National Textile Center

National Textile Center

10 Years of Leadership

1992-2002

Presented byDr. Thomas J. Malone

February 10, 2002

The Power of Collaboration

Fiber/Fabric

App

arel

and

Oth

er

Fabr

icat

ed T

extil

e Pr

oduc

ts

RetailUSA INTEGRATED

TEXTILE INDUSTRIES

Dr. Joe Cunning

CONGRATULATIONS!!!and

THANKS!!!for

10 Years

World Class Leadershipof the



1992 – 200210 Years

ofChange

Why is NTC

Important for

America?

Because:

NTCcan

Makea

DIFFERENCE

National Textile CenterVision and Mission

VISION

MISSION

To be the agent leading change in the industry’s vision and in education for global competitiveness.

To enhance the knowledge base that drives the momentum of the U.S. Industry competitiveness.

National Textile CenterGOALS

Research

Education

To discover, design and develop new materials, innovative and improved manufacturing processes, and integrated systems essential to the success of a modern U.S. textile enterprise.

• To educate and train personnel• Establish industrial partnerships• Create transfer mechanisms to ensure utilization of

developed technologies

PartnershipTo strengthen the nation’s textile research and educational efforts by uniting diverse experts and resources in unique collaborative projects.

Oversight Committee

Technical AdvisoryCommittee

GeorgiaTech

Clemson Auburn N. C. State

National Textile CenterOriginal Organizational Chart

National Textile Center1992-2001

31 Different TAC & Oversight Members from Industry

AlabamaNorth CarolinaSouth CarolinaGeorgiaPennsylvaniaNew YorkMassachusetts

NTC STATESArizonaCaliforniaDelawareIowaIllinoisLouisianaNevada

New JerseyNew MexicoOhioOklahomaRhode IslandTennesseeVirginia

OTHER STATES COUNTRIES*AustraliaChinaEnglandFranceIsraelJapan

Investigators have come from 21 Different States and 6 countries

*(Mostly Visiting Professors)

National Textile Centeris growing

in both budgetand

number of schoolslargely

because industry

believes in our mission

National Textile CenterNumber of Participating Universities

4 4 4 4

8

7

666

4

5

0

1

2

3

4

5

6

7

8

9

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

AuburnGeorgia Tech

ClemsonNorth Carolina State

Philadelphia University

University of Mass-DartmouthCornell

UCal Davis

National Textile CenterANNUAL FUNDING

1992-2002

8.0 7.8

9.0 9.0

10.09.89.0

7.5

9.0

7.07.5

0

2

4

6

8

10

12

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Be

Between 1992 and 1996 there were 4 Universities:Auburn, Ga. Tech, Clemson, and North Carolina StateUniversity of Mass-Dartmouth added in 1997Philadelphia University added in 1998Cornell added in 2001 and UCal Davis added in 2002

Total $83.5MM

MM$

26

5

13

23

31

1316

35

8

13

0

5

10

15

20

25

30

35

40

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

National Textile CenterNumber of Projects Initiated

New projects initiated in that year.

Total:183 Projects

33

19

5

21

7

38

0

5

10

15

20

25

30

35

40

Auburn Clemson UMassD GA Tech PhilaU NCSU

National Textile CenterNumber of Projects Completed by University

New projects initiated in that year.

Total:109 Completed14 Cancelled

88

34

2622

3228

35

58

1821

0

20

40

60

80

100

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

National Textile CenterNumber of Investigators

Includes only new principal investigators to NTC; i.e. investigators on multiple projects only counted once.

Total:362 Investigators

National Textile CenterNumber of Students

227

17

58

159

80

35

101

181

35 42

0

20

40

60

80

100

120

140

160

180

200

220

240

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001Largely graduate students, but also includes some undergraduate and post-doctoral (all categories undercounted due to underreporting.

