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Legwear
Trends
&
VOLUME 48 NUMBER 03
TEXTILES OF TOMORROW
SERVING THE HOSIERY AND TEXTILE INDUSTRIES EACH MONTH
Industry Executives: N.C. Manufacturing Changing
But More
Competitive
Than Ever
N.C. To Entrepreneurs: We Want To Help You
inside
Roots: A Month That Served As A Starting Line
From Washington: Aderholt With Straight Talk to
Commerce Secretary
Legwear
Trends
&
TEXTILES OF TOMORROW
VOLUME 48 NUMBER 03
SERVING THE HOSIERY AND TEXTILE INDUSTRIES EACH MONTH
The only monthly publication that offers
News About The Industry, From The Industry, For The Industry.
inside
FEATURES
6
N.C. Manufacturers More Competitive Than Ever
10
N.C. To Entrepreneurs: We Want To Help You
14
Department Stores On A Comeback
14
Bert Huffman—A Leader
15
Spring Sells Rock Hill Business
15
Polartec Fabrics Now Recyclable
COLUMNS
4 Legislative Column — PAUL FOGLEMAN
8 Roots — PAUL FOGLEMAN
12 From Washington
The ONLY monthly magazine
dedicated to the hosiery industry
PUBLISHER. . . . . . . . . . . . . . . . . Paul Fogleman
EDITOR. . . . . . . . . . . . . . . . . . . . Brent Childers
ASSISTANT EDITOR . . . . . . . . . Charlene Nelson Carpenter
ART DIRECTOR . . . . . . . . . . . . . J. Johnson
MARKETING DIRECTOR. . . . .
Denise Hatcher
P.O. Box 1708, Hickory, NC 28603 Tel.: 828.322.7766
Fax: 828.322.4868
advertisers in this issue
We appreciate Legwear Trends & Fashions advertisers and encourage you to
consider them when selecting a product or service.
The Textile Center. ........................................5
Century Hosiery, Inc.................................... 11
Crawford Mills, Inc....................................... 11
O’Mara, Inc ................................................... 11
Huitt Mills, Inc .............................................. 11
Bear Creek Hosiery, Inc .............................. 11
NC Sock ........................................................ 11
Wellman, Inc ................................................. 11
Robinson Hosiery Mill, Inc.......................... 12
Del-Mark....................................................... 14
Exeltor ...........................................................21
Jones Textile Company ..............................21
Roselon Industries.......................................21
Southern Colortype ....................................21
Hickory Throwing......................................... 15
Hosiery Technology Center ....................... 16
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legislative column
by PAUL FOGLEMAN, Director, Hosiery Governmental Affairs Council
The painful saga that
brought down House
Speaker Jim Black does
not obscure the fact
that he was a friend of
business. Legitimate
business.
However distasteful Black’s
dealings with chiropractors,
video poker owners, and lottery
proponents, his constant
support for manufacturing,
entrepreneurs, and education are
the real attributes to his legacy.
Prior to revelations about his
available for the growth and
development of the center. In
2006, the HTC appropriation of
$500,000 was finally added to the
recurring community colleges
budget.
Black’s problems have prompted
loud and bitter comments from
his detractors, most of them
Republicans. That’s the way it is
with politics. Many Democrats
are embarrassed. But the hosiery
and textiles industries have
benefited from the pro-business
commitment of former House
Speaker Jim Black.
progressive. He led the drive for
tighter lobbying regulations and
ethics reform. He supports a
moratorium on the death penalty.
But after 24 years in the House, he
knows the political and business
climate of North Carolina. That
experience will serve him well.
•••••
One of the bills introduced in
the House and Senate during
the first 10 days of the current
legislative session is called “the
Endangered Manufacturers Act.”
The major text of the bill calls for
But had it not been for Rep. Jim Black, the 1990 chair of the
Appropriations Subcommittee on Education, there would have been no
Hosiery Technology Center.
illegal acceptance of cash for
favors, leaders of the House and
Senate praised his ability to move
progressive measures through the
House.
But when the guilty plea from
Black revealed his crime, “sad” was
the word most often heard from
thinking lawmakers. It was a word
used by new House Speaker Joe
Hackney and Senate President
Marc Basnight. Gov. Mike Easley
also said it was “ a sad day.”
But had it not been for Rep.
Jim Black, the 1990 chair of the
Appropriations Subcommittee on
Education, there would have been
no Hosiery Technology Center.
