FW
The Australian Wool Exchange Eastern Market Indicator (EMI) rose 18 cents per pound last to close at $14.81, following a three-week seasonal break in sales, amid a drought that’s hindering supply. The price-rise is being led by Merino fleece and skirtings. European countries top the list of buyers for Merino fleece types of wool.
The strong support for these wool from both Italian operators and forward sellers eventually forced Chinese buyers to accept prices are not likely to fall further and they need to join in to secure immediate supply requirements. According to AWI weekly market summary, foreign exchange rates of the US dollar versus the Chinese yuan continues to be the major influence in a much of the negative sentiment around the wool price emanating out of China.
As AWI states, the rate has seen the value of the dollar appreciate by almost 10 percent against the yuan in just a few months. At the same time, the exchange rate of the US dollar versus the Australian dollar has remained stable, trading in the 0.736 to 0.747 range for two months. AWI adds that continued price strength will help alleviate drought affected growers feeding costs to help ensure future wool production.
Alliance for Bangladesh Worker Safety is set to leave Bangladesh by the end of the year. And so would the European buyers’ platform Accord on Fire and Building Safety in Bangladesh. These global buyers’ bodies were formed in the wake of the tragic Rana Plaza incident, to carry out inspection and remediation of apparel manufacturing units in the Bangladesh readymade garment sector.
However, more than 180 European brands have reportedly warned that if Accord is shut down, leaving workers in unsafe working conditions, they might reconsider their sourcing decisions. Accord would like to continue till the work of remediation which started in May 2013 is completed and a sustainable and adequate national regulatory structure is implemented to regulate workplace safety in the Bangladeshi garment industry.
The industry in Bangladesh does not think the exit of the buyers’ bodies would have any business implications. The view is Bangladesh has already achieved a good workplace environment through team work, a positive attitude, and huge investments and that if some factories still lack in achieving those goals, that will be corrected. This is at a time when the readymade garment industry in the country is standing at the cusp of the next phase of growth.
"These fibers, made from polyester or other popular synthetics, often linger in the environment, just like plastic packaging that coats so many of the world’s beaches. They also bond to chemical pollutants in the environment, such as DDT and PCB. Additionally, the fact that the textiles from which they are shed are often treated with waterproofing agents, stain- or fire-resistant chemicals or synthetic dyes, proves them to be harmful to organisms that ingest them. In fact, we consciously or unconsciously consume microfibers through our food and drink. As recently published studies indicate some microfibers floating in the air could be settling in our lungs. Clothing retailers, textile companies, environmental nonprofits and others around the world are striving hard to understand the problem and craft solutions."
Apparels, produced from natural fibers, have for a long time, been linked to environmental ills, such as water and air pollution, not to mention use of land, water and pesticides. However, recent research has indicated that apparel made wholly or partially from synthetic textiles also produce a type of microplastic known as microfibers, which shed during normal use and laundering.
These fibers, made from polyester or other popular synthetics, often linger in the environment, just like plastic packaging that coats so many of the world’s beaches. They also bond to chemical pollutants in the environment, such as DDT and PCB. Additionally, the fact that the textiles from which they are shed are often treated with waterproofing agents, stain- or fire-resistant chemicals or synthetic dyes, proves them to be harmful to organisms that ingest them. In fact, we consciously or unconsciously consume microfibers through our food and drink. As recently published studies indicate some microfibers floating in the air could be settling in our lungs. Clothing retailers, textile companies, environmental nonprofits and others around the world are striving hard to understand the problem and craft solutions.
Disturbing revelations
In 2004, a team of researchers led by Richard Thompson from the University of Plymouth in the UK
documented and quantified the occurrence of microplastics in marine environment. This operation also involved collecting sediments from around 20 coastal sites in the UK. As a part of the study, published in Science, researchers also collected surface water samples and compared the microfiber contents from samples taken decades prior. They observed an increase in fibrous synthetic material over time that corresponded with the uptick in synthetic fiber production since the 1970s.
