U.S. Textile Industry Files Public Comments on NAFTA Renegotiation Objectives; Eager to Work with President Trump to Improve Deal

WASHINGTON, DC – Today, the National Council of Textile Organizations (NCTO) filed public comments with the Office of the U.S. Trade Representative (USTR) outlining the U.S. textile industry’s priorities in the forthcoming renegotiation of the North American Free Trade Agreement (NAFTA).  (The comments are pasted at the bottom of this release.)

“The U.S. textile industry welcomes President Trump’s decision to renegotiate NAFTA,” said NCTO Chairman William V. McCrary Jr., Chairman and CEO of William Barnet & Son, LLC, a synthetic fiber/yarn/polymer firm headquartered in Spartanburg, South Carolina.

“It is in America’s national interest to modernize the agreement and NCTO is eager to work with President Trump to make it even better,” McCrary continued.

“Let me be clear: NAFTA is vital to the prosperity of the U.S. textile industry, and NCTO steadfastly supports continuing the agreement.  With that said, NAFTA can be improved to incentivize more textile and apparel jobs and production in the United States, Canada, and Mexico,” McCrary added. 

“Eliminating loopholes that shift production to third-party countries like China and devoting more customs enforcement resources to stop illegal third-country transshipments are two changes that would make the agreement better,” McCrary said.

“We look forward to working with our industry partners throughout the NAFTA region to improve this agreement for all,” McCrary finished.   

U.S. Trade Representative Robert Lighthizer formally notified Congress on May 18, 2017 that President Trump intended to renegotiate NAFTA.  This action triggered a request for public comments found at 82 FR 23699 and dated May 23, 2017 (Docket: USTR–2017–0006).  That public comment period closes today. 

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

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CONTACT: Lloyd Wood
(202) 822-8028
lwood@ncto.org

# # #

NCTO Pays Tribute to Late AFMA President Paul O’Day

WASHINGTON, DC – Paul O’Day, President of the American Fiber Manufacturers Association (AFMA) since 1984, died on June 1.  He was 82.

“It is a sad day for the U.S. textile industry,” said National Council of Textile Organizations (NCTO) Chairman William V. McCrary Jr., Chairman and Chief Executive Officer of William Barnet & Son, LLC, a synthetic fiber/yarn/polymer firm with plants and/or offices in the Americas, Europe, and Asia headquartered in Spartanburg, South Carolina.

“I’ve been proud to call Paul a friend for decades and worked with him closely during my two-year stint as AFMA chairman.  He was a strategic thinker who safeguarded the U.S. fiber industry’s interests in Washington during very tumultuous times,” McCrary continued.

“Many important policy issues arose during Paul’s three decades as president at AFMA that would not have been resolved favorably without his wise counsel and resolute, steady leadership,” McCrary added.

NCTO President and CEO Auggie Tantillo, who worked directly with O’Day since the early 1980s said, “For 33 years, Paul O’Day exhibited an unmatched dedication to AFMA and the industry he loved.”

“Paul represented his constituency with a style and level of decorum virtually unheard of in the current Washington environment.  Famously courteous and humble, Paul won heated policy debates through the power of his extraordinary intellect, his expansive institutional knowledge and his total command of the subject matter at hand.  Completely secure in his role and the critical contribution he made to every project, Paul was always quick to defer credit and to shower praise on his colleagues,” Tantillo added.

“Fiber manufacturers and the U.S. textile industry lost a priceless asset who will be greatly and deservedly missed,” Tantillo finished.

AMFA’s press statement on Paul O’Day’s passing is at this link, and his obituary can be found here. 

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers. 

 ·       U.S. employment in the textile supply chain was 565,000 in 2016. 

·       The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009. 

·       U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016. 

·       Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

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CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

 # # #

NCTO Welcomes Trump Decision to Renegotiate NAFTA

WASHINGTON, DC – Today, U.S. Trade Representative Robert Lighthizer formally notified Congress that President Trump intends to renegotiate the North American Free Trade Agreement (NAFTA), a trilateral free trade agreement between the United States, Canada, and Mexico.