He personally earmarked $100,000
from the Community Colleges
budget to keep the center alive
and Dan St. Louis on the payroll.
And for the next 14 years, he saw
that an annual non-recurring
appropriation of $300,000 was
4
•••••
In the weeks before the House
members selected a new House
Speaker, there were reports of
concern coming from the business
community. Joe Hackney is too
liberal, some voices were crying.
They also were saying his social
agenda transcends his concern for
the business environment.
His committee appointments
indicate how wrong they were.
Chairman of the powerful Rules
Committee is Rep. Bill Owens,
an Elizabeth City businessman.
The chair of a new committee on
Commerce, Small Business and
Entrepreneurship is Rep. Margaret
Dickson of Fayetteville, a small
business owner. Membership on
all House committees reflects the
68-52 Democrats to Republicans
in the chamber.
Hackney is an unapologetic
a new furniture technology center
which would receive a $2 million
appropriation in the biennium. An
additional $5 million would seed
a new N.C. Furniture Council
which would be engaged in grants
for research and development,
marketing, and technology
infusions.
Also in the bill is the exclusion
of industrial equipment from the
N.C. Building Code. This would
eliminate the requirement for
hosiery and textile companies to
have Underwriters Life Inc. certify
each piece of new equipment or
equipment that has been moved
from one location to another. The
costs faced by several hosiery mills
in Hickory.
LEG WEA R TREND S A ND TE XTILES TOMORRO W
/ March 2007
Fran Davis
John Anderson
Dave Lambert
Diane Donahue
Jim Booterbaugh
Industry Executives: N.C. Manufacturing Changing
But More Competitive Than Ever
Brent Childers
LTTT writer
RALEIGH - A contingent of hosiery and textile executives
told lawmakers in Raleigh on March 21 that taxpayers are getting
an excellent return on their investment in two technology centers
being utilized by the industries.
At a time when 250,000 jobs were lost between 2001 and early
2006 due mainly to cheap labor markets abroad, executives from
several hosiery and textile companies in North Carolina told
lawmakers that their business models are different today and are
allowing them to compete in a global playing field.
Key components of those new business models include
technical assistance and training programs provided by
the Hosiery Technology Center In Hickory, N.C. and and
The Textile Technology Center in Belmont, N.C., industry
executives told the 35-40 lawmakers gathered for a March 21
breakfast.
Industry executives attending the 2007 Hosiery and Textile
Day at the Legislature were Jim Booterbaugh, National
Spinning’s vice president of operations; Harold Edwards,
manager of Pharr Yarns’s High Performance plant; David
Lambert senior marketing manager with Wellman Inc.; Diane
Henderson, seamless apparel division president with AcmeMcRary; Fran Davis, president of Twin City Knitting; John
Anderson, director of the Textile Technology Center; and Dan
St. Louis, director of the Hosiery Technology Center.
Industry executives briefed lawmakers during the 7:30 a.m.
breakfast on how their respective companies have revamped
their business plans in response to a changing marketplace - one
that now includes low-paying companies in Asia and Central
America.
“Several years ago the wholesale price point on a commodity
sock that we produced was $2 a pair,” said Davis. “Today the
wholesale price on that same pair of socks is 87 cents. There’s just
no way that we can compete on that commodity product.”
However, Davis said his company has diversified its product
line to include a range of athletic socks that cater to the sports
markets, including baseball, football and soccer. Those products
contain technical attributes that would be unfeasible for
production in the Asian commodity markets or other offshore
6
About 35 lawmakers attended the breakfast on Hosiery
and Textile Day at the Legislature.
production facilities, he said.
Developing markets for the more technical socks also has
been a key to his company’s success and the Hosiery Technology
Center has been invaluable in helping not only develop the
product but also in helping develop new markets, Davis said.
Twin City Knitting was among 27 U.S. manufacturers that
traveled to the nation’s largest apparel show in Las Vegas in
February as part of a market develop program sponsored by the
Hosiery Technology Center. That program was funded in part
by a federal grant the center received in 2005.
Donahue, who serves as Acme-McRary’s seamless division
president, presented lawmakers with an overview of the
opportunities that the seamless apparel market holds for both
hosiery and textile industries.
Acme-McCrary, based in Ashesboro, N.C., is the largest
producer of seamless apparel on the East Coast.
When considering the innovation in both the yarn and fiber
sectors as well as new technology in the seamless apparel knitting
machines, Donahue said the market potential for seamless
apparel is vast.