One of Thompson’s graduate students, Mark Anthony Browne, conducted a study that looked at the sources of both the fibre and microfibers in coastal areas. He collected samples of beach sediment from around the world. He also washed polyester apparel in order to quantify the fibers those items shed into laundry wastewater.
Browne’s 2011 paper based on that research made two disturbing revelations. First, samples taken near wastewater disposal sites had 250 per cent more microplastic than those from reference sites and the type of microplastic fibers in the samples were mainly polymers often used in synthetic apparel, suggesting fibers were eluding filters in wastewater treatment plants and being released with treated effluent. Second, a single polyester fleece jacket could shed as many as 1,900 of these tiny fibers each time it’s washed. Browne, therefore, concluded synthetic apparel is a major source of microfibers in the environment.
Five years later, a Vermont-based nonprofit focused on ocean protection, led a study of microfiber pollution across an entire watershed The Rozalia Project, as the study involved collection of water samples from the mouth of the Hudson River to where it meets the Atlantic in Manhattan. Based in part on Browne’s study, the organisation expected an increase in microfiber content around the treatment plants. However, there was no significant difference in concentration of fibers from the alpine region to agricultural center of New York and the high population areas of Manhattan and New Jersey.
That surprised the group’s director, Rachael Miller, who expected cities to be microfiber hot spots. It suggested fibers might be entering surface waters from the air and from septic system drainfields in rural areas without municipal sewage systems. Another revelation was microfibers spiked at a sample site near a popular trailhead running along a tributary to the Hudson. Miller suspects this to be due the synthetic fabrics that the hikers wore, which shed fibers from clothing as they scramble up the trail.
From sinks to sources
Industry journal Textile World reveals demand for polyester has grown faster in the last 20 years than the demand for wool, cotton and other fibers. By 2030, demand is expected to be 75 per cent of global apparel fiber production or 107 million tonne. All textiles, including carpeting and upholstery, produce microfibers. So do commercial fishing nets. But as apparel is laundered frequently and a huge quantity is purchased, it is the source that researchers and policy makers are focusing on.
Krystle Moody, textile industry consultant says athleisure wear relies heavily on synthetic textiles due to its moisture wicking and durability characteristics, price is the biggest driver behind synthetics use. As Jeffery Silberman, Professor and Chairperson of Textile Development and Marketing with the Fashion Institute of Technology at the State University of New York states a poly-cotton blend is generally far cheaper than cotton but doesn’t look or feel appreciably different to most consumers.
The main culprit for this is recycling. Many brands sell fleece jackets and base layers, for example, made from used PET water bottles. Synthetic textiles made from recycled polymers have less tenacity and yarn strength than those made from virgin polyester.
Fiber-filled planet
A stream of other studies have also found microfibers in effluent from wastewater plants, in the digestive tracts of market fish, throughout riversheds and in air samples. Although most research has focused only on synthetic fibers, natural fibers such as cotton and wool, and semi-synthetics such as rayon should not be totally ignored. Even though they degrade more quickly than polyester, they can be treated with relevant chemicals that can move up the food chain if the fibres are consumed before they degrade.
It’s clear microfibers are everywhere and our clothes are playing a big role. We know microfibers, just like other shapes of microplastics, bond with toxins they encounter in the environment, and lab studies show clear harm to small organisms that ingest them. Still emerging is an understanding of impacts on the wider environment and on human health.
"While the US President Trump’s pushes for ‘Made in US’ has prompted many domestic companies to reshore their product offerings, problems of logistics still persist. During the recent edition of Texworld USA in New York, companies discussed the pros & cons of Made in America. Event’s moderator Christine Daal, who runs consultancy Fashion Angel Warrior, said quality control, small minimums, speed to market and a more complaint system are all advantages of manufacturing in the US. While costs are higher, the US is also known for energy efficiency, which can help contain some of those costs. Eric Beroff, President, Spoiled Rotton USA Inc, which has a factory in The Bronx, said there are misconceptions that you can make anything here, which just isn’t true."
