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Myanmar has making a comeback to the textile and apparel business as the country with the most potential to emerge as a formidable player among garment-producing nations, says a study. Myanmar has deep experience in the textile industry but does not cover all parts of the value chain. However, foreign direct investment tripled in the last two years emphasising the high potential, points out Kurt Salmon Global Sourcing Reference. Kurt Salmon, a leading global strategy consulting company focused on the retail industry, conducted the survey based on production cost indices (PCIs) of six garment-producing nations Bangladesh, China, India, Morocco, Myanmar and Turkey.
Bangladesh is the most attractive destination for European retailers among the six nations due to its competence in the supply of quality products at competitive prices, according to the study. The firm analysed import data of apparel items from the six countries from 2005-15. On the other hand China is in the second position because of higher costs of production and a dearth of skilled workers.
Production costs in China are almost reaching the level of Eastern Europe and it no longer has transportation lead times, as a consequence, considerably less sourcing flexibility, its competitive strength is eroding rapidly, the study said. China is no longer a low-cost production country. Wages have tripled over the last decade and productivity gains were unable to level out this effect on overall production costs.
Ongoing efforts to improve social and infrastructural conditions, such as the established minimum wages in Bangladesh and Myanmar, indicate further increases in sourcing costs for the future Bangladesh is gaining market share in sourcing for Europe and North America, the report said.
Denim apparel shows a clear move away from China, which lost 7 per cent in 2014, while most other markets have been able to strengthen their position. Looking at the example of denim, Turkey, Tunisia and Poland have been able to expand their position, although cost structures are significantly higher than in the traditional low-cost Asian countries.
High visibility apparel is a type of personal protective equipment -- a clothing that has highly reflective properties or a color and is easily discernible from any background. Manufacturing of this kind of apparels began in 1964 in the UK. Nowadays, with focus on workers’ security production and demand have increased steadily.
High visibility apparel provides style, comfort and above all safety and protection for workers. This kind of a rise in high visibility apparel can lead to various factors like rapid industrialization in developing countries mainly in Asia and Africa, advances in wearable technology, and the use of environmental friendly products like (recycled polyester and golf jacket fabric) and bringing stringent legislation. Stringent legislations have increased awareness among larger audience and led to safety campaigns which have augmented awareness.
Wearable technology is becoming increasingly prominent in high visibility apparel as a result of recent technological developments in this area—including washable high visibility garments which incorporate light emitting diodes (LEDs). Garments that provides high level of comfort and equal protection is in great demand.
Fashion wear, promotional apparel, recreational wear, sportswear and even pet wear are some of the high visibility apparel in use. The trend has increased with a number of companies turning making high visibility T-shirts, joggers, tights etc.
Total yarn production in India is likely to remain flat in 2016-17. This is on account of an estimated 2.1 per cent fall in cotton yarn output. However, synthetic yarn output is expected to grow by 3.4 per cent due to a healthy demand for the yarn in the domestic market as well as overseas markets.
In 2016-17, high cotton prices drove yarn manufacturers towards synthetic fibers which were priced lower. Demand for cotton yarn from China, the largest buyer of Indian cotton yarn, declined. Demonetisation also affected yarn output during the year. Total yarn production is likely to increase in 2017-18. During the year, total yarn output is likely to grow 3.8 per cent. Production of cotton yarn is expected to rise by 4.8 per cent. Synthetic yarn output is likely to grow by 2.3 per cent during the year.
In 2017-18, demand for yarn in the domestic market is expected to be healthy. This is likely to be backed by an increase in yarn purchases by manufacturers of apparels, home textiles and fabrics. Factors such as urbanization, rise in per capita income, favorable demographics and a shift in preference for branded products will boost the demand for these products in the domestic market.
The US is the largest exporter of cotton, accounting for 29 per cent of global exports. Exports for 2016-17 is forecasted to increase 53 per cent year-on-year. This is mainly driven by higher demand from Taiwan and China.
As a result, the US share of global cotton exports is set to reach 39 per cent, the highest level seen in six years. Prices shot up in July after Chinese cotton stocks were forecast to fall by 1.9 million tons y-o-y to touch 11.3 million tons in 2016-17, raising concerns over low supply. These speculations caused panic buying in the market, which saw prices rise. In fact, Chinese cotton stocks have been revised down further, currently forecast at 10.7 million tons, down 15 per cent y-o-y.