However, she said a lack of awareness in the marketplace
as well as in the knitting technician and designer sectors are
creating a gap between the current level of North Carolina
seamless apparel production and what it could potentially be in
LEGWEAR TRENDS AND TEXTILES TOMORRO W
/ March 2007
the future.
She said her company is currently working with the The
Hosiery Association in addressing the market awareness issue
by creating a seamless consortium which recently produced a
brochure that’s being used to bring greater awareness to seamless
apparel.
Donahue said she is excited about the potential role the
Hosiery Technology Center could play in product development
and training for the seamless sector.
The center is seeking a one-time appropriation of $250,000
that would be used to purchase up to three seamless knitting
machines that would allow the center to begin developing a
seamless apparel product development and training program for
knitting technicians.
N.C. Rep. Rep. Ray Warren of Taylorsville has introduced
a bill authorizing the appropriation. Rep. Walter Church of
Valdese and Rep. Harold Brubaker are co-sponsors of the
legislation.
Donahue explained to lawmakers at the breakfast how seamless
apparel production is a natural fit for the hosiery industry since
the most utilized machinery in seamless apparel production are
supersized versions of the circular knitting machines used to knit
legwear products.
She said a number hosiery knitting jobs have been lost over the
last several years and those employees have skills that could be
used in the production of seamless apparel.
A Seamless Apparel Symposium held last year in Greensboro
drew about 150 industry to discuss various aspect of the
seamless apparel market. Seamless manufacturers during a panel
discussion agreed that there was untapped potential for seamless
apparel production and that a vehicle was needed to help develop
and market seamless apparel.
Most of today’s seamless apparel is run on the Santoni and
Sangiacomo circular knitting machines - with some 8,500 of the
machines in production worldwide. Hosiery manufacturers have
been producing seamless socks on circular knitting machines for
more than 100 years as the seamless sock knitting machine was
invented in 1879 by John Nelson.
With a long tradition of manufacturing on circular knitting
machines, it’s understandable why numerous seamless apparel
producers got their start as hosiery manufacturers. It’s also why
industry analysts believe seamless apparel is an attractive choice
for a hosiery manufacturer looking to diversify his or her product
lines.
Booterbaugh, speaking on behalf of the textile sector, told
Hosieery and textile industry representatives speak
with N.C. Sen. David Hoyle of Gaston County.
March 2007 / L E G W E A R
TRENDS AND TEXTILES TOMORROW
Acme-McRary’s Diane Donahue talks with
N.C. Rep. Harold Brubaker of Asheboro.
lawmakers that his company has adapted to a changing playing
field through innovation in its products and that the Textile
Center in Belmont has been a valuable asset to yarn and fiber
producers.
Quick response time on delivering the order is one of the most
important keys to any domestic manufacturer in today’s global
marketplace, he said.
He used example of the company product being used in
blankets for the winner of basketball championships. Knowing
that the items have to be produced and delivered in a matter of
days, Booterbaugh said it just one example of how quick turns on
orders is keeping production in the United States.
Lambert, also representing the textile industry, said Wellman
Inc. has enjoyed a long-standing relationship with both the
The Hosiery Technology Center and the Textile Technology
Center. Wellman Inc. has donated several million dollars worth
of equipment to the Textile Center and Lambert said both his
company and other yarn and fiber producers benefit greatly from
the technology and expertise offered by the center’s programs
Dianne Donahue, who serves as Acme-McRary’s
seamless division president, presented lawmakers with an
overview of the opportunities that the seamless apparel
market holds for both hosiery and textile industries.
and personnel.
With the Textile Center and Hosiery Technology Center both
funded through the state’s community college system, Lambert
said his company has seen what a positive impact both centers
working together can have on the industry.
Anderson also alluded to that symbiotic relationship during
his remarks to legislators. He said the Textile Center recently
participated in a joint marketing venture that took some 28 U.S.
manufacturers - most from North Carolina - out to the largest
apparel show in America in Las Vegas. Fourteen hosiery and
apparel companies made the trip along with 14 yarn and fiber
producers.