While the US President Trump’s pushes for ‘Made in US’ has prompted many domestic companies to reshore their product offerings, problems of logistics still persist. During the recent edition of Texworld USA in New York, companies discussed the pros & cons of Made in America. Event’s moderator Christine Daal, who runs consultancy Fashion Angel Warrior, said quality control, small minimums, speed to market and a more complaint system are all advantages of manufacturing in the US. While costs are higher, the US is also known for energy efficiency, which can help contain some of those costs. Eric Beroff, President, Spoiled Rotton USA Inc, which has a factory in The Bronx, said there are misconceptions that you can make anything here, which just isn’t true.
Eveningwear garments with beading or heavy ornamentation and generally apparel that is overly complicated
either can’t be made in the US because the machinery isn’t available or the labour costs would be too high. Beroff points out, labour costs in the US are among the highest in the world, so people have to understand that and take it into consideration when deciding where and what to manufacture. Anthony Lilore, Designer, Restore Clothing, highlighted that people think Americans don’t make anything anymore but that’s not the fact. Having said that, he also stated there are things one shouldn’t make in the US. He felt that it’s just a notion that the US manufacturing is coming back, in reality, it’s not. What has made US manufacturing valid again, according to Lilore, is they can do smaller quantities locally and companies can be closer to the factories, which allows greater due diligence, quality and production control and better speed to market. There are factories in New York and New Jersey that can make almost anything if you’re willing to pay for it and compromise on some design details.
Underlying concerns
Daal added simplicity of design allows them to make goods locally. Companies keen to afford production in the country might have to reconsider what they do with styles, seams, sewing steps, trims and materials in the garment, which each bring the manufacturing cost up. It’s also important to know the capabilities of the factories they are working with. They need to work with different factories that have a specialty. Most domestic factories are not vertical, which means one need to source fabric and trim, and maybe even the cutting.
Laura Dotolo, managing principal, Clutch Bags LLC/Clutch Made, said that US factories should offer more services like sourcing and product development, which her firm does, to entice more production. Helping drive the shift in consumer mindset to one that values quality over quantity, and less consumption over getting things cheap, will make US manufacturing more attractive. Talking about the lead time issue, Beroff said production times in the US are naturally better than the average imported garment, but can still be six to eight weeks from his factory. That’s on new styles. On reorders, time can be reduced considerably.
For startups, it’s important to work with consultants with expertise and connections. They can help prepare a new company or designer to approach a factory with full information to get samples made and costs estimated. Greater emphasis needs to be given on training the factory workers, particularly on advanced machinery. In the same line, NYC Fashion M.A.D.E. (Manufacturers Alliance of Design Educators) supports the teaching of garment manufacturing and technological skills to the fashion community. It provides grants for educational initiatives filling the manufacturing skills gap through classes and workshops.
VF Corp is exploring strategic options for its denim business that could include a sale or spinoff of its Lee and Wrangler jeans. Greensboro, N.C.-based VF, which also makes Vans shoes, generates over $2.5 billion in annual revenue. Its jeans business has been declining since big retailers including Walmart stock more of their own private label brands.
The company recently released its financial results for the first quarter of fiscal 2019. The company’s revenue from continuing operations increased 23 per cent to $2.8 billion; revenue from continuing operations increased 12 per cent excluding the revenue contribution from acquisitions.
Active segment revenue increased 25 per cent including a 35 per cent increase in Vans brand revenue; Outdoor segment revenue increased 6 percent including an 8 percent increase in The North Face brand revenue and a 6-percentage point revenue growth contribution from acquisitions.
As per Vietnam Textile and Apparel Association (VITAS), Vietnam’s garment-textile lured $2.8 billion worth foreign direct investment (FDI) in the first half of this year, bringing the total FDI in the sector to nearly $17.5 billion. This has been mainly due to FTAs such as the CPTPP and the EU-Vietnam Free Trade Agreement (EVFTA) – although they are yet to come into force, which have created great attraction amongst foreign investors as they bring huge opportunities for Vietnam’s garment-textile sector.
