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The agitation rocking the garment industry in Cambodia is worrying major global clothing brands that source from that country. In fact, some have already started scaling back orders. Police have shot dead at least five garment workers striking for higher wages. Many more workers and activists have been arrested.
Some brands have offered to raise the prices they pay factories so that workers’ wages can be raised. They say peaceful strikes and protests should not be met with state violence, and that anti-union lawsuits should be dropped. Representatives of the brands and unions met the government’s top labor and commerce officials and warned in a joint statement that the industry was at a tipping point. They say that due to reaction of consumers, and the disruption to production and shipping caused by continued unrest, Cambodia is at risk of losing its status as a strategic sourcing market, with an impact on future investment and growth.
The garment trade added a critical $5 billion to the country’s gross domestic product last year. It accounts for 80 per cent of all exports from Cambodia, and provides more than 5,00,000 jobs in a nation of 15 million.
Nonwoven textiles play a significant role in the medical sector. The product range includes surgical gowns, masks and other wearable products; surgical drapes, pads; dressings; filtration materials; and implantable textiles such as tissue scaffolds for rebuilding internal organs. Most nonwoven products used outside the body are disposable, single-use articles that have the advantage of not requiring sterilization or cleaning for reuse. However, there are some that can be reused to provide the required function over a limited period of time.
In North America, disposable nonwoven market is expected to grow at a 5 per cent rate. Medical nonwovens in the United States have a share of 9 per cent in the total nonwovens market. Absorbent hygiene has a 21 per cent share, wipes have a 17 per cent share and filtration has a 11 per cent share. Nonwoven products such as under pads, adult incontinent products, face masks, sterile wraps and packages and health care related wipes will be in demand, which will push the sector towards growth trajectory.
Nanofibers are becoming very popular for medical textiles used to filter viruses and bacteria. New fiber and processing technologies as well as collaborative, multidisciplinary efforts will contribute to ongoing product development and further market growth.
The Accord wants apparel bodies in Bangladesh like BGMEA and BKMEA to join its advisory board. But the two are not willing to do that as they feel the board won’t take effective decisions. The Accord is an independent agreement designed to make all garment factories in Bangladesh safe workplaces. It includes independent safety inspections at factories and public reporting of the results of these inspections.
However, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) don’t mind joining Accord's steering committee. Accord feels having these associations on board is necessary especially when it comes to issues like payment of wages during operation suspension and critical situations.
The Bangladesh Accord has 156 global brands and retailers. It came about in the aftermath of the Rana Plaza factory collapse. It requires companies to pay up to $5,00,000 annually to administer inspections, which are backed by labor groups. If a factory fails to employ necessary safety procedures, that information will be made public and the factory will be embarrassed and may lose business retailers.
Almost 40 teams of international fire, electrical, and structural engineers are working with Bangladeshi engineers and technicians on the inspections.
Shima Seiki known for its computerised flat knit technology will exhibit its range at Shima Seiki Europe to be held from June 17 to 19, in London. The flagship Mach 2X series features Shima Seiki's original Slide Needle on four needle beds and is the only machine suited to Wholegarment knitting in all needles. The new compact SWG-N2 series Wholegarment knitting machine offers increased color capacity as well as the capability for producing industrial textiles. SRY123 LP features a pair of loop presser beds mounted above a conventional V-shaped needle bed and is capable of producing unprecedented knitwear with woven textures as well as technical textiles.
Shima Seiki's unique SIP flatbed inkjet printing machine features a height adjustable printing head that allows for printing onto 3D textures, as well as finished products such as Wholegarment items. Combined with the SDS-One Apex 3 3D design system, a fully integrated manufacturing system realizes full-color value-added garments to be designed, color-matched, modeled in 3D, printed and approved with significantly shortened lead times compared with traditional methods.
