Northern Textile
Association (NTA logo)
Facing the
Global Challenges of the New Millennium
1999-2000 Annual
Report
NTA’s Mission
The Northern
Textile Association (NTA) is a non-profit trade organization representing over
200 textile manufacturers and industry suppliers with operations in 26 states,
Canada, South America, Europe and Asia.
Founded in 1854 by
New England cotton manufacturers, NTA has grown and evolved to meet the
changing needs of the textile industry.
Today, NTA represents every segment of the modern textile industry
including producers of wool, cotton, elastic, synthetics, flock, felt and
luxury fibers, yarns and fabrics.
At the dawn of a
new millennium, NTA member companies are challenged to compete in an expanding
global marketplace. Members strive to
reinvent their operations by investing in manufacturing facilities, equipment
and personnel—the resources necessary to create new products, develop new
channels of distribution and build relationships with new customers around the
world.
Although the issues
and challenges have changed, NTA’s mission is the same today as it was 145
years ago: to sustain the health and vitality of the U.S. textile industry by
providing effective government representation at the state, national and
international levels, and to provide a forum for members to address issues of
mutual concern.
Today, NTA stands
ready to meet the business challenges of the new millennium. Our members’ continued willingness to change
as the marketplace changes, coupled with their commitment to maintaining the
highest standards of manufacturing excellence and product quality, will be the
measure of success for the years ahead.
Chairman's Message
As we prepare to
close the chapter on the second century of the American textile industry, I am
heartened to think of the accomplishments we have achieved. Our industry is credited with many
innovations including the development of new production processing techniques,
the introduction of new fabrics and products through science and chemistry, and
the creation of countless fashion trends.
We have brought our knowledge and experience to the world marketplace
while continually redefining the way in which we do business.
The American
textile industry has thrived over the last 200 years because it has been
willing to embrace change. As customer
demands and needs have changed, so has our industry. As competition has increased, our industry has risen to the
challenge by developing new products, streamlining production and finding new
ways to compete. And as markets have
opened around the world, the American textile industry has expanded exports and
adapted its business practices to take advantage of new opportunities.
Though imports and
other factors have significantly affected certain sectors of our membership, we
see a trend toward higher-end specialty products. The old saying, “the whole is greater than the sum of the parts”[isn't it usually the other way
around?] is indicative of the challenges facing the Northern Textile
Association and its members. Today, the
move toward more casual apparel, the Asian economic crisis and changing import
trends, have all combined to soften the demand for many apparel fabrics. At the same time, demand has grown for other
specialized American textile goods such as upholstery, technical fabrics, flocked
products, and fabrics used in activewear, intimate apparel, and swimwear. NTA and its members have adjusted to meet
these changing demands and trends and will continue to do so in the next
century.
Under the
leadership of NTA, we will all work together to bring about the changes
necessary to help the American textile industry thrive in the years ahead. One of our top priorities will be issues of
international trade, so that we can make sure that U.S.-made products have the
opportunity to compete fairly in the world marketplace. We will also continue to develop new
technologies to improve production and operating efficiencies, and will
maintain our focus on recruiting and developing a skilled workforce. Finally, we will continue to meet the needs
of a changing marketplace by tailoring out products and services to
increasingly demanding niche markets.
There is a full
agenda facing for the Northern Textile Association, and I am honored to be
chosen to lead this organization at such a crucial time for the American
textile industry. As we face the
growing challenges of a new millennium—the Y2K bug, increased foreign
competition and expanding imports, to name just a few—NTA and our members are
more prepared than ever to compete effectively in the world marketplace. As chairman, I look forward to working with
you to meet these challenges in the years ahead.
Joseph L. Gorga
President
CMI
Greensboro, NC
NTA Chairman
THE AMERICAN TEXTILE INDUSTRY TODAY
The American
textile industry has recently experienced some of the most challenging years in
its 200-year history. Though the U.S.
economy is strong, the American textile industry has struggled due, in part, to
the unstable economies of Asia, Russia and other countries around the
globe. These economic difficulties,
coupled with a cyclical fashion downturn, growing imports, export barriers and
an overall trend towards casual apparel, have given the textile industry an
increasingly inhospitable business climate.
