FW
"The US imports $82 billion more in clothes than it exports, mainly from Asian nations like China, Vietnam and Bangladesh and closer home from Mexico, Honduras and El Salvador. In 1995, US apparel imports was $36.8 billion but, by 2015, the country’s dependence on imports had reached new heights and the figure more than doubled to touch $87.9 billion. Worsening the growing gap, apparel exports actually fell by $300 million during the 20-year period, achieving the relatively humble figure of $6.1 billion."
The US imports $82 billion more in clothes than it exports, mainly from Asian nations like China, Vietnam and Bangladesh and closer home from Mexico, Honduras and El Salvador. In 1995, US apparel imports was $36.8 billion but, by 2015, the country’s dependence on imports had reached new heights and the figure more than doubled to touch $87.9 billion. Worsening the growing gap, apparel exports actually fell by $300 million during the 20-year period, achieving the relatively humble figure of $6.1 billion. For every $1 worth of clothes America exports, it imports more worth $14. Bringing apparel manufacturing back to America in a meaningful way is an impossible task for a variety of reasons.
Similarly, shoes and handbags categories make up $26 billion and $3 billion of deficit, respectively. Combined, with the fashion industry’s three biggest product categories account for more than 22 per cent of total trade deficit. When you add other categories like sports bags, travel goods and men’s accessories, fashion’s share of the burden approaches a quarter.
Clearly, offshoring of American fashion manufacturing has taken a huge financial and human toll over decades. As late as 1990, the apparel manufacturing industry employed nearly 939,000 people. But as manufacturing moved overseas, the sector lost more than 85 per cent of its workforce. Today, the US Department of Labor estimates that the sector employs less than 130,000 people.
Is reshoring the best solution?
While reshoring would sounds like the best option at this point in time, experts believe it is only feasible for small quantities and highly specialised products. Without doubt, Americans should celebrate the many SMEs (small and medium sized enterprises) across the fashion industry helping to breathe new life into parts of the garment centres of New York, Los Angeles and elsewhere. However, scaling domestic production up to the level of big business is another matter.
Experts point out the high cost of labour is a major bug bear. Even brands conceived around the Made in America principle for example, American Apparel. recently relented, announcing it too would start manufacturing overseas.
Rather than allocating the value of a garment wholly to the country that supplied most of its labour, value can be divided among several countries reflecting where various components are produced and the origin of an item’s intellectual property. While this won’t stop the decline in domestic manufacturing, it will paint a more accurate picture of the contributions that American fashion brands make towards the economy – regardless of where they manufacture. Perhaps more importantly, it will rightfully acknowledge the value added by millions of Americans who work in non-manufacturing roles like design, creative, retail and ancillary services throughout the country’s dynamic fashion industry.
A special monitoring committee has been initiated in India’s textile-producing city of Tirupur to monitor pollution levels. The decision was made following a meeting between representatives of the Tamil Nadu Pollution Control Board (TNPCB), the Department of Agriculture, Dyers Association of Tirupur (DAT) and local farmers. Recent electrical conductivity tests conducted in the region indicated water samples taken from locations near certain production facilities had a much higher salt level than is permitted. Readings between 10 dS/m to 12.5 dS/m were reported in some cases. In November 2017, Ecotextile News reported a dyeing plant was temporarily shut down in Tamil Nadu following pollution issues. The latest findings show in-spite of the region’s adoption of zero liquid discharge (ZLD) targeted at bringing about an end to pollution which long plagued the dyeing sector.
Any textile dyeing or auxiliary units deemed to be in violation of standards introduced by the committee have been warned with the threat of strict action, although no fixed penalties have yet been established. Some good news was that soil samples from Ganapathipalayam and Karaiputhur which had been submitted for testing by the agricultural department ahead of the meeting were found to have pH of between 8 and 8.5 and were thus unaffected by pollution.
The Department of Industrial Policy and Promotion (DIPP) has sought Rs 4,000 crores from the Union budget for an incentive scheme for the leather and footwear segment designed to boost manufacturing, exports and job creation.
The scheme, on the lines of the special package for the garment industry announced in June last year, will be implemented over a period of three years to FY20-end. The Indian Leather Development Programme (ILDP) ended with 12th Five Year Plan (2012-2017). Since such schemes are now being conceived for three years, the projected expenses are up to 2020, which works out to around Rs 4,000 crore says a senior official.
