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The US cotton adjustments in October included a small 90,000 bale decrease in forecasted production, which appeared driven from a five pound cut in average US cotton yield.
The biggest adjustments to yield at the state level included a 160 pound per acre increase in New Mexico, a 107 pound per acre decrease in Mississippi and a 72 pound per acre decrease in South Carolina.
While the 2015 crop got off to a late start, it has apparently matured on schedule. It is no longer a late crop. Cotton boll opening and harvest are on par with five year average trends.
Ending stocks likely will either be lower or little changed, year-over-year, which suggests that prices may continue to trade in their long-standing range. There were no adjustments to US mill use or exports. World cotton numbers showed a month-over-month increase of 8,80,000 bales of carry-in from the 2014 crop.
Month-over-month decreases in projected Chinese, Pakistani, and Brazilian production outweighed a small increase in West African production, resulting in a lowering of world production by 1.36 million bales.
However, projected world consumption was also lowered 1.17 million bales, compared to the September projections, with the cuts concentrated in the top textile manufacturing countries (China, India, and Pakistan).
China now accounts for 70 per cent of global production of chemical fibres. The output for 2015 represents an increase of 49 per cent from the 2010 level.
The Chinese chemical fibre industry produces synthetic fibres such as polyester, nylon and acrylics for textiles and apparel and upholstery. Imports of chemical fibre into China have remained at less than a million tons over the past five years and are negligible relative to domestic production.
China has been shoring up its entire chemical fibre supply chain. The country has substantially increased production of the raw materials that go into making chemical fibres. In 2010, 59 per cent of the industry’s raw materials were sourced from within China. That number jumped to 70 per cent in 2015.
It has also increased capacity of high performance fibres. Its bio-based fibre capacity has soared, with an average annual growth rate of more than 100 per cent.
Over the past five years, Chinese chemical fibre companies have had an annual average 3.85 per cent profit margin for bulk chemical fibres and 18.7 per cent for fibres used by the fashion industry. That has driven the enthusiasm of enterprises to develop new products and promoted industrial brand building.
Ahead of a projected increase in the minimum wage of garment workers, Cambodia’s garment manufacturers called for higher productivity in the sector. However, given the industry’s shaky labour relations, some unions questioned their commitment to enhance efficiency.
The Garment Manufacturers Association (GMAC) in Cambodia called for ‘a renewed focus on productivity’, and urged buyers to increase their prices for Cambodian goods, following the announcement this month that 2016’s wage would rise to $140 from the current $128.
Ken Loo, Secretary General, GMAC stated that wages comprise of a massive portion of a factory’s operating costs. Now, they need to see all parties, including the buyers, and focus on improving productivity to help offset rising costs and keep factories economically viable.
Loo also praised the negotiations process to set up the minimum wage, though he criticises the four trade unions that walked out for violating internal rules. His statement, though, did not mention any specific policies to raise productivity.
Coalition of Cambodian Apparel Workers’ President, Ath Thorn, welcomed the move to increase productivity, although he said that if did not improve conditions, output won’t change. He felt that employers need to have skilful management, stop discriminating against workers and also stop using short-term contracts. Besides, Thorn said, employer were hardly interested in upgrading outdated machinery or broad skill straining.
However, Loo mentioned that employers were not holding back productivity; workers though, were resisting small changes too, such as moving someone to a different section of the production line, he added. Loo further said that other policies to raise productivity should be left to individual factories, though the GMAC is building a garment training centre slated to open in September 2016.
www.gmac-cambodia.org
The readymade garment sector in Bangladesh faced challenges from January to March this year due to political unrest. Supply of raw materials and accessories was affected due to the blockade in the first quarter of this year. As a result, garment manufacturers could not manufacture products on time and a good number of factory owners missed their shipment dates.
In addition there are pressures on the readymade garment sector, like devaluation of the dollar in the international market. The sector says buyers want low prices when prices of readymade garments of Bangladesh are much lower compared to other competitors’.
Other issues are lack of productivity and efficiency, shortage of skilled manpower, scarcity of land and high interest rates of bank loans. Entrepreneurs have to pay a 13 to 16 per cent interest on bank loans. More than 250 factories have been shut down due to weak gas and electricity connections.
The country’s garment manufacturers and exporters want a ten-year loan rescheduling facility. They want a withdrawal of the tax at source imposed on the manufacturing sector in the proposed national budget for fiscal 2015-16. They say the one per cent export duty imposed on capital machinery will discourage business.
To recruit firms eager to capitalise on the country’s manufacturing momentum, a state-owned Vietnamese industrial park manager is visiting Atlanta.
