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30.01.2018

TEXTILE AND CLOTHING MANUFACTURERS INVEST IN EGYPT

Chinese companies are planning several major projects
Germany is supplying more textile and clothing machinery

Chinese companies are planning several major projects
Germany is supplying more textile and clothing machinery

Several Egyptian and Chinese companies have announced some heavy manufacturing investments in textiles and clothing. The government is committed to creating new production priorities for textiles and wants to increase added value. Labor-intensive industries benefit from the low value of the Egyptian pound for their exports. For textile and clothing machinery, Germany achieved a delivery share of around 20 percent in 2016. In the Egyptian textile and clothing industry, the signs point to expansion and modernization. Local media reported on a series of investment plans by Chinese and Egyptian companies. According to the newspaper Al Gomhouria, a Chinese producer is planning the world's largest textile factory for USD 6 billion in the economic zone on the Suez Canal. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for USD 800 million. Sino-Egypt Minkai plans to build a textile industry complex for around USD 750 million. The local paper and stationery manufacturer Mintra plans to start the production of sports shoes with an initial investment of USD 50 million. Manufacturing in the 10th of Ramadan City is scheduled to begin in mid-2018, serving both the domestic and overseas markets. Egypt is still importing about 85 percent of the shoes sold in the country.
Oriental Weavers plans to purchase new production lines, machinery and equipment in 2018. For this purpose, EUR 6 million are to be invested. According to the newspaper Al Shorouk, the expansion will be financed by a bank loan.

State relies on new textile cities and more value added
The Egyptian state also wants to strengthen textile and clothing production. The Ministry of Investment and International Cooperation, the Supreme Council for Textile Industries and an unnamed Chinese partner want to set up a free zone for textile production in Minya. The ministry plans to provide part of the funding through international institutions and create specialized training programs for workers. According to media reports, the project value should be at USD 324 million.

In early 2017 the Egyptian Ministry of Industry announced that it would set up new textile production centers at a total of ten locations. In particular, spinning mills and weaving mills are in the spotlight. This perspective is shared by the Ministry of the Public Sector. It is aimed primarily at increasing value adding and therefore carried out a study in 2017.

Import demand for textile and clothing machinery is expected to increase
Egyptian textile and clothing companies often produce with a lot of manual work and partly outdated machines. On the one hand, the government is keen to ensure that as many jobs as possible are created for the approximately 800,000 young people who enter the market each year. On the other hand, a more automated and modern production of textiles and clothing would enable more complex products. These could be sold at a higher profit, but may also require less human labor.

An Indian company has secured a contract to modernize cotton processing. In compliance with a framework agreement with the Cotton and Textile Industries Holding, Bajaj Clothing automates cotton ginning systems. A total of eleven companies in different parts of the country will be equipped with the new machinery until August 2018. In late December 2017, Egypt Today announced that the government wants to modernize the spinning and weaving mills in Northern Egypt. The investment volume will amount to a total of one billion Euro over a period of five years.

The newly announced projects are expected to increase the demand of import machinery in the near future. Like other types of equipment, the vast majority of textile and clothing machinery will be imported into Egypt. Deliveries from Germany were able to improve both in absolute terms and relatively in 2016, despite an overall shrinking of the volume of imports. The German supply share jumped from 15.8 to 20.4 percent compared to 2015.

**Import of textile and clothing machinery into Egypt (in USD 1,000)**
HS Category	2015	thereof from Germany	2016	thereof from Germany
8444	1,135	0	4,481	2,025
8445	34,550	10,653	26,105	5,429
8446	18,902	984	23,591	13,346
8447	26,040	5,940	15,713	3,052
8448	23,39	5,158	20,574	3,365
8449	440	0	299	0
8451	34,796	3,335	36,512	2,334
8452	30,456	1,264	23,186	1,698
8453	3,087	5	3,678	137
Summe	173,145	27,339	154,139	31,386

Source: UN Comtrade

The consequences of the release of the Egyptian pound in November 2016 will mainly benefit labor-intensive industries and those that are processing mainly local raw materials. After October 2016, the value of the EURO soared from just under 9 to 21 Egyptian pounds and has stabilized at this level. According to various figures the textile and clothing companies in the country employs between 1.0 and 1.2 million workers. It is reported that state-owned enterprises are strongly represented in the textile sector, while the private sector plays a greater role in the clothing sector.

