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DOMOTEX 2018 (c) Deutsche Messe
23.01.2018

GLOBAL FLOOR COVERINGS INDUSTRY ENTHUSIASTICALLY EMBRACES NEW DOMOTEX

  • Record-breaking event in terms of exhibitor turnout and booked space
  • Strong visitor turnout a clear signal that new concept is right on target
  • New “Framing Trends” showcase a big hit among exhibitors and visitors alike

DOMOTEX 2018 featured a fresher, more modern, trendier look and feel than ever. Running from 12 to 15 January in Hannover, Germany, the event sported an all-new site and hall layout, plus a new Friday-to-Monday run and an array of immersive displays exploring the lead theme of UNIQUE YOUNIVERSE. This all added up to optimal visitor orientation and a fresh take on the world of floor coverings. As the world’s leading trade fair for carpets and floor coverings, DOMOTEX once again delivered top performance as a driver of new business, trends and innovations.

  • Record-breaking event in terms of exhibitor turnout and booked space
  • Strong visitor turnout a clear signal that new concept is right on target
  • New “Framing Trends” showcase a big hit among exhibitors and visitors alike

DOMOTEX 2018 featured a fresher, more modern, trendier look and feel than ever. Running from 12 to 15 January in Hannover, Germany, the event sported an all-new site and hall layout, plus a new Friday-to-Monday run and an array of immersive displays exploring the lead theme of UNIQUE YOUNIVERSE. This all added up to optimal visitor orientation and a fresh take on the world of floor coverings. As the world’s leading trade fair for carpets and floor coverings, DOMOTEX once again delivered top performance as a driver of new business, trends and innovations. 1,615 exhibitors and 45,000 trade visitors from over 100 nations traveled to Hannover to kick off an exciting year of business. The new DOMOTEX was enthusiastically received by the global floor coverings industry, which sported a record number of exhibitors and a record amount of booked space (106,000 square meters), thus underscoring a tangible turnaround in the floor coverings industry. “Significant growth in the number of participating exhibitors and the amount of booked space, a strong visitor turnout, an abundance of new products and innovations as well as an upbeat mood throughout the exhibition halls all bear witness to the great success of this year’s event”, commented Dr. Andreas Gruchow as the responsible member of Deutsche Messe’s Managing Board at the close of the event. “With UNIQUE YOUNIVERSE as this year’s chosen keynote theme, DOMOTEX provided a brightly lit stage for the individualization trend and all the inspiration and innovation associated with it, thus enhancing the show’s image as a prime source of orientation on interior furnishing and lifestyle trends.”

“Framing Trends” showcase provided a huge source of inspiration
The special “Framing Trends” showcase in Hall 9 was where visitors could most fully experience the significance of “UNIQUE YOUNIVERSE” as the exhibition’s keynote theme. Exhibitors, young designers and artists used Framing Trends to explore the topic of individuality in 20 different “framed” rooms. This special display proved hugely popular among attendees and offered a wealth of inspiration. “Framing Trends was a big success. Its fresh approach gave rise to lots of new ideas and made DOMOTEX more attractive than ever,” remarked Gruchow. “This special showcase will therefore also be a key offering at future editions of DOMOTEX,” he added.

A visit to Framing Trends was particularly high on the agenda of architects, designers and planners, who used this creative hotspot to gather new inspiration for their work – all the more so since Framing Trends covered the full spectrum of floor covering products. “‘Framing Trends’ in Hall 9 attractively featured and summarized everything on offer at DOMOTEX. With its fresh approach and central location, it served as the beating heart of the show and proved especially appealing to architects, interior designers and designers,” commented Chris Middleton, an architect at KINZO based in Berlin.

