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"The annual Industrial Fabrics Association International’s (IFAI’s) Outlook Conference took place in the US recently. They spent two days networking and putting their finger on the pulse of the economic, legislative and business environment while gathering insights into key issues that affect their future paths."
The annual Industrial Fabrics Association International’s (IFAI’s) Outlook Conference took place in the US recently. They spent two days networking and putting their finger on the pulse of the economic, legislative and business environment while gathering insights into key issues that affect their future paths.
Senior economist with Wells Fargo, Tim Quinlan kicked off the conference with an in-depth look at the economy. He foresees continued moderate growth, led by the domestic consumer and housing, and added that the below-trend growth in the GDP will continue. Though trade has been a drag over the last two years, domestic growth has held up well, Quinlan said. The problem is we don’t have a significant boost from trade, he said. On international front, Quinlan pointed out that growth in China has stabilised but his group does not expect it to return to the double-digit growth rates seen in the past.
Impact on synthetic fibers
Alasdair Carmichael of PCI Wood Mackenzie noted that daily West Texas Intermediate (WTI) oil prices had increased 23 per cent (to $47.4 per barrel) from April 1 to May 16, reaching its highest since November 2015. He presented an overview of the impact of oil and natural gas on synthetic fibers. He noted that crude markets are poised for a rebound and gas markets will continue to range from $3 to $4 per MMBTU in North America for the next few years. For US fibers, this means when there is no supply demand constraints in petrochemicals, then oil is going to be the leading price driver – but not on a one-for-one basis.
John Macaluso, industry manager ¬¬of Building and Construction, Teknor Apex noted that PVC (thermoplastic polymer) is the third most widely used plastic and can be compounded with various additives to provide a desired performance. It also is recyclable reviewed the flexible PVC supply chain, cost drivers and trends, he added. He pointed out that oil remains the overall cost driver. Natural gas is expected to stay comparable to 2015, on average, he added. Other cost drivers include the export market, polymer demand (ethylene) and North America supply and demand. He concluded by saying that polyester continues to dominate the fiber landscape, and industrial textile growth rates are higher than apparel and household textiles.
Trade and legislative update
Joshua Teitelbaum, Deputy Assistant Secretary of Commerce for Textiles, Consumer Goods and Materials in the US Dept of Commerce, presented a trade and legislative update, notably the Trans-Pacific Partnership. He said the TPP includes strong rules protecting intellectual property rights and promoting e-commerce, and disciplines are placed on state-owned enterprises. The textile chapter of the agreement provides new commercial opportunities for US brands and retailers and takes into account the interests of US producers. Strong customs enforcement, rules of origin and market access are key elements related to the textile segment, he said.
Strong enforcement and cooperation provisions to prevent fraud are included, as well as a special safeguard mechanism, said Teitelbaum. Rules of origin include a yarn-forward provision that promotes TPP region supply chains and keeps the benefits of the TPP in the US and the TPP region. Additionally, the short supply list permits some flexibility but limited “cut-and-sew” exceptions, he said.
Lloyd Wood of the Lloyd Wood Group and the National Council of Textile Organisations (NCTO) spoke on the Berry Amendment Textile Coalition (BATC). The BATC, an informal organization, aims to protect and grow the Berry Amendment and includes four industry trade associations: the USIFI, the NFI, the NCTO and the American Fiber Manufacturers Association (AFMA). The Berry Amendment requires DoD funds be used to buy items that are only wholly of US origin.
The conference was co-developed by the United States Industrial Fabrics Institute (USIFI) and the Narrow Fabrics Institute (NFI), divisions of the IFAI. This leadership symposium for the specialty textile industry brought together technical textile executives and decision makers to focus on matters that affect the industry in the near and long term.
"Brand Patagonia had commissioned a study to find out how many synthetic microfibers—the tiny bits of plastic that marine scientists say could be jeopardizing our oceans-are shed from its jackets in the wash. And the results aren't encouraging. It all started on a beach in Southwest England in early 2000. Richard Thompson, then a senior lecturer at Plymouth University (where he now serves as a professor of marine biology), was leading a team of graduate students researching microplastics in marine environments."