The CPTPP will enable Vietnam to increase shipments to CPTPP member countries that spend up to $40 billion on garment and textile products every year. The EVFTA, expected to take effect at the end of this year, will also offer ample opportunities for Vietnamese textile and garment products to ship to the European market thanks to tariff preferences.
The EU is Vietnam’s second largest export market. Given the current tariffs ranging between 10 and 12 per cent which will be slashed to zero, it will boost Vietnam’s goods to this enormous market.
Indonesia is targeting a portion of the share of Chinese textile and textile products in the United States (US) market as the trade war situation escalates between the two countries. To achieve this target, the country plans to increase trade with the United States.
The increase in textile exports would be accompanied by imports of cotton from the US. Indonesia's market share of all textile and garment imports in the US is only around 4.5 per cent. Meanwhile, China which is in a trade war situation with the US has a market share of up to 26 per cent.
In addition to textiles, Indonesia also wants to take advantage of the US and Chinese trade wars to further increase trade in steel and aluminum products. Because, Indonesia's steel market share in the US is very small with a percentage of only 0.23 per cent. Therefore, the country has sought exclusion from increase in tariffs on imports of iron and aluminum products.
US cotton exports reached their highest level since 2005-06 and are the second highest on record. China was the second largest destination for US cotton and served as the largest market for US pima. Demand for pima and upland cotton continues to grow as China pursues higher quality inputs and works domestic stocks down further.
US exports to Pakistan saw the largest year over year increase despite its larger domestic crop. The country’s yarn production continues to grow and is expected to expand into 2018-19, a promising sign for US export prospects. Shipments to Mexico and Turkey were down compared to the previous year, due to higher production in those countries.
Compared with last year, US cotton shipments expanded in four of the top five markets. Expanding use in Southeast and South Asia has underpinned significant US shipments. Vietnam continued for the third year as the top US market where shipments surpassed last year’s record, owing to the country’s record yarn production and robust yarn exports.
US exports are forecast down slightly the next year with exportable supplies lower in the United States and higher for the rest of the world excluding China. Nonetheless, 2018-19 US shipments are forecast to be the second-highest since 2005-06.
Sri Lanka is South Asia’s pioneer in ethical fashion. For the Lankan apparel industry, sustainability is a much more complex ideology than simply increasing the number of green plants. It is an approach that converges social, environmental, and economic strategies where people, planet, and profit are all equally important.
Over the last decades, the Sri Lankan apparel industry ensured its growth through sustainability; firstly, through better working conditions, then engaging professionalism with business and empowering people at all levels.
Environmental sustainability move kicked off around 12 years ago with the implementation of green building standards and the energy efficiency drive. Today, the Sri Lankan apparel industry seeks to find solutions at the global level to address problems of material circularity and work-life integration. The overall long-term strategy is to drive towards zero impact on all aspects. Buildings and infrastructure do play a big role but they are a part of the bigger strategy.
Female workers have long been celebrated and encouraged by the country’s apparel industry. Most companies believe that strengthening women is as good as strengthening a family unit and therefore the entire society. The country has been working on developing its own sustainability index for factories that overcome the weaknesses of most traditional assessment systems.
Pakistan’s textile exports contributed more than 50 per cent to the country’s total exports during the last fiscal year. The country’s textile exports rose 9.82 per cent in the first eleven months of the current fiscal year. In May, total exports were up a staggering 32.4 per cent year on year but they were marginally up 0.52 per cent month on month. The country’s total exports rose 15.3 per cent in the July-May period.
Cotton yarn exports in May increased 41.3 per cent year on year, knitwear exports rose 39.2 per cent, bed wear exports surged 27.9 per cent, readymade garment exports climbed 23.99 per cent while cotton cloth exports were up 22.08 per cent over the same month a year earlier.
However, Pakistan's competitors have set targets for textile exports while Pakistan remains far behind. The country is only getting spillover orders and that would stop coming once competitors increase their capacity. Restoration of competitiveness of the export-led industry is a must to regain the lost share in the international marketplace.
The currency lost around 14 per cent since December last year following the depreciation against the dollar. Exporters say an enabling environment would aid in a surge of exports.
