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China has agreed to terminate export subsidies under its demonstration bases-common services platform.Subsidies will be scrapped on a range of products from metals to agriculture and textiles.
This means China has ended a program which provided export subsidies of some billion dollars over three years to Chinese companies in seven economic sectors.
Since it joined the WTO in 2001, China has frequently drawn complaints that its exports are being dumped or sold at unfairly cheap prices on foreign markets. These subsidies were seen as inconsistent with the rules of the World Trade Organization and drew complaints from the US that its domestic textile manufacturers were badly hurt.
China still has other forms of support for industry in place, including relatively cheap and easy credit from state banks, state-regulated power prices that have often favored industry, and low prices for other inputs such as water.
In part, the dropping of the subsidies is an effort by China to move away from labor-intensive production and emphasise more sophisticated industries such as semiconductors. In effect China wants to become a high tech country and move up the value chain.
"The recently concluded Texprocess Americas one of the continuing themes was Made in the USA production and re-shoring resources. It’s somewhat anecdotal and not everyone is benefiting, but clearly some companies are. They include Hickory Brands, a North Carolina firm that specializes in shoelaces and braiding. Tucked away in a small booth at the end of an aisle, Hickory Brands was one of 38 firms housed in the Supply Chain USA pavilion. Hickory Brands supplies the major sporting-goods chains as well as shoe manufacturers."
Texprocess Americas is held alongside Techtextil North America and JEC Americas. The three trade shows cover technical textiles, nonwovens, sewn products and equipment, technology, and composites.
The recently concluded Texprocess Americas one of the continuing themes was Made in the USA production and re-shoring resources. It’s somewhat anecdotal and not everyone is benefiting, but clearly some companies are. They include Hickory Brands, a North Carolina firm that specializes in shoelaces and braiding. Tucked away in a small booth at the end of an aisle, Hickory Brands was one of 38 firms housed in the Supply Chain USA pavilion. Hickory Brands supplies the major sporting-goods chains as well as shoe manufacturers.
Said Richard Schaftlein, Hickory Brands’ vice president, that they’ve been busier than the previous two shows and a lot of it has to do with Made in America.
President of apparel-industry consultancy Alvanon, Edward Gribbin is also among those bullish on re-shoring but notes that the trend doesn’t mean a light switch can be flipped and empty factories will suddenly fill up with workers.
Technology and innovative software on display
The apparel industry now has a new consultancy, or at least venerable consulting services under a new name. Will Duncan & Associateswas formed about six months ago when longtime TC2 consultants Will Duncan and Douglas Adams bought the consulting business from TC2. The company’s chief operating officer, Adams said the move has been successful. He was also pleased with the level of attendance at Texprocess Americas. The new consultancy advises apparel manufacturers on how to take costs out of their businesses through lean manufacturing.
Adams said Will Duncan & Associates typically sets up one pilot line at a factory by teaching employees of clients its process. The consultancy now has clients across the U.S. and in Mexico, Central America and South America.
Cutting technology and innovative software were on display at the stands of two regular Texprocess Americas exhibitors, Lectra and Gerber Technology. The two firms typically have some of the most active exhibits.
New Lectra North America President Jason Adams, attending Texprocess Americas for the first time, said he was amazed at the show’s scope and breadth. He noted the innovative technology and automation that was on display, which he says is a reflection of trends seen in the industry.
Adams is among those who are believers in the re-shoring trend. The ability to bring manufacturing closer to the consumer has driven transport and manufacturing costs down and released more funding for capital equipment, he said. There are benefits across the entire supply chain. Because of that, I believe we’ll see more manufacturers looking at re-shoring as an option. I can even see it becoming a competitive advantage where a consumer chooses manufacturers/retailers based on proximity and how quickly they can deliver.
Visitors were shown Gerber Technology’s Digital Solution, which is an end-to-end, integrated system that passes information from one process to another complete with the software to network smart machines and smart products and enable full collaboration along the way. These products are integrated to enable both the mass production and mass customization of technical textile and fabric-related products and work together to help customers go from concept to market quickly and efficiently, according to Gerber.
A new trend
According to Dave Gardner, managing director of SPESA, a coproducer of Texprocess Americas, that the recent resurgence of textile and apparel manufacturing in the U.S. is a bona fide trend. Among the factors he cites are textile firms from India and China investing in U.S. facilities. Going hand in hand with that is technology that is allowing firms to cut costs and stay closer to their markets. Automation and robotics are key factors, he said.
American & Efird, the global sewing-thread specialist, chose the Atlanta venue to unveil its Colorlink App and a thread color-identification tool called Colorcatch Nano. Colorlink, which is A&E’s first mobile app to focus on thread color, is available for both Android and Applephones and tablets. A&E touts the app as ‘an end-to-end tool’ to connect designers and production managers in the thread color-selection process. The app offers an array of digital color choices and provides more control over thread color selection.
Colorlink also supports Colorcatch Nano, a companion device that is an advanced, hand-held color tool that will identify color on a variety of smooth, structured or patterned surfaces.