The advantage is dampened by the import requirements for cotton. In Egypt, especially soft and high-quality long-staple cotton is grown and exported. By contrast, domestic textile and clothing companies mainly use short-staple cotton from abroad as a raw material. Their import as become more expensive due to the currency developments. Nevertheless the competitiveness of Egypt's textile and clothing exporters has improved as a result of the new foreign exchange situation. Their exports should have developed better in 2017 than at the peak of the currency liquidity crisis in the previous year. At that time, exports fell by12.6 percent to around USD 1.7 billion.

Egyptian exports of textiles and clothing
(Selection, in USD millions, Change in %)
HS Category	2015	2016	Change 2016/2015
57	339.8	303.5	-10.7
60	2.0	35.7	1,685.0
61	483.6	388.0	-19.9
62	870.4	756.6	-13.1
63	262.2	227.2	-13.3
Summe	1,958.0	1,711.0	-12.6

Source: UN Comtrade

Increasing labor costs at Asian production sites, long transport routes and sometimes dissatisfaction with the product quality make some customers look for new sources of supply for textile and clothing products. According to a report by the news portal Middle East Eye, Egypt lies at least with USD 100 as a monthly salary for workers roughly equivalent on a level with India or Bangladesh and about half of Chinese salaries. In addition, the country at the Suez Canal is capable of fast deliveries to Europe and the United States. Regional competitors include Turkey and Tunisia. Egyptian manufacturers are not always recognizable as such, as they often manufacture for major international brands. Middle East Eye names Calvin Klein, Decathlon, Tommy Hilfiger and Zara as examples. In November 2017, Dice Sport and Casual Wear agreed to supply Levi Strauss & Co. with children's clothing.

Since 2017, Egypt became part of the Better Work Program of the International Labor Organization. The program includes 30 apparel factories in which the working conditions should be improved. Such confirmations could then give Egyptian products competitive advantages in export. However, to stand up to the tough international price warfare and at the same time to meet by the customers expected production standards will be a challenge.

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Oliver Idem, GTAI

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24.10.2017

A+A 2017 sets New Standards for Health and Safety at Work

People matter – now more than ever. This is underscored by the huge interest taken by exhibitors in the run-up to A+A 2017, once again allowing the world’s leading trade fair for safety, security and health at work held from 17 to 20 October to post top marks. A total of 1,930 exhibitors from 63 nations and over 67,000 trade visitors came to the world’s largest trade fair for this industry in Düsseldorf. This means that this year A+A – together with the International Congress for Occupational Safety and Occupational Medicine – very much underlined the huge importance of health and safety at the workplace.

Investing in the health of employees pays off. It helps to ensure the performance of the workforce and increase productivity. It is all the more important to foster a holistic approach to prevention that takes all aspects of occupational health management, safety and workplace design into consideration. “Here the A+A, as the world’s leading trade fair for safety and healthy, joins forces with its partners,” sums up Messe Düsseldorf Managing Director Joachim Schäfer. “Digitalisation is no longer just something for the future and has now penetrated virtually all areas of life and work – likewise the Internet of Things that now networks billions of things together worldwide. It is fabulous that A+A is not just a stage for new technologies but is now also being seen globally as a bridgehead between the past and the future of our world of work.”

Bigger and More International than Ever: Top Marks across all Disciplines
Organisers and exhibitors alike were satisfied with how A+A 2017 went. The 31st edition of A+A held from 17 to 20 October attracted more than 67,000 trade visitors (2015: 65,000) to Düsseldorf who gathered information from the 1,931 exhibitors from 63 nations on the latest trends in the fields of occupational safety, promotion of health at work and security management in nine trade fair halls occupying for the first time 70,733 m2. At 40% the proportion of international visitors who came from over 100 nations also exceeded the share recorded at the previous event. “A+A is continually growing and underlines at all levels its relevance for the sector as the world’s leading trade fair and congress event,” says Messe Düsseldorf Managing Director Joachim Schäfer delighting at the excellent mood over the past four days and summing up talks with exhibitors and international delegations as follows: “We are proud to have been able to send out across the entire world strong signals to the markets and key impulses for political debate.” Against this backdrop the new look of A+A and the focus on what matters not just in the world of work have proven their worth: people.