The Apex 3 system is at the core of the company’s Total Knitting System concept. With comprehensive support of the knit supply chain, Apex 3 integrates knit production into one smooth and efficient workflow from planning and design to machine programming, production and even sales promotion. Virtual sampling through photo-realistic simulation minimises the need for sample-making, effectively reducing time, material and cost from the sampling process. Apex 3 also supports design and simulation in various other industries such as circular knitting, weaving, pile weaving and printing.
State-owned jute mills in Bangladesh have decided to offload at least 49 per cent of their stake on the capital market. There are 26 such jute mills. Also the Bangladesh Jute Mills Corporation (BJMC) will be turned into a holding company. At present, the mills are running under BJMC. The divestment will be completed within the next one year. The shares will be floated once BJMC turns into a holding company. The move is expected to ensure the livelihood of more than 80,000 workers.
The aim of offloading is to make state-run jute mills run profitably. The government has decided to turn the BJMC into a holding company to protect the state-owned jute mills from incurring financial losses. It has so far succeeded in making five jute mills profitable and is hopeful of seeing others become profitable after floating shares. A good number of loss-making mills have already been shut down over the years.
As a part of the offloading activities, the government will immediately enlist chartered accountants to make the valuation of assets and liabilities of the mills under BJMC. The government nationalised 79 jute mills after liberation through the Bangladesh Industrial Enterprises (Nationalisation) Order, 1972. Later the government sold 52 jute mills to private entrepreneurs.
Turkey is helping upgrade skills and expertise of Pakistan's workforce. Turkish experts will impart training to the Pakistani workforce to fulfill the requirements of local industrial textile units especially those engaged in export to European countries.
The Turkish International Cooperation and Development Agency (TIKA) operates in more than 30 countries. TIKA was established in 1992. It’s an agency of the Government of Turkey. There are five areas are covered by TIKA's activitities: East Europe and the Balkans; Caucasus and Central Asia; Eastern Asia; Middle East; and Africa. TIKA’s role is to facilitate economic, commercial, technical, social, cultural and educational cooperation with developing countries through projects aimed at assisting the development of these countries. The agency seeks to foster sustainable social and economic development through the provision of financial support and technical assistance. The focus areas are social and economic infrastructure, enhancement of production sectors and the protection of social peace. TIKA manages central budget resources, and it is also the administrator of special funds owned by the central government.
The largest share of assistance is directed towards Central Asia. Afghanistan is a major recipient. The agency has assumed the role of a coordinator in reaching out to diverse geographic areas to pursue the interests of Turkey.
About 3,000 Chinese nationals were evacuated from Vietnam, following deadly rioting sparked by anger over Chinese oil drilling in a disputed area of the South China Sea. The geographical tension erupted after China deputed a $1 billion oil rig in a part off the South China Sea. It was considered the worst breakdown in ties between the two Communist neighbours since a short border war in 1979. Investors from Hong Kong and Taiwan had warned the Vietnamese government to take speedy action in controlling the protestors.
However, now that the unrest is under control, experts claim that business will continue to flourish with investments pouring into the country’s clothing and footwear industry. By the time, the Vietnamese Army stepped in to control the riots on May 15 almost 351 factories were damaged in the province. Sources claim that around 20,000 workers participated in the protests that broke off around the Vietnam-Singapore Industrial Parks (VSIPs) I and II in Binh Duong. And violence has since spread to the central province of Ha Tinh, with a number of people said to have been killed.
The intention of the protestors was to attack Chinese companies but they mistook Taiwanese and South Korean factories for Chinese plants and damaged their office buildings and plant facilities. Companies like Taiwan's Thong Dung Footwear and Kingmaker Footwear, China's Far Eastern Apparel Company and Texhong Textile, some Li & Fung suppliers, and Hong Kong-listed shoe maker Yue Yuen Industrial Holdings were forced to stop production in Vietnam, due to workers’ protest.