Brand Patagonia had commissioned a study to find out how many synthetic microfibers—the tiny bits of plastic that marine scientists say could be jeopardizing our oceans-are shed from its jackets in the wash. And the results aren't encouraging. It all started on a beach in Southwest England in early 2000. Richard Thompson, then a senior lecturer at Plymouth University (where he now serves as a professor of marine biology), was leading a team of graduate students researching microplastics in marine environments. Examining samples of sandy sediment, they expected to find degraded bits of marine plastic from decades-old flotsam or plastic beads that were becoming widely used in cleaners. To their surprise, most of the plastic fragments were fibrous, which meant that they likely came from clothing, rope, or some types of packaging.
The Mark Browne study
Then, in 2011, Mark Browne, one of Thompson’s former graduate students, published a study in which he examined sediment sampled from 15 beaches around the world. He found high concentrations of polyester and acrylic fibers in samples taken near wastewater treatment plants. He then ran a polyester fleece jacket through the wash and filtered 1,900 fibers (fibers that otherwise would have gone to the local wastewater treatment plant) from the wastewater. Browne started reaching out to apparel makers to see if they’d help fund research to study this issue more deeply. Eventually, he hoped, finding tweaks to fabric design or apparel construction that would stop the microfibers from entering wastewater. He received one offer of help from a women’s clothing brand Eileen Fisher, but Patagonia, Columbia, and other big brands declined to comment saying they didn’t know if the fibers were anything they needed to worry about
Fibers catch the eye of the people
Fast-forward four years later the fibers finally caught everyone’s attention. Studies further showed, wastewater treatment plants couldn’t filter out all synthetic fibers and toxins such as DDT and PCBs can bind to them as they make their way into watersheds, it also showed that small aquatic species ingest the fibers and fish and fish dealers sold for human consumption also contain microfibers. Experiments have shown that microplastics can lead to poor health outcomes in some species and research is underway to find out how the plastics affect humans.
Jill Dumain, Director of environmental strategy at Patagonia was one of the many watching all the news interestingly. In early 2015, she and the company’s leadership decided to commission a study to find out if and how her company’s iconic and well-loved fleece and some other synthetic products were contributing to the problem. The results recently came in, and they’re not very good.
To try to get ahead of the problem, Patagonia and other apparel companies have decided to research new yarn and fabric constructions to determine whether microfiber shedding can be addressed through better design, something that’s already happening in Europe.
Silk weavers in Chattisgarh will get skill up-gradation training in silk weavers at four block handloom silk clusters - Baloda, Navagarh, Dabra and Babnidih in Janjgir-Champa district to promote handloom silk industry. The training will be imparted by the Department of Rural Industries, government of Chhattisgarh. Meanwhile, the Ministry of Textiles has sanctioned six handloom clusters for the state.
Tussar silk is produced at Bastar, Surguja, Korba and other parts of the state. Cocoon is grown on sal, saja and arjuna trees. Tribals collect cocoon from these trees and later they sell in local markets. Tussar fabric weavers procure cocoon from local markets. Cocoon is boiled and silk fiber is produced. Raigarh and Janjgir-Champa are two major districts of tussar fabric production. Champa, Baloda, Shakti, Chandrapur, Seoni, Kurda, Amoda, Choriya and Birra in Janjgir-Champa district are dense silk weaver pockets while Raigarh city, Murra, Sarangarh, Loying, Kabirnagar and Tarpali are dense silk weaver pockets in Raigarh district.
Home furnishing, dress materials, dupatta, shawl and other items are major production at Champa while Raigarh town, Chandrapur and Sarangarh are major tussar silk sari production centres. Every year, around 350 metric tonne silk yarn is prepared in Chhattisgarh. Around 60 crores direct or indirect export is done through tussar silk and around 53 lakh meter kosa silk is prepared every year in the state. Thousands of rural people depend on handloom industry.
The Indian textile industry may import more cotton than estimated as domestic production might be less than expected 352 lakh bales and also international cotton prices are lower than Indian prices. In the last few weeks, there has been a steep hike in cotton prices, by about Rs 6,000 a candy which is a matter of concern to the textile industry for which cotton is the main raw material.
Cotton price (Shankar – 6 variety) is now Rs 39,600 a candy compared to Rs 34,300 in April and Rs. 34,000 in January this year, according to data obtained from sources in the trade. Prior to that it has been fairly stable in the Rs 32,000 to Rs 34,000 range between January and In January last year, the price was Rs. 32,000 a candy.