Hosiery and apparel manufacturers participating in the “You
Wear US Well” exhibit in February included Fox River Mills,
Wigwam Mills, A.S. Tees Manufacturing, Carolina Apparel
Group Inc., Carina Clothing, Earl’s Apparel Inc., Cal Cru,
Selectra, R. Evans Hosiery, Tour Image, Twin City Knitting,
(continued on page 15)
7
ro
o
ts
April Was Benchmark Month
by PAUL FOGLEMAN, Publisher
For decades, April was the
month for hosiery executives,
their manager and suppliers
gathered to “start over.”
This was a month when
the Carolina Hosiery Assn.
(previously CVHA) and The
Hosiery Association (formerly
NAHM) held their annual
meetings to celebrate successes
and applaud visions for the
future. It was time to “start
over” with new leadership
teams, some new board
members, and new ambitions.
Within the industry,
manufacturers were ready
to “start over” with business
relationships. They called
it networking. Supplier
companies were visible to tout
innovations in various aspects
in manufacturing.
The Carolina organization
gathered the first Tuesday in
April in Hickory unless there
was a conflict with the Easter
observance. NAHM attracted
its members to resort locations
from Bermuda to Sea Island or
Palm Beach.
The Carolina association
attracted 250 to 300 owners of
small and medium-sized mills
along with their key personnel.
Suppliers were always present
because this crowd included
the decision-makers-the
buyers.
The national meetings
mostly involved top-echelon
executives who could combine
the meetings with a businesspaid vacation. They were
glamorous and elegant and
formal. Board meetings and
membership business sessions
were part of the format.
The annual CVHA
and CHA meetings were
grassroots. The socials were
elbow-to-elbow affairs, usually
sponsored by suppliers. The
8
WITHIN THE INDUSTRY,
WITH BUSINESS
LEG WEAR T RENDS AN D T EX T ILES T O MO RRO W
/ March 2007
Lake Hickory Country Club setting offered a business-withfun atmosphere. Awards went to member and supplier- of-theyear, followed by recognition of board members, special guests,
and sponsors. The programs ranged from the North Carolina
governor to Cajun humorist Justin Wilson.
The NAHM banquet on Saturday evening was the finale for
the gathering. Awards, speeches and a dance were the finishing
touches.
New officers and new board members were anxious to make
their mark. Goals and plans for new programs were on the
agenda. Contrasting with today’s environment, those were
simpler, happier times.
By the mid-1990s, change was gaining momentum. A new
GOP congress approved the North American Free Trade
Agreement (NAFTA) that was supposed to open the doors
for new opportunities for manufacturers and retailers. Mass
merchandisers demanded more from their vendor “partners.”
Lower margins and credit issues resulted in frayed relations
between greige and vertical manufacturers. Companies looked
inward. There was less time for people to contribute to their
trade associations.
Trade associations are re-inventing themselves in the 21st
century. More focus is on regulations, trade policies and
international trends. Government relations now top the agenda.
Who do we know and how can they help us?
Still, for all the intensity of today’s hosiery community there
are lessons to be remembered. Civility. Trust. Loyalty. Keeping
an eye on the bottom line.
And there are today those wonder about the day
the music died.
MANUFACTURERS WERE READY TO “START OVER”
S RELATIONSHIPS. THEY CALLED IT NETWORKING.
N.C. To Entrepreneurs:
We Want To Help You
by Paul Fogleman
Entrepreneurs built the U.S. hosiery
industry over the past 100 years and
those in North Carolina today could
have resources never dreamed of by their
forbearers.
State agencies and educational
institutions now realize that smaller and
medium-sized companies are better able
to weather the storms in a world of global,
low-wage competition. How to help
entrepreneurs survive such storms was
the theme of a recent meeting sponsored
by the N.C. Rural Center. The occasion
attracted top political leaders, educators,
and economic development specialists.
Entrepreneurs are alive and well,
according to figures released by the N.C.
Secretary of State office. Some 5,000 new
incorporations are filed and approved
each month. Many will fail. But state
agencies and educational institutions
are developing programs to improve the
success rate. Consider:
• Advantage West, the economic
development partnership serving 23
western North Carolina counties, has
created the Certified Entrepreneurial
Development Program to give each
community a checklist of services to
help emerging businesses.
• Appalachian State University and
Western Carolina University
have established Centers for
Entrepreneurship. The goal is to
prepare and encourage graduates to
start a business. ASU says surveys
indicated that 76 per cent of its
students have “thought about starting
a business” and 51 per cent want to
take a course in entrepreneurship.
