As brands and retailers, caught in a global supply chain squeeze, scrutinize their supply chains and explore new strategies based on onshoring and nearshoring, North Carolina textile companies like Contempora Fabrics are beginning to see rising demand for sustainable, American-made textiles.
Based in Lumberton, N.C., Contempora is a manufacturer of circular knits specializing in both coarse and fine gauge knits predominantly for the fashion apparel, performance sportswear and workwear markets.
Contempora was founded in 1972 by Lacy C. Nance to produce fine gauge interlock and single knit fabrics. In 1984, 40 percent of the company was purchased through an Employee Stock Ownership Plan (ESOP) and the company became 100 percent ESOP in 1988.
Today, Contempora Fabrics operates 175 machines in a 150,000 square foot facility on 29 acres and is known for a versatile product mix and capacity to manufacture approximately 2 million pounds of fabric each month.
On a weekly basis, Contempora produces 450,000 pounds of fabric, 80 percent of which is polyester and 20 percent of which is cotton blend.
Its knit fabric production is heavily concentrated in the team sports and performance markets and is used in a wide variety of products, ranging from jersey knit T-shirts to mesh fabrics in uniforms used in the MLB and NBA, to heavy weight fleeces.
Contempora works with several well-known performance gear, workwear and apparel companies.
Contempora President Ron Roach says apparel accounts for 90 percent of the company’s polyester knit fabric business, but he says the company is expanding its business into new markets, including industrial and automotive and potentially furniture.
As the company continues to deepen its product offerings, the demand for American-made, environmentally friendly fibers, yarns, fabrics and apparel continues to rise.
Sustainability is in Contempora’s DNA
Contempora has reached an impressive sustainable milestone. To date, the company has prevented 63 million plastic bottles from going to landfills by purchasing and using recycled fibers from Unifi Inc.’s REPREVE® brand, says Hannah Rich, product development engineer at Contempora.
She says that customers are seeking to switch more from virgin polyester yarns to recycled yarns though the cost differential is still a barrier.
Of the 450,000 pounds produced each week, 50,000 pounds contains recycled poly yarns and 200,000 pounds uses 100 percent virgin poly.
Recycled poly is 15-20 percent more expensive than virgin polyester, she notes.
In addition to rising customer demand for recycled products, Contempora has invested in reducing its own environmental footprint, says Contempora President Ron Roach.
“We’ve spent the last 10 years updating all of our lighting systems so that they use less wattage and we have spent a tremendous amount of money in the last five to six years on new equipment that uses less electricity,” stresses.
For the year to date, Contempora has recycled over 123,000 pounds of cardboard, more than 257,000 pounds of cardboard yarn cones and over 13,000 pounds of plastic, for a total of over 394,000 pounds, or 197,000 tons.
“The incredible advantage of using a sustainable product line is that it is all very traceable. We can verify everything. We can trace our product all the way back to the beginning to ensure that it was produced in the sustainable way we are claiming,” he says.
Roach says he hopes brands and retailers appreciate the investment in sustainable practices as well as the resiliency of the supply chain in the face of a major shock like that of the COVID-19 pandemic and shift more sourcing to the United States and the Western Hemisphere, the textile industry’s largest export market.
“We are definitely hoping that retailer and brands are coming to the conclusion that most of us have known for a long time—the cheapest price is not necessarily the best cost in the long run,” Roach notes.
“With the severe shortages of personal protective equipment (PPE) that we saw during the onset of the COVID pandemic, we learned how our dependence on Asia really hurt this country. The U.S. textile industry’s response was heart felt and really demonstrated our industry’s ability to come together and help solve the PPE shortages.”
Onshoring
Business for U.S. knit suppliers has been strong, Roach notes, despite the fact that most of the apparel manufacturing base moved offshore decades ago.
But there has been an upheaval in the global supply chain that companies are watching closely.
A confluence of events, including the supply chain crisis associated with the pandemic, Section 301 tariffs imposed on finished apparel and textile imports from China and a U.S. ban on cotton and cotton products from the Xinjiang region of China linked to the use of forced labor of Uyghur minorities, has led to a shift in global sourcing.
While Roach notes that he has not seen a rush to onshore on the part of retailers and brands, he says there have been numerous conversations “about putting up facilities in the U.S. and we are anxious to see where that goes.”
He pointed to a new program that Contempora is staring with a major apparel brand that will be made strictly in the U.S.
Additionally, Walmart, the nation’s largest retailer, continues to explore U.S. suppliers and recently participated in the Americas Apparel Producers’ Network (AAPN) Carolina Mill Tour in October. Contempora was one of the four stops, a reported by eTextileCommunications.
This year, Walmart announced a $350 billion Made in USA Lighthouse initiative aimed at strengthening its commitment to U.S. jobs and communities. The 10-year project aims to help identify and overcome top-down barriers to U.S. production.
“I am very encouraged by the Walmart Carolina tour It went well and we are anxious to see where it goes,” Roach notes. “I think it is a very good sign when you have the largest retailer in the country look at making a commitment and I hope that others will also take that same look.”
Nearshoring-Western Hemisphere
Roach says that he expects the Western hemisphere to be a “big, big play” in the coming months.