“The U.S. textile industry welcomes President Trump’s decision to renegotiate NAFTA,” said National Council of Textile Organizations (NCTO) President and CEO Auggie Tantillo.

“It is in America’s national interest to modernize the agreement,” Tantillo continued.

“Let me be clear: NAFTA is vital to the prosperity of the U.S. textile industry, and NCTO steadfastly supports continuing the agreement.  With that said, NAFTA can be improved to incentivize more textile and apparel jobs and production in the United States, Canada, and Mexico,” Tantillo added.

“Eliminating loopholes that shift production to third-party countries like China and devoting more customs enforcement resources to stop illegal third-country transshipments are two changes that would make the agreement better,” Tantillo said.

“We look forward to working with our industry partners throughout the NAFTA region to improve this agreement for all,” Tantillo finished.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 565,000 in 2016.
  • The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016.
  • Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

NAFTA Textile and Apparel Trade Flows

U.S. Textile and Apparel Exports – In Thousand Dollars
2014 2015 2016
To Mexico $6,208,045 $6,510,071 $5,936,873
To Canada $5,595,784 $5,246,776 $5,160,422
NAFTA Total $11,803,828 $11,756,847 $11,097,296

 


U.S. Imports of Textiles and Apparel – In Thousand Dollars
2014 2015 2016
From Mexico $5,875,311 $5,776,274 $5,656,997
From Canada $2,103,254 $2,041,965 $1,991,173
NAFTA Total $7,978,565 $7,818,239 $7,648,170

 

U.S. Textiles and Apparel Trade Balance – In Thousand Dollars
2014 2015 2016
With Mexico $332,734 $733,797 $279,876
With Canada $3,492,530 $3,204,811 $3,169,249
NAFTA Total $3,825,263 $3,938,608 $3,449,126

Source for data in table: U.S. Department of Commerce, Office of Textiles and Apparel

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CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

# # #

NCTO Praises Senate Confirmation of Lighthizer to USTR Post

WASHINGTON, DC – The United States Senate confirmed Robert Lighthizer as United States Trade Representative (USTR) by an 82-14 vote on May 11, 2017.

“In my estimation, Ambassador Lighthizer is likely the most qualified individual ever to be confirmed to this important post,” said National Council of Textile Organizations (NCTO) President and CEO Auggie Tantillo as he noted Lighthizer’s previous service as Staff Director of the Senate Finance committee and as Deputy USTR, as well as his distinguished legal career specializing in international trade law.

“Between Ambassador Lighthizer and U.S. Department of Commerce Secretary Wilbur Ross, President Trump has assembled a first-rate team to handle trade and manufacturing matters,” Tantillo continued.

“The U.S. textile industry is excited to work with Secretary Ross and Ambassador Lighthizer to fashion policy that will lead to more U.S. textile production, investment and jobs,” Tantillo added.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers. 

·       U.S. employment in the textile supply chain was 565,000 in 2016. 

·       The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009. 

·       U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016. 

·       Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

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CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

# # #

Textile Industry Comments on Causes of Significant U.S. Trade Deficits; Urges Trump Administration to Take Remedial Action to Boost U.S. Production & Jobs

WASHINGTON, DC – Four U.S. textile trade associations – the National Council of Textile Organizations (NCTO), American Fiber Manufacturers Association (AFMA), Narrow Fabrics Institute (NFI), and United States Industrial Fabrics Institute (USIFI) – outlined causes of the $95 billion U.S. trade deficit in textiles and apparel and suggested remedial actions for the Trump administration to boost U.S. production and jobs in joint comments submitted to the U.S. Department of Commerce (DOC) on May 10, 2017.

In addition, NCTO’s Upholstery Fabrics Committee (UFC) submitted a separate statement detailing the reasons for the U.S. trade deficit in upholstery fabrics, focusing on the imbalance with China in particular.

“A trade deficit study like this should have been initiated years ago,” said NCTO President and CEO Auggie Tantillo as he praised President Trump for ordering the review.

“If America is to reverse its trade-related red ink and create more jobs, policymakers must have a better understanding of the policies and economic factors responsible for driving production offshore,” Tantillo added.