This has hit the acquisition prices for textile mills that do not have stock of the raw material. The mill gate price is more than Rs. 40,000 a candy. This is an abnormal increase, according to C Varatharajan, President of the South India Spinners’ Association.
However, sources in the Ministry of Textiles are not worried as there is sufficient availability of cotton. Both imports and exports are at the expected levels. Prices also depend on market sentiments, said a senior official in the Ministry of Textiles. At its meeting in February, the Cotton Advisory Board estimated imports to be 11 lakh bales and exports to be 70 lakh bales this year.
With its special collection based on Tencel lyocell fiber, LE Textile GmbH is offering a soft, supple handle, the typical look of a natural-fiber product, and outstanding comfort. These soft fabrics also offer advantages for the environment. LE Textile has focused on the environmental aspects in its use of materials and production processes.
A pioneer in the production of warp knits labeled as ‘sustainable,’ LE Textile is known for its old name of Elastic Textile Europe. The company, which is based in Neukirchen produces stretch fabrics and lace for lingerie, swimwear and sportswear. Products produced by LE Textile are also used in the medical sector and industry, e.g. in the automotive sector. This warp knitting specialist has many years of experience and a history of dynamic development – strengths that it has brought to its association with the Lauma Fabrics Group. Since 2013, the company has belonged to this Latvian-based manufacturer, and is now known as LE Textile. Meanwhile, the Lauma Fabrics Group said that it fully supports the ecological ethos of its German subsidiary.
The TPP agreement is Canada’s first free trade agreement that contains a chapter specifically dedicated to textiles and apparel. According to Global Affairs Canada, the TPP’s textile and apparel rules of origin will provide Canadian producers more flexibility in sourcing options, opening up Canada’s access to trade with the other member states.
For Canadian textile retailers and producers, the TPP reduces and eliminates tariffs associated with trading textiles and apparel between member states. Taking advantage of the TPP’s preferential tariff treatment by trading with other member states could result in significant cost savings for retailers and producers in Canada. The specific rates of preferential tariff treatment, including the base rates of duty applicable to each item and the timeline for tariff elimination, can be found in each member state’s Tariff Elimination Schedule. Generally, for an end product to qualify for preferential tariff treatment, it must originate within the TPP region in accordance with the Agreement’s rules of origin.
The TPP offers the Canadian textile industry expanded and preferential access to many strategic global markets. To the extent that Canadian textile and apparel retailers and producers are able to organize their operations in such a way as to work within the TPP’s new textile and apparel rules of origin, they will have the opportunity to take advantage of significant reductions in the rates of duty with which they contend when importing products into Canada.
Central America's largest event dedicated to wide format printing and textile decoration FESPA Mexico 2016 will open from August 18-20, 2016 at Centro Banamex, Mexico DF. The event will encourage visitors to seek new horizons through exploration and discovery of latest trends and innovations.
With floor space completely sold out, visitors can unearth a plethora of products and solutions across wide format digital and screen printing, garment décor and signage, as well as enjoy a thoroughly packed seminar programme and exciting competitions including Wrap Masters Mexico.
Exhibitors at the event include international exhibitors such as Multicam, Caldera, ESKO, Gildan, MTEX, Ricoh and STS Inks. Regional distributors such as Celupal, a Mimaki partner, Sain Soplai and Zund distributor, Delta E Cero, will also showcase their latest technology. For visitors involved in the decision-making process, it is a crucial opportunity to learn about the advanced machinery available for their business.
FESPA's recognition as a landmark regional event is reflected by support from leading companies such as Roland and MTEX Solutions as Event Sponsors, MS Printing Solutions as a Solutions Partner and global brands HEXIS and MUTOH supporting the onsite Wrap Masters Mexico competition.
The textile and clothing industry in Indonesia fulfils a vital role in the country's economy, it being the largest source of manufacturing employment in the country. In 2015, it was the second largest source of exports. The industry is involved in almost every sector of the textile supply chain including yarn production, weaving, knitting, dyeing, printing and finishing and clothing manufacture and there is a large man-made fibre industry. In recent years, the domestic market has been expanding significantly as prosperity has risen and wealth has spread, and it is set for further growth. However, these developments have made the domestic market an attractive target for foreign suppliers. Imports are rising and the domestic market has been well supplied by cheap imports from China. Also, illegal imports appear to be a significant and growing problem. Looking ahead, there are ambitious plans for further expansion of the textile and clothing industry in Indonesia.