Highly international mix of attendees
More than 65 percent of the event’s 45,000 visitors came from abroad – around 60 percent of them coming from Europe, with some 25 percent from Asia and 11 percent from the Americas. Attendance from the United States and South and Central America increased. The majority of DOMOTEX visitors were buyers from specialist retailers and wholesalers as well as architects and interior designers and workers from the skilled trades. A strong increase in attendance was particularly evident among home furnishing and furniture stores, architects, interior designers, contract floorers and skilled tradesmen. As usual, DOMOTEX visitors once again demonstrated a high degree of decision-making authority.

Visitors were delighted at the many innovations on display. “SÜDBUND takes part in DOMOTEX every year. This time we organized our first-ever delegation trip to DOMOTEX for our members. We’re thrilled about all the inspiration we were able to gather, including insight into the latest floor covering advancements and trends. It’s already clear to us that we’ll be back with an even larger delegation in 2019,” said Michael Kovac, Purchasing Manager for Floor Coverings & Accessories at SÜDBUND – the Purchasing Association for Home Textiles based in Backnang, Germany).

Strong contributions by architects and designers
The rich supporting program of talks and presentations on the keynote theme provided further inspiration, and met with a very enthusiastic response on the part of exhibitors and visitors alike. Among the featured speakers were such renowned architects as Werner Aisslinger (Studio Aisslinger, Berlin), Andreas Krawczyk (NKBAK, Frankfurt/Main), Chris Middleton (KINZO, Berlin) and Jürgen Mayer H. (J.MAYER.H and Partners, Berlin). Intriguing architecture and design projects were presented and discussed, covering everything from initial conceptualization to the design process and on to production and sales strategies. Daily guided tours led by big-name architects and designers such as Peter Ippolito (Ippolito Fleitz Group, Stuttgart), Jürgen Mayer. H. (J.MAYER.H and Partners, Berlin) and Susanne Schmidhuber (SCHMIDHUBER, Munich) gave visitors special insight into products and the show’s keynote theme while putting them in direct touch with exhibitors of particular interest to them.

The talks given by the internationally acclaimed interior design blogger and author Holly Becker from Decor8 also met with very enthusiastic audiences. Becker explained how DOMOTEX exhibitors could collaborate with bloggers to raise the market profile of their products. Together with other well-known bloggers, she also delved into the topic of tomorrow’s furnishing trends. The use of virtual reality as an interior design tool was an equally exciting topic in Hall 9, where many visitors donned virtual reality glasses to experience the many possible uses and benefits of this new technology.

Further inspiration was provided by the “Art Day Workshops” staged within the context of Framing Trends by Canadian design firm Creative Matters. Participants were invited to experiment with colors, coal, tint and wax on paper to create fresh new designs pertaining to the keynote theme, UNIQUE YOUNIVERSE. At the so-called floorCODES WorkLabs held by the Institute of International Trend Scouting (of the University of Applied Research and Art, Hildesheim, Germany), participants had an opportunity to apply the institute’s “IIT HAWK” method to generate visionary scenarios for the future of floor coverings.

The presentation of the Carpet Design Awards on the Saturday of the show was another highlight in Hall 9. These internationally renowned awards were given in eight different categories, in recognition of the world's most beautiful handmade designer carpets. Also worthy of special mention is that Hall 13 established itself as a new magnet for parquet layers and other floor-laying professionals as well as interior decorators and painters, while the many Treffpunkt Handwerk offerings gave skilled tradespeople a valuable source of tips and tricks for their everyday work.

The next Hannover edition of DOMOTEX will be staged from 11 to 14 January 2019.

Starting in 2019, DOMOTEX will also be staged in North America. The debut of DOMOTEX USA will be from 28 February to 2 March 2019 at the Georgia World Congress Center in Atlanta, Georgia.

Central America imports more textile machinery © Oliver Brunner/pixelio.de
07.03.2017

CENTRAL AMERICA IMPORTS MORE TEXTILE MACHINERY

  • Large-scale projects in Honduras
  • More vertical integration strived

Following the US President's decree against the Pacific Pact TPP, Central America's textile and clothing industry counts for its main market on further tariff advantages compared to the Asian competition. Next to the so far dominating subcontracting work the sector wants to intensify the production of pre-products, what requires more and better textile machinery for this purpose. Guatemala is already investing, while Nicaragua will continue to stay mainly with sewing and tailoring. The largest technology market was lately El Salvador.