The joint NCTO, AFMA, NFI, and USIFI comments as well as the separate UFC statement were submitted in response a notice for public comments issued by the DOC and the Office of the U.S. Trade Representative (USTR) pursuant to Executive Order 13786 signed by President Trump on March 31, 2017.  The order directed those agencies to prepare an omnibus report on significant trade deficits.  The Federal Register notice for public comments is at 82 FR 16721 and is dated April 5, 2017 (DOC 2017-0003). 

NCTO, AFMA, NFI, and USIFI also were signatories to comments submitted by the Manufacturers for Trade Enforcement (MTE) to DOC urging the United States to continue to treat the People’s Republic of China (PRC) as a nonmarket economy (NME) country under U.S. antidumping and countervailing duty law. 

“China’s widespread use of nonmarket economic activities is one of the biggest drivers of America’s trade deficit,” Tantillo said.

DOC’s notice for the NME comments (ITA-2017-0002) was issued as part of the its less-than-fair-value investigation of certain aluminum foil imports from the PRC.

For more information about the U.S. textile industry, please consult the 2017 State of the U.S. Textile Industry address delivered by 2016 NCTO Chairman Robert “Rob” H. Chapman, III at NCTO’s 14th Annual Meeting on March 23, 2017 at the Capital Hilton in Washington, DC.  Chapman’s speech outlined (1) U.S. textile supply chain economic, employment and trade data as well as (2) the 2017 policy priorities of NCTO members. 

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers. 

·       U.S. employment in the textile supply chain was 565,000 in 2016. 

·       The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009. 

·       U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016. 

·       Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

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CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

 # # #

NCTO Applauds President Trump’s Executive Order on Buy American

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) applauded President Trump’s April 18 Executive Order directing the federal government to maximize Buy American opportunities and to review compliance with existing Buy American laws and regulations.

“Thank you to President Trump for making Buy American a priority,” said NCTO President & CEO Auggie Tantillo on behalf of the U.S. textile industry. 

“Buying American is good for the country, good for American jobs, and good for the U.S. textile industry,” Tantillo continued.

“NCTO has had a longstanding policy of supporting Buy American laws.  We intend to work with the Trump administration to help it improve implementation and enforcement of these job creating statutes and regulations,” Tantillo added.

“Since 1941, a Buy American law applying to the Department of Defense (DOD) known as the Berry Amendment has supported American troops, strengthened national security, and incentivized U.S. textile industry investment and innovation.  This is a concrete example of how Buy American laws benefit the U.S. economy and its workers,” Tantillo said, noting that DOD sourced roughly $1.5 billion in textiles and clothing last year under the Berry Amendment.

The Berry Amendment, 10 U.S.C. 2533a, requires the Department of Defense to buy textiles and clothing made with 100 percent U.S. content and labor.

Another Buy American law, the Kissell Amendment, 6 USC 453b, requires the Department of Homeland Security (DHS) to buy U.S. made textiles and clothing, but currently is only applied within DHS to the U.S. Coast Guard and, with some exceptions, the Transportation Security Administration.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.  Visit our website at www.ncto.org and follow @NCTO on Twitter. 

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CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

# # #

 

2017 State of the U.S. Textile Industry

WASHINGTON, DC – Outgoing 2016 National Council of Textile Organizations (NCTO) Chairman Robert “Rob” H. Chapman, III delivered the trade association’s 2017 State of the U.S. Textile Industry overview at NCTO’s 14th Annual Meeting on March 23 at the Capital Hilton in Washington, DC.

Mr. Chapman’s statement outlined (1) U.S. textile supply chain economic, employment and trade data as well as (2) the 2017 policy priorities of domestic textile manufacturers.  The text of his remarks as prepared for delivery are included in this press statement along with an economic data infographic and a “Check the Tag” illustration of U.S. textile industry’s trading relationship with Mexico.

Mr. Chapman is Chairman and CEO of Inman Mills, a yarn and fabric manufacturer headquartered in Inman, South Carolina. 

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers. 

·       U.S. employment in the textile supply chain was 565,000 in 2016. 

·       The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009. 

·       U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016. 