Total:935

Students

National Textile CenterCumulative Breakdown by University

61

2820 29

97

82

230

128134

25

369

45 27 1154

27 15

3942

0

50

100

150

200

250

300

350

400

450

500

550

Auburn Cornell Clemson UMassD GA Tech PhilaU NCSU Other

Projects Investigators Students

336

183 200

520

82

17

73 69

Updated: 1/28/02

0 400 800 1200 1600

National Textile CenterIntellectual Property

Publications/Presentations

1,674

Theses

Copyrights/Noticesof Invention

Patents/Applications

205

37

19

0 500 1000 1500 2000 2500 3000 3500 4000

10

National Textile CenterCollaborations/Technology Transfer

IndustrialCollaborations 3766

Non NTC AcademicCollaborations

Students Involvedin NTC Research

Government andOther Collaborations

1656

928

735

Technology Transfer Programs

StartupCompanies 5

Industry Funded

National Textile Center1992-2001

Patents and ApplicationsCopyrights and Notices of InventionStartup CompaniesTechnology Transfer Programs (Industry-Funded)ThesesPublications and PresentationsStudents Involved in NTC ResearchIndustrial CollaborationsNon-NTC Academic CollaborationsGovernment and Other Collaborations

1937

510

2051,674

9283,7661,656

735

OVERALL

6,157IP/Collaborations/Tech Transfer

61% Industrial


1992-2002Decade of Change

What has happened to USA

Total Manufacturing?

3

-2 -6

1

-6

9

-10-34 -26 -37

-67

-113

-145-160

-127 -109

-74-96

-133

-174-197

-247

-346

-452-428

-500

-400

-300

-200

-100

0

100

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00

U. S. Balance of International Trade

In GoodsBalance in Billions $ Per Year

Source: Department of Commerce FT-900

Projected Decrease from 2000 to 2001 of

$24B or 5.3%

“If there is one rule of international economics, it is that no country can run a large trade deficit forever. Trade deficits need to be financed, and it is simply impossible to borrow enough to keep up with the compound interest. Yet all the world trade, especially that on the Pacific Rim, depends upon most of this world being able to run trade surpluses with the United States that will allow them to pay for their trade deficits with Japan. When the lending to America stops, and it will stop, what happens to current world trade flows?”

Lester ThurowThe Future of Capitalism

18867

19216

19436

19268

18754

18229

1806918112

1851318502 18537

1883318681

18492

18349

17027

16,500

17,500

18,500

19,500

1986 1988 1990 1992 1994 1996 1998 2000

TotalUSA Manufacturing Jobs

Data as of Year End+35

+.2%

+296

+1.5%

-152

-.8%

-1322

-7.2%

Source: Bureau of Labor Statistics, Milliken Marketing Research 1/4/02

1,475 Thousand Jobs Lost Last 6 Years or 8% Jobs Lost Last 6 Years

-189 -143

-1.0% -.8%

"I regret that trade policy has been

inextricably linked with job creation. We try to promote free trade on the mistaken ground that it will create jobs. [But] it is difficult to find credible evidence that trade has impacted the level of total employment in this country over the long run."

"I regret that trade policy has been

inextricably linked with job creation. We try to promote free trade on the mistaken ground that it will create jobs. [But] it is difficult to find credible evidence that trade has impacted the level of total employment in this country over the long run."

Alan GreenspanFederal Reserve Board Chairman

Washington PostApril 17, 1999

Alan GreenspanFederal Reserve Board Chairman

Washington PostApril 17, 1999

1992-2002Decade of Change

What has

happened to the

USA Textile

Manufacturing?

-$65,000

-$55,000

-$45,000

-$35,000

-$25,000

-$15,000

-$5,000

Textile & ApparelTrade Deficit

Millions of Dollars: U.S. Exports (F.A.S.) Minus Imports (Customs) for Each Year

Source: ATMI Textile HiLights

Projected increasefrom 2000 to 2001 of

$.8B or 1.3%

NA

FT

A

59 63 67 71 75 79 83 87 91 95 99 00 01 61.6

52.8

40

60

80

100

120

140

160

Manufacturing Textiles

Source: Federal Reserve , Last data point December, 2001Release Date: January 16, 2002

