NEW YORK — It was a year full of change and controversy for the textile industry.
The dropping of quotas among all World Trade Organization members — with the exception of China, which was under safeguard quotas and then struck deals with the European Union and the U.S. to restrict imports through 2008 — caused major shifts in sourcing patterns.
The Doha Round of global trade talks meant to reduce or eliminate tariffs created much debate and politicking, and will be an ongoing issue next year. There were also WTO challenges to U.S. subsidy programs for the cotton industry and domestic manufacturers that just last week forced Congress to phase out the initiatives.
Even Australia’s wool industry had a trying year. A boycott led by People for the Ethical Treatment of Animals over allegations of animal cruelty created tension within the industry and caused some retailers to call for changes in the industry’s handling of sheep. Australia is one of the largest producers of wool in the world — 1.05 billion pounds of wool worth $2.8 billion in exports in 2004.
Here, four textile industry executives reflect on 2005 and the year ahead.
Stuart McCullough, Australian Wool Innovation product commercialization manager
Biggest challenges in 2005: “Our biggest challenge this year has been in North America, which has been attacked by PETA.”
How the industry has responded: “PETA was telling one side of the story and we had to combat that by communicating well with our retailers here.”
Best of 2005: “The highlight is that the Australian wool industry is resolved to start moving back toward promotion of wool after an absence of money dedicated to promotion. Our money has largely been devoted to research and development. We’ve started funding a large test-marketing campaign … in North America.”
Goals for 2006: “In 2006, we will focus on engaging with the biggest and strongest brands and retailers to take their wool consumption to a higher level. We look forward to being more positive with our message about wool, rather than defending.”
J. Berrye Worsham, president and chief executive officer, Cotton Inc.
Best of 2005: “The U.S. Supreme Court ruled favorably on the beef checkoff program in a Constitutional challenge. While this wasn’t directly applicable to cotton, it did set precedent that the foundation for all the research and marketing checkoff programs is Constitutional.”
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Worst for the textile industry in 2005: “Continued job and output losses in the U.S. textile industry due to growth in imported textiles and apparel.”
Best for the textile industry in 2005: “The denim market continued to remain strong in 2005, both in terms of basic casualwear, as well as the surge in premium denim jeans.”
Goals for Cotton Inc. in 2006: “Continue to bring innovative fabrics to the cotton market and to lead the U.S. cotton industry in our effort to market more than 20 million bales of cotton annually in the global textile market. We will deliver valued technical and informational services to key companies in more than 25 countries in order to enhance the competitiveness of cotton globally.”
Textile industry goals: “The main goal of the textile industry in the Americas is to find markets and build partnerships that will enable the industry to be competitive with Asia, notably China, in the quota-free era.”
Libby Neuner, senior vice president of apparel North America, Nano-Tex
Best of 2005 for Nano-Tex: “We launched three new technologies this year: our resist-static technology, repels and releases technology, coolest comfort and moisture management.”
Biggest challenges for Nano-Tex in 2005: “We have gotten into new markets, which has been both a challenge and an opportunity. We’ve made some significant inroads in the wool suiting market. That brings a whole new host of customers and mills and processing procedures. It’s been great in terms of a new segments, but challenging in terms of getting that up and running.
“We’re also looking at getting into high-end fabrics. There are obviously challenges in dealing with very delicate fabrics.”
Biggest challenges facing the textile industry in 2006: “Across the board, price pressure continues. You have to demonstrate to brands and retailers that you are bringing a technology that solves a real consumer issue.”
Expectations for 2006: “We’re really focusing on further penetration in the women’s wear market. We really do believe that there’s a fusion of fashion and technology, and women want enhancement features as much as men do. We had our first designer partnership with Yeolee this fall.
“Going forward, we’re going to be branching out to additional luxury fabric applications such as cashmere. We really think that’s going to demonstrate to the luxury market that it’s a great approach to protecting fabric. The women’s wear market is starting to wake up and take notice that you can combine fashion and technology.”
David Stone, president and chief executive officer, Solid Stone Fabrics
Best of 2005 for Solid Stone Fabrics: “We had good company growth in terms of sales. We opened ourselves up to new and large accounts that we previously didn’t know about. We’re in our third year of business and we started off focusing on the East Coast. This year, we went to the Los Angeles International Textile Show, which went very well for us. After that we spent a lot of time on the road west of the Mississippi meeting people.”
Biggest challenges in 2005: “We’ve had the normal frustrations with logistics and getting goods into the country through Customs. Like anyone that’s importing fabric, we’ve been focusing on our ability to execute. As much as everyone wants to save money and go through Asia, it’s not the same deal. There are issues, like lead times with Asian mills that are different. After that, the materials have to be put on a boat and when they get to L.A., you don’t know how long it’s going to be. We want to be able to execute even though the goods are being made thousands of miles from here.”
Biggest challenges for the textiles industry in 2005: “The domestic supply situation continues to deteriorate. There were more small mills closing and getting out of certain fabric categories. It forces people to look oversees.
“I see that as an opportunity for domestic manufacturers if they have the right focus. Their lead time will be shorter. I haven’t seen a lot of that yet, but I think someday certain components of textiles market will come back to the United States.”
Goals for 2006: “We’re expecting to grow significantly. We want to continue to take the account base we have and develop new programs and services with them. We don’t have to run out and find new markets. Focus on execution, focus on quality. Quality is another issue. There’s a move to go to Asia because it’s cheaper, but it’s a challenge to maintain and monitor that quality.”
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