·       Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

 

14th NCTO ANNUAL MEETING
2017 STATE OF THE INDUSTRY ADDRESS
DELIVERED BY 2016 NCTO CHAIRMAN ROBERT H. CHAPMAN III

THURSDAY, MARCH 23, 2017
8:30 AM ET
THE CAPITAL HILTON
WASHINGTON, DC

 

What a difference one year can make.  Consider the following.  In March, 2016:

  • There were still five Republican candidates for President
  • Bernie Sanders had won 15 of 29 Democratic primaries
  • No one seemed concerned about a possible exit of Great Britain from the European Union, and
  • The Chicago Cubs still had not won a World Series since 1908

How history went on to unfold reminds us of just how much change can occur in twelve months.  And nowhere has change been more dramatic than in Washington, D.C.  Unforeseen by most pollsters and pundits, the election of President Trump turned conventional political wisdom on its head and reignited debate on largely stagnant policy issues ranging from trade to tax and immigration reform.

Consequently, if there was ever a time for the U.S. textile industry to fully marshal its resources and decisively engage in Washington, it is now.  Thanks to the new Trump policy dynamic, the next twelve months represent the best opportunity in a generation to reorient U.S. manufacturing policy, level the playing field, and usher in a new era of growth for U.S. textile makers.

Before delving into policy matters, however, a statistical recap of how the industry fared in 2016 is in order.

THE NUMBERS                                                                                                                                                                          

Thanks to a laser-like focus on boosting productivity, flexibility, and innovation, the U.S. textile industry has cemented its position in the global market.

In 2016, the value of U.S. man-made fiber and filament, textile, and apparel shipments totaled an estimated $74.4 billion, an increase of 11 percent since 2009.[1]

The breakdown of 2016 shipments by industry sector is:[2]

  • $30.3 billion for yarns and fabrics
  • $24.0 billion for home furnishings, carpet, and other non-apparel sewn products
  • $12.7 billion for apparel
  • An estimated $7.4 billion for man-made fibers

Capital expenditures also are healthy.  Investment in fiber, yarn, fabric, and other non-apparel textile product manufacturing has climbed from $960 million in 2009 to $1.7 billion in 2015 – an increase of 75 percent.[3]

Our sector’s supply chain employs 565,000 workers.[4]  The 2016 figures include:

  • 113,900 jobs in yarns and fabrics
  • 115,000 jobs in home furnishings, carpet, and other non-apparel sewn products
  • 131,300 jobs in apparel manufacturing
  • 25,700 jobs in man-made fibers
  • 126,600 jobs in cotton farming and related industry
  • 52,500 jobs in wool growing and related industry

As we examine these employment figures, it is important to note that the heavy job losses incurred because of massive import surges in the 1995-2008 timeframe, virtually have stopped.[5]  Today, like most other U.S. manufacturing sectors, fluctuations in employment figures are generally due to normal business cycles, new investment, or productivity increases.

U.S. exports of fiber, yarns, fabrics, made-ups, and apparel were $26.3 billion in 2016. [6]  Shipments to NAFTA and CAFTA-DR countries accounted for 56 percent of all U.S. textile supply chain exports. 

The breakdown of exports by sector is as follows:

  • $4.0 billion – cotton and wool
  • $4.5 billion – yarns
  • $8.6 billion – fabrics
  • $3.6 billion – home furnishings, carpet, and other non-apparel sewn products
  • $5.6 billion – apparel

The United States is especially well-positioned globally in fiber, yarn, fabric, and non-apparel sewn products markets; it was the world’s 3rd largest individual country exporter of those products in 2015.[7]

The most important U.S. export markets by region are:[8]

  • $11.5 billion – NAFTA
  • $3.2 billion – CAFTA-DR
  • $7.0 billion – Asia
  • $2.8 billion – Europe
  • $1.8 billion – Rest of World

Focusing solely on America’s $13 billion in man-made fiber, yarn and fabric exports, the countries buying the most product are:[9]

  • $4.4 billion – Mexico
  • $1.6 billion – Canada
  • $1.3 billion – Honduras
  • $759 million – China
  • $439 million – Dominican Republic

(see footnote 10 for top 4 export markets by country for entire textile supply chain)[10]

Wrapping up the numbers, the fundamentals for the U.S. textile industry remain sound. This is true even though the U.S. market for textiles and apparel was soft in 2016.  For the most part, the sluggishness was due to factors beyond the industry’s control: an underperforming U.S. economy, a weak global economy, and disruption within the retail sector as sales shift from brick and mortar outlets to the internet.  With that said, the U.S. textile industry’s commitment to capital re-investment and a continued emphasis on quality and innovation make it well-positioned to adapt to market changes and take advantage of opportunities as 2017 moves along.

