Copyright NWtexnet 2007 Past and future textiles in the NW Bill Mills, NWtexnet.

Copyright NWtexnet 2007Copyright NWtexnet 2007

Past and future textiles in Past and future textiles in the NWthe NW

Bill Mills, NWtexnetBill Mills, NWtexnet


PresentationPresentation

Historical overviewHistorical overview How the NW textile industry has How the NW textile industry has

developed…………………developed………………… Key driversKey drivers CollaborationCollaboration Industry examples….Industry examples….


Historical OverviewHistorical Overview

Employment changes in NW textile Employment changes in NW textile industry:industry:

1953: 505,0001953: 505,000 1975: 185,0001975: 185,000 1987: 96,0001987: 96,000 1997: 64,0001997: 64,000 2004: 31,0002004: 31,000


Historical Overview #2Historical Overview #2

Lancashire industry built on cotton Lancashire industry built on cotton processingprocessing

First textile processes to be “out-sourced”, First textile processes to be “out-sourced”, close to raw material sourceclose to raw material source

Much of this move occurred 1950-1970Much of this move occurred 1950-1970 NW industry moved into technical textilesNW industry moved into technical textiles


Historical Overview#3Historical Overview#3

Rest of the UK industry based on apparel Rest of the UK industry based on apparel manufacturemanufacture

The move overseas did not start in large The move overseas did not start in large amount until mid-1980’s, in East Midlands amount until mid-1980’s, in East Midlands and Scotlandand Scotland

These regions are still suffering the fall-outThese regions are still suffering the fall-out NW has had longer to react to market NW has had longer to react to market

forcesforces


Key Drivers for the sector today:Key Drivers for the sector today:

SurvivalSurvival Perpetual innovationPerpetual innovation Supply chain developmentsSupply chain developments Move to higher value marketsMove to higher value markets CollaborationCollaboration Learning from the pastLearning from the past Balanced sourcingBalanced sourcing


SurvivalSurvival

Move into higher value productsMove into higher value products More technical applicationsMore technical applications Technical textiles: What are they:Technical textiles: What are they: ““Textiles where there performance is of Textiles where there performance is of

greater importance than their appearance”greater importance than their appearance” Examples………….Examples………….


Perpetual InnovationPerpetual Innovation

Supply chain globally is consolidating, Supply chain globally is consolidating, many technical textile companies are 4many technical textile companies are 4thth or or 55thth tier. tier.

To remain at that level they must innovate To remain at that level they must innovate and develop…………..continuallyand develop…………..continually


Supply Chain changesSupply Chain changes

Consolidation:Consolidation: Through M&AThrough M&A Inward investmentInward investment

Year-on-Year price reductionYear-on-Year price reduction

Due to textile position in supply chains this Due to textile position in supply chains this can have a huge effectcan have a huge effect


Higher value marketsHigher value markets

As a rule : Higher value = higher marginAs a rule : Higher value = higher margin

As a rule : Higher value = higher technical As a rule : Higher value = higher technical content = more difficult to copy (hopefully)content = more difficult to copy (hopefully)


CollaborationCollaboration

Inter - companyInter - company Inter - group Inter - group Inter - regionInter - region Inter - countryInter - country Inter - continentInter - continent


Learning from the pastLearning from the past

Examples:Examples:

Example 1 :Example 1 : Airbag manufacture: Dobby weavingAirbag manufacture: Dobby weaving

Example 2 :Example 2 : Spacer fabrics: Velvet weavingSpacer fabrics: Velvet weaving


Learning from the past#2Learning from the past#2

IP protection is keyIP protection is key

Textile industry is cyclical………today’s Textile industry is cyclical………today’s problems are not new only different…!problems are not new only different…!

Still a low margin industry.Still a low margin industry.


Balanced sourcingBalanced sourcing

Commodity products imported cheaperCommodity products imported cheaper Used as base materialsUsed as base materials Spread the riskSpread the risk


The NW cluster todayThe NW cluster today

480 companies480 companies 20,500 employees20,500 employees T/O £1.9 billion paT/O £1.9 billion pa


The cluster today#2The cluster today#2

Supplying into :Supplying into : AerospaceAerospace AutomotiveAutomotive MilitaryMilitary Protective clothingProtective clothing


Joint collaborationJoint collaboration

Joint research bidsJoint research bids

Framework 7Framework 7

Joint cross-EU bids, utilising traditional Joint cross-EU bids, utilising traditional textile manufacturing knowledgetextile manufacturing knowledge


Joint collaborationJoint collaboration

Tendering Tendering

( TENDERTEX)( TENDERTEX)

Virtual Factory Networks (VFN)Virtual Factory Networks (VFN)


Not just here……Not just here……

TurkeyTurkey Experienced huge growth in apparel and Experienced huge growth in apparel and

interior textile markets 1980’s onwardinterior textile markets 1980’s onward Now beginning to feel pressure from Asian Now beginning to feel pressure from Asian

manufacturemanufacture TT centre recently establishedTT centre recently established Increased regulation (EU)Increased regulation (EU)


ConclusionsConclusions

Collaboration at many levels is one of the Collaboration at many levels is one of the major “themes” which will enable the major “themes” which will enable the sector to grow and prospersector to grow and prosper


contcont

Learn from each otherLearn from each other


contcont

Been here before……………..Been here before……………..


contcont

Making the most of supply chain Making the most of supply chain consolidation is keyconsolidation is key

Copyright NWtexnet 2007 Past and future textiles in the NW Bill Mills, NWtexnet.

Documents

nwtexnet slide

copyright nwtexnet

nw textile industry

key textile industry

technical textiles nw

continent slide

risk slide

pa slide