Taiwanese textile investors had decided to stop their expansion in Vietnam. And Taiwanese textile firms are among the biggest investors in Vietnam, while the country is also Taiwan's second-largest export market for textile products. According to Taiwan Customs statistics, Taiwan exported textile products worth $1.9 billion to Vietnam in 2013, accounting for 16 per cent of Taiwan's textile exports. According to the Footwear Distributors and Retailers of America (FDRA), geographical tensions around the South China Sea could also have a negative impact on footwear and apparel imports into the US. After Taiwanese investors, now Hong Kong investors in Vietnam have threatened to hold their expansion plans if Vietnam. Businessman and lawmaker Felix Chung Kwok-pan has said that at least one investor has already taken steps in the direction. One Hong Kong businessman who has invested $300 million in Vietnam is holding his plans of injecting another $100 million dollars for now.
However, now the Taiwanese and Korean textile production firms in Vietnam have decided not to withdraw their capital. Taiwan textile businesses that have suffered losses in the riots will quickly restore operations in Vietnam, facilitated by prompt insurance payments, Huang noted. Also firms and investors from Hong Kong will continue to remain invested in Vietnam.
Significant changes in cotton production are expected for a number of countries in 2014-15 due to the effects of El Nino. World’s 2014-15 cotton area is forecast to remain nearly unchanged at 32.9 million hectares, but below the five-year average. The global yield in 2014-15 is forecasted below last several seasons at 764 kg per hectare.
The two largest producing countries—China and India—are expected to account for a combined 50 per cent of the global crop in 2014-15. In 2013-14, these countries contributed about 53 per cent of world cotton production. China is forecast to produce 29.5 million bales in 2014-15, nearly 8 per cent below the previous season and the smallest crop since 2005-06.
India’s 2014-15 cotton production is forecast at 28.5 million bales, a three per cent decline from the preceding year despite slightly higher area. Last season, production benefited from above average yields. Concerns about El Niño may discourage further growth in planted area. India’s yield is projected at 526 kg per hectare, near the three-year average.
Australia is also expected to reduce cotton production in 2014-15 as reservoir levels have decreased considerably from a year ago. In contrast, Brazil’s crop estimate has been raised as increased cotton plantings are expected. Pakistan and Uzbekistan are forecast to produce crops similar to the 2013-14 season. The largest increase is projected for the United States in 2014-15.
The textiles and garment industry in Thailand feels the declaration of martial law will hurt its prospects. After months of political impasse, Thailand's military has imposed martial law in response to the threat of civil war.
The country’s manufacturers want the government to do its utmost to secure long-term low duty access to the EU. Thailand was excluded from this facility this year since it was deemed too rich to be included in the program. The EU's Generalised System of Preferences grants low or duty-free access to EU markets for many developing countries.
Apart from reduced global competiveness in the long run, the imposition of martial law also deals a blow to Thai garment manufacturers serving the domestic market. While Thai exporters may relocate factories to countries that still have GSP privileges, such as Laos or Vietnam, the detrimental effect of political uncertainty on tourism is certain. Revenues for the local garment industry are sure to suffer as foreign consumers shun the country.
Under Thailand’s Martial Law Act of 1914, military commanders have wide-ranging powers to suppress unrest, including powers to detain people, censor the media, impose curfews and prohibit public gatherings.
The World Textile Awards are looking at being the first truly independent and global competition dedicated to celebrating and rewarding the best companies across the entire industry. The awards recognises and rewards excellence in the textile industry worldwide.
The group feels there are many firms worldwide doing amazing work and they need to be recognized. The vision was to select winners from across the supply chain, all the way from fiber production through to the end stitched product. The competition is putting excellence ahead of all other factors such as company size or geographical location. It is a level playing field.
Winners will be announced in each of the competition’s seven categories with one overall winner also garnering the prestigious title of International Textile Firm of the Year. The competition has been created by a partnership of textile professionals and award competition experts and is headquartered in London.
Judges are currently being scouted from the worldwide pool of textile professionals and interested parties can also submit their application to be a judge through the World Textile Awards website. The competition is now open for entries and early bird reduced rates are available until July 1, 2014.
www.worldtextileawards.com/