Platform for Innovations and Investment
"People matter – what an apt statement,” sums up Klaus Bornack, President of the Trade Fair Advisory Board and Managing Director of Bornack GmbH & Co. KG. “A great A+A once again moved the sector with many innovative products, even more exhibitors from all specialist fields and, in turn, a rising number of very interested trade visitors from home and abroad with specific technical queries and a great deal of interest. This is confirmation that PPE is a growth market and that A+A is a leading international marketplace for safety at work.”

No. 1 International Event for Workwear
The good investment climate as well as the interest from trade visitors in high-quality personal protective equipment and protective workwear was confirmed by a current study conducted on the German market for personal protective equipment that was published during A+A 2017 by market research firm macrom. This study showed that the volume of the entire German PPE market grew between 2014 and 2016 by 9.2% to a total of Euro 1.97b. Leading here with the largest market share is protective workwear that is increasingly also being worn in the private sphere. Commenting on this Birgit Horn, Director A+A 2017, said: “While protective workwear in the past was generally uncomfortable and not particularly fashionable, staff today are fairly willing to show themselves in public wearing this clothing. Thanks to the development of high-tech clothing in the sports and outdoor sectors people no longer have to deprive themselves of top design and optimum performance. This was also confirmed by the over 200 Corporate Fashion exhibitors and rounded off by newly designed fashion shows.

The Future of Work is Now
From smart skin sensors and the measuring of vital parameters to backfriendly exoskeletons and smart fleet management, data glasses and sensor-controlled fall protection: the future of work is now. This was made clear not just by the new A+A Highlight Route. Across the halls renowned exhibitors like 3M, BORNACK, Honeywell, Uvex or the Institute for Occupational Safety and Health of the German Social Accident Insurance (Institut für Arbeitsschutz der Deutschen Gesetzlichen Unfallversicherung – IFA) presented highlights focussing on “Smart PPE”, “Digitalisation of Work” and “Digital Applications and Solutions” – from the prototype to the mass-produced product. Also addressed were such aspects as the urgently required reorganisation of work processes for the ageing population or the new demands on the world of work from the younger generation.”

At the Highest Specialist Level: The A+A Congress
Also enjoying great acclaim was the International Congress for Occupational Safety and Occupational Medicine that is traditionally organised by the Federal Association for Occupational Safety and Health (Bundesarbeitsgemeinschaft für Sicherheit und Gesundheit bei der Arbeit e.V. – Basi). “We had a very exciting A+A congress,” was the verdict of Basi Managing Director Bruno Zwingmann. “For the first time we were able to welcome to the congress new groups of people interested in occupational safety – for instance, representatives of the severely handicapped who also discussed the founding of an umbrella association at the congress.” Over the four days of the trade fair a total of some 5,000 congress delegates streamed into CCD Congress Center Düsseldorf Süd to gather information on the varied range of topics on offers. The 60 focal series dealt with such topics as production operations in the location of Germany with ageing workforces, positive aspects of digitalisation and mental stress with a focus on small businesses and their working conditions. The top events included one focusing on the “Fighting Cancer at the Workplace”. The A+A Congress was accompanied by the conference of the International Labour Organisation (ILO) and the International Social Security Association (ISSA) attended by top ranking figures.

A Burning Issue: Fire Prevention
As the most important sectoral platform worldwide for personal protective equipment and protective workwear A+A once again this year showcased everything revolving around modern firefighters protective clothing as well as the entire spectrum of personal protective equipment for firefighters: be this head, eye, body, hand, foot, ear, breathing or rope protection. Also on display were the preventative measures and concepts that can help to prevent accidents, major disasters and rescue missions and how firefighters are trained in realistic conditions in real fires.
The next A+A will be held from 5 to 8 November 2019.