POLICY ISSUES

Another cause for optimism is President Trump’s forceful call to reinvigorate domestic manufacturing.  For decades, U.S. policy has undervalued domestic manufacturing’s importance to America, and President Trump is right to question whether this has been good for the country.

Precisely because they will stimulate manufacturing and kick start job creation, NCTO enthusiastically endorses President Trump’s macro policy objectives of fighting for free, but fair trade, enforcing U.S. trade laws, making the U.S. tax code more internationally competitive, cutting unnecessary regulation, revitalizing infrastructure, buying American, ensuring cheap energy, and fixing health care.

Drilling down to the details, NCTO agrees with President Trump that U.S. trade policy must be changed to reflect the reality of the twenty-first century economy for it to truly benefit a broad swath of American society.

That is why NCTO supported President Trump’s executive action to withdraw the United States from the twelve-country Trans-Pacific Partnership (TPP) even though NCTO had endorsed the agreement just one year earlier.

To better understand the rationale behind this strategic repositioning, please recall that NCTO worked tirelessly to persuade the previous administration that TPP should include all provisions necessary to prevent any sudden surge of imports from Vietnam that would be capable of disrupting the U.S.-Western Hemisphere textile and apparel supply chain.  Indeed, NCTO is grateful to the Obama administration for partnering with the U.S. textile industry on TPP to negotiate:

  • a strong yarn-forward rule of origin for the vast majority of products;
  • reasonable duty phase-outs (10-12 years) for most sensitive products;
  • provisions that would have maintained a stable Western Hemisphere production chain; and,
  • customs provisions that capture the critical enforcement aspects of previous agreements.

Noting that NCTO had leveraged its prospective support for TPP in return for the Obama administration securing these vital objectives, it was incumbent upon NCTO to be true its word and endorse TPP when the Obama administration kept its end of the bargain.

The 2016 election of President Trump, however, brought about a dramatic change on trade. President Trump’s fundamental opposition to TPP allowed NCTO to revisit its position and communicate to his transition team soon after the election that NCTO supported withdrawal from TPP.

Mindful that President Trump also had signaled interest in pursuing individual bilateral free trade agreements with TPP countries, NCTO further communicated opposition to any bilateral free trade agreement with Vietnam because of that country’s non-market economy and its demonstrated ability to disrupt the U.S. textile market.

Unlike TPP, NCTO strongly supports NAFTA because it is a pillar upon which the U.S.-Western Hemisphere supply chain is built.  At $11.5 billion combined, Mexico and Canada are the U.S. textile industry’s largest export markets.  Moreover, Mexico provides a vital garment assembly capacity the United States largely lacks.

That said, NCTO agrees with President Trump that NAFTA should be reviewed and can be improved.  For example, NAFTA’s yarn-forward rule of origin contains loopholes like tariff preference levels (TPLs) that benefit third-party countries, such as China at the expense of U.S. industry.  Closing them would boost U.S. textile production and employment.

NCTO also strongly endorses President Trump’s call for much tougher trade enforcement.  Trade deals grant lucrative duty-free preferences to importers, thereby creating significant enticements for would-be wrongdoers.  Stopping customs fraud has the twofold benefit of filling Treasury Department coffers and encouraging more production in the NAFTA and DR-CAFTA regions.

Without hesitation, the United States should focus more resources on customs enforcement to aggressively investigate those who purposely undervalue U.S. imports to avoid duties or who illegally circumvent U.S. free trade agreement rules of origin via third-country transshipment or through other fraudulent means.  In addition, penalties for customs fraud must be certain, swift, and sufficient to deter this harmful, illegal activity.

