2016 State Of The U.S. Textile Industry

NCTOPrice
Outgoing NCTO chairman Jeff Price

在第13届年度NCTO会议上,即将离任的主席杰夫·普莱斯(Jeff Price)描绘了美国纺织业的一幅图片,以及该协会的成就和即将实现的目标。

By Jeff Price

The U.S. textile industry is on sound footing. Between 1995 and 2009, the industry suffered through a historic and heartbreaking contraction that impacted countless workers and communities. The last six years, however, have been different. Emerging from the depths of a severe national recession, the U.S. textile sector has rebounded. Now, the challenge is both to sustain this impressive recovery and to find viable ways to generate a new era of growth.


Editor’s Note: The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS Subsector 313 covers Textile Mills, subsector 314 covers Textile Product Mills and subsector 315 covers Apparel.


The Numbers

In 2015, the value of U.S. man-made fiber and filament, textile, and apparel shipments totaled an estimated $76 billion. This is an increase of almost 14 percent since 2009.

The breakdown of 2015 shipments by industry sector is as follows:

  • $30.7 billion for Textile Mills;
  • $23.2 billion for Textile Product Mills;
  • $13.9 billion for Apparel; and
  • 人造和合成纤维和细丝的估计为82亿美元。

该行业的供应链雇用了579,300名工人。2015年的数字包括:

  • 在纺织厂116400个工作岗位;
  • 116400年乔bs in Textile Product Mills;
  • 服装制造业的136,800个工作;
  • 25,600 jobs in Artificial & Synthetic Fibers & Filaments Manufacturing;
  • 116,300 jobs in Cotton Farming and Related Industry; and
  • 67,800 jobs in Wool Growing and Related Industry.

NCTOJobsgraphA look back to employment data from 2009 onward further illustrates that precipitous job losses have virtually stopped. Today, job gains and losses likely are the result of normal business cycles, new investment, or productivity increases instead of being tied to the massive loss of market share as was the case in the 1995-2008 timeframe.

Since 2009, U.S. exports of fiber, yarns, fabrics, made-ups, and apparel are up 38 percent, reaching almost $27.8 billion in 2015. In particular, the U.S. has a strong export position in fiber, yarns, and fabrics. Exports of those products totaled $21.6 billion alone in 2015, making America the fourth largest exporter of fiber and textile products in the world.

Growing capital expenditures also are a clear sign of the textile industry’s positive outlook. The textile and apparel sector spent $2 billion on capital expenditures in 2014, the latest year for which data is available.

NCTOCapitalInvestgraphInvestment in Textile Mills and Textile Product Mills has seen especially explosive growth, climbing from $960 million in 2009 to $1.8 billion in 2014 — an increase of 87 percent. In contrast, capital investment in Apparel is down $157 million, a decrease of 39 percent.

自2009年以来,纺织厂的容量利用率指数增长了39%,而纺织品厂的增长率为19.5%,服装分别为3%,所有美国制造业分别为17%。在更好的新闻中,2015年四分之三的三个季度中,纺织厂的容量利用率超过了所有制造业的容量。

Finally, the index calculating change in Industrial Production demonstrates that the textile industry is no longer a negative outlier within the U.S. manufacturing sector.

自2009年以来,工业生产是:

  • up 12.2 percent for Textile Mills;
  • up 3.2 percent for Textile Product Mills;
  • down 17.8 percent for Apparel; and
  • up 20 percent for All U.S. Manufacturing.

But since 2012, growth in industrial production by Textile Mills has exceeded that of All U.S. Manufacturing. Industrial production is up 7.6 percent for Textile Mills as compared to just 6.1 percent for All U.S. Manufacturing. Growth in industrial production for Textile Product Mills was 5.9 percent, a figure almost identical to that for All U.S. Manufacturing.

包装数字,该行业的基本面是合理的。但是,这并不意味着该行业没有挑战。随着全球经济努力发展,该行业已经开始看到需求变化。对于每个制造业,商业周期中的低迷都是自然的,并且需要特定的策略来风化困难的市场条件。

NCTOShipments

Policy

Moving on to policy, the textile sector is unique because changes in trade policy often can affect business with serious, unpredictable consequences. It is for this reason that the textile industry, and certainly NCTO, must engage in the Washington policy-making process; otherwise there is no working relationship with those who are shaping the government’s position on trade.

Trans-Pacific Partnership

The most important policy challenge to confront the industry over the past 20 years is the Trans-Pacific Partnership (TPP) free trade agreement (FTA). Due to the inclusion of Vietnam with its state-run economy, TPP holds the potential to negatively impact the existing U.S. and Western Hemisphere textile and apparel production chain.