One of the most active stands at the show was that of Henderson Sewing, which displayed several uses of robotics. Frank Henderson, the company’s president, said it was one of the best events in the past decade.
Held May 3–5 at the Georgia World Congress Center in Atlanta, Texprocess Americas is part of a co-located trio of apparel-industry trade shows that also includes Techtextil North America and JEC Americas. Together the three trade shows cover technical textiles, nonwovens, sewn products and equipment, technology, and composites. Organised by Messe Frankfurt, Texprocess Americas is held every two years. Messe Frankfurt also produces a Texprocess show in Frankfurt, Germany.
According to Shaikh Mohammad Shafiq, Chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), at present total export of Bangladesh is 33 billion USD out of which textiles is 27.5 billion USD which includes 26.5 billion USD of Garments only. He said, we feel our share has been taken by Bangladesh. We need to fight for it and bring it to our advantage. Their exports are now increasing at 3.5 billion USD / Year and expected to hit 50 billion USD / Year by 2020, and whatever they have been giving in their budget estimate in last three years is coming true.
Pakistan ranks 138 out of 189 on ease of doing business, while last year it was 136. The cost of making garment in Pakistan is almost double ie, US $2.7 in Pakistan and US $1.5 in Bangladesh. The 60 per cent cost component of wages has a vital impact which is 2 times in Pakistan, the other costs that includes energy and financials also burdened due to high tariff.
PRGMEA Chairman continued to cite Government must realize that time has gone when raw material used in textiles (yarn, fabric etc) could be exported. This trend is not going to continue and it is the reason Pakistan is facing serious downfall. Countries have to use their raw material and export only possible in the form of finished products ie., Garments. We must believe in concept that countries have to be completely vertically integrated to use their raw materials in completely finished product.
The 16th edition of Performance Days trade fair that took place recently in Munich, Germany, has come to an end with a 6 per cent increase in the number of visitors.
Organisers reported the increasing satisfaction levels of exhibitors and visitors, which are said to confirm the successful concept of Performance Days, the international trade fair focused on functional fabrics for sport, fashion, and occupational clothing.
In addition to all the major fabrics, fibers, and accessory suppliers, the trade fair provides all pertinent background information required for rapid decision-making.
This edition of the event featured several visitor highlights, including the free hourly presentations, and the discussions of the selection of fabrics at the Performance Forum. For the first time, closed workshops were organized by exhibitors on important subjects related to the trade fair's focus topic and were very well received.
Theevent also featured a lecture about the new colour trends for Summer 2018, as well as the brand new Performance Colors, a colour card developed by designer Nora Kühner, available for purchase as an exclusive service at the trade fair.
This edition of the trade fair was especially rewarding for Japanese exhibitor Toyota Tsusho Corporation, which was selected as the winner of the Eco Performance Award for its Gelanots laminate.
From higher interest in physical well-being globally and by increased participation by women in sports and other fitness activities, the athleisurewear category has had a boost. In the United States, Nike, Under Armour, Adidas, and Lululemon Athletica have seen sales and prices for performance apparel and activewear rise. Spending at more mainstream men’s and women’s clothing and accessories stores appears to have borne most of the brunt of the tilt toward athleisurewear, with spending trends declining steadily in the last five years.
Dollar value growth in the sports apparel category appears to have come from both higher selling prices and higher unit sales. Higher prices have been the stronger driver. As activewear companies have continued to innovate, they’ve also been able to raise prices, particularly for more prominent brands such as Nike, Lululemon, Under Armour, and Adidas.
In the US activewear space, the number-one and number-two players are Nike and Under Armour.1 These two companies have seen apparel sales mushroom over the past five years. Nike’s apparel sales in the North America segment2 have more than doubled, from $2.1 billion in fiscal 2011 to $4.4 billion in fiscal 2015. Under Armour’s global apparel sales have increased from $1.1 billion in 2011 to $2.8 billion in 2015. Most of the growth has come from the US market.
The number-three company in the US athleisurewear market is Hanesbrands, which had $1.6 billion in activewear sales in 2015.Nike, Under Armour, and Hanesbrands together constitute 4.7 per cent of the portfolio holdings of the Consumer Discretionary Select Sector SPDR Fund.
Vietnam textile and garment industry is experiencing tough days as orders have moved from Vietnam to Myanmar and Laos. According to Pham Xuan Hong, Chairman of the HCMC Textile, Garment, Knitting and Embroidery Association, the orders for the second quarter of the year have come, but the number is lower than predicted.
Vu Duc Giang, Chairman of the Vietnam Textile and Garment Association (Vitas) also said at a meeting with the Prime Minister some days ago that many loyal partners have shifted to place orders with producers from Myanmar and Laos, because the two countries enjoy preferential tariffs when exporting products to the US and EU.
Meanwhile, TPP and the Vietnam-EU FTA which offer preferential tariffs to Vietnam’s exports still have not taken effect. Cambodia now enjoys zero percent tariff under the GSP program applied to underdeveloped countries, while Vietnam has to bear a tax rate of 9.6 percent.