  • Large-scale projects in Honduras
  • More vertical integration strived

Following the US President's decree against the Pacific Pact TPP, Central America's textile and clothing industry counts for its main market on further tariff advantages compared to the Asian competition. Next to the so far dominating subcontracting work the sector wants to intensify the production of pre-products, what requires more and better textile machinery for this purpose. Guatemala is already investing, while Nicaragua will continue to stay mainly with sewing and tailoring. The largest technology market was lately El Salvador.

Honduras wants to expand its textile and clothing industry strongly. The aim of the "20/20" program is to significantly increase exports and with it new jobs. One focus should be the production of sportswear and other synthetic clothing, including pre-products. Central America's "largest factory for polyester yarn" (DTY) went into construction at the end of January 2017 in Choloma. It is expected to cost USD 73 million and produce 25,000 tons per year. According to Mario Canahuati, a Honduran shareholder of the investor United Textiles of America, an additional USD 120 million factory for synthetic materials and garments should be added later.

Observers believe the sector's expansion plans are realistic because it can stem the relatively large investment in the synthetic fiber production. In the Honduran textile industry there are many joint ventures with US partners which can raise capital in North America. In the other countries of the region the sector companies are more strongly medium-sized. They are depending more on the local capital market with its high interest rates and restrictive banks.

Honduras, Guatemala and El Salvador invest

According to a machine representative the textile manufacturers in Guatemala will invest more in dyeing machines in order to become more independent from suppliers and keep the quality better under control. According to Invest in Guatemala the sector there delivers higher quality end products than the competition from El Salvador and Honduras, on the US market clothing from Guatemalan is almost twice as expensive.

The textile industry in Guatemala and El Salvador is more vertically integrated than in Honduras: it produces relatively quite a lot of yarn and fabrics by itself and is less dependent of the typical subcontracting (Maquila) method, which only imports textiles and re-exports them as finished clothing. Honduras mainly processes imported synthetic fiber yarns, which the country - like El Salvador - manufactures partly by itself.

The best market in Central America for a large German textile machine manufacturer is currently El Salvador, which imports the most technology in the region. The customers are quite innovative and work more concept orientated, which makes the cooperation easier. Due to increased yarn prices, some weaving companies are currently investing in spinning machines, a machinery salesman says. According to the Central America Strategic Sourcing Review, more than 20% of the factories are "vertically integrated".

In the opinion of machine representatives, Nicaragua is still concentrating on subcontracting. Investors are reluctant to spend larger sums which would be needed for modern textile  manufacturing. In addition there is a lack of good specialists for the foreseeable future, the level of training is only sufficient for easier sewing and clothing manufacturing. In Panama the textile industry does not play a nameable role; in Costa Rica, which is also relatively prosperous, the sector is larger, but exports little.

Central America’s textile and clothing industry

Indicator Guatemala Honduras El Salvador Nicaragua
Number of manufacturers 215 125
(2015)
n.a. n.a.
Employees (direct) 90,000 (2013) 99,100
(2015)
75,000
(estimation)
70,000
(estimation, 2014)
Clothing exports to the USA
(2016, bn. US$) *)
1,380 2,554 1,941 1,472
Production of synthetic fibres
(2016, 1,000 t)
0 26,5 17,2 0
Installed capacity (2015, 1,000 Units)
Spindles 153 n.a. 250 40
OE-Rotors 21 n.a. 1.4 n.a.
Weaving looms 3.9 n.a. 3.2 0.65

*) Costa Rica 29 Mio.; Clothing = almost total industry exports; 80% of exports are for the US; data from US import authority. Source: ITMF; national associations and authorities; Press

Central America Textile companies are usually located in a free zone and produce for export, mainly the US. In Honduras, according to a study by the Central Bank, Maquila - with textile / clothing as the largest segment - produced 36% of pre-products for other contractors and 64% of final products, which in turn were exported up to 99%.