Thanks to the efforts of many NCTO members, NCTO staff, fellow textile-related trade associations, and supporters on Capitol Hill, the industry’s goals were sufficiently met in the final document, which includes:

  • A yarn-forward rule of origin that mirrors NAFTA/CAFTA;
  • 10- to 12-year tariff phase-outs for the most sensitive products;
  • Terms that provide for the stability of the Western Hemisphere production chain; and
  • Customs language that captures the stronger enforcement provisions from previous FTAs.

Accordingly, after carefully studying the finalized agreement, NCTO endorsed TPP in January of this year. This endorsement, however, did not come without a full weighing of the various shortcomings and tradeoffs that were included in the final text.

There were a number of legitimate concerns. Most notable was the inclusion of a short supply list that waived yarn-forward mandates for nearly 190 items. NCTO has since communicated its displeasure with certain aspects of the agreement to the Obama administration and Congress so as to lay a foundation to prevent a repetition of these objectionable provisions in future agreements. With that said, no trade agreement is perfect; but in this instance, U.S. negotiators struck a balanced deal that met NCTO’s key objectives.

Transatlantic Trade And Investment Partnership

Beyond the TPP, the United States is ramping up efforts to reach a free trade agreement with the European Union (EU), known as the Transatlantic Trade and Investment Partnership (T-TIP).

尽管这些谈判的步伐比TPP速度慢,但T-Tip的谈判正在加速,这对该行业带来了两个挑战:

  • the EU favors a fabric-forward instead of a yarn-forward rule; and
  • 欧盟正在敦促获得美国军事合同。

NCTO is engaging the U.S. government proactively to resolve differences with the EU over textile origin rules. This part of the negotiation will be very complex, but the council feels a reasonable solution can be reached.

同时,美国纺织品部门在国防采购方面也有一条艰苦的路线。美国军事购买必须继续受浆果修正案的管辖。与欧盟或任何其他国家没有任何交易值得稀释国防采购法中的国内采购授权。

As T-TIP negotiations proceed, NCTO will continue to work to make sure policy makers understand the council’s positions on rules of origin, the Berry Amendment and other key elements of the agreement.

Tariff Preference Levels

Tariff Preference Levels (TPLs) are an exception to yarn forward rules that have been included in a number of FTAs.

NCTO opposes TPLs because they allow FTA countries to export finished apparel and home furnishings duty free to the United States, despite the fact that these products contain yarn and fabric from third parties such as China and Pakistan.

两个这样的TPL已过期,另一个TPL计划于今年夏天日落。他们是:

  • Nicaragua TPL — 100 million square meters (m2);
  • 摩洛哥TPL -3000万平方米;和
  • Bahrain TPL — 65 million m2, which expires July 31.

Despite an aggressive lobbying effort on the part of various foreign governments, importers, brands and retailers, Congress sided with NCTO and allowed these TPLs to sunset. Undeterred by their defeat, TPL proponents continue to press for renewals. As such, NCTO will keep working diligently to make sure these harmful loopholes are not reopened.

Miscellaneous Tariff Bill

While noting these industry victories, NCTO is mindful that at least one vexing legislative problem is still in need of a solution.

For several years, the Miscellaneous Tariff Bill (MTB) has languished in Congress. Lack of action has hurt the U.S. textile sector because MTBs reduce duties on imports of inputs that are not produced in the United States.

The good news is that there appears to be a breakthrough on this issue. It is NCTO’s understanding that the House Ways and Means committee and House Leadership are intent on moving legislation that would allow the MTB process to move forward.

NCTO的信息很简单。由于MTBS提高了纺织业的竞争地位,因此NCTO强烈敦促国会重新启动已久的MTB立法过程。

其他贸易政策事项

The industry’s Washington lobbying and advocacy efforts in other trade areas also directly benefited the bottom line of NCTO members. Those activities included:

  • 工作成功了g to reauthorize the Ex-Im Bank;
  • fighting unwarranted Foreign Trade Zone applications; and
  • assisting member companies in defending against unjustified short supply petitions.

浆果修正案

Beyond trade matters, several government procurement issues have arisen in the last year.

首先,美国纺织行业集会击败对浆果修正案的攻击。反对者试图通过提高合同门槛来削弱浆果。在《 16财年国防授权法》(NDAA)中,强烈的行业游说工作成功地在醒目的语言中取得了成功,该法案将从15万美元增加到500,000美元。这场胜利是NCTO在华盛顿的努力如何直接使其成员的底线受益的一个切实的例子。

NCTO还受到国防部(DOD)监察长的总共两项审计,总共进行了三项审核,该总督评估了国防部遵守《浆果修正案》。要求这些审核的法律是14财年NDAA的一部分。如果不是因为NCTO是活跃成员的Berry修正案纺织联盟的游说工作,那就不会在书籍上。

After analyzing the three audits now in hand, NCTO believes that more training of contracting officers would improve DoD’s compliance with Berry.

Finally, in other government procurement matters, NCTO continued its work to strengthen relationships with the Defense Logistics Agency and other government customers.