More information:
A+A Workwear

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Textination

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05.09.2017

COMPOSITES EUROPE 2017: Lightweight automotive construction propels use of fibre-reinforced plastics

Market study “Lightweight Construction as Innovation Factor”: Presentation at COMPOSITES EUROPE
21 September: Focus Day Automotive

No other industry has drawn more public attention to glass- and carbon-fibre reinforced plastics (GFRP/CFRP) than the automotive indus-
try. Next to the aerospace industry, it’s one of the innovation and growth drivers for composites. The great significance of composites for the automotive industry must be credited to the continuing lightweight construction trend. From 19 to 21 September, COMPOSITES EUROPE in Stuttgart will show how the composites industry can support automakers and their suppliers in this area. Programme highlights include the Focus Day Automotive and the Lightweight Technologies Forum.

Market study “Lightweight Construction as Innovation Factor”: Presentation at COMPOSITES EUROPE
21 September: Focus Day Automotive

Presentation of the study “Lightweight Construction as Innovation Factor”
When it comes to composites in the automotive sector, modern lightweight construction is the No. 1 topic, according to industry expert Rainer Kurek, CEO of AUTOMOTIVE MANAGEMENT CONSULTING GmbH (AMC) from Penzberg near Munich. After all, he says, it comprises all the aspects of lightweight automotive construction – from concept, functions and joining technologies to materials. The training and consulting company specialises in auto-industry strategies, processes and structures; together with COMPOSITES EUROPE organiser Reed Exhibitions, they will, on 21 September, present the study “Lightweight Construction as Innovation Factor” (“Leichtbau als Innovationsfaktor” in the original German), which takes a holistic and detailed look at the issue. “Created in cooperation with Reed Exhibitions, the market study ‘Lightweight Construction as Innovation Factor’ synthesises the German automotive industry’s knowledge from nearly 150 years of experience”, explains Kurek. “Against the backdrop of increasing environmental and climate-protection requirements, a fragile energy supply and the resulting more stringent resource-conservation targets, it serves to sustainably enhance and strengthen Germany’s role as a centre of innovation.” The developer says he used to think in terms of materials first, but “design engineers today approach lightweight construction with an integrative mindset – with other joining and production technologies as well as with new materials. These days, the typical tasks we get from OEMs are almost always based on integrative lightweight construction.”

Positive Outlook
With about a third of the GFRP materials produced in Europe being used in the transport sector, innovations and the current development status of composites for the automotive market will be emphasised in the exhibition halls of COMPOSITES EUROPE 2017, as well. The future looks bright, according to Composites Germany’s latest market survey. No fewer than 46 per cent of responding companies expect this segment to grow. Only 15 per cent anticipate a downturn. The automotive industry isn’t just one of the biggest buyers of thermoplastic composites, it’s also a major purchaser of thermoset materials like SMC. Exhibitors such as Saint Gobain Performance Plastics, capricorn COMPOSITE, Lange+Ritter, SGL TECHNOLOGIES GmbH, ARKEMA France, Cevotec and EMS will be onsite to address the automotive industry’s composites requirements.

Theme day for “motorists”: Focus Day Automotive
What’s more, the entire third day of the trade fair – dubbed the Focus Day Automotive – will be dedicated to visitors predominantly interested in composites for the vehicle industry. A free one-hour guided tour at 11 am on 21 September, for example, will give visitors a comprehensive overview. Stops include the stands of industry-leading companies such as Evonik Industries, Huntsman, the Institute of Aircraft Design at the University of Stuttgart, PHP Fibers, Toho Tenax Europe and Vosschemie. Since the number of participants is limited, it would be advisable to register in a timely manner by visiting: www.composites-europe.com/guided-tours.

The subsequent Automotive Business Lunch taking place at the stand of sponsor Hexion (Hall C2, BO6) at 12 pm will provide an excellent networking opportunity. In addition, expert lectures at the COMPOSITES Forum in Hall 6, Stand B76, will cover automotive basics, trends and innovations. Admission is free of charge for trade fair visitors.

Hybrid lightweight construction: The best from different material worlds
Hybrid lightweight construction, which combines metallic materials with composites, is another trend in automotive engineering, as Kurek confirms. In his estimation, it’s imperative to intelligently leverage the strengths of each respective material. “We need to think very carefully about how the different materials can be used in line with the required strength.” Composites, for instance, are great at absorbing tensile forces, while metallic materials are better suited for compressive forces.” This is exactly the issue Kurek sees as COMPOSITES EUROPE’s most critical task: “Even with composites, we long ago moved from ‘either-or’ to ‘both’. Metallic materials have a right to exist just as composites do.”
That’s why the Lightweight Technologies Forum at COMPOSITES EUROPE will provide answers to questions revolving around lightweight construction with other materials like aluminium or steel. The combined exhibition and presentation forum featuring exhibitors such as Kunststoffwerk AG Buchs, Linn High Therm, Schütze, OCSiAL Group, Hexcel Composites and ar engineers will serve as the cross-material interface between metal and composite technologies in structural components.