For the upcoming 2017-18 season US cotton planted area is expected to rise by over 20 per cent y-o-y. As long as the weather remains favorable, production would be expected to rise. This is the second consecutive year that global ending stocks have fallen. Ending stocks are forecast down six per cent y-o-y for the current 2016-17 season and down 19 per cent since the 2014-15 season. This is mainly driven by reduced ending stocks in China, as well as global consumption outweighing production.
Pakistan’s textile and clothing exports rose 6.2 per cent year-on-year in March. The increase was mainly due to value-added products such as garments. Customs duty was brought down to zero from four per cent. Likewise, sales tax was brought down to zero from five per cent.
Exports of value-added products grew during the month, both in terms of value and quantity. Exports of readymade garments rose by 19.5 per cent and that of knitwear grew by 5.4 per cent. Exports of bed wear edged up by 5.4 per cent and those of towels 15.8 per cent during the month. Exports of cotton yarn witnessed a year-on-year increase of five per cent while those of cotton cloth and yarn, other than cotton, dropped by 5.5 per cent and 26.9 per cent.
Made-up articles exports, excluding towels, increased by 16 per cent, while export of tents, canvas and tarpaulin grew by 71.8 per cent. The country is looking for a $500 million increase in textile exports in the next three months.
Pakistan is helping the entire textile sector chain to adopt and upgrade new technologies. Funds have been allotted to carry out research activities and bring about a qualitative improvement in industry-academia linkages.
Poor implementation of laws and excessive attention to garment sector are the major challenges for ensuring workplace safety in Bangladesh. This was reiterated at a social dialogue on ‘Safety Situation at Workplace: Progress, Challenges and Remedy,’ jointly organised by Debate for Democracy and Bangladesh Occupational Safety, Health and Environment (OSHE) Foundation. The speakers also listed the absence of compensation standard, lack of training and awareness about occupational and health safety at workplace, poor and irregular monitoring and no special scheme for workers in the government safety net programs as other challenges.
In 2016, some 1,240 deaths occurred in different workplaces while the highest number of death-486-had been recorded in the transport sector followed by 147 in construction, 88 in garment, 87 are agricultural labour and 69 day labourers. Between 2012 and 2016, 4,616 workers died, while 4,373 were injured due to workplace accidents in the country. The presentation also included the progress so far made in recent years including occupational health and safety policy and move to reform the national council for industry, health and safety, assessment of some 3,500 garment factories under the national initiative and western retailers' platform, database of some 4,808 garment factories, upgrade of chief inspectorate office to a full-fledged department and insurance scheme for construction workers.
State minister for labour Mujibul Haque said about 20,000 inspectors would be needed to inspect some 8.3 million industrial units across the country and this would require much time. Though there is a specific law regarding child labour, children were employed as domestic workers, the minister said, admitting that labour law is not fully implemented.
Explaining the progresses especially after the Rana Plaza building collapse, the minister said the government was continuing its activities in compensating workers taking into consideration the socio-economic condition of the country. OSHE chairperson Rezwana Saki, former fire brigade director general Abu Nayeem Md Shahidullah, and BUET professors Ishtiaq Ahmed and Rowshan Mamtaz were also the part of the discussion.
Thai chemicals producer Indorama Ventures (IVL) has entered into a definitive agreement to acquire Glanzstoff Group, a major European manufacturer of tyre cord fabrics and single-end-cords (SEC) for high performance tyre applications.
Glanzstoff offers a broad range of solutions in tire cord fabrics and single-end-cords in high-performance rayon, aramid, nylon 6.6 and polyester in addition to hybrid filament yarns for the high-growth and high-performance automotive applications. Glanzstoff is Europe’s largest converter for tire cord fabrics and a global leader in SEC and is vertically integrated into high tenacity Rayon technology. It has manufacturing sites in Luxembourg, Italy and the Czech Republic.
Aloke Lohia, Group CEO of Indorama Ventures says the acquisition provides a unique opportunity for Indorama Ventures to consolidate its leadership position in the tire cord business and strengthens our high value-added (HVA) portfolio.
