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At the recent Texworld 2014 that took place at Javits Center in New York City, American buyers showed no reservations about rising costs in China or about lifting of China’s cotton stock piling policy. Though there have been talks about how manufacturing and production is gradually shifting back to the US due to rising labour, freight and raw material costs going up in supplier countries, buyers’ at response Texworld only ascertained the fact that they are still dependent on imports and have prepared themselves for the increase in costs.
The 16th edition of Texworld USA, the New York-based bi-annual trade show had US at its focus. It also hosted three international pavilions – with delegations from Turkey, Taiwan and Egypt.
No major concern over rising costs
Though players in importing countries are aware that increasing labour costs in China are putting pressure on the textile prices, buyers seemed to have factored in this cost and prepared themselves in advance. According to them, since the price rise is happening step by step, though it is finally passed on to the customers, they are not complaining as long product quality is maintained.
But experts point out that in the last decade, US has got used to importing from China, so that dependency on the country’s strength will not get hampered easily. On the other hand, the emergence of other sourcing destinations like Vietnam and Cambodia and now Japan with its currency going down, are being looked at as options for sourcing high-quality, affordable fabrics. Also a lot of focus is getting shifted to the TPP bloc (the Trans-Pacific Partnership – a proposed trading bloc that has countries like Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam].
Apart from price hikes in China, a number of companies that import from other places are finding their costs rising, particularly in Turkey and Peru because of the higher duties that are now payable.
Better quality to improve demand
Players believe that price rise will not be an issue if one focuses on providing good quality to the end user. So for them innovation is the key to remain profitable during slow economy and rising costs. Many players are shifting their attention from mass market products to a product-a level above. Even cutting down on inventories and people is considered a way out to combat price hikes. Also minimizing requirements as much as possible is another measure being adopted by the companies of late.
Accord, an association of western retailers, has called for the immediate evacuation of a readymade garment unit in Bangladesh. Accord had some issues about the main columns along two internal grids of the building housing Jeans Care. Major structural flaws were found in the factory building which could have a serious bearing on workers’ safety. It has asked the firm to evacuate the building immediately.
The main columns along two internal grids of the building were measured to be less than half the size shown on a structural drawing. And the stresses calculated using the simple calculation methods used as back-up to visual inspections indicated that they were stressed beyond an acceptable level.
Inspectors said that they looked at different ways to manage the loading to bring down the stresses to an acceptable level but concluded with the decision to remove the Jeans Care factory from the building. They also recommended evacuating the building until the structure is strengthened or in its present form can be validated as adequate. However the factory MD says there’s no serious fault that requires immediate shut down of the factory. The matter is before the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
C.L.A.S.S. (Creativity Lifestyle and Sustainable Synergy) booth on the main salon floor at Première Vision in Paris became the one-stop shop and a reference beacon for eco-innovations. People from media, brands and retailers and designers visited the stall in large numbers.
Innovative products from the C.L.A.S.S. eco textile library that garnered interest included, fox fibre new casual jersey and woven fabrics, made from colour-grown organic cottons, organic cotton & Tencel from Shinnigai Textile in Japan where all the colouration is made with a fully commercial range of botanical plant dyes from Cihon-Tec, organic worsted wools from Zignone in Italy with the finest plain and mélange panama and flannel qualities for contemporary tailoring.
Other prominent innovations included Newlife, created using a High Tech Conversion Model (HTCM). It transforms through a mechanical, non-chemical, 100 per cent traceable postconsumer plastic bottles into an unrivaled high tech quality polymer while generating considerable savings in water, energy consumption and carbon emissions as per Life Cycle Assessment conducted by ICEA. Abaca (hemp) and Pina (pineapple) fibre woven wear and accessories from the craftsmen of the Philippines, mYak luxury touch, naturally coloured fabrics and accessories produced in Italy, and made from responsibly sourced baby yak fibre from the nomadic farmers of Tibet. Green Fibers introduced a luxury regenerated fibre made exclusively from noble fibre waste materials collected in the Biella area among many others.