Though the late
1990s have brought many challenges to the American textile industry, there is
optimism about our future. Our industry
continues to identify new markets and to focus on developing non-traditional
textiles, with an emphasis on technical fabrics and specialized yarns for
industrial and communications products.
New flocked products, for example, are being developed for a host of
industrial and consumer uses. Strong durable
and "smart" fiber products are being produced for use in protective
clothing, for precision manufacturing processes, and for medical and automotive
applications, among other uses.
But, the American
textile industry cannot rely on product innovations and niche marketing alone
to compete in the world marketplace.
International trade issues—concerning both imports and exports—have had
a significant impact on the textile industry in recent years. Trade agreements like the North American
Free Trade Agreement (NAFTA), for example, have increased trade and cooperation
with Canada and Mexico and improved trade in North America, but have resulted
in significant market disruptions in certain areas, some of which are services
by NTA. U.S. textile manufacturers must
also adjust to the demise of the world-wide quota system under the terms of the
World Trade Organization (WTO).
Looking forward,
other pending trade initiatives will also have a significant impact on NTA and
our members in the years ahead. The
outcome of the Caribbean Basin Initiative, for example, if properly structured,
will open new markets and improve the American textile industry’s position in our
own market and the world economy.
To meet these
challenges and maximize these opportunities, NTA has formed strong alliances
with other industry associations and groups throughout the fiber, textile and
apparel chain.
It is no
exaggeration to say that the American textile industry is now experiencing its
most significant technological developments since the days of the industrial
revolution. The equipment used, the
technology applied, the skills employed, and the methods of distribution all
reflect the changes necessary to adapt to the new global market for
textiles.
One of the most
critical missions of the Northern Textile Association, is to help members utilize
new technologies, successfully develop and train a talented workforce, and
promote American textiles to new markets.
We accomplish this mission through government relations efforts,
representing our members’ interests on emerging and ongoing regulatory,
legislative and trade issues at the national, state and local levels. NTA has also become a leader in
international trade and represents the interests of the textile industry on
many trade issues. Finally, NTA is
helping members prepare for the next millennium by providing a wide variety of
educational and informational programs and services.
Government
Relations—Legislative and Regulatory Leadership
Legislative
affairs, especially trade issues, remains a major priority for NTA. In 1998 alone, the Congress took up several
trade bills on which NTA played an active role. These bills involved such issues as fast-track negotiating
authority, special benefits for sub-Saharan Africa and the Caribbean Basin, and
major cuts in wool fabric tariffs.
With so much at
stake in these various pieces of trade legislation, NTA and its members worked
diligently in the closing days of the 105th Congress to communicate
the interests and concerns of the textile industry. Many of these issues will undoubtedly be addressed in the next
congressional session.
On the regulatory
front, NTA works with federal agencies such as the Department of Labor,
Occupational Safety and Health Administration and the Environmental Protection
Agency to assure that regulations reflect the reality of current industry best
practices.
In May 1998, NTA
arranged a plant tours of wool processing, textile coating, and flocking
facilities for EPA staff developing a new air emissions regulation for the
textile industry. By exposing EPA staff
members to current industry information and practices, NTA hopes to assist the
regulators in writing standards that accurately reflect the actual practices
employed in textile facilities. The
EPA’s new Maximum Achievable Control Technology (MACT) regulations will be
promulgated in 2000 and made mandatory in 2003.
International
Trade—Bringing the World Home
Under the North
American Free Trade Agreement (NAFTA), the textile and apparel industries of
the U.S., Canada and Mexico are becoming ever more interconnected. In 1998, textile and apparel trade between
the U.S. and Canada became duty-free.
In addition, tariffs on trade with Mexico are steadily declining, with
many items becoming duty-free at the end of 1998.