IVL entered the high-growth tire cord business following the acquisition of PHP fibers in 2014. Thereafter, it acquired Performance Fibers in 2015 and created a global scale as a result of these acquisitions. The company continues to invest and announced sizeable expansion of its tire-cord manufacturing line at Performance Fibers in Kaiping, China in January. On a pro forma basis, the combined revenue of PHP Fibers, Performance Fibers and Glanzstoff in 2016 was $602 million. On an all-inclusive basis, the HVA segment of IVL achieved sales revenue of over $2 billion in 2016.
Lohia says the company continues to pursue a transformational journey to consolidate our leadership position and pursue profitable growth opportunities in the high value-added segment. The Glanzstoff platform will expand the footprint beyond polyester and nylon 6.6 by entering into rayon technology. It focus remains on delivering best-in-class propositions, while driving our global innovation agenda to strengthen the company’s capabilities in the value chain in which we are present.
India may be the world’s number one home textile supplier in the coming years. Right now China is the world’s largest home textile producer. India’s home textile industry is expected to grow at a CAGR of eight per cent to reach $5.29 billion by the end of 2018. Curtains and upholstery, rugs and carpets will be some of the top growing home textile categories in the coming year, posting a CAGR of eight per cent and 9.4 per cent.
India is responsible for almost 21 per cent of towels in the global market and has a 19 per cent share in the global bed linen market. India is also one of the top suppliers for the world’s biggest home textile consuming market, the US. Increasing efforts in quality improvement, innovations through R&D and value-added features have helped India’s home textile products become more popular in the global market.
The home textile sector in India is the second largest employer in the country’s textile industry after the apparel sector. The made-up sector includes products like towels, bed sheets, blankets, curtains, crochet laces, pillow covers, embroidery articles and other home textile products. This sector gets production incentives and subsidies similar to what the garment sector gets.
The H&M group has made a landmark pledge to use 100 per cent recycled or sustainable-source materials in its products by 2030 as a part of its commitment to be “climate positive” throughout its supply chain. The commitment was announced as retail giant published its 2016 Sustainability Report.
This Swedish company which owns the eponymous H&M chain is also aspiring to become climate positive throughout its value chain by 2040 by reducing electricity use in H&M stores by 25 per cent by 2030 and by using 100 per cent renewable energy in its own operations.
The H&M group is stepping up its ambitions and announces a new goal closely connected to its circular approach; to annually collect at least 25,000 tons of textiles in its stores by 2020. In total, 39,000 tons of textiles was collected which is equivalent to 196 million T-shirts since the start of the Garment Collecting initiative in 2013.
Regarding sustainable production process, H&M aims to achieve zero discharge of hazardous chemicals in production procedures and complete installation of water-efficient equipment in H&M’s operations by 2020 and. Talking about this ambitious step, Karl-Johan Persson, CEO of H&M Group stated the company has always been important to act in a way that makes it possible not just for the present but also future generations to enjoy fashion.
Anna Gedda, Head of Sustainability at the H&M group said in a statement the company wants to use size and scale to lead the change towards circular and renewable fashion while making our company more fair and equal this is the reason why the company has developed a new strategy aiming to take our sustainability work to the next level.
The VDMA Textile Machinery Association will host B2B forums and technology conferences on November 6, 2017 in Charlotte (NC), USA, and on November 8-9, 2017 in Mexico City. Experts from well-known VDMA member companies will be present practice-oriented technology topics to decision-makers from the local textile industry.
Germany holds the top position in Europe and world-wide with €13 billion in annual sales in technical textiles. The this event is aimed at technical management, production managers, quality and maintenance managers as well as mill owners, among other decision-makers. The event will also focus on sustainability and recyclability.
This year's partner countries are Austria and Switzerland; and the host city for this important European textile conference is Dresden, which is Germany's center for lightweight engineering and one of the leading German locations for new materials. The event will have presentations along the entire textile chain will show how to increase competitiveness by innovative technology, higher productivity, resource efficiency, higher value-added textiles and industrial internet. The networking will be supported by B2B, interactive discussions with the professional audience and by a conference dinner in a comfortable atmosphere.