After more than eight years, the C.L.A.S.S. concept has now gone mainstream and blossomed into a reference point. C.L.A.S.S. is a unique, multi-platform worldwide network that showcases exclusive fashion, textiles and materials created using smarter sustainable technology for designers, buyers, media and business.
www.classecohub.org
www.premierevision.com
Abaca a high quality soft banana fiber is now making inroads in world of high fashion as handwoven abacá fabrics are being used by fashion designers. A mix of abacá and polyester is increasingly looked upon as an alternative to cotton in denim in the fashion industry. In automotive engineering, Mercedes Benz makes use of polypropylene thermoplastic and abacá yarn mixture in automobile body parts.
The abaca plant is indigenous to the Philippines, where warm, wet climate and volcanic soils are suited for this cultivation. The Philippines government has decided to promote the abacá industry. Women’s wear designer Tipay Caintic’s knitwear collection at the Future Fabrics Expo primarily used abacá, spun into a silky yarn similar to rayon. Her showpiece was a full length knit evening gown named Black Rain crocheted from banana silk and included a voluminous skirts made out of piña, a material not unlike organza.
Abaca fiber is valued for its exceptional strength, flexibility, buoyancy, and resistance to damage in salt water. Abacá is chiefly employed for ships’ ropes, hawsers, and cables and for fishing lines, hoisting and power-transmission ropes, well-drilling cables, and fishing nets. Some abacá is used in carpets, table mats, and paper. The plant’s inner fibers can be used without spinning to manufacture lightweight, strong fabrics, mainly used locally for garments, hats, and shoes.
The 2009-14 textile policy of Pakistan had allotted Rs 118 billion for lower interest subsidy for technology upgradation. But the textile industry has yet to receive the funds. India introduced the Technology Upgradation Fund Scheme in April 1999. Up to January, 31, 2013, the subsidy amount came to $2.63 billion, which led to an investment of over $39 million in textile machines.
The Indian scheme of integrated textile parks, where entrepreneurs set up their units in these parks, has caught the fancy of Pakistani businessmen. They want similar textile parks and have urged the textile ministry to arrange land for this purpose. They feel that for instance in 25 acres of land, 200 spinning, weaving and processing units can be established.
With Indian textiles strengthened by a load of subsidies, it will be difficult for Pakistan to compete in the textile sector despite being granted GSP plus status. India gives its exporters major incentives for the introduction of new products and markets. The incentive (subsidy) under the focus market scheme currently stands at three per cent. Besides, the Indian government provides institutional support to textile exporters through different textile subsector-specific export promotion councils and textile research centers.
Italian major, Itema, a leading global provider of advanced weaving solutions, reported rise in sales and profit for the fiscal year 2013. While sales of weaving machines and spare parts were up 25 per cent against 2012, EBIT (operational result) was up 30 per cent. Consolidated net proceeds from weaving machinery increased 50 per cent. During the year, Itema branded weaving machines were delivered to 40 countries worldwide.
In 2013, the company focused on a wide range of restructuring and process improvement measures like continued lean manufacturing across the production facilities, both at Coluzate and Shanghai sites. It also introduced automation in the production processes and far reaching energy saving initiatives at the Colzate plant. In Shanghai the move of commercial offices and production plant to a new energy efficient and ergonomic site is in its final stages.
Itema also announced important appointments, Fulvio Carlo Toma was chosen the Group Sales and Marketing Director. Another important appointment was the nomination of Giacomo Sala, Group CFO to the position of Managing Director of Itema Switzerland.
ItemaLab will now be located in a newly created laboratory inside Kilometro Rosso, the renowned Science & Technology Park just outside of Bergama. The company has launched Itema Academy in partnership with Confindustria Bergamo Education.
www.itemagroup.com
The National Small Industries Corporation (NSIC) is offering subsidies for Indian companies participating in Techtextil Russia to be held in Moscow from March 11 to 13, 2014. This is an international trade fair for technical textiles, nonwovens and protective clothes. It showcases the latest innovations in design, production and application of technical textiles and products made of them. Exhibits of Techtextil Russia have many industrial applications and cover various aspects of people's activity.