• The University of North Carolina
system, the N.C. Community
Colleges, N.C. Independent Colleges
and Universities, and the public
education system have formed the
N.C. Consortium for Entrepreneurial
Education. The purpose is to
introduce entrepreneurial skills from
kindergarten through adult education.
All these undertakings are supported
by state appropriations and funds flowing
10
from foundations such as the Golden Leaf
Foundation. The N.C. Bar Association
Foundation has organized free legal
services for some entrepreneurs.
Lt. Gov. Beverly Perdue, House Speaker
Joe Hackney and Senate President Marc
Basnight all pledge support for state
entrepreneurs. Committees have been
established in the House and Senate to
consider legislation to protect homegrown businesses.
Within the past five years, several small
hosiery manufacturing operations have
emerged. But they have faced some tough
challenges, according to Dan St. Louis,
manager of the Hosiery Technology
Center which is a state entity working
with hosiery entrepreneurs. HTC
research and development, testing, and
marketing services would never have
entered the minds of early 20th century
pioneers.
Those hosiery entrepreneurs that
are doing well are serving private
label customers or small chains and
independents. Large hosiery companies
vying for Walmart and Sears business find
they cannot economically service small
customers.
Younger entrepreneurs are not
burdened by “this is the way we used to do
it” restrictions. New businesses are born
in a world environment that is familiar.
North Carolina seems to be ready to help
them adjust.
LEG WEAR TREN DS AND TEXTILES TOMORROW
/ March 2007
Century Hosiery, Inc
Crawford Knitting,Inc.
Doing business since 1989
Doing business since 1975
Century Hosiery, Inc
41 East Salisbury Street
PO Box 1410
Denton, NC 27239
O’Mara Inc.
Doing business since 1971
O’Mara Inc.
160 Fashion Avenue
Rutherford College, NC 28671
BEAR CREEK HOSIERY, INC.
Doing business for 25 years
Bear Creek Hosiery, Inc
227 Wright Road
PO Box 519
Biscoe, NC 27209
Crawford Knitting,Inc.
7718 Hwy 64 East
P.O. Box 1360
Ramseur, NC 27316
Huitt Mills, Inc.
Doing business for 21 years
Huitt Mills, Inc.
115 10th Street NE
PO Box 646
Hildebran, NC 28637
NC SOCK
Quality Products Made In The USA Since 1989
Small Order Specialist
www.ncsock.com
NC Sock Company, Inc
1222 F Avenue SE
Hickory, NC 28601-1351
Robinson Hosiery Mill, Inc.
Doing business for 51 years
Doing Business for 80 Years
Wellman, Inc.
2012 W. Highway 160
Fort Mill, S.C. 29708
March 2007 / L E G W E A R
TRENDS AND TEXTILES TOMORROW
Robinson Hosiery Mill, Inc.
113 Robinson St.
P.O. Box 730
Valdese, NC 28690
11
From Washington
The editorial board of Legwear Trends And Textiles Tomorrow
enthusiastically supports the hundreds of domestic hosiery and textile
companies across America that are continuing to produce innovative products
that bring satisfaction to consumers in quality, fashion and comfort. As the
manufacturing sector over the last six years has been decimated by what is
often termed “free trade,” we support the efforts of those in Washington,
D.C. and beyond who are working to promote fair trade policies that do not
put U.S. manufacturers at huge disadvantages. Our goal is to highlight for
you, the manufacturer, some of with important news related to these policies
each month in the “From Washington” segment.
Aderholt: When Can We Expect Relief?
Congressman Aderholt Questions Commerce Secretary
Gutierrez on CAFTA Promises
WASHINGTON, D.C. - Today, at an Appropriations hearing
of the Commerce, Justice, Science Subcommittee, Congressman
Robert Aderholt (R-Haleyville) asked several pointed questions
of U.S. Commerce Secretary Carlos Gutierrez regarding
promises made to him by the Bush Administration leading up to
the passage of the Dominican Republic - Central American Free
Trade Agreement (CAFTA) in July 2005.
Before agreeing to vote in favor of CAFTA, Secretary
Gutierrez and then U.S. Trade Representative Rob Portman
promised Congressman Aderholt in writing that they would
seek agreements under CAFTA that would provide for tougher
customs enforcement for our trade laws and a commitment to
be proactive in initiating safeguards on socks from both Central
America and China that would protect Alabama jobs. While the
Administration has delivered on its promise of safeguards from
China, however, efforts are still ongoing in regard to Central
America.