Central America is Contempora’s largest export market, accounting for 80 percent of the company’s exports.
According to recent trade data, the Western Hemisphere marked a dramatic rebound in the first half of 2021, driving a 50 percent surge in U.S. apparel imports, as global sourcing shifts and pressure on China forced retailers and brands to continue diversifying and consider nearshoring more production to take advantage of the benefits of our free trade agreements (FTAs) in the region.
For the year to date through September, apparel imports from the Western Hemisphere (largely comprised of U.S. textile components) jumped 43 percent to $10.3 billion compared with the year-ago period, according to new data from the Commerce Department’s Office of Textiles and Apparel (OTEXA).
Roach notes that he expects to see the Western Hemisphere gain the most from sourcing shifts by retailers and brands, a key reason why he says maintaining strong textile rules in the U.S. free trade agreement with Central America is critical.
“I know there is a lot of talk about reopening CAFTA-DR (the Dominican Republic-Central America Free Trade Agreement) but that would be a complete disaster,” he adds. “The yarn forward rule has helped maintain business and a strong coproduction chain with Central America, and the administration supports the status quo and is not looking to reopening it, based on reports from a recent roundtable.”
Labor Shortage Challenge
As is the case with all industry sectors across the U.S., the textile industry has been struggling with severe labor shortages that have idled some capacity and led to lost business opportunities.
But the business is there, Roach stresses.
“In today’s world, everyone is busy, whether on the yarn side, the fabric mill side or the apparel side,” Roach says. “The biggest problem we are all having up and down the supply chain are these labor shortages.”
He notes it affects the entire domestic supply chain from getting raw materials for production to shipping fabrics to dye houses.
“The key is trying to tap into what today’s workers are looking for,” Roach notes. “I don’t think we will ever go back to the days before pre-COVID. We have to work together to figure out what happened and then find ways to address this. The person who figures that out will be the winner.”
Roach is trying one new strategy. In addition to taking the usual steps to hire and retain workers, he says he has applied to the HB-2 Visa program and is trying to hire 20-30 workers from El Salvador on 10-month work visas, though the process has taken longer than he anticipated.
“There is enough business in the U.S. We just have to figure out how to get enough employees to run it,” Roach notes.
Contempora Fabrics: A North Carolina Circular Knitter Well Positioned for Rising Demand in Sustainable, American-Made Products
/in TIN Blog /by Kristi EllisAs brands and retailers, caught in a global supply chain squeeze, scrutinize their supply chains and explore new strategies based on onshoring and nearshoring, North Carolina textile companies like Contempora Fabrics are beginning to see rising demand for sustainable, American-made textiles.
Based in Lumberton, N.C., Contempora is a manufacturer of circular knits specializing in both coarse and fine gauge knits predominantly for the fashion apparel, performance sportswear and workwear markets.
Contempora was founded in 1972 by Lacy C. Nance to produce fine gauge interlock and single knit fabrics. In 1984, 40 percent of the company was purchased through an Employee Stock Ownership Plan (ESOP) and the company became 100 percent ESOP in 1988.
Today, Contempora Fabrics operates 175 machines in a 150,000 square foot facility on 29 acres and is known for a versatile product mix and capacity to manufacture approximately 2 million pounds of fabric each month.
On a weekly basis, Contempora produces 450,000 pounds of fabric, 80 percent of which is polyester and 20 percent of which is cotton blend.
Its knit fabric production is heavily concentrated in the team sports and performance markets and is used in a wide variety of products, ranging from jersey knit T-shirts to mesh fabrics in uniforms used in the MLB and NBA, to heavy weight fleeces.
Contempora works with several well-known performance gear, workwear and apparel companies.
Contempora President Ron Roach says apparel accounts for 90 percent of the company’s polyester knit fabric business, but he says the company is expanding its business into new markets, including industrial and automotive and potentially furniture.
As the company continues to deepen its product offerings, the demand for American-made, environmentally friendly fibers, yarns, fabrics and apparel continues to rise.
Sustainability is in Contempora’s DNA
Contempora has reached an impressive sustainable milestone. To date, the company has prevented 63 million plastic bottles from going to landfills by purchasing and using recycled fibers from Unifi Inc.’s REPREVE® brand, says Hannah Rich, product development engineer at Contempora.
She says that customers are seeking to switch more from virgin polyester yarns to recycled yarns though the cost differential is still a barrier.
Of the 450,000 pounds produced each week, 50,000 pounds contains recycled poly yarns and 200,000 pounds uses 100 percent virgin poly.
Recycled poly is 15-20 percent more expensive than virgin polyester, she notes.
In addition to rising customer demand for recycled products, Contempora has invested in reducing its own environmental footprint, says Contempora President Ron Roach.
“We’ve spent the last 10 years updating all of our lighting systems so that they use less wattage and we have spent a tremendous amount of money in the last five to six years on new equipment that uses less electricity,” stresses.
For the year to date, Contempora has recycled over 123,000 pounds of cardboard, more than 257,000 pounds of cardboard yarn cones and over 13,000 pounds of plastic, for a total of over 394,000 pounds, or 197,000 tons.