The government is encouraging foreign investments and has set targets to increase the industry's share of global textile and clothing trade by 2020. A recent study looks at the development of textile and clothing industry in Indonesia, its size and structure, textile and clothing production, and production technology and machinery. The report also features: a geographical, political and economic profile-detailed analysis of the country's imports and exports; a review of government policies, investment incentives and foreign investments; an analysis of the industry's strengths, weaknesses, opportunities and threats (SWOT); and insight into Indonesia's infrastructure and human resources and how these affect the textile and clothing industry.
After reforms in foreign direct investment (FDI) regime, the government is likely to take up a more measures to boost the labour-intensive textile industry. The Cabinet is also likely to take up the National Textiles Policy-2016. In the works since last year, the policy aims to achieve $300-billion exports by 2024-25. India exported $36.25 billion worth of textile and related goods in the last financial year, a drop of 2.4 per cent from 2014-15. Competing nations Bangladesh and China have been blamed for aggressively edging out Indian exporters from traditional markets like Europe. The high price of domestic cotton, coupled with heavy duties on import of cheaper Chinese varieties, also hampered production of cotton goods, said an expert. Cotton-based readymade goods, among the highest foreign exchange earners, fell two per cent; cotton fabrics fell more than four per cent. The new policy also aims to create 35 million jobs by 2024-25. "The policy rests hugely on job creation as we have set a target of doubling the total number of people currently employed in the sector," a ministry source said on conditions of anonymity.
The Cabinet might also soon take up a review of the India-Korea Free Trade Agreement. The government is currently reviewing the trade agreement with South Korea and is expected to update it soon. India's CEPA with South Korea was implemented in January 2010 to liberalise trade norms. Bilateral trade, estimated at $16.58 billion in 2015-16, is heavily in favour of South Korea. India's exports to South Korea fell nearly 23 per cent in 2015-16 to $3.54 billion. Indian companies have sought a review of trade agreements with other nations that they claim have benefitted the country's trading partners more.
"The Union Cabinet, has approved incentives to boost job creation, manufacturing and exports in the labour-intensive textile sector. The move comes in the backdrop of the package of reforms announced by the government for generation of one crore jobs in the textile and apparel industry over the next three years. It includes a slew of measures that are labour friendly and would promote employment generation, economies of scale and boost exports."
The Union Cabinet, has approved incentives to boost job creation, manufacturing and exports in the labour-intensive textile sector. The move comes in the backdrop of the package of reforms announced by the government for generation of one crore jobs in the textile and apparel industry over the next three years. It includes a slew of measures that are labour friendly and would promote employment generation, economies of scale and boost exports. The steps will lead to a cumulative increase of $30 billion in exports and investment of Rs 74,000 crores over the next three years.
What’s more the majority of new jobs are likely to be for women since the garment industry employs nearly 70 per cent women in their workforce. Thus, the package would help in social transformation through women empowerment.
The salient features of the package are:
EPF scheme reforms: Under this the government will bear the entire 12 per cent employers’ contribution to EPF scheme for new employees of garment industry for first three years who are earning less than Rs 15,000 per month. At present, 8.33 per cent of employer’s contribution is being provided by government under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY). The ministry of textiles will provide additional 3.67 per cent of the employer’s contribution amounting to Rs. 1,170 crores over next three years.
Overtime hours for workers not to exceed 8 hours per week in line with ILO norms. This will lead to increased earnings for the workers.
Introduction of fixed term employment: With seasonal nature of the industry, fixed term employment shall be introduced for the garment sector. A fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowanced and other statutory dues.
The package also breaks new ground in moving from input to outcome based incentives by increasing subsidy under amended-TUFS from 15 per cent to 25 per cent for the garment sector as a boost to employment generation. A unique feature of the scheme will be to disburse the subsidy only after the expected jobs are created.
In a first of its kind move, a new scheme will be introduced to refund the state levies which were not refunded earlier. This is expected to cost the exchequer Rs 5,500 crores but will boost competitiveness of Indian exports. Drawback at All Industries Rate to be given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme.
The provision of 240 days under Section 80JJAA of Income Tax Act would be relaxed to 150 days for garment industry.