At the hearing the Congressman asked the following
questions:
1. As you know, I voted for CAFTA with the
understanding that U.S. Trade Representative would
negotiate a ten-year phaseout of sock tariffs and
would be “very pro-active” in initiating a CAFTA
sock safeguard. Those promises were in a letter from
USTR Portman and yourself dated July 27, 2005. It has
been over a year and a half now, and about 1 year since
CAFTA went into effect for Honduras, the country
that poses the greatest threat to domestic industry.
Since then, the district I represent has lost over 1,000
sock jobs, and over 1,000 more have been lost elsewhere
in the country. A Canadian company called Gildan
is building a massive factory in Honduras that will
produce the equivalent of one-fifth of US production.
The company has a sales office in Barbados, and only
pays about a 4% income tax rate. Once that factory
is complete, it may be too late to save the domestic
industry. When can the sock producing areas here in
the US expect relief from predatory Honduran imports?
What can I tell the people I represent whose jobs are
threatened?
2. Mr. Secretary, I was disappointed to see an unnamed
12
U.S. Government official quoted in “Inside U.S. Trade”
last week as saying “the administration does not believe
this safeguard is yet warranted.” Domestic production is
down 16% recently, and in your own letter to me dated
December 6, 2006 you say imports from Honduras are
up 66% since they joined in March, 2006. At what point
will the safeguard be warranted? Are there any specific
criteria that will trigger it?
In response to these questions, Secretary Gutierrez stated that
there were three parts to the original letter: including a safeguard
agreement in negotiations with China; amend the rules of origin;
and, include socks in the gradual phaseout of tariffs. Of those,
China has been dealt with. He went on to say that negotiations
have not gone as smoothly as he would like. There is still one
country, Costa Rica, necessary to conclude the CAFTA group of
countries. Once that is done, the Administration can begin the
process of amending the rules of origin. He also said that they
are still currently negotiating for a phaseout of tariffs. As far as a
safeguard, the Secretary stated that was a more straightforward,
formulaic process based on needing some reasonable amount of
time and some specific benchmarks. He concluded by saying that
he would provide Congressman Aderholt with updated numbers
to help explain where they as far as a safeguard is concerned.
Within CAFTA’s framework, a three year safeguard can be
initiated to protect U.S. industry. Such a safeguard requires
agreement between multiple U.S. agencies but no additional
legislation would be necessary. Once a safeguard is enacted, preCAFTA tariffs can be placed on imports to protect U.S. industry.
In addition to the safeguard provision, pre-CAFTA tariffs
could be reinstated with the creation of a ten year phaseout. A
phaseout would be used rather than the immediate elimination of
tariffs that are favored by importers and foreign producers. Each
CAFTA country has to ratify the trade agreement in their own
legislative body, and even today discussions are ongoing with
the countries involved regarding the sock issue and other related
matters.
Following the hearing, Congressman Aderholt concluded, “It’s
been almost 2 years since I received a written promise from the
Administration to help protect the sock manufacturing industry
from predatory imports. In good faith, I relied on this promise
and cast my vote in favor of CAFTA.
I’m obviously disappointed that we’ve gone so long without
seeing any results. Every day that passes means that more
LEGWEAR TRENDS AND TEXTILES TOMORRO W / March 2007
and more jobs are threatened by trade practices that U.S.
manufacturers just can’t match. It’s unfair to these U.S.
manufacturers and it’s unfair to the thousands of workers in
Alabama and in other states that they employ. It is very clear to
me that now is the time for the Administration to step up and
deliver on their promise. If they are unable or unwilling to do so,
the people of North Alabama who depend on the sock industry
for their livelihood deserve to know that as well.”
U.S. Trade Deficit with China Up 19 Percent
WASHINGTON, DC - Despite an overall drop in the U.S.
trade deficit in January 2007, the U.S. trade deficit with China
jumped to $21.3 billion for the month. This number represents
a 19 percent increase from the $17.9 billion U.S. trade deficit
with China in January 2006. If this pace continues, the U.S.
trade deficit with China will grow from $233 billion in 2006
to a projected $277 billion in 2007. “The U.S. trade deficit
with China keeps growing and the only response by the U.S.