NTA has continued
to push for resolution of problems associated with NAFTA, such as Tariff Preference
Levels and exemptions to the rule of origin.
Expansion of NAFTA to include Chile, with the final objective of a Free
Trade Area of the Americas (FTAA), is the goal of the current U.S.
administration. As always, NTA will
continue to represent our members' interests in any further discussions of NAFTA-like
treaties.
NTA will continue
to monitor and respond to trade abuses such as Asian production of apparel in
the Commonwealth of the Northern Mariana Islands under sub-standard
conditions. These producers have taken
advantage of the CNMI's unusual U.S. Commonwealth status to produce goods
marked "Made in the U.S.A." which can enter the U.S. duty-free, while
avoiding U.S. labor laws and other American regulations.
On other trade fronts, expanded trade benefits with the countries of the
Caribbean Basin and with sub-Saharan Africa will continue to be debated in
Washington:
NTA
supports expanded trade benefits for the nations of the Caribbean Basin for garments assembled in the Caribbean from U.S. fabric
formed from U.S. yarn. We vigorously
oppose all efforts to weaken the rule of origin for the CBI including exempting
brassieres from the yarn-forward requirement or granting Tariff Preference
Levels that allow non-U.S. fabric to get the benefits.
We opposed granting sweeping unilateral trade concessions to
Africa. If the nations of Sub-Saharan
Africa are to be given special trade preferences we must make the gift
contingent on the use of U.S. fabrics.
Otherwise Africa will be used as an intermediary to transship Chinese
and other quota-restricted goods.
Another important issue whose future is uncertain is a proposal to cut
tariffs on fine wool fabrics. NTA
vigorously opposes any reduction in tariffs on these extremely sensitive
products beyond the cuts agreed to in the Uruguay Round of the GATT.
Finally, the
expansion of membership in the World Trade Organization (WTO) continues to be
an issue of critical importance in international trade. The terms under which China, Russia, and
Taiwan join the WTO will be of tremendous significance to American textile producers,
and NTA will continue to monitor this critical issue closely.
Export
Advisory Committee
NTA’s Export
Advisory Committee was formed in 1997 to continue the work of the Northern
Textile Association Export Trading company.
The committee’s primary purpose is to assist all NTA members in
developing or expanding their export programs.
The Export Advisory Committee’s initial efforts were devoted to
developing programs designed to help manufacturers choose the most effective
methods of financing export sales. In
1998, the committee worked with the American Sheep Industry Association to
arrange for trade missions and trade show participation. In the years ahead, the committee will
continue to serve as a resource for members who request country-specific
information that will assist in the expansion of export sales.
Educational
Outreach and Training
Industry
Education
NTA has continued
its tradition of holding a wide variety of specialty conferences and seminars
to meet members’ needs for growth and development. To help the North American textile industry expand its position
in the world marketplace, NTA has joined forces with other industry
associations and groups throughout the fiber, textile, and apparel chain. These partners include fiber, textile and
garment organizations in Canada and Mexico as well as the U.S. An example of such an alliance is the annual
spring technical seminar that NTA has cosponsored with the American Association
of Textile Chemists and Colorists since 1996.
In addition, NTA’s
annual meeting has established a solid reputation for providing members with
leading-edge perspectives on business, economic, technological and social
trends affecting the American textile industry. The well-rounded program also provides unique opportunities for
interaction between senior-level member executives and industry
associates. NTA’s 1998 annual meeting,
“The Customer of the Future: Who, Where, How?” examined changing channels of
distribution in light of globalization, information technology and
demographics, and set the association’s agenda for the years ahead.
Development and
Training
The challenge of
finding and educating the next generation of skilled textile workers is a top
NTA priority, one that is being addressed on many fronts. This issue was the topic of a panel
discussion between textile educators and industry leaders at the 1998 NTA
Spring Technical Seminar.
