The Rupp Report: Good News From The Markets

As mentioned last week, the Rupp Report’s intention has been to inform

Textile World
readers about the upswing of the textile industry in general and the textile machinery
sector in particular. This week,

can start with some good news. The only odd thing for all the manufacturers who will be
covered is certain short supply caused by a strong downturn among the subcontractors. The first
stop is Belgium.

At Belgium-based Picanol N.V., Marketing Manager Erwin Devloo mentioned a general upswing and
that the weaving machinery supplier is already recording “an above-average order income” than
before the global financial crisis.

Improved Market Situation

Devloo confirmed that the economical situation for Picanol is far better than at the same
time last year. The only financial concern is that the exchange rate of the U.S. dollar compared to
the euro is unfavorable for both sides. And just like the cotton, it is not only the value of the
currencies, but also the volatility of the financial situation that makes the markets irregular and

However, there is more good news than bad news: It was obvious to ask the question about the
upcoming regions where Picanol is having stronger sales. In general, the whole world is showing
increased interest and order activities. On top of the list is Asia, particularly China and —
surprisingly — India. In spite of all the millions of handlooms in India, Devloo said Indian mills
are heavily investing in modern weaving machines and that Picanol is enjoying close to 100-percent
market share. The reason for these Indian investments in weaving machines is that the Indian mills
are becoming more and more involved in garment manufacturing, and therefore need a lot of quality
fabrics and, consequently, up-to-date production equipment.

ITMA In Focus

The rhythm of three ITMAs three years in a row — Asia-Europe-Asia -— is an ongoing big issue
within the textile industry and, in particular, for the machinery manufacturers. To have a clearer
picture about the next ITMA shows, Devloo mentioned that the industry has to wait for the results
of ITMA Europe next year in Barcelona, Spain. The important question for him is whether the Chinese
visitors will be coming to Europe. Nevertheless, Picanol’s booth size will be about the same as it
was in Munich, Germany, in 2007.

Is Devloo expecting very much from the forthcoming ITMA 2011 in Barcelona? “Oh yes, I’m
expecting a lot,” he says. “There are many advantages to running an exhibition in Barcelona: First
of all, it’s a beautiful city, the infrastructure is good, the exhibition center is very modern and
up-do-date and there is an easy access to Barcelona, and the flight connections are not too

So will ITMA Europe survive in the long run? “I am sure,” Devloo says, “as long as there are
European textile machinery manufacturers.” Let’s see.

November 23, 2010