NCTO also has been aiding the Department of Commerce’s Bureau of Industry and Security as it studies the U.S. textile industry, especially as it relates to the ability to supply product under the Berry Amendment.

RFT-MII Announcement

NCTO welcomed the April 1 announcement by U.S. Defense Secretary Ash Carter of the selection of Advanced Functional Fabrics of America to lead the Revolutionary Fibers & Textiles Manufacturing Innovation Institute (RFT-MII).

The RFT-MII is part of President Obama’s National Network of Manufacturing Innovation Initiative (NNMI). It is slated to receive roughly $320 million in funding — $75 million from the DoD, and the rest coming in money and in-kind contributions from the private sector.

NCTO spent 2014 and the spring of 2015 working to ensure that textiles would win an open competition against other industrial sectors to be picked for an innovation institute. From April 2015 onwards, NCTO provided advice to the DoD at their request about how to help launch the RFT-MII and about how to educate industry on how to participate.

RFT-MI NCTO既兴奋又自信I will spur innovation in fiber formation and textile science by more effectively encouraging collaboration among the industry’s brightest minds.

Effective Washington Presence Vital

NCTO must acknowledge that there are well-funded interest groups whose agendas do not always coincide with the council’s agenda.

Spending in 2013 by these groups dwarfs the $1.9 million budget recently approved by NCTO’s Board of Directors. Such spending includes:

  • $35.5 million by the National Retail Federation (NRF);
  • $5.2 million by the American Apparel & Footwear Association (AAFA); and
  • $19.4 million by the Retail Industry Leaders Association (RILA).

The contrast of 2015 lobbying expenditures are even more pronounced:

  • $9.55 million by Wal-Mart;
  • $8.25 million by NRF;
  • Rila $ 275万美元;
  • $1.63 million by Nike;
  • $1.55 million by Target Corp.;
  • $760,000 by Sears;
  • $732,000 by AAFA; and
  • L Brands Inc.(以前是Limited Brands)$ 200,000。

Noting this sizeable financial disadvantage, it is imperative to keep growing NCTO. Please help the organization by identifying companies that should join its membership. Moreover, NCTO also needs a continued focus on its Washington agenda if the textile industry is to enjoy continued policy success.

重新命名该行业

NCTO is leading a special public relations effort to help level the playing field for the textile industry.

This past May, NCTO engaged the public relations firm of Wray Ward to develop and execute an industry rebranding initiative. The council has been joined in this important campaign by several industry partners. Financial contributors include:

  • American Fiber Manufacturers Association;
  • 国家棉花委员会;
  • The Industrial Fabrics Association International; and
  • Glen Raven Inc.

NCTO is grateful for their support because the time is long overdue for our industry to take charge of how we are viewed by policy makers, the news media and the public at large.

理事会根本不能允许反对该行业政策议程的当事方使该行业过时和不竞争的虚假观念永存。

取而代之的是,NCTO有责任为舆论领导者和消费者描绘一幅图片,以确立该行业作为全球市场中主要雇主,投资者,创新者,生产者,出口商和竞争对手的基准欣赏。

The campaign’s theme is, “American Textiles: We Make Amazing.” It encapsulates the industry’s amazing cutting-edge technologies, amazing products, amazing contribution to the U.S. economy, amazing impact on national defense, and most of all, the amazing associates who make this happen every day.

Suffice it to say, there is a lot of hard work ahead, but the industry has much at stake in changing outdated and false perceptions.

Challenges Ahead

While last year was one of the most productive in NCTO’s history, challenges still are on the horizon.

无论是软化的全球经济,要在二十年内实施最重要的贸易协定的前景,还是致力于明天成为一个更好的行业,而不是当今的行业,自满不是一种选择。

In Washington, it is incumbent upon NCTO to engage federal policy makers routinely and substantively on the many issues that directly impact sales, investments, and workers because if the council doesn’t, it will cost the U.S. textile industry revenue, markets, output, and eventually jobs.

至于行业从政府那里想要的东西,NCTO只是要求一个稳定且逻辑上的政策环境,以认识到纺织品部门及其劳动力的价值。这样做将使这个伟大的行业能够继续发展,雇用,投资和改善美国的生活水平和生活质量。

In terms of how the industry is perceived inside and outside the Washington Beltway, it certainly cannot allow others to speak for its interests or to define its image. That is why the industry must be its own best advocate. Stay involved or get involved and support NCTO to the greatest degree possible.


编者注:杰夫·普莱斯(Jeff Price)是Milliken&Company专业面料部总裁,以及2015年NCTO主席。在华盛顿最近举行的年度会议上,伊曼·米尔斯(Inman Mills)董事长,首席执行官兼财务主管罗伯特·H·查普曼三世(Robert H.行动(请参阅“新闻”,TW, this issue); and the industry stopped an effort by House Armed Services Committee to raise the contract threshold needed to trigger the Berry Amendment.


May/June 2016