“The incredible advantage of using a sustainable product line is that it is all very traceable. We can verify everything. We can trace our product all the way back to the beginning to ensure that it was produced in the sustainable way we are claiming,” he says.
Roach says he hopes brands and retailers appreciate the investment in sustainable practices as well as the resiliency of the supply chain in the face of a major shock like that of the COVID-19 pandemic and shift more sourcing to the United States and the Western Hemisphere, the textile industry’s largest export market.
“We are definitely hoping that retailer and brands are coming to the conclusion that most of us have known for a long time—the cheapest price is not necessarily the best cost in the long run,” Roach notes.
“With the severe shortages of personal protective equipment (PPE) that we saw during the onset of the COVID pandemic, we learned how our dependence on Asia really hurt this country. The U.S. textile industry’s response was heart felt and really demonstrated our industry’s ability to come together and help solve the PPE shortages.”
Onshoring
Business for U.S. knit suppliers has been strong, Roach notes, despite the fact that most of the apparel manufacturing base moved offshore decades ago.
But there has been an upheaval in the global supply chain that companies are watching closely.
A confluence of events, including the supply chain crisis associated with the pandemic, Section 301 tariffs imposed on finished apparel and textile imports from China and a U.S. ban on cotton and cotton products from the Xinjiang region of China linked to the use of forced labor of Uyghur minorities, has led to a shift in global sourcing.
While Roach notes that he has not seen a rush to onshore on the part of retailers and brands, he says there have been numerous conversations “about putting up facilities in the U.S. and we are anxious to see where that goes.”
He pointed to a new program that Contempora is staring with a major apparel brand that will be made strictly in the U.S.
Additionally, Walmart, the nation’s largest retailer, continues to explore U.S. suppliers and recently participated in the Americas Apparel Producers’ Network (AAPN) Carolina Mill Tour in October. Contempora was one of the four stops, a reported by eTextileCommunications.
This year, Walmart announced a $350 billion Made in USA Lighthouse initiative aimed at strengthening its commitment to U.S. jobs and communities. The 10-year project aims to help identify and overcome top-down barriers to U.S. production.
“I am very encouraged by the Walmart Carolina tour It went well and we are anxious to see where it goes,” Roach notes. “I think it is a very good sign when you have the largest retailer in the country look at making a commitment and I hope that others will also take that same look.”
Nearshoring-Western Hemisphere
Roach says that he expects the Western hemisphere to be a “big, big play” in the coming months.
Central America is Contempora’s largest export market, accounting for 80 percent of the company’s exports.
According to recent trade data, the Western Hemisphere marked a dramatic rebound in the first half of 2021, driving a 50 percent surge in U.S. apparel imports, as global sourcing shifts and pressure on China forced retailers and brands to continue diversifying and consider nearshoring more production to take advantage of the benefits of our free trade agreements (FTAs) in the region.
For the year to date through September, apparel imports from the Western Hemisphere (largely comprised of U.S. textile components) jumped 43 percent to $10.3 billion compared with the year-ago period, according to new data from the Commerce Department’s Office of Textiles and Apparel (OTEXA).
Roach notes that he expects to see the Western Hemisphere gain the most from sourcing shifts by retailers and brands, a key reason why he says maintaining strong textile rules in the U.S. free trade agreement with Central America is critical.
“I know there is a lot of talk about reopening CAFTA-DR (the Dominican Republic-Central America Free Trade Agreement) but that would be a complete disaster,” he adds. “The yarn forward rule has helped maintain business and a strong coproduction chain with Central America, and the administration supports the status quo and is not looking to reopening it, based on reports from a recent roundtable.”
Labor Shortage Challenge
As is the case with all industry sectors across the U.S., the textile industry has been struggling with severe labor shortages that have idled some capacity and led to lost business opportunities.
But the business is there, Roach stresses.
“In today’s world, everyone is busy, whether on the yarn side, the fabric mill side or the apparel side,” Roach says. “The biggest problem we are all having up and down the supply chain are these labor shortages.”
He notes it affects the entire domestic supply chain from getting raw materials for production to shipping fabrics to dye houses.
“The key is trying to tap into what today’s workers are looking for,” Roach notes. “I don’t think we will ever go back to the days before pre-COVID. We have to work together to figure out what happened and then find ways to address this. The person who figures that out will be the winner.”
Roach is trying one new strategy. In addition to taking the usual steps to hire and retain workers, he says he has applied to the HB-2 Visa program and is trying to hire 20-30 workers from El Salvador on 10-month work visas, though the process has taken longer than he anticipated.
“There is enough business in the U.S. We just have to figure out how to get enough employees to run it,” Roach notes.
NCTO President & CEO Kim Glas Testifies on Supporting U.S. Industry in Face of Unfair Chinese Trade Practices at House Ways and Means Trade Subcommittee Hearing
/in Press Releases, Recent News, Testimony and Statements /by Kristi EllisWASHINGTON, DC—NCTO President and CEO Kim Glas is testifying today at a hearing on “Supporting U.S. Workers, Businesses, and the Environment in the Face of Unfair Chinese Trade Practices” before the House Ways and Means Trade Subcommittee at 10:00 a.m. ET.