INDUSTRIAL PRODUCTION INDEXAll Manufacturing and Textiles

1992 = 100

0

5

10

15

20

25

30

35

40

45

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00E 01E

USA Integrated Textile Industries Market Plus ExportsTextiles, Apparel, and Other Fabricated Textile Products

Billion Square Meters Equivalent

Changes: 1981-2001E

2001 Est. Change in SME

Total USA Market +16.4 SME

Potential USA Production

w/Market Growth +16.5

SME

Imports +19.4 SME

Exports +2.8 SME

Total USA Production –3.0 SME

USA Production for Domestic Markets -5.8 SME

Source: Werner International (Note: 2001 estimated market decline was based on 7% reduction in textile mill shipment through October 2001—applied to 2000 Est. of U. S. Prod. And to total market.

-1.2

-1.1

+0

-1.2

-0.8

-0.4NA

FT

A

AS

IA D

EV

AL

UA

TIO

N

CB

I

Since NAFTA Domestic

Production -6.4B SME

18061837

1798 1776

1679 1692 1678 1644 1657

1535

14671415

1311

1203

1114

968900

1,100

1,300

1,500

1,700

1,900

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

USAIntegrated Textile Industries Jobs

Textiles, Apparel, and Fabricated Textile Products(Excludes Man-Made Fibers, Natural Fibers, and Textile Machinery Production)

Data as of Year End

567 Thousand Jobs Lost Last 6 Years

or 37% Jobs Lost Last 6 Years

-1047.3%

-1088.2%

-897.4%

-146 13.1%


-523.5%

-684.4%

1096 11011075 1068

1005 10181001

972 975

895

847

803

731

660

604

525500

600

700

800

900

1,000

1,100

1,200

1,300

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

US Apparel and Other Fabricated Textile Product Jobs(Excludes Man-Made Fibers, Natural Fibers, and Textile Machinery Production)

Data as of Year End


or 41.3% Jobs Lost Last 6 Years

-729.0%

-719.7%

-568.5%

-79 13.1%


-445.2%

-485.4%

710

736723

708

674 674 677 672 682

640

620 612

580

543

510

443

400

450

500

550

600

650

700

750

800

850

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01

Total USA Textile Jobs

Data as of Year End


or 30.8% Jobs Lost Last 6Years

-32 5.2%

-37 6.4%

-33 6.1%

-67 13.1%


-81.3%

-203.1%

28

52

7058

206

0

20

40

60

80

100

120

140

160

180

200

220

1997 1998 1999 2000 2001

TEXTILE PLANTCLOSINGS

414 PlantsLast 5 Years

US Sewn Apparel down to 10% of US Market

Assuming China in WTO and effects of CBI Parity and Sub-Sahara Africa

38%

10% 6%

15%17%

17%

13%

20%21%

21%

43%

54% 56% 59%

4%

5%

0%

25%

50%

75%

100%

1995 2000 2005 2010

SM

E S

har

e o

f U

S A

pp

arel

Mar

ket

Rest of World

CBI (Includes 807)

Mexico(Includes 807)

US Production(US Cut andSew)

Fernando SilvaKurt Salmon AssociatesJanuary 2002

Imports from Mexico using less US Fabric

Apparel Imports from Mexico(Millions of SME's)

-

500

1,000

1,500

2,000

2,500

3,00019

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

E

Non 807

807

807a

Portionw/ US Fabric

-8%


CBI growth weakens despite CBI Parity

Apparel Imports from CBI(Millions of SME's)

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,00019

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

E

Non 807

807

807a

Portionw/ US Fabric

- 2%


Mexico and CBI exports fall despite CBI parity

U.S. TEXTILE EXPORTS*

Percent Change Percent ChangeYTD 9/00 - YTD 9/01 1996 - 2000

World -9% 36%

- Mexico and CBI -8% 73%

- Asia -6% -4%

- EU -9% -23%

*Includes exports of cut pieces of US fabric to Mexico and the CBI for reassembly into garments.