NTA also continues
to nurture the textile industry's relationship with the Department of Textile
Sciences at the University of Massachusetts, Dartmouth by assisting with
fundraising, by speaking at UMass's summer short course on "Textile
Fundamentals," and by participating on the department’s industry advisory
council.
NTA’s commitment to
supporting the UMass textile education program at the undergraduate and
graduate levels is underscored through its annual Northern Textile Association
Bronze Medal program. UMass students
Richard C. Mullen and Deanne G. Shaw received the 1997 and 1998 medal awards
respectively in recognition of their being named outstanding textile science
students.
In addition, nearly
100 flockers and suppliers to the flock industry met at UMass Dartmouth for the
American Flock Association’s (AFA) “Fundamentals of Flocking” course in August
1997. This, the third such program
sponsored by AFA and UMass Dartmouth, was the largest and most successful flock
program held in North America.
Attendees from 17 states and two Canadian provinces were joined by
foreign associates from five countries.
NTA and our members
are also working with several other New England schools to educate students
about the evolving textile industry, as well as to retrain experienced industry
workers.
Kennebec Valley
Technical College (KVTC) in Fairfield, Maine, for example, is working closely
with several NTA member companies to develop a two-year textiles program to
help prepare students to work in the mills or to pursue a bachelor’s degree at
UMass Dartmouth. Educators and
industry leaders are also working together to develop non-degree training
courses. In addition, textile mill
workers seeking associate degrees or specialized training courses can obtain
the skills they need from the Textile Fundamentals and Textile Materials
program available from KVTC. Students
from Carleton Woolen Mills, TexTech and Guilford of Maine have already
participated in these courses and enrollment is expected to expand in the years
ahead.
To cite a second
example, Bristol (Massachusetts) Community College and several area businesses
have launched the Fall River Workplace Education Consortium. The program, funded by a three-year $150,000
federal grant, will focus on training employees in reading, writing, and
communication and computing skills.
Among the companies in the consortium are NTA members Globe
Manufacturing and Quaker Fabrics Corp.
Information
Services and New Technologies
To stay in closer
touch with members, NTA has expanded its communication efforts and made its
services available worldwide through it's Web site (www.textilenta.org). Launched in 1998, the NTA Web site includes
a membership directory and direct links to member companies' Web sites, and
helps potential customers around the world find the products they seek. The Web has emerged as an important
information and sales tool, and NTA's Web Communications Committee is actively
exploring ways in which this new information medium can be used to promote our
members and NTA itself.
To compete in
today’s global marketplace, America’s textile manufacturing companies have
created many niche markets and now produce a wide variety of specialty
products. Though these companies share
many common industry concerns and support NTA as a resource for addressing and
influencing change at the national and international levels, they also have
unique issues relevant to their markets.
NTA has established
a network of industry councils and affiliate organizations whose purpose is to
address the specific issues and needs of the various specialized segments of
the textile industry. These segments
include warp knit elastic, narrow elastic, flock, technical fabrics, luxury
fibers and wool.
NTA's Warp Knit
Division serves members who represent over 80% of all U.S. production of warp
knit elastic fabric for the intimate apparel, swimsuit and activewear
markets—one of the fastest growing segments of the American textile
industry. This active group meets every
two months to discuss current industry issues and trends.
A recent
accomplishment is the completion of a vendor certification program. This program provides warp knit
manufacturers with a systematic way to audit supplier facilities. By participating in this common audit,
suppliers avoid having to repeat the audit process for each customer, a benefit
that provides considerable time savings.
In addition, the
Warp Knit Division published a revised version of its “Industry Practices
Guide” in 1997. The guide is used as an
educational tool for customers of warp knit companies and promotes uniform
understanding of prevailing industry practices. The 1997 edition highlights current industry practices and
includes a new section on shade matching.
Narrow elastic is a
dynamic segment of the American textile industry. NTA’s Narrow Elastic Manufacturers Association (NEMA) represents
major U.S. producers of narrow woven, knitted and braided elastic fabrics used
in apparel, medical and industrial products.