In written testimony submitted to the committee, Glas outlines China’s rise to dominance of global textile and apparel production and its adverse impact on the U.S. textile industry, details ways to strengthen onshoring and nearshoring of supply chains, and provides recommendations on the critical policies needed to address these illegal trade practices and rectify inequities.
“China holds the dubious distinction of being the world’s leading purveyor of illegal trade practices that are designed to unfairly bolster a blatantly export-oriented economy,” NCTO President and CEO Kim Glas says. “These predatory practices take many forms, from macroeconomic policies that grant across-the-board advantages to their manufacturers, to industry specific programs intended to dominate global markets in targeted areas. The U.S. textile industry has been a longstanding victim of China’s predatory export practices.”
“China’s virtually unlimited and unrealistic pricing power coupled with its subsidies and lack of enforceable labor and environmental standards strips benefits and undermines policy objectives throughout the U.S. free trade and preference program structure,” Glas further notes.
“A program of maximum pressure must be developed and fully enforced to reconfigure textile and apparel sourcing patterns that currently place an unhealthy and heavily weighted dependance on China,” Glas adds. “With a strong trade policy holding China accountable, the opportunities are ripe to unlock further domestic and regional investment to bolster this critical textile and apparel production chain because of the important rules of origin for this sector. We can nearshore more production, help address the migration crisis, and assist in addressing the urgent issue of climate change and create a win-win-win for workers in the United States, workers in the region, and consumers.”
Glas outlines key policy recommendations to the committee, including:
Please view the full written testimony by NCTO President and CEO Kim Glas here.
###
NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
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Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
NCTO Welcomes Biden Administration’s New and Transparent Buy American Waiver Process
/in Press Releases, Recent News /by Kristi EllisWASHINGTON—National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today welcoming the Biden administration’s launch of new database and waiver process for government contract solicitations made under the Buy American Act.
National Council of Textile Organizations President and CEO Kim Glas issued the following statement:
The U.S. textile industry sincerely thanks the Biden Administration for developing a transparent waiver process for government procurement under the Buy American Act, which will effectively allow U.S. companies competing for government contracts to review submissions for waivers under the Buy American law.
We also want to acknowledge the incredible work that Celeste Drake, the administration’s Made in America Director, has completed on this effort.
This new process will require federal agencies to enter proposed non-availability waivers into a digital portal for review by the Made in America Office (housed within the Office of Management and Budget), before an agency can grant a waiver to foreign entities bidding for a government contract. It will be an extremely helpful tool that will provide transparency to the solicitation process and give U.S. textile companies and the larger public the ability to provide feedback on proposed waivers, as well as completed waivers. (Proposed waivers will be posted and available for review on the MadeInAmerica.gov website. The process for reviewing waivers will be progressively implemented throughout all federal agencies, beginning with smaller government agencies on Jan. 1, 2022.)
The U.S. textile industry has been a staunch, long-term supporter of buy American rules for federal procurement. From the standpoint of U.S. national security, it is essential that America have vibrant manufacturing supply chains that can rapidly and effectively respond to critical demands in times of crisis. Whether it is from a military defense perspective or in relation to a healthcare emergency, such as the current COVID pandemic, the U.S. should never be reliant on offshore sources for vital materials needed to keep our citizens and nation safe.
Buy American rules help incentivize domestic production while stimulating more investment in U.S. manufacturing. But the current law has a waiver mechanism that allows the federal government to purchase goods made by major global competitors in the textile and apparel sector when a mission-critical product is not made in the United States or available at a reasonable cost.
Now, the administration’s new waiver process and database will provide more transparency in the U.S. government procurement process, which will only stand to benefit U.S. textile companies, who can use the information to better understand potential business opportunities and work to provide American-made products.
We believe it is critical that taxpayer dollars are used to invest in American manufacturing and our workforce. This new process is a positive step in supporting our industries and workers.
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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
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CONTACT: Kristi Ellis
(202) 684-3091
www.ncto.org
NCTO Commends House Passage of Infrastructure Package; a Step Forward in Reconstituting a Domestic PPE Supply Chain
/in Press Releases, Recent News /by Kristi EllisWASHINGTON—The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement today welcoming House passage of a bipartisan infrastructure bill that will provide billions of dollars in new spending to revitalize the nation’s roads, bridges and railways and help reconstitute a domestic supply chain for face masks, isolation gowns and other personal protective equipment (PPE).
“We commend the House for getting the bipartisan infrastructure bill across the finish line today, and we are pleased the legislation will now go to President Biden for his signature. This is the first step in a long-term strategy that is critically needed to permanently onshore PPE production to ensure our nation is prepared for the next health security crisis,” said NCTO President and CEO Kim Glas. “This infrastructure package will help incentivize the reshoring of PPE production by guaranteeing long-term federal contracts and expanding Berry Amendment rules to more federal agencies’ purchases of PPE products, important priorities of the U.S. textile industry.”
NCTO worked with congressional allies to include a version of the Make PPE in America Act, legislation co-sponsored by Senator Rob Portman (R-OH) and Senator Gary Peters (D-MI), in the infrastructure legislative package. The bill ensures all PPE purchased by the Departments of Homeland Security, Health and Human Services and Veterans Affairs are Berry Amendment-compliant (containing 100 percent domestic content); guarantees long-term contracts (a minimum of two years) to U.S. manufacturers; and creates a tiered preference for PPE made in the Western Hemisphere by our free trade partners using U.S. components, after domestic manufacturing capacity has been maximized.