Source : US DOC and US ITC via ATMI Based on US$ value of exports, not SME’s as in Import data


Imports from Asia explode Post-Devaluation

IMPORTS FROM ASIA

Textiles and Apparel in Year-Ending ChangeMillions of square meters September 2001 from 1996

Asia 16,108 69%

- Pakistan 2,107 159% - Thailand 1,308 108% - Indonesia 1,159 92% - South Korea 1,392 91% - Bangladesh 1,186 90% - Sri Lanka 661 55% - Philippines 909 46% - India 1,220 40% - China 2,163 32% - Hong Kong 1,092 22% - Japan 261 6% - Taiwan 1,224 2%

Source : US DOC and US ITC via ATMI Fernando SilvaKurt Salmon AssociatesJanuary 2002

0

5

10

15

20

25

30

35

40

45

50

90 91 92 93 94 95 96 97 98 99 00E 01E

USA Integrated Textile Industries Market Plus ExportsTextiles, Apparel, and Other Fabricated Textile Products

Billion Square Meters Equivalent

Changes: 1994- 2001E

2001 Est. Change in SME

Total USA Market +3.4 SME

Potential USA Production

w/Market Growth +3.5 SME

Imports +9.8 SME

Exports +1.6 SME

Total USA Production –6.4 SME

USA Production for Domestic Markets –8.0 SME

Source: Werner International (Note: 2001 estimated market decline was based on 7% reduction in textile mill shipment through October 2001—applied to 2000 Est. of U. S. Prod. And to total market.

-1.2

-1.1

+0

-1.2

-0.8

-0.4NA

FT

A

AS

IA D

EV

AL

UA

TIO

N

CB

I

Since NAFTA Domestic

Production -6.4B SME

Textile profits plunge after Asian devaluation

Source : ATMI Textile Highlights - December 2001

-0.5

0

0.5

1

1.5

2

1995 1996 1997 1998 1999 2000 2001

Bil

lio

n D

oll

ars

0

10

20

30

40

50

60

70

80

90

100

Ind

ex 1

995

=1

00

Textile Profits Asian Currency IndexFernando SilvaKurt Salmon AssociatesJanuary 2002

“Our manufacturing base is being eroded as dollars are diverted from wealth creation to wealth consumption. If economic history has any lesson for us, it is that a nation’s well-being is determined by what it produces, not by how much it consumes.”

Roger MillikenTextile Hall of FameSeptember 10, 2001

What WeNeed to Do

ToSurvive

as aHealthy Industry

Kurt Salmon AssociatesJanuary 24, 2002

The Textile Industry

“Current Status and Actions Needed to Win”

Future Wins Block new agreements that allow duty-free foreign fabric


Effect of Recent Trade Agreements

• NAFTA– Dramatic textile over-capacity in Mexico as a result of NAFTA– Leading to closures of US Denim and Knitwear plants

• CBTPA (Caribbean Basin Trade & Partnership Act)/CBI Parity – Apparel costs reduced by 6% to 12% into US– But not enough to offset Asian prices– If dyeing and finishing is allowed, further over-capacity would ensue

• AGOA (African Growth & Opportunity Act)– Opened trade for the Sub-Saharan nations mainly with Asian fabric– Apparel Imports up 38% (YTD October)

• US/Jordan Free Trade Agreement– Removes quotas and duty for participating zones– Explosive growth YTD (>600%) with non-US fabrics


Current Trade Issues• Continued Developments in the Caribbean

Supply Base– Expansion of fabric capabilities ( Dye and Finish) is a major threat– “807” with foreign fabrics– Enforcement of US origin provisions under the current act

• New “Free Trade” agreements with other regions:– Andean Pact– Central America– Free Trade of the Americas– Etc. (Bangladesh, Pakistan, Turkey, et al)

• ASEAN, South Asia and China– Participation under WTO eliminates quotas– Industry policy and investment strategies– Relative cost position Fernando Silva

Kurt Salmon AssociatesJanuary 2002

Educate yourself and representatives about the importance of U. S. manufacturing jobs and the “unfair” advantages foreign countries are exercising.

Demand that trade laws be enforced and blow the whistle on violators.

