According to the American Textile Manufacturers Institute’s yearend economic report, overall, the industry ended the year $300 million in the red, compared with profits of $700 million in 1999.
That swing includes heavy restructuring charges that have been taken by a number of mills this year, including a $473 million goodwill writeoff by Burlington Industries.
But the news wasn’t all gloomy: textile exports for the year actually rose, for the first time surpassing $10 billion.
Shipments of textiles by U.S. mills fell yet again in 2000, to $77.1 billion, down 1.2 percent, as margins continued to erode. The report, which is based on government data and estimates, said the loss was the first one recorded by the entire industry in over 50 years.
However, textile exports climbed 11.8 percent, reaching $10.34 billion. Overall exports of textiles and apparel increased 7.3 percent, to $18.45 billion.
The lobbying organization said that the rise in exports illustrated the validity of its support of Western Hemisphere free-trade treaties.
“The importance of well-negotiated trade agreements such as the North American Free Trade Agreement and the recently inaugurated U.S.-Caribbean Basin trade partnership act was underscored by the 12 percent increase of yarn, fabric and made-up textile goods in 2000,” said ATMI president Roger Chastain, who also serves as chairman and chief executive of Mount Vernon Mills.
But Chastain pointed out that competition from imported fabrics continues to exert considerable pressure on U.S. textile makers.
Imports of textiles rose 11.3 percent for the year, to $15.12 billion. Total imports of textiles and apparel rose 12.6 percent, to $78.8 billion.
While industry officials hope that CBI parity will lead to higher demand for U.S.-made textiles, executives report that they haven’t yet seen much in the way of sales that they can attribute to the new trade agreement.
Because of the 807 preference programs that already were in place with the Caribbean, though, there is already a substantial trade going on. ATMI economist Dave Link noted that, through the end of October, shipments of U.S. textiles to CBI countries were up 23 percent — that includes only one month under the new trade regime.
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Still, the fact that there is such a strong trade has lead some top executives to predict that it will take some time for the new law to lead to sales growth. Since most apparel makers in the region already use American fabrics, they reason, new plants will have to be built if more fabric is going to be used.
The report also said that overall textile employment was down 3 percent this year, to 543,000.
Average weekly earnings for textile workers were up 2.6 percent, to $450.10, despite a 2 percent average decrease in the number of hours worked.
The producer price increases for textiles, which measures price fluctuations over time, was flat at 122.7. The index — which is not a price but a statistical measurement — is keyed at 1982, when it was begun at 100.
However, Link noted that the textile PPI is off substantially from where it was three or four years ago and that some categories of apparel textiles were down substantially for the year.