“This bill within the infrastructure package will help onshore critical production of critical medical supplies, ensuring that taxpayer dollars do not go to China and other offshore PPE producers but are instead utilized to bolster the federal purchase of American-made PPE,” Glas said. “In fact, applying these strong procurement rules across our government for purchases of PPE will unequivocally lead to investments in this sector and help onshore this industry longer term. We can’t thank Senator Portman and Senator Peters enough for their unwavering support.
“The U.S. manufacturing industry has produced over a billion lifesaving PPE and other medical products over the last year, demonstrating that domestic textile manufacturers have the technical capabilities and existing capacity to make the United States fully sufficient in terms of our national PPE needs.
“But this sufficiency will only permanently materialize if several proper government policies are put in place that incentivize the long-term investment to bring PPE production back onshore. This will require several steps, including incentives for the private sector to purchase American-made PPE; best-value contracting principles for federal purchases; and further industrial expansion efforts under the Defense Production Act (DPA) for U.S. textile and apparel production. This Berry amendment and long-term contracts provision is a critical first step and we are thrilled that it was included in the bipartisan infrastructure package that will be signed into law in the coming days.”
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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
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Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
NCTO Launches Video Campaign Highlighting Heroic Healthcare Workers & U.S. PPE Supply Chain; Calls for Strategic Government Plan to Onshore Critical Medical Supplies
/in Press Releases, Recent News /by Kristi EllisWASHINGTON—The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles, from fiber through finished sewn products, released an illuminating video and social media campaign today detailing the heroic efforts of U.S. textile manufacturers to supply desperately needed medical personal protective equipment (PPE) at the height of the COVID-19 pandemic. The video features interviews with healthcare workers who confronted a once-in-a-generation health crisis and American textile and apparel executives, who came together to manufacture lifesaving PPE as the pandemic intensified and, once again in 2021, when President Biden issued a call to deliver 20 million American-made face masks for underserved communities in 60 days.
To view the video and Call to Action, please click here.
NCTO President and CEO Kim Glas, said, “Our video, ‘American Textiles: The Story of American-Made PPE,’ underscores the need for urgent government support of a vital domestic PPE supply chain, while also shining a light on an agile manufacturing engine that grew out of the pandemic and is fully capable of supplying our nation’s PPE. I want to sincerely thank all of our partners who participated in this film and commend the critical domestic textile supply chain that ramped up a thousand times over during the pandemic to respond to the crisis overnight.
These supply chains reconstituted overnight will be predominantly offshored if we don’t get critical policy solutions over the finish line. There is a sense of urgency to this work and getting this down. Highlighting this important effort to key policy makers is part of our education campaign.”
Davis Warlick, executive vice president, Parkdale Mills: “Parkdale is proud to be part of the domestic supply chain that provided 20 million reusable, American-made face masks to the administration for underserved communities, in addition to the effort that has produced more than a billion critical medical items since the pandemic began. This video captures an incredible American story of companies coming together to build a supply chain virtually from scratch to provide desperately needed PPE for our frontline workers and citizens. By procuring 100% American-made masks, the government put thousands of workers across the United States to work and further proved that the U.S. textile industry has the expertise, capacity, and capability to thrive when given the opportunity.”
Gabrielle Ferrara, chief operating officer and owner of Ferrara Manufacturing: “This film vividly portrays the incredible resiliency of our industry to ramp up and produce critical PPE, delivering it quickly to those who need it the most. This is a story of American innovation and the dedication and teamwork of our manufacturing base and frontline workers, all of which demonstrated true heroism in the face of a once-in-a-generation health crisis. We greatly appreciate the administration’s support of our workforce; the men and women at our facilities were tremendously dedicated in producing millions of masks, gowns, and other lifesaving items. We are also thankful for the strong support and partnership of Workers United/SEIU to help bolster this critical supply chain.”
The National Council of Textile Organizations is asking the U.S. government to take bipartisan action to:
NCTO would like to acknowledge all of the companies involved in this critical supply chain and extend a special thanks to the SEIU/Workers United and their healthcare workers who participated. Please see a list of our partners who made this happen here.
###
NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
DOWNLOAD RELEASE
Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.281.9305
NCTO Issues Statement Following President Biden’s Remarks on Global Supply Chain Crisis; Stresses Importance of Onshoring and Nearshoring
/in Press Releases, Recent News /by Kristi EllisWASHINGTON—The National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today following President Biden’s remarks on the global supply chain crisis and stressed the importance of investing onshoring and nearshoring.
National Council of Textile Organizations President and CEO Kim Glas issued the following statement:
We appreciate President Biden’s call to ensure we are building more resilient and reliable supply chains and to invest in our manufacturing industries here at home, in his address earlier today.
There is a reason we got into this mess and there is a reason we have a global supply chain crisis. Years of offshoring production in a race to the bottom –exacerbated by predatory trade practices that have undermined so many manufacturing industries–has led to a tipping point. In fact, it was not too long ago that nurses in New York City and beyond were wearing garbage bags as gowns as our overreliance on Chinese production chains exposed severe fragilities in keeping our health care workers safe during the height of the pandemic.
