and brands to reconstitute their supply chains out of Asia and nearshore and onshore more production.
We have $35 billion in annual two-way trade with the Western Hemisphere, which supports 2 million direct jobs in the entire supply chain.
I’m happy to say the short-term and long-term trend in trade flows remains positive and strong, despite the headwinds from two years of sourcing disruptions due to the pandemic.
U.S. textile and apparel exports to the Western Hemisphere rose 6.5 percent to reach $16.1 billion in 2021, compared with 5 years ago in 2016. Similarly apparel and textile exports from the Western Hemisphere to the U.S. are on the rise. These exports from the entire region to the U.S. grew by 6.8 percent to hit $19.1 billion over the same time period.
The bottom line is the fundamentals for the U.S. textile industry are sound and a testament to our industry’s resilience in the face of a perfect storm of supply chain disruptions, rising costs and a once-in-a-generation healthcare crisis.
Based on the growth we are seeing in capital expenditures and strengthened partnerships with our Western Hemisphere partners, the industry is well-positioned to continue adapting to expected disruptions and inflationary pressures and capitalize on opportunities in the year ahead.
Policy Issues
NCTO was at the forefront of policy debates in Washington last year, advocating on every aspect of critical trade and economic issues impacting our industry’s robust performance and growth.
I would like to highlight a few accomplishments NCTO staff achieved during the year.
CAFTA-DR — NCTO worked tirelessly to thwart a well-funded effort by certain apparel importers to undermine the yarn forward rule of origin in the CAFTA-DR agreement to allow third-party textile inputs from Asia to displace U.S. and Central American-made textile inputs. NCTO engaged directly with the administration and Congress to underscore the importance of strong trade rules to the economic stability of Central America, and secured a public statement affirming the administration’s support of yarn forward.
NCTO will continue to monitor any renewed attempts this year by certain importers to dismantle the CAFTA-DR rules.
Personal Protective Equipment (PPE) — We all know how critical it is to garner support for long-term PPE government contracts and policies that will expand the Berry Amendment and establish a permanent domestic supply chain.
In 2021, NCTO led efforts and organized a broad coalition of industry and labor unions to push for the passage of the first Berry-like buy American rule for federal procurement of PPE. The Make PPE in America Act, co-signed by Senator Rob Portman and Senator Gary Peters, was signed into law on November 15 and took effect in mid-February.
There are numerous other issues requiring NCTO’s focus and resources, such as amplifying support for the Section 301 case against China’s intellectual property abuses, promoting tariffs on finished products, including apparel and PPE, the need to pass a new Miscellaneous Tariff Bill with immediate retroactivity, and continued engagement with the Hill on preserving a provision that would effectively dose the de minimis loophole for Chinese imports in underlying legislation aimed at improving U.S. competitiveness.
Time simply will not allow for me to go into detail on all these important issues. With that said, please know that without exception, NCTO is highly engaged on every policy matter that affects the U.S. textile industry with the intent of shaping policy determinations in a manner that directly benefits U.S. textile investment, production, and workforce.
Industry leadership and involvement is of paramount importance. From contributions to NCTO’s TextilePAC to arranging congressional visits to facilities where members of Congress can experience state-of-the art manufacturing first-hand, the industry can make a difference and help raise the level of awareness about its importance to the overall U.S. economy and workforce, and to the local and state economies it supports.
Conclusion
Strong underlying economic fundamentals and expansion in the U.S. and Western Hemisphere in 2021 created a sound business environment for our industry, and we remain optimistic that the business climate will continue this year.
We will closely monitor emerging issues this year, including spiking global fuel prices stemming from the Russian war of aggression on Ukraine and mounting inflationary pressures on consumer products, as well as the multitude of other issues highlighted.
However, if we stay the course and work with our customers and trading partners to mitigate any impacts from the ongoing pandemic and these new headwinds, we believe we can maintain a robust manufacturing environment in the United States.
That concludes my formal remarks. On a personal note, I am honored to serve as chairman of a highly effective organization and dedicated staff, which tirelessly advocates on policies impacting the day-to-day operations of our organizations and this economically vital industry.
I am optimistic about the future, knowing the strength of the industry, buoyed by its incredible trade and lobbying organization in Washington, will overcome emerging challenges and continue to carve out a niche as an important backbone to the U.S. economy and the Western Hemisphere.
References:
1 Bureau of Economic Analysis
2 U.S. Department of Commerce data for Export Group
0 – Textiles and Apparel
3 Institute for Supply Management’s manufacturing index
Editor’s Note: David Poston is founder and president of Palmetto Synthetics LLC, Kingstree, S.C. He was elected NCTO chairman for 2022-23, and Norman Chapman, Inman Mills, was elected vice chairman.
The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS Subsector 313 covers Textile Mills, subsector 314 covers Textile Product Mills and subsector 315 covers apparel.
May/June 2022
