NTA Chairman Jonathan Stevens Interviewed in Southern Textile News, November 2005.
1) Jonathan, you of course took the reins of the association during the group’s 150th annual meeting last year. In general, what were your aspirations for this venerable organization during these challenging times and how is NTA going about meeting those goals?
Last September in Cooperstown the stage was set for a year of momentous changes in our industry with the removal of quotas on January 1, 2005. My aspiration was, and continues to be, that we as an industry will find strategies for success in our fast-changing world.
2) At the halfway point of your chairmanship, please briefly summarize the highs and lows of the association over the past year.
Our industry filings of China Textile Safeguard petitions which resulted in ten safeguard actions being implemented by the Committee for the Implementation of Textile Agreements. Ten additional safeguards are currently in the "decision phase" at CITA and 13 new petitions were filed in September and are nearing the end of their public comment period prior to the "decision phase." The divisiveness in the industry over DR-CAFTA was unfortunate, but that is behind us now.
3) How do your membership numbers stack up to a year ago at this time?
We've picked up several new members including:
Sadly, we lost several members due to the general contraction in the industry and other causes.
4) At a meeting in New York in January, NTA’s Board of Government sent requests related to safeguard petitions and an import statistics data system. How would you rate the administration’s response to these requests?
The safeguards have represented an important, however limited success for the U.S. textile industry. In every case where a safeguard petition has come to the point of decision on imposition of the safeguard, CITA has acknowledged the strong case the U.S. industry has made and has imposed the safeguard. Currently there are ten safeguards in place. Furthermore, three of those safeguards -- cotton knit shirts, cotton trousers, and cotton and man-made fiber underwear -- were imposed as the result of our government's self-initiation of the safeguard mechanism. As you may recall, self-initiation was one of the things that we called on CITA to do at our 150th Annual Meeting. Finally, we applaud the Department of Commerce for giving us a helpful tool we had been requesting -- early access to preliminary import data so we could file safeguards in a timely manner based on the coming threat due to surges in imports. However, we must also note that many products are not covered by the safeguards and that the inevitable "slippage" between filing and actual imposition of the safeguard means that the effective growth rate is always much higher than the nominal 7.5 percent in the language of the safeguard procedure.
5) Please update us on the work of NTA’s Textile Bedding Committee, formed about a year ago.
Our textile bedding committee is our newest but one of our busiest committees. Since it was formed about a year ago, it has worked closely with the California Bureau of Home Furnishings on a flammability standard for filled bedding products like comforters and pillows. The standards were mandated by the state several years ago so it’s not a question of IF a standard will be in place, it’s a question of what the standard will be. The Committee is working hard to be sure that the outcome is a balanced standard that is affordable for consumers while achieving the level of safety desired by California. The Committee is also leading a broad industry effort to support a statistician who is reviewing the test methods to be sure they are technically sound.
The Committee also achieved a major goal with the Federal Trade Commission (FTC) this year. Many consumers use “thread count” information on bedding products in making buying decisions. However, some bedding suppliers count plied yarns separately, thus inflating the thread count which equates to more luxurious products. Working with the Committee, the FTC defined how to determine thread count, a goal that had been pursued by the industry for over 15 years. This was an enormous step forward for the textile bedding industry, and it will ensure that accurate and fair information is available for consumers of bedding products at the time of purchase.
6) Please go over the aims and activities of NTA’s Government Procurement Committee, as well as strides made by other committees.
Our Government Textiles Committee has been “remodeled” and expanded, and is now recognized by the Department of Defense (DoD) as the Textile Industry’s voice. The Committee organized and hosted a Textile Industry/DoD meeting last spring which included senior DoD officials who have clothing and textile responsibilities. There was a large NTA membership turn-out and this type of program will be repeated periodically.
The Committee, which is growing in size, works closely with other industry sectors such as parachute manufacturers and sewn product manufacturers in addressing DoD procurement and supply issues. The Committee is working with these groups to improve the DoD’s procurement process which is being challenged to get needed products to the war front quickly. Currently, DoD’s procurement activities are not conducive to a balanced flow of production, but instead are very sporadic and unpredictable which makes it extremely difficult for contractors to supply what’s needed. This problem has been growing over the years but is extremely critical now because of the wars in Iraq and Afghanistan. The Committee remains focused on this as the major procurement problem and is working with senior military management to find a solution with our DoD customers.
7) NTA, of course, remained steadfast from Day 1 in its opposition to the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), even though some association allies broke rank to support the deal. Now that the agreement is law, what measures are NTA taking to ensure the best possible outcome for your membership?
As I have said, the DR-CAFTA fight is behind us now. We must think positively about how our members can profit from the arrangement. Our 151st Annual Meeting will examine the questions of global textile and apparel sourcing, focusing on how U.S. textile companies can take advantage of opportunities in the marketplace.
8) The association has worked with AMTAC, NCTO and others to manage the transition to a world without quotas, particularly by supporting the China safeguard process. Filing petitions and awaiting government response has been laborious, but successful in many instances. Please comment on the government’s willingness not only to listen to your concerns, but to act on them — as well as to self-initiate safeguard proceedings when it deemed necessary.
As I mentioned, "self-initiation" is something we publicly and quite vocally advocated since September 2004. Self-initiation took on even great significance after at injunction, in the eleventh hour of 2004, that hindered the government's ability to consider our industry-filed cases. CITA decision to bring safeguard actions with regard to cotton trousers, cotton knit shirts, and cotton and man-made fiber underwear was certainly welcomed by the textile industry. That was one of the three things we asked of the government in a January 2005 resolution of the NTA Board of Government. We are gratified that the two other things we sought -- prompt appeal from the injunction barring consideration of the safeguards and implementation of a "real time" import-tracking systems available for use by the industry in preparing our safeguard filings -- have also been undertaken.