China’s virtually unlimited and unrealistic pricing power coupled with its subsidies and lack of enforceable environmental standards strips benefits and undermines policy objectives, and leaves us in an untenable situation of overreliance on a foreign supply chain for critical products and raw materials. This must change.
We must hold China accountable for predatory trade practices that have offshored our industries and our jobs. We must onshore and nearshore more textile and apparel production chains out of Asia to the U.S. and also to Western Hemisphere trade partners. This has a multitude of benefits to ensure more reliability in production and also has remarkable job benefits to U.S. manufacturers and our allied trading partners who adhere to higher labor and environmental standards. Further, it will help address the migration crisis and grow better paying jobs.
Now is the time to we need to unlock long-term commitments to source product from the USA and from our Hemispheric partners. If we moved another 10 percent of global production to the U.S. and the Hemisphere, imagine the benefits that could be achieved. Ensuring further verticalization and investment in all aspects of the industry, from raw materials to finished products, is good for the American economy and workers in the U.S. and in the region.
Our industry stands ready to help and provide the solutions to onshore and nearshore these production chains that benefit manufacturing workers, the U.S. economy, our Western Hemisphere allies, and consumers. Further, onshoring and nearshoring these critical production chains has remarkable benefits for the environment and addresses the growing, systemic and alarming issues associated with climate change.
It is critical that supply chains mitigate risks so that we are never in this situation again. We appreciate President Biden recognizing the value of onshoring these critical production chains and stand ready to work with the administration in these efforts.
###
NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
DOWNLOAD RELEASE
CONTACT:
Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
NCTO Issues Statement in Support of Biden Administration’s New China Trade Policy Framework
/in Press Releases /by Kristi EllisWASHINGTON—The National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today following U.S. Trade Representative Katherine Tai’s speech at the Center for Strategic and International Studies, outlining the Biden administration’s China trade policy.
National Council of Textile Organizations President and CEO Kim Glas issued the following statement:
We support the Biden administration’s plan outlined today by U.S. Trade Representative, Ambassador Katherine Tai, to enforce the Phase One deal with China and maintain tariffs on finished textile and apparel products. We believe it’s important to hold China accountable for pervasive intellectual property theft and persistent predatory trade practices that have undermined U.S. manufacturers and its workforce.
China’s rampant abuse of intellectual property rights and other illegal trade activity has gone on for far too long at the direct expense of U.S. manufacturers and the loss of millions of U.S. manufacturing jobs. The U.S. textile industry supports the president’s authority to use Section 301 to address China’s unfettered practice of intellectual property theft, which has had a damaging impact on the entire U.S. textile and apparel production chain and other manufacturing industries for decades.
NCTO has strongly supported applying tariffs on finished products in our sector as a key negotiating leverage with the Chinese. NCTO also supports a targeted and limited exclusion process for a small list of inputs such as dyes, chemicals and textile machinery that are not available domestically and that enable U.S. manufacturers to compete in the global marketplace.
We also appreciate the administration’s support for strengthening Buy American policies and investing in the U.S. manufacturing base. We urge the administration to impose duties on finished medical protective equipment (PPE) to support domestic textile companies that have produced over a billion PPE items since the COVID pandemic began. While tariffs aren’t the only mechanism in the toolbox, it’s necessary to ensure a holistic approach to onshoring and nearshoring these critical supply chains, a key priority for the Biden administration and our domestic manufacturers who ramped up production overnight to help in the current crisis.
Finally, we strongly support the administration’s intention to address broader, systemic issues in our trading relationship with China—specifically, the need to remedy unfair advantages that stem from rampant state ownership of manufacturing and the pervasive use of production and export subsidies that displace U.S. textile manufacturers in markets both at home and abroad.
We appreciate the Ambassador’s thoughtful approach on addressing these complicated matters in a way that ensures that workers and manufacturing sectors are the center of the trade approach with China.
We appreciate Ambassador Tai and the Biden administration recognizing the critical need for a strong resilient manufacturing sector and look forward to working closely with the administration to implement a strategic vision that helps strengthen our middle class.
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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
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Kristi Ellis
Vice President, Communications
National Council of Textile Organizations
kellis@ncto.org | 202.684.3091
Two One Two New York Hosts State Senator Phil Boyle on plant tour and discussion
/in TIN Blog /by Kristi EllisTwo One Two New York, Inc. (212NY), a well-known and respected PPE, sweater, sweater-knit and apparel manufacturer based in Long Island, N.Y., hosted New York state Senator Phil Boyle at its state-of-the art manufacturing facility on September 9.
Senator Boyle visits 212 NY headquarters in Long Island, NY.
Principle Marisa Fumei-South and Controller Carole Schultz hosted the Senator on a tour of the company, one of the largest fully vertical, women-owned, family- operated textile manufacturers on the East Coast, which expanded its operations to produce PPE during the COVID-19 pandemic, despite shutdowns and an economic downturn that saw many in the industry pull back and idle production.