This group meets twice yearly to discuss industry issues and
trends.
One important issue
facing this segment of the textile industry is the high volume of inexpensive
stretch fabric containing rubber thread entering the U.S. from Canada. In the
spring of 1998, NEMA chairman, Keith Crisco, president of Asheboro Elastics
Corp., began examining this issue and, under NTA auspices, met with U.S. trade
officials to discuss whether these Canadian exports were in compliance with
NAFTA.
Another ongoing
concern of NEMA is the U.S. anti-dumping duty levied on rubber thread imported
from Malaysia. This issue has received
a great deal of attention from U.S. elastic fabric manufacturers because it
forces them to buy raw materials at prices higher than those paid by foreign
competitors. In 1998, the U.S.
government began an anti-dumping and countervailing duty investigation on
rubber thread from Indonesia. NEMA has opposed
these proposed measures, which could further erode the competitiveness of the
domestic elastic fabric industry.
Cashmere and
Camel Hair Manufacturers Institute
Founded in 1984,
the Cashmere and Camel Hair Manufacturers Institute (CCMI) is an international
trade group representing the interests of producers and manufacturers of
cashmere and camel hair fiber, yarn, fabric and garments throughout the
world. CCMI is an independent
association operated by agreement under NTA.
Its purpose is to promote and protect the image and integrity of
cashmere and camel hair products through government relations, educational
outreach, public relations and product testing to monitor the accuracy of
garment labeling.
CCMI represents a
significant share of the developed world’s producers of cashmere and camel hair
products, with the majority of the organizations membership based in Europe and
Japan. In early 1999, CCMI will open
its first international office in Milan, Italy to enhance member service and
increase access to the organization in the international marketplace.
Today, CCMI is
considered the leading international authority on cashmere, and camel hair, and
is expanding its services and programs to reach a wider range of international
manufacturers and retailers.
One of the most
important services provided by CCMI is its free fiber-content testing
service. This service, designed to help
companies verify claims stated on garment labels, is now available to companies
outside the United States. A new
brochure describing the service is being published in English, Italian and
Japanese and will be sent to retailers throughout Europe and Japan.
Founded in 1985,
the American Flock Association (AFA) promotes the North American flock
industry, one of the fastest growing segments of the U.S. textile
industry. AFA’s membership has more
than doubled since 1985 and today encompasses 67 companies involved in all
aspects of the flocking process.
Members include flock coaters, equipment suppliers, substrate, fiber,
flock and adhesive manufacturers, and industry consultants. Flocked products are used increasingly for
upholstery, apparel, packaging, decorative ribbon and many other applications.
AFA is actively
involved in promoting flocked products around the globe, educating the industry
about technical advances in flocking, and addressing regulatory and legislative
issues important to the industry. AFA
promotes the North American flock industry through distribution of Design With Flock In Mind, a 16-page
brochure offering an overview of the flocking industry and AFA. In addition, the AFA Directory, which
lists member companies and includes information about their products and
services, is published annually. These
publications are distributed to over 1,000 industry contacts through trade
shows, industry conferences and inquiries.
AFA has played a
leading role in expanding industry education about the flock process and its
ongoing technical advances. In the last
few years, for example, AFA has organized and sponsored industry trade shows
and technical seminars covering issues concerning testing equipment and quality
control. In addition, every third year,
AFA and the University of Massachusetts at Dartmouth cosponsor a two-day
seminar called the “Fundamentals of Flocking”. The next seminar is scheduled for the summer of 2000. AFA also works to keep its members abreast
of changes in the industry through its annual fall meeting.
AFA and its members have also prepared and
presented technical papers at conferences sponsored by numerous allied industry
groups, including the American Association of Textile Technology, Society of
Plastic Engineers, American Association of Textile Chemists and Colorists,
Clemson University, Society of Manufacturing Engineers, and the Automotive
and Transportation Interiors magazine.