Also within the trade enforcement realm, NCTO supports U.S. Commerce Secretary Wilbur Ross’s proposal for the U.S. government to self-initiate anti-dumping and countervailing duty cases.  Other helpful actions the U.S. government should take include continued rejection of China’s demand to be recognized as a market economy and cracking down on illegal currency undervaluation.

One final trade priority is the enactment of a Miscellaneous Tariff Bill.  NCTO strongly supports duty relief on manufacturing inputs that are unavailable domestically and do not compete with other U.S.-made products.

That said, NCTO is concerned that the MTB process is being abused through the filing of hundreds of petitions on finished goods, particularly apparel.  On principle, NCTO opposes MTBs on finished goods because they often compete with like products made with U.S. inputs.  Duty reductions on finished textile items from any source can also undermine U.S. free trade agreements that grant duty relief through a yarn forward rule of origin.

Moving on to tax policy, NCTO wholeheartedly agrees that the U.S. tax code is in dire need of reform to make it more competitive internationally.  Lowering the corporate rate and allowing the immediate expensing of capital investment would be a significant benefit to NCTO members.  NCTO is also carefully studying the border adjustable taxation issue.  As a trade association representing U.S manufacturers and exporters, NCTO is keenly aware that foreign border tax schemes, including tax rebates to offshore competitors who export goods to our market, disadvantage U.S. producers.  As such, NCTO is poised to engage congressional leadership when any detailed border adjustable taxation legislation is put forth to thoroughly understand how that proposal may impact the textile industry.

NCTO is also pleased with President Trump’s initiative to cut unnecessary regulation and is encouraging its members to take advantage of the public comment period that closes on March 31 to submit ideas to improve the federal regulatory regime.

Rebuilding America’s infrastructure is another NCTO priority.  Besides boosting U.S. productivity and facilitating commerce, infrastructure is a growing market for textile products such as workwear, geomembranes, filtration systems, and composites for load-bearing systems.

Fostering a national culture of innovation is important too.  In that regard, NCTO urges President Trump to nurture the Advanced Functional Fabrics of America or AFFOA project. This Defense Department program is matched three to one with private dollars and tasked with making it easier to develop and commercialize the next generation of high-performance textiles.

With respect to government procurement policy, NCTO is proud of its steadfast efforts to defend and strengthen the Berry Amendment.  This “buy American” provision for the military is an excellent example of how the government and the private sector can work together to the benefit of one another.  The U.S. military benefits from guaranteed access to a secure U.S. supply line for thousands of superior, highly-advanced products.  In return, the domestic textile sector receives $1.5 to $2 billion in annual Defense Department sales that boost U.S. investment and employment.

Noting that the Trump administration and Congress appear serious about wanting to buy more American, NCTO would aggressively work to make sure textiles are included in any effort to enact commonsense laws or regulations that would strengthen “buy American” requirements applying to infrastructure or other federal spending.  As demonstrated by Berry, when the federal government buys “American,” it is good for the U.S. textile industry and even better for America.

Another NCTO priority is ensuring that the U.S. textile industry has uninterrupted access to reasonably priced energy.  Most man-made fibers are derivatives of petroleum products.  In addition, many textile producers are reliant on natural gas to power manufacturing operations.  Noting this, NCTO strongly supports construction of expanded oil and gas pipeline capacity to keep energy prices low.

Finally, the U.S. textile industry must acknowledge that its most valuable resource, its workforce, is aging.  To keep thriving long term, American textile manufacturing must recruit a new generation of talented chemists, designers, engineers, skilled technicians, and semi-skilled labor.  To this end, U.S. companies must continue to forge links with local leaders, schools, and government, vocational programs, community colleges, universities, and state business lobbies to make sure that state and federal policy produces a labor pool both adequate in size and well prepared to succeed in a hyper-competitive global economy.

OTHER NCTO ACTIVITIES

The industry’s need to attract America’s best and brightest is one reason why NCTO embarked upon the American Textiles: We Make Amazing rebranding campaign two years ago.

NCTO is pleased to report the campaign is slowly but surely challenging outdated perceptions of the U.S. textile sector thanks to the fact that American textile manufacturers have a great story to tell.  America’s textile industry is world class thanks to leveraging the most cutting-edge production processes, investing in the best machinery, and leading in sustainability and innovation.