The package for the labor-intensive garment sector gave garment factories the flexibility to hire contractual workers for a fixed period with ease so that they can meet seasonal supply commitments. The government also raised the overtime work limits to 8 hours per week against the current 50 hours per quarter and said the employees’ provident fund contribution will be optional for employees earning less than Rs 15,000 per month.
Besides, under the scheme, the government bears the entire 12 per cent of the employer’s contribution to the Employees Provident Fund Scheme for new employees in the garment industry, earning less than Rs 15,000 per month for three years. Job creation under the scheme has been at a slow pace so far, due to administrative glitches and lack of enthusiasm in sections of the industry.
According to sources the package for the leather industry has similar components. DIPP is now awaiting comments from the ministries concerned such as the ministry of skill development and entrepreneurship, ministry of environment, forest and climate change and ministry of water resources, on the leather scheme.
The ILDP is aimed at augmenting the raw material base through modernisation and technology upgradation of leather units, addressing environmental concerns, human resource development, supporting traditional leather artisans, addressing infrastructure constraints and establishing institutional facilities.
Following Toronto’s business mission to India and Sri Lanka, led by Toronto mayor John Tory, organizers of Canada’s largest apparel and textile sourcing show, Apparel Textile Sourcing Canada (ATSC), have announced the unprecedented participation of a large South Asian delegation at the upcoming event from August 21-23.
Jason Prescott, CEO of JP Communications says around 25 per cent of this year’s ATSC show will be dedicated to exhibits from South Asian apparel and textile manufacturers, with India taking a leading role. Prescott further added that ATSC 2017 will foster unparalleled business connections between local Canadian companies and leading South Asian producers of apparels and textiles who see tremendous opportunity for collaboration with the Canadian industry.
Chandrika Behl, Director, Exhibitions India Group points out globally, India enjoys high demand for its textiles and apparel, and that’s why the country has emerged as the world’s second largest textile and apparel exporter and they forward to forging strong relationships with the Canadian market.
Since 2011, Canadian apparel imports have steadily increased 8.3 per cent annually on an average to touch $14 billion in 2016. ATSC debuted in Toronto in August 2016 with more than 200 booths with more than 1,800 attendees. The Canadian event has since announced a 50 per cent expansion of the show for its second edition. This year, the event will feature at least 300 displays from more than 20 countries.
Prescott explained that the first of its kind apparel, textile and fashion event in Canada, ATSC was introduced to aid Canadian businesses to connect with international suppliers on their home turf. At present Canadian companies have the luxury of staying locally and avoiding expensive and unnecessary international travel says Prescott
Morocco is one of the main players in the African textile industry. Incorporating fresh textile strategies, Moroccan jeans producers are embracing technology. Morocco’s fashion-forward goal for 2025 is to have a denim sector that is 100 per cent sustainable. The Moroccan textile industry represents nearly seven per cent of the country’s GDP.
The country’s denim producers want Moroccan denim to be more present in the international market, where it is not present today. They have created a cell of innovation and development to make this industry less polluting and cleaner. Moroccan Denim Cluster, comprising Moroccan denim manufacturing companies, works toward improving the brand image and reputation of the Moroccan denim industry and casual wear through better positioning and stimulating innovative collaborative projects in this area.
The New Wash Group has created Koala, a line of fashionable jeans, using inventive means. Environmental responsibility is a priority, while sustainable jeans are the goal. Jean fabrication is a very polluting industry. To raise awareness of the importance of producing clean denim, the Moroccan Agency for the Development of Investments, in collaboration with French designer François Girbaud, has launched Cleaning the Planet, a collection that proposes 100 per cent Moroccan solutions to denim brands. It focuses on an ecological path by recycling denim and using laser technology.
Marks & Spencer Group has picked up head of UK car-parts seller Halfords Group to turnaround its struggling clothing business, handing one of the industry’s toughest tasks to a fashion novice. Jill McDonald will start at the apparel giant in autumn, having resigned from Halfords after just two years in the job, the companies said in separate statements.
In her new role, McDonald will be responsible for turnaround plans at a division that showed signs of revival during the Christmas season after a five-year sales slump. Having previously worked at the McDonald’s fast-food chain and British Airways, she brings little experience of the apparel market, though some analysts said that may not count against her.
The surprise move had little impact on Marks & Spencer shares, which fell 0.7 per cent in early London trading. Halfords dropped 3.2 per cent. The appointment concludes a yearlong search by Marks & Spencer Chief Executive Officer Steve Rowe, who has continued to lead the clothing business he ran before being promoted to group CEO in April last year. The company was said to have offered the job to former next Plc star Christos Angelides prior to his appointment as head of UK fashion chain Reiss earlier this year.