Workplace health and safety are important ongoing
issues for AFA and its members. AFA has
worked with the National Institute of Occupational Safety and Health to
understand the incidence of Interstitial Lung Disease in the flock
industry. Member companies have invited
NIOSH to enter their facilities to test the workers for ILD, and NIOSH has been
a guest at AFA meetings in 1997 and 1998 as part of the industry's and the
scientific community's ongoing efforts to protect the respiratory health of
flock workers. Member companies have begun
taking measures to protect employees in accordance with the recommendations from
NIOSH and other consultants. In sum,
members of the American Flock Association are dedicated to finding the answers
to this health issue.
Following a major
fire at a flocking facility in 1995, AFA formed a committee that worked closely
with the U.S. Department of Labor Occupational Safety and Health Administration
to draft a Hazard Information Bulletin alerting the industry to the potential
for combustion in the flocking process.
Research on flock fiber combustibility continues in the U.S. and Europe. There have been no other similar fires.
Cotton
Synthetic Group
One of the original
NTA industry groups, the Cotton Synthetic Group is working to revitalize its
membership and refocus the group’s direction in the expanding global
marketplace.
Under the direction
of George Schuster, president of Cranston Print, a 1998 membership drive significantly increased the number of NTA associate
members.
Many NTA members
are small, family-owned businesses. At
the 1998 Annual Meeting, new member Roger Berkley, president of Weave
Corporation, examined the future challenges facing small manufacturers and
explored the need for succession planning in family-owned businesses.
The future of
textile education is another key priority of the Cotton Synthetic Group. Last year, under the direction of Jerry Mauretti,
president of Engineered Yarns, this group was instrumental in mobilizing
industry support for the funding and expansion of the textile education program
at the University of Massachusetts, Dartmouth.
The Cotton Synthetic Group is also a major supporter and organizer of
NTA’s annual technical seminar.
Faced with some of
the most challenging years in its history, NTA’s Wool Manufacturers Council is
diligently working to maintain its position in the textile industry and
redefine its focus in the world marketplace.
Today, 27 American companies that spin or process woolen and worsted
yarns or manufacture woolen or worsted cloth make up the organization.
The Wool
Manufacturers Council meets semiannually to discuss important emerging issues
and trends. The council is especially
active on issues of international trade.
Because the wool industry is one of the most import-sensitive sectors of
the textile industry, changes in textile quotas or duties can have a major
impact. As a result, the Wool
Manufacturers Council has focused its efforts on holding back legislated tariff
reductions on wool products.
A LOOK AHEAD
Over the past
145 years, NTA has grown from a New England-based organization representing the
interests of textile mills in the Northeast to a trade group with national
concerns and ultimately, to an international player in the world economy. NTA and our member companies will continue
to redefine the association’s role and position in the world economy, blending
the principles of our New England heritage with the demands of international
trade.
To succeed in an
ever changing international marketplace, NTA and its member organizations will
continue to focus on technological innovations, new product development, and
identification of new markets to meet the evolving needs of consumers, business
and industry. The future of the
American textile industry will continue to shift away from traditional textile
products to more technology-driven products for specialized apparel and non-apparel
uses.
Central to the
future success of the U.S. textile industry will be the development of a highly
skilled and well-trained workforce. NTA
and our member companies will work to create interest in textile industry careers
and position the industry as an exciting and thriving part of the U.S.
manufacturing economy by working with the textile science schools of colleges
and universities around the country.
NTA will also look to open new channels of distribution and marketing
through expanded internet communication around the globe.
NTA stands ready
to face the global challenges of the new millennium. We are prepared to forge alliances with important industry and
government groups, maintain a position at the forefront of international trade
negotiations, and represent the interests of members at both the state and
federal levels.
To shape the
future role of the American textile industry as a major player in the global
marketplace, NTA will need the support and involvement of all members. Participation in industry meetings and
communication of our perspectives and concerns to legislators and regulators
will become even greater priorities in the years ahead. It is therefore more important than ever for
the American textile industry to work together to define our position in the
global marketplace of the 21st century.