Judging by the earned media and social engagement generated by American Textiles: We Make Amazing marketing efforts, more and more people are hearing the good news and viewing the U.S. textile industry in a new light.

CONCLUSION

Although the U.S. textile industry has stabilized its position in the global economy, it cannot afford to rest on its laurels. There will always be intense and sometimes unfair competition from abroad, changing consumer demands and inevitable economic downturns.

Again, that is why it is so important for the U.S. textile industry to seize this generational moment to influence federal policies if it wants to usher in a new era of growth.  With so much at stake in the next twelve months, members of NCTO and other textile trade associations must stay actively involved in their respective organizations.  Moreover, all domestic textile manufacturers who have not been active in Washington, but are serious about wanting a seat at the table to change textile policy for the better, are invited to join NCTO.  Good policy does not materialize from thin air, and NCTO must be well financed to affect the changes that will give our sector the best chance to build a stable and prosperous future for U.S. textile companies.  That’s a long way of saying the U.S. textile sector’s great workers and their families and communities are depending on the leadership of the industry’s leaders.

Thank you for the opportunity to serve this great industry as Chairman of NCTO for this past year.  It has been a privilege.

 

[1] Source: U.S. Census Bureau Annual Survey of Manufactures (ASM).  Data covers NAICS categories 313 (Textile Mills), 314 (Textile Product Mills), 315 (Apparel), and 32522 (Artificial and Synthetic Fibers and Filaments).  2016 Data for NAICS 32522 is not yet available.  Our 2016 estimate for the value of shipments in that category is $7.4 billion.

[2] Source: U.S. Census Bureau Annual Survey of Manufactures (ASM).  Data covers NAICS categories 313 (Textile Mills), 314 (Textile Product Mills), 315 (Apparel), and 32522 (Artificial and Synthetic Fibers and Filaments).  2016 Data for NAICS 32522 is not yet available.  Our estimate for the value of shipments in that category is based on data from 2015.

[3] Source: U.S. Census Bureau, Annual Capital Expenses Survey (ACES).  Data covers NAICS categories 313 (Textile Mills), 314 (Textile Product Mills), and 315 (Apparel).

[4] Sources: U.S. Bureau of Labor Statistics, U.S. Department of Agriculture, National Cotton Council, and the American Sheep Industry Association.

[5] Source: U.S. Bureau of Labor Statistics

[6] Source: Data for textiles and apparel is from The Export Market Report produced by the U.S. Department of Commerce, Office of Textiles and Apparel (OTEXA).  U.S. export data for cotton, wool, and fine animal hair is calculated from the U.S. International Trade Commission Interactive Tariff and Trade DataWeb using HTS Codes 5101, 5102, 5103 (wool), 5201, 5202, and 5203 (cotton).

[7] Source: U.N. COMTRADE Database

[8] Source: U.S. Commerce Department and U.S. International Trade Commission

[9] Id.

[10] The top 4 exports markets by country for the entire textile supply chain are (1) Mexico – $6.3 billion, (2) Canada – $5.2 billion, (3) China, Hong Kong and Macau – $1.8 billion, and (4) Honduras – $1.5 billion respectively.

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NCTO Elects South Carolina Fiber Manufacturing CEO as 2017 Chairman

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) held its 14th Annual Meeting March 21-23 in Washington, DC.  Elected as NCTO officers for 2017 are:

  • Chairman – William “Bill” V. McCrary Jr.

o   Mr. McCrary is Chairman and CEO of William Barnet and Son LLC, a synthetic fiber/yarn/polymer firm headquartered in Spartanburg, South Carolina with plants and/or offices in the Americas, Europe, and Asia.

o   Mr. McCrary also served as 2016 NCTO Vice Chairman

  • Vice Chairman – Marty Moran

o   Mr. Moran is CEO of Buhler Quality Yarns Corp., a leading fine-count yarn supplier with a manufacturing plant and its U.S. headquarters in Jefferson, Georgia.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 565,000 in 2016.
  • The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016.
  • Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

 

CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

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Thursday, March 23 Session of NCTO Annual Meeting Open to Media; Includes 2017 State of the U.S. Textile Industry Speech, Four Policy Presentations

WASHINGTON, DC – The Thursday, March 23 session of the National Council of Textile Organizations (NCTO) annual meeting in Washington, DC is open to the media.  It begins at 8:30 AM.