A North American road show is being put up by the US office of Becamex IDC Corp., which owns 20 industrial parks across Vietnam including a well-known joint venture with the Singaporean government north of Ho Chi Minh City. The road show will make a stop in Atlanta on October 26, 2015.
The informational event is to be held at the Metro Atlanta Chamber. It includes one-on-one meetings with Becamex representatives, who will share about the advantages of using an industrial park to tap into Vietnam’s low labour costs. Besides, testimonials will be provided by local companies about their experiences in the country.
Vietnam’s fortunes are expected to improve further under the Trans-Pacific Partnership (TPP), a 12-country deal finalised a few weeks ago in Atlanta that still requires approval by all partner nations. Vietnam already has under its belt American brands such as Gap Inc., Intel Corp., and General Electric, among others. The pact would remove tariffs on almost all products shipped between those countries and some would be phased out over time.
Bill Dao, head of Becamex’s Washington state office said that they chose Atlanta as it has a lot of small and medium-sized manufacturing companies. They focus on SMEs as this sector is very active—they’re smart and take action more quickly than the multinationals and big companies, Dao added.
The October 26 event will include garment and shoe, electronics, machinery, home appliances, food and beverage and many more manufacturing industries.
Became.com.vn
Workers’ wellbeing is of prime importance when it comes to manufacturing industries. Workers who have life skills, it has been found, make fewer mistakes, are more productive at work and have lower rates of absenteeism. Besides, if attention is paid to workers’ wellbeing and investment is made thereof, it has several societal benefits, which is the main step in bettering the industry’s work conditions and dealing with the humanitarian crisis of the industry.
Why workers wellbeing is important?
Workers’ wellbeing was promoted by Henry Ford, who was also the first business leader to do this, albeit for business reasons. Costs were rising and production of Model T was being delayed due to worker absences and turnovers. All this was seriously affecting the business’s bottom line. Thus, developing countries that wish to regain their manufacturing competitiveness have to only follow Ford’s example of workers’ wellbeing equals productivity.
Because when their wellbeing is looked into, they feel good about themselves and with their work. And when they’re empowered to become leaders of their own lives, they become motivated to innovate and be creative. Therefore, when workers are equipped with knowledge to develop their emotional and cognitive social skills, along with experiencing life benefits, they become active contributors to their work environments. These skills could range from health, to education, or work.
If a worker, for instance have access to education on civic participation or making financial goals, they become equipped with personal agency, teamwork and leadership skills. If they are in charge of their own health, their mental or reproductive rights, their work and personal lives improve. In totality, all this leads to greater productivity and reduced costs for businesses.
Satisfied worker leads to more productivity
Ileana López, Head of Sustainability at the C&A Foundation, Mexico, wanted to see if Yo Quiero Yo Puedo would be willing to test its life-skills and personal-agency programmes with seamstresses in a dress factory, a few years ago. Mexico is known for its high number of working hours and very low productivity. And at Yo Quiero Yo Puedo (IMIFAP), there are many reports from Mexican businesses of the high rotation of personnel, increasing absenteeism, low worker morale, too many mistakes along the production line, and not enough productivity.
Yo Quiero Yo Puedo, with the C&A’s support, designed and launched the programme—‘Yo quiero, yo puedo… cuidarme y ser productive’ (I want to, I can… take care of myself and be productive).
In this programme, supervisors undergo 40 hours of life skills and knowledge facilitation, and they in turn replicate the programme during 15 minutes a week with their seamstresses. More than 1,200 supervisors and workers have participated and till date 15 companies have been a part of this programme. The programme has made a statistically (and humanly) significant difference in work satisfaction and productivity.
Satisfaction within the workplace increased by 37.5 per cent, reported the participating companies, and the number of supervisors who stated they had a better personal-work life balance tripled. Also, absenteeism dropped by 25 per cent and the number of pieces produced with mistakes was reduced by 60 per cent. Factories improved their efficiency and workers found their power in less than 1,500 minutes of interaction.
Thus, concluding, it is safe to assume the enabling workers’ wellbeing isn’t just limited to the workplace. People recognise they have greater rights and more possibilities, when empowered to direct their own lives and act as agents of change. So, improving workers’ wellbeing should not be transactional (e.g., giving people money, gifts, clothes, etc.) but it must be an intrinsic empowerment.
www.candafoundation.org
Hindustan Zinc trains women in villages of Rajasthan to make designer garments. They are been equipped with skills like embroidery work and trained in intricacies. These women make garments like saris, salwar kurtas, kurtis and kaftans. They are given guidance by stylists.