Michelle Wilson, an analyst at Berenberg, wrote in a note that Marks & Spencer key issue in clothing and home stems from its slow and unresponsive supply chain, and given McDonald’s limited experience in this area, the reason is definitely positive.
The news represents a setback for Halfords, coming two years after former CEO Matt Davies was hired by supermarket giant Tesco Plc to head its UK grocery business. Halfords further said it expects results for the year through March to be in line with analyst estimates.
Iran has granted 30 international garment producers to do business in the country, following new regulations introduced to restrict importing garments. The head of Tehran’s Union of Garment Manufacturers and Sellers, Abolqasem Shirazi, confirmed that under the new regulations producers must make 20 per cent of the total value of their output inside the country, IRIB news agency reported. However, Shirazi did not provide further information on the brands.
Iran customs administration recently barred individuals from importing clothing items into the country. According to Iran customs administration, only registered firms or their representatives are entitled to import garment. Iranian sources suggest the country’s per capita garment consumption stands at 147 per year and foreign companies share of the 11.5 billion market is about 2.5-3 billion.
Almost 1,500 industrial units and 30,000 employees are involved in the countrys clothing sector with a capacity for producing 340,000 tons of garments per year. About 90 percent of items offered in clothing market are smuggled into the country. The economy of Iran is a mixed and transition economy with a large public sector.
India has invited leaders of Bangladesh's textile and knitwear industry to attend the upcoming Textiles India 2017. This is a mega trade event for the textile and handicraft sectors and will showcase the entire range of Indian textile products from 'Farm to Fiber to Fabric to Fashion'. According to the Indian high commission to Dhaka, the event will be held in Gandhinagar of Gujarat from June 30 to July 2 and will be inaugurated by Prime Minister Narendra Modi.
A delegation comprising chairman and vice-chairman of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) of India visited Dhaka in this regard. They held meetings with senior members of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to invite them for the event.
Textiles India 2017 will also provide an opportunity to the participants to hold B2B meetings with around 2500 international buyers, international and Indian exhibitors, and 15000 Indian buyers. Over 33 round-tables will also be held on issues of concern for the various segments of textiles and handicrafts on the second day with prominent international speakers and industry leaders.
For the first quarter ended April 1, 2017, net sales of Hanes Brands increased 13 per cent. Sales for active wear and international segments increased, while sales decreased as expected for the innerwear segment and manage-for-cash businesses.
Hanes Brands is a global marketer of everyday basic apparel under world-class brands. Q1 operating profit decreased one per cent and EPS decreased ten per cent. Adjusted operating profit increased nine per cent and adjusted EPS increased 12 per cent.
Sales from acquisitions more than offset the decline in organic sales. Organic sales decreased four per cent. Categories and businesses that posted organic sales growth included Champion in the United States and Asia, US men’s underwear and the US online channel. The online sales channel in the United States accounted for ten per cent of domestic sales compared with nine per cent in the year-ago quarter.
The company realigned its reporting segments in Q1 to reflect the new model under which the business will be managed and results will be reviewed. The former Direct to Consumer segment, which consisted of outlet stores, the legacy catalog business and retail internet operations in the United States, was eliminated. Last year, the online channel represented eight per cent of US sales, up from seven per cent the year before.
A key focus for Coats, an industrial thread and yarn manufacturer, is harnessing talent and technology in textiles. Coats Synergex is a range of revolutionary composite fibers with high levels of hybrid fiber integrity and performance that can be processed into fabric form and used to mold strong, but lightweight, parts for industries including automotive and aerospace.
Coats Magellan is being used in resistive heating: by passing a current through the yarn and conductive material it can heat a surface area. Coats Magellan is a range of futuristic smart yarns that can be used in cutting edge textile technology including RFID; by integration in a tag it can send signals to a phone.
Coats Aptan XTRU and Gral XTRU are engineered yarns designed to be braided into a protective cover over wiring harness systems used in heavy vehicles and machinery. They can withstand contact with chemicals and fuels as well as extreme mechanical stresses. About a year back, Coats acquired Gotex, a Span-based company which designs and manufactures high performance fibers, yarns and tapes used in the telecommunications, energy and oil and gas sectors.
Coats will showcase some of these products at Techtextil, Germany, May 9 to 12