Trade fair opening event: 3rd International Composites Congress (ICC)
Kicking off COMPOSITES EUROPE 2017 on 18 and 19 September 2017 will be the “3rd International Composites Congress (ICC)” hosted by the trade association Composites Germany in Stuttgart. Current trends, new applications and technologies, and a comprehensive overview of market developments in Europe and worldwide will be the centre of attention at the 3rd ICC. This year’s partner country, South Korea, will be represented with several exclusive speakers.

More information:
Composites

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Textination

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India’s textile and clothing industry strongly supported

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08.08.2017

INDIA'S TEXTILE AND CLOTHING INDUSTRY STRONGLY SUPPORTED

Textile companies comparatively broadly placed
Garment sector scores too little internationally

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

Textile companies comparatively broadly placed
Garment sector scores too little internationally

The Indian textile and clothing industry is of an overall economic importance. It accounts for 14% of the total industrial production and employs directly 51 million people. Additional further 68 million people in households and micro enterprises are working for the industrial companies. Because the national economy as a whole needs to create about 12 million additional jobs per year, the government has chosen the textile industry as an employment motor. India, in contrast to the textile giant PRC, has high advantages with its labor cost.

The availability of natural materials such as cotton, jute and silk is a further advantage of the textile industry, which can look back on a long tradition of processing. India is now the world's largest producer of cotton. In the cultivation year 2016/17 year (4.1 - 31.3) estimated 5.9 million tons are expected to be harvested.

The cotton will be processed into yarns and fabrics. For the production of yarns, 61 million spindles (measured in spindle equivalents) are available. In 2015/16, they spun about 5.7 million t of yarn, of which 4.1 million t are made out of cotton fibers. The production of cotton cloths was about 38 billion sqm., mainly produced in decentralized weaving mills with simple mechanical looms. The global trend in clothing, however, goes to artificial fibers. In order to protect their domestic production the Ministry of Finance levies tariffs.

Textile industry with its own ministry and many promotional programs
The Ministry of Textiles subsidizes the sector through several programs, which support the technical modernization, the construction of industrial parks, qualification, training and marketing. Garment factories may even be reimbursed for duties and fees paid. For this purpose the budget of the Ministry of Textiles was once again significantly increased in the financial year 2017/18.

The textile and clothing industry does not only want to score on the domestic market, it also wants to play a bigger international role. In a five-year plan, the Ministry of Textiles had targeted an expansion of exports to USD 64 billion by 2016/17. This target has not yet been achieved, in 215/16 the exports of textiles and clothing amounted to USD 37.6 billion. The exports of textiles even shrank against the year before.

**Textile and clothing industry in India (financial years from April to March)**
	2014/15	2015/16
Export of textiles in USD Billion	21.7	20.6
Imports of textiles in USD Billion	5.5	5.4
Export of clothing in USD Billion	16.8	17.0
Imports of clothing in USD Billion	0.5	0.6
Change in the production of textiles (in %)	3.7	2.2
Change in the production of clothing (in %)	0.2	14.7

Sources: Ministry of Textiles, Ministry of Statistics and Programme Implementation

The local garment industry has good chances of development on a large and growing domestic market. According to industry estimates the retail sector sold clothing worth approximately USD 45 billion in 2016. Experts say the world's fifth-largest market is expected to grow well above 10% in the medium term. The backlog of the 1.3 billion inhabitants is not yet covered. The trade imports international branded goods mainly from China and Bangladesh. Standard articles and custom-made products are sewn by the local industry.

Garment sector with opportunities and problems
Cheap wages are a location advantage. They vary however very different within the subcontinent. The statutory minimum wage regulations differ between the 29 federal states. In addition the person's age, the company membership and abilities are used to calculate the minimum wage.