Techtextil Russia is a universally recognized trade fair brand and the most significant trading platform for all professionals in the technical textile industry. The trade fair is becoming the key professional event for Russian and foreign manufacturers and buyers. There will be several products and processes on display. Among these are processing technology, machinery and equipment, waste disposal and recycling technology, technical accessories, quality assurance, fibers and yarns, wovens, scrims, among others.
www.messefrankfurt.com ›
Unemployed textile workers in Spain's Valenciana region could get European Globalisation Adjustment Fund (EGF) aid worth €840,000 to help them find new jobs under plans approved by Parliament's Budgets Committee. The aid still has to be approved by Parliament as a whole and the Council of Ministers. The EGF aid would help pay for measures such as individual counseling, vocational training, help in setting up a private business or intensive job-search assistance for 300 of the 560 workers made redundant by 198 textile firms.
This aid would meet half the cost of a €1.68 million aid package, the other half of which would be met by Spain. The redundancies are the result of major structural changes in world trade patterns, especially due to competition from China and other Far Eastern countries. The textile manufacturing sector has been the subject of 11 EGF aid applications, six of which were from the Valenciana region.
The European Globalisation Adjustment Fund contributes to packages of tailor-made services to help redundant workers find new jobs. They are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training.
Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) in collaboration with EVECON is organizing the ‘Made in Pakistan Expo 2014’ at the World Trade Centre from April 3-7, 2014 in Mumbai, India. The government of Pakistan through Ministry of Commerce & Textile and Karachi Chamber of Commerce & Industry (KCCI) and Association of Indian Industries (AIAI) have expressed their full support to PRGMEA for the expo and the Pakistani Mission in India has also been advised to facilitate the organizers for arranging the event in a befitting manner.
Pakistani products especially fashion fabrics and garments have big market in India, and such events are visited by numerous visitors daily. The expo will provide a platform for fashion, textile, food, leather, footwear and many other lifestyle related products under the slogan ‘Reach the right audience, at the right time, in the right way’.
Exhibitors from segments like fabrics, home textiles, fashion clothing (casual, formal and bridal), textile made ups, footwear, textile handicrafts, sports goods, gloves, jewellery, etc will display their range during the expo.
www.prgmea.org
Following the footsteps of the largest importer of apparels, the US, now the UK has decided to focus on bringing mass-market garment production back to the country. However, experts speaking on the subject at the recent ASBCI conference 'Making it in the UK - Ready or not?' expressed that there are still challenges to overcome if the 'Made in Britain' movement.
Today, more than 100,000 people are employed in the UK textile industry compared with 340,000 at the end of the millennium. Yet clothing manufacturers produced £3.2 billion at cost during 2012, up from £2.9 billion in 2008. Domestic manufacturing in the UK seems to be back on track again owing to rising labour costs and freight charges in overseas destinations, China concentrating on domestic consumption and difficulty in sourcing raw materials.
Another reason behind the trend is the customers asking for original British fashion and growing environmental and ethical concerns over 'sweatshop' style workplaces in foreign locations from where the country imports. Basic Thinking, which makes women’s and children’s fast fashion clothing, for instance has decided to focus on production back in the UK. Earlier, the Leicester-based firm manufactured its requirements from its vertical operation in Egypt with an average lead time of eight weeks FOB but now, the company only manufactures 20 per cent of its product in Egypt with lead times between two and four weeks, and 80 per cent of its garments in the UK.
However, it’s just the beginning with 60 per cent of the UK's clothing workforce over 40 years old and young showing no interest in working for the textile manufacturing unit, the industry would face obstacles in setting up manufacturing operations in the UK. Basic Thinking, in conjunction with training provider KTL, has set up its own sewing academy, which plans to enroll unemployed people on the course starting next month. Also Fashion Enter, a not-for-profit social enterprise, is developing skills within the country's fashion and textiles industry with its stitching academy and factory.
With the country investing only 1.5 per cent of its manufacturing investment in the clothing, textile and leather industries over the past few years, there’s definitely a long way to go.