Fumei-South said she took the opportunity to demonstrate Two One Two New York’s capabilities and capacity housed in an 85,000-square-foot facility in Edgewood, Long Island that produces up to 48,000 dozen sweaters per month.
“They were able to see the production sweaters as well as masks in process for other government contracts. They were impressed with the organization as a whole, the substantial infrastructure and the fact that are positioned to turn quickly at any given time,” she said. “They were appreciative of our dedication to domestic manufacturing, to keeping our employees working and that we’ve remained in New York for over 30 years despite the challenges we face having to compete with imports.”
“We spoke about opportunities that could be generated for Long Island as well as New York and U.S. manufacturers and their respective supply chains as well as concerns we have in regards to policy,” Fumei-South said. “We also discussed the critical and urgent support we need to sustain the robust supply chain that we created during the pandemic before it disappears and how important it is that we keep Americans working.”
Fumei-South said she is looking forward to having follow-up conversations about mandated state procurement for PPE for New York state manufactures.
U.S. Trade Representative Katherine Tai Makes First Visit to Heart of U.S. Textile Industry
/in TIN Blog /by Kristi EllisU.S. Trade Representative Katherine Tai made her first trip as the nation’s top trade chief to the Southeast in a one-day visit to two U.S. textile companies where she had a first-hand look at state-of-the-art facilities and met with industry executives.
Ambassador Tai visited Milliken & Company’s Magnolia plant in Blacksburg, S.C. and American & Efird’s plant in Mount Holly, N.C. and gained insight into the opportunities and challenges that exist for the industry.
The Ambassador participated in a Women in Textiles roundtable at Milliken and in a separate Industry Executive roundtable at A&E on September 23.
Industry leaders discussed a wide range of critical topics, ranging from the competitiveness and sustainability of the domestic industry to priority issues in Washington, the critical Western Hemisphere co-production chain, PPE, and Berry Amendment and Buy American policies.
At Milliken & Company, Ambassador Tai said in a short interview with a broadcast station, “I am so impressed by what they are making here, how they are making it under an environmental sustainability program here. I think what I’ve been most impressed by is the pride that folks here have in what they are making.
“I got to model one of the U.S. Olympic jackets just now and putting that on reminds me of the kind of pride that we feel once every four years watching the Olympics. We should feel [that kind of pride] in a company like Milliken every single day.”
Later, at an industry executive roundtable hosted by A&E, Ambassador Tai took note of North Carolina’s $2 billion in textile exports—making it the number one textile-exporting state.
“I understand the A&E Mount Holly plant exports products to 57 different countries,” she said. “As U.S. Trade Representative I am committed to helping A&E and all of your companies build on this success by finding more market opportunities…”
The Ambassador also noted that both the Milliken and A&E plants export a significant portion of their production to such U.S. trading partners as Mexico, Canada and Central America.
“The production linkage with Central America is especially important as the Biden-Harris administration works with our partners in the region to increase economic opportunity in the Northern Triangle counties of El Salvador, Guatemala and Honduras,” she said in opening remarks at the roundtable, noting she was eager to hear from the group of industry leaders at the roundtable about suggestions to further strengthen the co-production chain.
She also gave special recognition to the industry for making “great strides and commitments” in implementing sustainable practices and commended the entire industry for its “heroic” role in answering the call of the nation at the height of the pandemic to ramp up production of personal protective equipment (PPE).
“…Many of you in this room stepped up courageously and reconfigured your production lines to make protective equipment that was in high demand and in short supply. This quick turnaround was nothing short of heroic. And I want to personally thank you for the lives you saved and the people you protected. We do not want to be caught in the same situation twice,” she noted, adding that the Biden administration is committed to learning lessons and determining how it can be more prepared in the future.
In a separate interview with a broadcast station, Ambassador Tai also weighed in on where she sees the future of the industry moving, after hearing from women textile leaders about the significant enrollment of women at North Carolina State University’s Wilson College of Textiles.
“The women that I talked to today talked about the opportunities that they got and wanting to create more opportunities for women and a more diverse workforce. Folks here really believe that the future of this industry is female.”
U.S. Trade Representative Katherine Tai visits Milliken & Company and American & Efird in Visit Highlighting U.S. Textile Industry
/in Press Releases /by Kristi EllisWASHINGTON – Milliken & Company and American & Efird (A&E) hosted United States Trade Representative (USTR) Ambassador Katherine Tai in two separate visits to the companies’ state-of-the-art textile manufacturing facilities today, marking an unprecedented visit to the heart of the U.S. textile industry in the Carolinas by the nation’s top trade chief.
Ambassador Tai’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $64 billion in output in 2020 and employed nearly 530,000 workers. The industry has been at the forefront of a domestic production chain manufacturing over a billion personal protective equipment (PPE) items during the COVID-19 pandemic.
The Ambassador’s visit to Milliken included a tour of the company’s Magnolia plant in Blacksburg, S.C., and a roundtable discussion highlighting the important role women contribute to textiles, the critical need for policies supporting a domestic supply chain, and the significant impact of the sector to the U.S. economy. Milliken is one of the largest textile companies in the U.S., employing more than 6,000 associates domestically and an additional 1,350 associates globally. Milliken’s Textile Business alone employs 2,500 people across eight counties in South Carolina and is the fourth largest manufacturing employer in the Upstate.