Ask for definitions of free trade from those who criticize or may be uninformed.

Look for American products as much as possible.

FIGHT FOR BUSINESS

Andy WarlickSouthern Textile AssociationJanuary 2002



Prevail in CBI “dye and finish” issue

Northern Textile AssociationPromises made to Textile Caucus Members for TPA Vote

December 2001

1. Foreign Market Opening2. Enforcement of Trade Agreements3. Quota Phase-Out4. (a) Caribbean Basin Trade Partnership Act dyeing,

printing, and finishing(b) Andean Trade Preferences Act dyeing, printing

and finishing5. Export Promotion6. Transshipment7. War on Terrorism8. Trade Adjustment Assistance (TAA)9. Trade remedy laws

Northern Textile AssociationPromises made to Textile Caucus Members for TPA Vote

December 2001

4. (a) Caribbean Basin Trade Partnership Act dyeing, printing, and finishing

House Leadership Promise:“Pledge to bring no future bills with trade provisions to the House floor until the TDA 2001 (sic) is corrected to require that U.S. knit and woven fabrics be required to undergo all dyeing, finishing, and printing procedures in the U.S. in order to qualify for the benefits under the CBTPA.”

Secretary Evans’ Promises:“The Administration recognizes the importance to Members of the dyeing and finishing issue under the provisions of the CBTPA. We support an agreement by Congress that would address this issue while maintaining the balance of benefits provided under the program.” (Emphasis added.)




Improve competitiveness of US fiber : cotton and MMF

US Polyester prices averaged 32% higher than Asian prices from 1988 to 2001

Polyester Short Staple Prices : US vs Asia

0

50

100

150

200

250

1988 Q1 1990 Q1 1992 Q1 1994 Q1 1996 Q1 1998 Q1 2000 Q1 2002 Q1

US

Ce

nts

per

Kilo

US Prices

Asian Prices

Source : PCI - Fibres and Raw Materials Fernando SilvaKurt Salmon AssociatesJanuary 2002

In 2001 US producers had a significant cotton price disadvantage to foreign mills

World Cotton Prices - Cotlook A Index

30

35

40

45

50

55

60

65

70

2000 Q1 Q2 Q3 Q4 2001 Q1 Q2 Q3 Q4 2002 Q1

US

cen

ts/p

ou

nd

Effective Foreign Price $0.43 / lb in 2001

Effective US Price $0.58 / lb in 2001

$700million




Focus on differentiated products and short lead times:

Strategic supplier and customer relationships for innovation

Reduce lead times through supply chain technology/strategies


Improve competitiveness of US fiber : cotton and MMF

Focus on differentiated products and short lead times:

Reduce lead times through supply chain technology/strategies

Strategic supplier and customer relationships for innovation

FUTURE WINS


“Now as our country stands alone as the world’s last remaining super power, we in textiles and almost all of U.S. manufacturing find ourselves at risk of losing what our forefathers fought so hard to create. This is neither necessary nor wise!”

Roger MillikenTextile Hall of FameSeptember 10, 2001

Why is NTC

Important for

America?


Because:

NTCcan

Makea

DIFFERENCE

We Survive!!Each year is a new

funding cycle for

Congress and we get

through it!


NTC CHALLENGE

Focuson

Making Your

Research Useful

“Make A Difference”

Makea

RealDifference!!

Organize a collective effort to

communicate the importance of:

A. Manufacturing

B. Textile Industry Value Added Innovation

National Textile CenterCHALLENGE

NTC CHALLENGEFocus

On

Innovation(Technology/Products)

and

Short Lead Times(Speed)

With

Vision, Commitment

and

PassionThe Industry can

WIN!!

If the Industry

WinsNTC Wins!!!

The Power of Collaboration

Fiber/Fabric

App

arel

and

Oth

er

Fabr

icat

ed T

extil

e Pr

oduc

ts

RetailUSA INTEGRATED

TEXTILE INDUSTRIES

Dr. Joe Cunning

CONGRATULATIONS!!!and

THANKS!!!for

10 Years

World Class Leadershipof the