Hindustan Zinc has been engaged in empowerment of rural and tribal women of Rajasthan since 2006 through formation of self-help-groups. The project has developed product-based clusters to strengthen the social and economic conditions of these women. Clusters of fashion garments, school uniforms, home furnishing, candle making, spices, floor mats, pickle, papad and paper craft have already been developed that have been successful in bringing sustainable empowerment to hundreds of these rural and tribal women.
The company’s focus is to develop a hub of artisans who can help fashion designers from across the country, fashion students and other fashion experts. It is not easy to find such a hub of talent especially in one place and this is expected to be useful for the fashion industry. With this cluster, Hindustan Zinc is aiming to create a sustainable employment for these women. And this is also expected to encourage thousands of rural women to take up this creative art.
www.hzlindia.com
ITMA, which will held from November 12-19, 2015, will have Karl Mayer as innovative market leader who is setting the trend with new technologies and services.
Karl Mayer will showcase that it stands for trend-setting new innovations in warp knitting and warp preparation at ITMA. This is an image, which the manufacturer emphasises by a fresh, modern appearance at the trade fair and by a new corporate design.
A new HKS 2-SE high-speed machine with a unique performance profile will particularly be showcased by Karl Mayer in hall 5, C 101. An important feature is the Low Energy Option (LEO) as a contribution to sustainability.
The manufacturer will also showcase the HKS 4-M-EL high-speed tricot machine. This new tricot machine is a flexible, highly efficient all-round machine, which is equipped with EL control. A multi-bar raschel machine equipped with fall plate, in a working width of 242" and another lace machine for producing lace bands and outerwear is sure to please lace manufacturers.
Two new innovations with the focus on flexibility for the warp preparation sector have been developed by the manufacturer—a sectional warping machine, which can be extended from a standard equipment into a weaving preparation machine for special applications, and a warp sampling machine with a previously unreached working width, thus, opening up new applications.
The size box making a contribution to the subject of sustainability in sizing, and an innovative technology for the denim dyeing sector, that are setting new standards in terms of product quality is another highlight. Moreover, Karl Mayer will also demonstrate that it has extended its all-round technical customer support services on a modular-based concept, together with all these new technical developments.
www.karlmayer.com
The IAF will be an active participant in the Social and Labour Convergence Project which was launched this week on Wednesday October 21, 2015. The project, facilitated by the Sustainable Apparel Coalition (SAC) aims to build an industrywide, standardized methodology for social and labour performance assessment in apparel and footwear supply chains. In short, it aims to substantially reduce the number of social audits performed at manufacturers.
IAF represents the interests of national apparel and footwear industry associations, together representing mainly small and medium sized (SME) industry from over 60 countries. From member surveys IAF has found that both associations representing mainly brands and associations representing mainly manufacturers regard audit fatigue as a major flaw in the global supply chain. They have urged the international federation IAF to take action. On the other hand, IAF members also regard audit fatigue as a problem that the industry should be able to solve through collaboration, as already audits are greatly overlapping.
In this project, IAF’s role will be to focus on the interests of SMEs, both SME brands and SME manufacturers, helping to make sure that results of global harmonization work fully benefit smaller companies as well. Successful collaboration in the entire supply chain, including that of between all sizes of companies will be the cornerstone for success of the project. IAF firmly believes that reducing audit fatigue will not only reduce unnecessary costs, but also free energy and resources needed to take steps that really improve the industry, including schooling, training and capital investments.
Iafnet.eu
For 2015 the US cotton crop is projected at 18 per cent below the 2014 crop. During the previous two decades, the October estimate has been below final cotton production 11 times and above it 8 times.
Upland cotton production is forecast to decrease in each of the cotton belt regions this season. In the southwest, the upland crop is estimated at six million bales. Beneficial rainfall at planting time has reduced expected abandonment to only six per cent, the lowest in five seasons.
In the southeast, the 2015 cotton crop is forecast at 4.3 million bales, the lowest in six seasons as reduced area accounted for most of the decline. Past differences between the October estimate and final production indicate that chances are two out of three that the 2015 US upland cotton crop will range between 12.2 and 13.5 million bales.
US upland cotton crop is forecast at 12.9 million bales, below both last season and the five-year average. Total 2015 US cotton harvested area is estimated at nearly 8.2 million acres, compared with 9.3 million acres last season, and national yield is forecast at 784 pounds per harvested acre. In the Delta, the cotton crop is projected at 2.2 million bales, the lowest since 1983.