“Milliken is honored to host Ambassador Tai at our Magnolia plant to discuss not only the invaluable contributions we make every day to our community and our nation, but also the importance of sound trade policies that bolster domestic production and the co-production chains we have built, in particular with our Western Hemisphere trading partners,” said Chad McAllister, executive vice president of Milliken & Company and president, Textile Business. “To have Ambassador Tai on-site at one of our U.S. facilities is an opportunity to showcase our breadth of innovation in the industry and our passionate team of American workers who help our business succeed. We are fortunate and thankful for Ambassador Tai’s leadership as well as her commitment to understanding the challenges and opportunities of our industry.”
U.S. Trade Representative Ambassador Katherine Tai said, “I want to thank NCTO for organizing this event. As United States Trade Representative, I am committed to helping all of your companies build on the success by finding market opportunities and helping reach new customers. I want to ensure that our trade policy matches the innovation and changes happening in the textiles industry. With your help, we can continue addressing critical issues. In doing so, we will help the textiles industry maintain its competitive edge and ensure it remains a global standard-bearer in the years to come.”
On the second leg of her trip, Ambassador Tai visited American & Efird’s manufacturing facility in Mount Holly, N.C. American & Efird operates as part of Elevate Textiles and its global portfolio of advanced products and distinguished textile brands, including A&E, Burlington, Cone Denim, Gütermann and Safety Components, and representing more than 500 years of textile manufacturing knowledge.
During the visit, U.S. textile executives spanning the fiber, yarn, fabric, and finished product textile and apparel industry participated in a roundtable with the Ambassador at which they discussed the competitiveness of the domestic industry, outlined priority issues in Washington, such as the importance of the Western Hemisphere co-production chain and ways to jointly support domestic supply chains through Buy American and Berry Amendment policies that help onshore production, spur investment, maintain the safety and security of our armed forces and generate new jobs.
“It was an honor hosting Ambassador Tai at our manufacturing facility in Mount Holly, employing 380 valued associates and just 2 miles from where the company started 130 years ago,” said Sim Skinner, CEO of Elevate Textiles. “A&E maintains a significant manufacturing footprint in the Carolinas with 1,200 total associates, and we contribute significantly to our local community and the entire manufacturing base in the United States, touching every aspect of life, from the threads in Superbowl footballs to flags on the moon and most recently, to the very PPE products protecting our frontline heroes and fellow Americans against COVID-19 and the Space X suits that are orbiting Earth right now. We had an engaging discussion with the Ambassador on our company’s and industry’s innovation and competitiveness, and on the policy priorities that we believe will help ensure our competitiveness and long-term investment in the domestic textile industry.”
National Council of Textile Organizations (NCTO) President and CEO Kim Glas said, “We want to sincerely thank Ambassador Tai for visiting Milliken and American & Efird today. Her leadership in the international trade policy arena and her understanding of the unique challenges confronting domestic manufacturers and U.S. workers under the international trade system is unparalleled. The U.S. textile industry is one of the most dynamic, innovative industries in the U.S. economy and our co-production chain with our Western Hemisphere trade partners is essential. Trade policies are essential to this manufacturing sector and workforce. We look forward to working closely with the Ambassador and her office to advance policies that bolster domestic production.
“We are grateful to Ambassador Tai for participating in an engaging and substantive discussion with industry leaders today on a whole host of policies, ranging from the importance of Buy American and Berry Amendment government procurement policies to maintaining strong rules of origins in free trade agreements to the need to address larger systemic trade issues with China.”
About American & Efird (A&E)
A&E, a portfolio company of Elevate Textiles, is the foremost manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles. Producers of apparel, automotive components, home furnishings, medical supplies, footwear and a diverse range of industrial products rely on A&E industrial sewing thread to manufacture their products. Customers select A&E as the preferred choice because of A&E’s dedication to providing its customers with the finest products and services, at the highest quality, delivered globally. In addition to A&E’s steadfast commitment to superior quality and customer service, A&E is a recognized industry leader in environmental sustainability and corporate social responsibility, and operates its global facilities with the utmost regard for the safety and health of its associates employed worldwide.
About Milliken & Company
Materials science expert Milliken & Company knows that a single molecule has the potential to change the world. With innovative solutions across the textile, flooring, specialty chemical, and healthcare industries, Milliken answers some of the world’s greatest challenges. Named to the World’s Most Ethical Companies list by Ethisphere Institute for 15 straight years, the company meets the moment with an unwavering commitment to delivering sustainable solutions for its customers and communities. Eight thousand associates across 46 locations globally rally behind a common purpose: to positively impact the world for generations. Discover more about Milliken’s curious minds and inspired solutions at milliken.com and on Facebook, Instagram, LinkedIn and Twitter.
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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.
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Press Contacts:
NCTO
Kristi Ellis
(202) 281-9305
kellis@ncto.org
Milliken & Company
Cammie Mackie
(864)316-3503
Cammie.Mackie@Milliken.com
American & Efird
Kristen Hughes
(704)830-6268
kristen.hughes@elevatetextiles.com