US protectionism could even help

The protectionism, which is announced in the main market USA, develops some optimism to Central America's textile industry. As listed in “Honduras 20/20” it now can deliver more cheaply to the US than the competition from China or Vietnam because of existing trade agreements. At an - now not targeted anymore - omission of cutting US customs duties for Vietnam, it would be much more expensive. In addition, a garment factory in Honduras is able to deliver to the US in two days, a delivery from Vietnam requires twenty days. In the today so very fast fashion world, this is the main reason why Wal-Mart & Co. are ordering massive masses in Central America.

Until now, Central America has been supplying mainly cheap clothing for the US mass market, but, as a German machinery exporter is hoping, they will try to settle themselves against the Asian competition with higher valuable goods. For this the Central American manufacturers would need better technology, which preferable comes from Europe. In the view of other representatives Central America will need in future productive machines that are cheap at the same time. Chinese machines with European components are a big competition.

Machinery imports rising

Central America Imports of textile machinery and sewing machines have risen by one-third to over USD 130 million between 2013 and 2015. In addition, according to the International Textile Manufacturers Federation (ITMF), Honduras has imported 170 round knitting machines in 2014 and 2015, Guatemala only 26, El Salvador 23 and Nicaragua ten. Germany was the fifth most important delivery country. Leading supplier was the USA. For Guatemala, with its many Korean-owned textile companies, Korea (Rep) was the main supplier.According to ITMF, Central America will shift its investments somewhat away from the clothing area towards the textile sector. Already today, the representative of a German manufacturer says: "We are currently selling very well in Mexico and Central America." 

Central America‘s1) imports of textile machinery (bn. US$) 2)

SITC Product group /Country / Country of delivery 2013 2014 2015 20163)
  total 97.5 116.0 131.6 70.8
72472) Machines for washing, drying, dying a.o. 25.7 27.9 35.4 9.4
724.35 Other sewing machines 21.0 24.2 29.2 18.8
7245 Weaving looms and knitting machines 21.7 23.7 28.8 20.9
7244 Spinning machines 11.5 21.7 19.8 11.6
7246 Auxiliary machines 14.4 12.8 13.8 8.1
72492) Parts 3.1 5.7 4.6 2.0
  USA 32.5 33.4 27.9 12.7
  Italy 8.8 10.6 20.8 17.5
  China 9.1 12.1 15.4 6.6
  Korea (Rep.) 6.2 9.5 12.1 0.5
  Germany 9.6 4.0 10.9 6.9
  Japan 3.9 7.2 7.7 6.0
  El Salvador 48.5 55.4 70.9 70.8
724.35   12.9 16.4 20.5 18.8
7245   7.0 11.7 16.1 20.9
72472)   11.3 12.0 12.9 9.4
7244   6.5 5.1 11.2 11.6
7246   9.4 8.6 7.9 8.1
  Guatemala 28.9 32.6 44.8 n.a
72472)   5.3 6.2 12.4 n.a.
7245   8.9 8.3 11.2 n.a
7244   3.5 4.9 7.2 n.a
724.35   5.8 5.9 6.8 n.a
7246   4.4 3.7 5.5 n.a
  Costa Rica 13.9 21.3 10.2 n.a
72472)   5.2 5.0 5.7 n.a
7244   1.4 11.4 1.3 n.a
7245   5.1 3.0 1.2 n.a
724.35   1.4 1.2 1.2 n.a
  Panama 6.1 6.8 5.8 n.a
72472)   4.0 4.7 4.3 n.a

1) without Honduras and Nicaragua; 2) SITC 724, without household sewing machines, (724.33), household washing machines, (724.71), machines for dry-cleaning(724.72), leather machines(7248), parts for household washing machines; 3) El Salvador only
Source: UN Comtrade