It features the 2017 State of the U.S. Textile Industry speech, and policy presentations on workforce, energy, tax reform, and buy America/infrastructure issues respectively.

Question and answer sessions will be open to NCTO members only; but as has been the case at previous annual meetings, NCTO officers will be available for media scrums as time permits.

March 23 Schedule of Events:

  • 8:30 – State of the U.S. Textile Industry

Rob Chapman, NCTO Chairman

Chairman and CEO – Inman Mills – Inman, SC

  • 9:00 – “Workforce Challenges Facing the U.S. Textile Sector”

David Hinks, Dean, College of Textiles, N.C. State University

  • 9:45 – “Current State of U.S. Energy Policy”

Kevin Leahy, Environmental and Energy Policy Director, Duke Energy

  • 10:30 Break

15 Minute-Break

  • 10:45 – “The Outlook for Tax Reform in 2017”

Carolyn Lee, Senior Director of Tax Policy, National Association of Manufacturers

  • 11:30 – “Buy American and U.S. Infrastructure Panel”

Nora Todd, Office of U.S. Senator Sherrod Brown of Ohio

Tyler Rushforth, Former Counsel for Senate Environment and Public Works Committee

  • 12:15 p.m. – Installation of 2017 NCTO Chairman & Closing Remarks

Rob Chapman, 2016 NCTO Chairman

Bill McCrary, 2016 NCTO Vice Chairman (Incoming 2017 Chairman)

Chairman & CEO, William Barnet & Son LLC, Spartanburg, SC

Event Details:

  • DATE: Thursday, March 23
  • TIME: 8:30 AM ET
  • PLACE: The Capital Hilton
  • ROOM: Congressional
  • ADDRESS: 1001 16th ST NW
  • CITY: Washington, DC

RSVPs for both events are strongly encouraged because seating is limited.  Attendees may RSVP by emailing NCTO’s Lloyd Wood at lwood@ncto.org.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.

  • U.S. employment in the textile supply chain was 565,000 in 2016.
  • The value of shipments for U.S. textiles and apparel was $74.4 billion last year, a nearly 11% increase since 2009.
  • U.S. exports of fiber, textiles and apparel were $26.3 billion in 2016.
  • Capital expenditures for textile and apparel production totaled $2 billion in 2015, the last year for which data is available.

CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

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NCTO Congratulates President Trump, Thanks President Obama; Eager to Partner with Trump Administration to Stimulate U.S. Textile Manufacturing

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) congratulates President Donald Trump on his inauguration as the 45th President of the United States of America.

“NCTO congratulates President Trump on his inauguration.  The U.S. textile industry is eager to partner with him to stimulate American jobs, production, and exports,” said NCTO President & CEO Auggie Tantillo.

“From fibers to finished fabrics, American companies make the highest quality and most innovative textiles in the world.  Given a level playing field, U.S. textile industry is primed for expansion,” Tantillo added as he noted the sector’s comeback from the 2008 financial crisis despite intense competition from Asian suppliers that often benefit from state subsidies and cents-on-the-hour wage rates.  Since the end of the recession in mid-2009, U.S. textile production has grown by 21 percent.

NCTO also would like to thank President Obama for his service to our great nation.  U.S. textile manufacturers are grateful for his administration’s work to improve the industry’s competitiveness,” Tantillo said.

Pointing out that President Obama created and funded a fiber and textile manufacturing innovation center, the Advanced Functional Fabrics of America (AFFOA) and that his administration opened a direct and very sincere line of communication with NCTO on sensitive policy matters, Tantillo remarked, “The U.S. textile sector had a legitimate and impactful seat at the policy table in recent years, a privilege greatly appreciated.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.  Visit our website at www.ncto.org and follow @NCTO on Twitter.

CONTACT:  Lloyd Wood
(202) 822-8028
lwood@ncto.org

January 20, 2017

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