government is dialogue. Dialogue is fine; but without action
the U.S. government and the Congress to offset the rebates and
subsidies given to Chinese exporters, the U.S. trade position
with China will continue to deteriorate and U.S. manufacturing
jobs will continue to disappear,” said American Manufacturing
Trade Action Coalition (AMTAC) Director of Membership
and Media Outreach (spokesman) Lloyd Wood. Two of the key
policies that tilt the trading field in China’s favor are the rebating
of value-added-taxes (VAT) to Chinese exporters and currency
manipulation. As of 2005, China’s VAT was 17 percent. China
applies this 17 percent VAT on imports into their market and
also rebates VAT taxes on exports (for some exports, the rebate
is only 13 percent). In 2005, with the United States importing
$243 billion from China ($41 billion in estimated rebates to
Chinese exporters) and exporting $39 billion to China ($7
billion in estimated imposed taxes on U.S. producers), the total
disadvantage to U.S. producers in relation to their Chinese
counterparts could have been as much as an estimated $48
billion. Wood continued, “It will be impossible to shrink the
U.S. trade deficit and level the playing field without addressing
the VAT disadvantage. AMTAC strongly encourages Congress
to scrutinize this inequity and pass legislation to remedy the
VAT problem.” China also misaligns its currency by as much
as 15 to 40 percent in relation to the U.S. dollar. By keeping
its currency undervalued, China makes its exports cheaper
and imports from the United States more expensive. “Blatant
currency misalignment has the same effect as illegal export
subsidies. Since the U.S. Treasury Department refuses to act,
Congress immediately should pass legislation making currency
misalignment actionable under U.S. trade laws. A good place to
start would be for the U.S. House of Representatives to pass the
Fair Currency Act of 2007 introduced by Congressmen Tim
Ryan of Ohio and Duncan Hunter of California,” Wood added.
China Blames Europe, U.S. For Failure To Revive World Trade Talks
BEIJING: China’s commerce minister blamed Europe and
the United States on Monday for the failure to revive world
trade talks, saying they haven’t made adequate offers to cut farm
subsidies.
China and other developing countries have made enough
concessions in the World Trade Organization talks, Commerce
Minister Bo Xilai said. The talks ended last July after a deadlock
over farm subsidies.
“The sticking point in the current stagnant process of talks is
due to the failure of the European Union and the United States,
as the two largest players on the global trade stage, in making
substantial concessions in cutting their high tariffs, export
subsidies and the huge domestic support to agriculture,” Bo said
at a news conference.
U.S. Unemployment Down To 4.5%
The U.S. unemployment rate fell to 4.5% in February,
as employers added 97,000 jobs to the economy. A Labor
Department report said last month’s rate was close to a five-year
low. January’s unemployment rate was 4.6%. Advertisement
The manufacturing sector eliminated 14,000 payroll jobs in
February. Wall Street analysts had expected a drop of 19,000
manufacturing jobs last month.
Halliburton Moving Headquarters To Dubai
Halliburton, the oil services company, said Sunday that it
would soon move its corporate headquarters here from Houston,
according to the chief executive, David Lesar.
Lesar said that he would relocate to Dubai from Texas to
oversee Halliburton’s intensified focus on business in the Mideast
and energy- hungry Asia, home to some of the world’s top oil and
March 2007 / L E G W E A R
TRENDS AND TEXTILES TOMORROW
gas markets.
Lesar’s announcement appears to signal one of the highestprofile moves by a U.S. corporate leader to Dubai, an Arab
boomtown where free-market capitalism has been paired with
some of the world’s most liberal tax, investment and residency
laws.
13
Department Stores Comeback Result
Of Middle Class Shoppers
Not long ago, they were considered dinosaurs, marching off
to oblivion. Locally-owned department stores such as Prange in
Sheboygan, Wisconsin, and Gimbels in Philadelphia vanished,
along with hundreds of others in towns and cities across America.
But now department stores are back. With few exceptions, the
local stores are extinct. But Penney’s, Macy’s , Dillards, Belk, and
others are attracting new and younger shoppers, replacing the
grandmothers who patronized them.
Department store sales are on a roll, recently trouncing
specialty stores which were supposed to be the winners in the
long-running retail war. More recently, department store sales,
led by Federated, Nordstrom, Saks and Neiman Marcus have
Bert Huffman,
Hosiery, Political Leader,
Albertus William (Bert) Huffman, owner of Huffman Hosiery
Co. and Huffman Finishing Co. in Granite Falls,NC, died
March 7 after a lingering illness. He was 83.
In addition to his success in the hosiery industry, Huffman was
a longtime activist on behalf of his home community. He was
mayor of Granite Falls from 1970 until 1997.