9) How else is the association helping members adapt to a quota-free world and plumb new opportunities?
In addition to efforts directed toward military textiles, home textiles, which I have addressed elsewhere, there is our work on textile intellectual property rights. IP has been identified as a "core competency" of the U.S. textile industry; it is vital that we protect ourselves from unfair competition design and copyright infringers.
Our Annual Meeting is an important opportunity forum of people in the textile industry to find ways to work together and to learn about the tools available to participate in the global market. This year's meeting will offer practical information on general business practices around the world, including customer and vendor credit and logistical information.
10) The association has lent its endorsement name to the recent Material World New York and next year’s MEGATEX (ATME-I) trade show next year. Why is it important to you to support domestic events of this nature?
We are all in this together and must support one another and U.S. manufacturing.
11) Speaking of the MEGATEX, NTA and the show’s sponsor, the American Textile Machinery Association, recently came together to offer discounted dual membership in both associations. Please discuss this action and the importance of collaboration in these changing times.
In general, if we are going to continue to be effective, this seems a "no brainer" for the machinery manufacturers. They get access to their customers and support for their customers' organization, plus all that their own industry organization brings them, at a reduced cost.
12) What else exciting or newsworthy is going on in the organization?
NTA's American Flock Association just completed, October 20-22, in Charleston, South Carolina their 20th Annual Meeting, covering such topics as international trade, maintaining quality, and industry health and safety issues.
The Cashmere and Camel Hair Manufacturers Institute reports that the markets continue strong for products made of luxury fibers. That group has added Burberry, the well-known luxury brand retailer to its membership.
13) What other activities, internally and externally, do you anticipate NTA being involved in during your tenure?
Our Upholstery Fabrics Committee continues to work hard with the Consumer Product Safety Commission (CPSC) to develop an effective and fair flammability standard for upholstered furniture. This Committee is also growing as others recognize the value of a coordinated industry effort through NTA. Working with the furniture industry, a standard has been proposed but has not been accepted by the agency. Instead, the CPSC staff has offered its own version of a draft standard which would be much more severe for industry. Negotiations with the agency continue and the Committee has conducted a variety of testing programs to determine the impact of a regulation on our products.
The Committee also sponsored a tour of the textile industry for senior CPSC staff members which included representatives from the Office of the Chairman, compliance, engineering and general counsel. This was a valuable opportunity to “educate” decision makers who will have an impact on the outcome of the standard. Though this has been a major issue for this industry sector for almost 30 years, the Committee is hopeful that a satisfactory standard can be developed and a reasonable regulation can move forward.
I also see a continued emphasis on military textiles, intellectual property, and regulatory issues.
14) How long have you been a member of NTA and why is serving in a leadership role such as this important to you?
Ames Textile Corporation joined NTA in 1999, but the Stevens family has a long history with NTA going back to my uncle Ames Stevens, Jr. of Brook Woolen Company, who was NTA Chairman 1982-'84, and to the generations of Stevenses before him.
15) Tell us a little about your company, Ames Textile Corp., and how it is adapting to the global environment.
Ames Textile Corporation, six generations and 140 years in textiles, is working hard to meet the challenges of the changing global environment. Our Game Time Fabrics organization is the recognized leading provider of innovative fabrics by those companies producing athletic team uniforms and athletic performance apparel for professional sports, college and university teams, high school teams and individual athletes across America. Our Ames Yarn Group of Synthetic Yarns and Belmont Yarn has developed and sourced high performance continuous filament yarns for apparel labeling, home furnishings fabrics and industrial fabrics including high tenacity nylon for military parachutes. We continue to adapt to the global environment by a dedication to providing professional quality and customer service, a long-standing tradition of Ames Textile.
16) Ames has been owned and operated by your family since 1865. Did you ever consider a career outside of textiles and the family business?
Yes. My first career choice after college was with VISTA – Volunteers in Service to America – doing social work in the Connecticut Department of Corrections. In that year, I felt frustrated that I was not effective in changing the world for better. I then decided to try the family textile business so that one day I might be in a position to provide a remedy for people coming out of prison which was to get a job so they could be self-supporting and independent. In working my way through the mill, I became hooked on the family business. This year, Ames made a move outside of textiles with its acquisition of Adden Furniture of Lowell, Massachusetts, a company manufacturing solid wood furniture for college dormitories. So today, I have a career in furniture and textiles.
17) Last year, NTA celebrated 150 years of existence with an educational, entertaining annual meeting in Cooperstown. This year, you will meet under the theme “Specific Strategies for Success.” How will your program reflect that theme and what value do you hope to bring to members?
One of our sessions at our 151st Annual Meeting will examine the questions of global textile and apparel sourcing. Gary Raines from Cotton Incorporated will present an overview of the topic; NTA's David Trumbull will present a sector-by-sector analysis of the opportunities for NTA members under CAFTA; and Mary O'Rourke will explain how U.S. textile companies can take advantage of opportunities in the marketplace. Other sessions will deal with military procurement of textiles and the specific issues of upholstery fabric makers -- a sector which promises significant export growth. The important issue of intellectual property will be discussed by attorney Richard Taffet who has made a specialty of textile IP enforcement. Sharyn Koenig from the Ex-Im Bank will discuss global finance and credit.
The NTA 151st annual meeting in Amelia Island, Florida has a program that is a real “Meat and Potatoes” meal for anyone in the textile business. The value it brings will be those NTA members who head home saying they have had good food for thought and implementation.