Incidentally, Vietnam not only has to compete with Myanmar and Laos which are now attracting orders, but also with Cambodia, which outstripped Vietnam in exports to the EU, one of Vietnam’s largest export markets, in 2015 due to which many Vietnamese small and medium sized garment companies have had to shut down.
American & Efird (A&E) - the largest U.S. manufacturer of industrial and consumer thread, embroidery thread and technical textiles - is acquiring a majority ownership of Vardhman Yarns and Threads from its joint-venture partner, Vardhman Textiles.
Vardhman Yarns and Threads is India’s second-largest manufacturer and distributor of industrial and consumer sewing thread. When the transaction is completed, A&E will own 89 percent of the venture and Vardhman Textiles will own the other 11 percent.
According to Les Miller, A&E’s chief executive, the acquisition of Vardhman Yarns and Threads accelerates A&E’s continued global growth and diversification. Our long-standing blue-chip customer base - including leading global brands, multinational corporations and regional manufacturers - rely on A&E as a mission-critical supply-chain partner.
Miller said that the acquisition will help A&E meet demand for high-quality products in India and increasing international demand for exports from India.A&E, a KPS Capital Partners portfolio company, will invest significant capital and resources in Vardhman Yarns and Threads to ensure environmental sustainability, technological innovation and customer service.
According to the latest market report from Transparency Market Research (TMR), the global textile chemicals market is set to reach US$29bn by 2024. Thus, the global industry is estimated to expand at a CAGR of 3.7 per cent between 2016 and 2024.
Textile chemicals are used on all textile applications such as apparel, home textiles and industrial textiles, and aim to provide a function to improve the textile and optimise the manufacturing process. The research reveals there are “more than 60 classes of functional chemical products are employed in coating and sizing chemicals, colorants and auxiliaries, finishing agents, surfactants, desizing agents, bleaching agents, yarn lubricants and other miscellaneous applications.
In terms of volume, ‘coating and sizing chemicals’ was the largest product segment of the textile chemicals market in 2015, as they provide lust and a silky texture to fabrics, according to the findings. Sizing chemicals are used frequently in the apparel applications industry in order to increase the absorption rate of the fabric.
‘Finishing chemicals’ was the fastest growing product segment in terms of volume in 2015. Colorants and auxiliaries, predominantly used in dyeing and printing of textiles, had significant share in the global textile chemicals market in 2015.
A total of 1,388 out of the 1,452 readymade garment factories inspected by Accord on Fire and Building Safety in Bangladesh are lagging behind the schedule in implementing corrective action plan while remediation in 57 factories are progressing as per schedule. Only seven factories so far have completed all the remediation items suggested by the major European retailers’ platform.
Starting from November 2013, Accord conducted initial inspections at 1,550 readymade garment factories and provided corrective action plans to 1,452 units. During the inspection, the Accord identified 32,726 electrical, 32,033 fire and 19,415 structural safety hazards in the factories.
The result is that 74.80 per cent of the electrical and 50.50 per cent of the fire safety hazards have been corrected while the percentage of correction of the structural safety hazards is 36.80 per cent.
Accord conducted a successful pilot safety committee training program at 56 supplier factories having registered trade unions and the initiative has formed safety committees in 33 of the factories.
If any factory seeks financial assistance for remediation, Accord would facilitate negotiation over the issue between the lead buyers and manufacturers.
Following the Rana Plaza building collapse on April 24, 2013, that killed more than 1,100 people, mostly garment workers, western retailers and apparel brands, in response to public outrage, began a major push to improve safety in Bangladeshi factories linked with their business.
Nigeria is looking at increasing non-oil exports to the United Kingdom and the United States of America. The Nigerian-British Chamber of Commerce (NBCC), Nigerian-American Chamber of Commerce (NACC), Nigerian Export Promotion Council and Nigerian Investment Promotion Council (NIPC) are leading Nigerian exporters and other Nigerian and international stakeholders in the quest for international markets for Nigerian non-oil exports.
The NBCC will next month lead a delegation of Nigerian exporters to London to explore partnership opportunities and showcase Nigerian non-oil exports.
The UK trade mission, which includes private and public sector operators, will include discussions between the NBCC and London Chamber of Commerce and Industry (LCCI) and other stakeholders on how to smoothen the process of Nigerian non-oil exports to UK.
The UK export trade mission comes at the same time that the ban placed on export of Nigeria-originated beans to European Union countries lapses. The EU had in June 2015 slammed a one-year ban on dried beans from Nigeria over poor storage and preservation practice. The Nigeria Agricultural Quarantine Service (NAQS) has assured that the EU concerns have been addressed and the ban may be lifted next month.
Nigeria is also looking at facilitating exports under the African Growth and Opportunities Act (AGOA). AGOA seeks to promote economic growth, trade, and investment in sub-Saharan Africa by providing duty-free access to the US market for some 7,000 qualifying African products until September 30, 2025. AGOA also provides duty-free access to all clothing as well as certain textile exports from countries that qualify under the Act’s ‘wearing apparel provisions’.