Huffman was a collector of antique automobiles and vintage
fire-fighting equipment. He also was a pilot and maintained
an airplane and private air strip behind his mills. He will be
inducted posthumously in the Caldwell County Business Hall of
Fame on March 26.
14
been climbing. Gap, Ann Taylor, Talbots and Casual Corner
have lost ground.
Department stores have done a good job focusing on how to
make their assortments more compelling, according to Michelle
Bogan of Kurt Salmon Associates consulting firm. On the other
hand, she allows, some specialty stores stopped being innovative
and tried to rest on their laurels, thinking people would continue
to come if they just kept doing what they were doing.
Shoppers surveyed recently said department stores are using
exciting new vendors.
Advertise In
Legwear
Trends
&
TEXTILES OF TOMORROW
Call Brent at 828.322.7766
or email: [email protected]
LEGWEAR TRENDS AND TEXTILES TOMORROW
/ March 2007
Springs Sells Rock Hill Business
Charlotte Business Journal
Springs Global US Inc. has sold its fabrics and specialty
business to Derick Close, manager the division since 2000.
Springs Creative Products Group, which has 160 employees,
sells sewing and craft fabrics, as well as specialty and licensed
products to retailers. It will continue to operate a distribution
center and a marketing and sales office in Rock Hill.
Financial terms of the deal weren’t disclosed.
Crandall Bowles, Close’s sister, is co-chief executive of Springs.
“Creative Products is a niche business that has operated
somewhat independently of our main home-textiles business,”
Bowles says. “We believe this sale will allow Creative Products to
better control its destiny and grow.”
In January 2005, Fort Mill-based Springs Industries Inc.
merged with Brazilian textile giant Coteminas, forming Springs
Global.
The merger combined Springs Industries’ sheet and towel
operations with Coteminas’ fabric production, making the
consolidated company the world’s largest home-furnishings
manufacturer.
The North American home-textiles segment of the business
is called Springs Global US and is based in Fort Mill, where
Springs Industries was founded in 1887.
Springs Global US and Coteminas are operating companies of
Springs Global, which is based in Brazil.
Polartec Fabrics Now Recyclable
Malden Mills Industries, Inc., has announced that all
Polartec® fabrics produced over the past 16 years are now
recyclable through Patagonia’s expanded Common Threads
Recycling Program.
Malden Mills CEO, Michael Spillane, states, “Since the
Polartec brand was launched in 1991, we have produced enough
fabric to create over 300 million garments worldwide. The
breakthrough to be able to recycle this fabric now creates a huge
new ‘closed-loop’ resource for recycled polyester.”
Patagonia’s Common Threads Recycling Program will take
back not only Patagonia branded fleece, Capilene and cotton tees,
but any garment containing the Polartec sew-in label or that can
be documented to be Polartec fabric.
Garments that have exhausted their natural life can be
returned to Patagonia retail stores or the Reno Service Center.
Hosiery Day
.................... from page 7
Central Carolina Hosiery, Hickory Brands and Hartwell Group.
The yarn and fiber producers joining the manufacturers
included Wellman Inc., Unifi, Carolina Mills, Carolina
Apparel Group Inc., American Efird, Parkdale Mills, Beal
Manufacturing, Contempora Fabrics, Hamrick Mills, Alice Mills
Inc., Asheboro Elastics, Kent Manufacturing, Spectrum Dyed
Yarns and National Spinning.
The aim of the show was to promote U.S.-made products to
not only U.S. retailers but destinations abroad.
St. Louis said retailers from across the globe were able to see
first-hand why the better choice in hosiery and apparel is with
the innovation, performance and quality behind the 28 U.s.
companies at the MAGIC exhibition
St. Louis said two-booth exhibit was set up in an area at
MAGIC where countries from around the globe come to sell
their apparel products.
St. Louis said his center sponsored the first MAGIC show last
fall in which 14 manufacturers participated. With that number
doubling in February, St. Louis said he expects the offshore
companies may have been more than a bit curious.
“We think they were wondering what in the world is going
on with these U.S. manufacturers,” St. Louis said. “I can tell
you why we were there. We were there to show the world that
U.S. manufacturers can not only compete but are offering some
great innovative products that their consumers want and you
(legislators) through your funding are helping them do that. And
we thank you.”
March 2007 / L EG W EA R
T R EN DS A ND T E XT IL ES T OM OR ROW
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