Due to the increasing production costs in China, labor-intensive manufacturing is moving to more favorable locations. Not only labor costs play a major role here. The complex labor law strongly restricts the efficiency of labor markets in India. Investors consider the labor law, logistics and the structure of supply chains as to be difficult. The World Bank found in its study "Stitches to Riches" in 2016 (see https://www.openknowledge.worldbank.org/handle/10986) that Bangladesh, Indonesia, Cambodia and Vietnam, surpass the competitor India in the points quality, delivery times, reliability and sustainable social responsibility.

India is also missing free trade agreements (FTAs) which facilitate access to international markets and regulate them reliably. The European Union and India have been negotiating as an example a comprehensive FTA for over 10 years with longer interruptions.

Fragmented sector structure with international Champions
Information on the number of companies, their size classes and investment volumes are not available. Smaller textile companies and retailers are partially not registered and do not pay taxes. Medium-sized companies are very flexible, but they need to mechanize, automate and upgrade technically in order to survive.
Larger companies look back on their long-standing tradition and have developed into internationally networked corporations. According to the Indian financial service Moneycontrol, the three largest corporations in the clothing industry are: KPR Mills (last net sales circa USD 300 million), Page Industries (USD 270 million) and Gokaldas Exports (USD 170 million); In the textile sector in general: Bombay Rayon (some USD 640 million), Sutlej Textiles (USD 350 million), SEL Manufacturing (USD 300 million), Mandhana Industries (USD 250 million); in the knitting sector: Nahar Industrial Enterprises (USD 270 million), Rupa (USD 160 million); Cotton spinning: Vardhman Textiles (USD 860 million), Trident (USD 560 million), Indo Count (USD 310 million); Spinning of synthetic fibers: RSWM (USD 450 million), Indorama (USD 390 million), Sangam (USD 230 million); Weaving and other processes: Alok Industries (USD 1.8 billion), Welspun (USD x750 million), Garden Silk (USD 370 million); Other areas: Arvind (USD 830 million), Nahar Spinning (USD 310 million), JBF Industries (USD 550 million), Bombay Dyeing (USD 280 million).

Foreign textile companies invest and explore
The government is promoting the "Make in India" campaign in the textile sector for foreign direct investments. Company foundations are for 100% in foreign hands (see http://www.makeinindia.com/sector/textiles-and-garments). The sector attracted USD 2.4 billion from 2000 to 2016 in FDI.

Foreign companies can explore the markets at various trade fairs. The textile ministry wants to expand the “Textiles India”, which took place in Gandhinagar (Gujarat) in June 2017, to a mega-event (https://www.textilesindia2017.com). The international garment industry also met at the same time at the „India International Garment Fair" (http://www.indiaapparelfair.com).

The "National Garment Fair" will take place from July 10th to 12th in Mumbai (http://cmai.fingoh.com/event/65th-national-garment-fair-1/Registration). And Messe Frankfurt is organizing "Techtextil India" from September 13th to 15th in Mumbai. Here German exhibitors can participate in a community stand (http://www.auma.de/de/messedatenbank/seiten/moesetailseite.aspx?tf=135499).

**Internet addresses**
Name	Internet address	Remarks
Germany Trade & Invest	http://www.gtai.de/Indien	Foreign trade information for the German export economy
AHK Indien	http://www.indien.ahk.de	Starting point for German companies
Ministry of Textiles	http://www.texmin.nic.in	Ministry
Office of Textile Commissioner	http://www.txcindia.gov.in	Authority
Confederation of Indian Textile Industry	http://www.citiindia.com	Textile confederation
Textile Association India	http://www.textileassociationindia.org	Textile industry association
The Clothing Manufacturers of India	http://www.cmai.in	Clothing industry association

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More information:
India Business development Business

Source:

Thomas Hundt, Germany Trade & Invest www.gtai.de

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CHINA'S TEXTILE INDUSTRY CONTINUES TO AUTOMATE

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11.07.2017

CHINA'S TEXTILE INDUSTRY CONTINUES TO AUTOMATE

Japan replaces Germany as the most important supplier of textile machines
Digitization is the trend of the future

Beijing (GTAI) - China, the largest apparel export apparel nation, is losing international market share due to rising personnel costs. The companies react with increased automation and production dis-placements. While imports of textile machines from Japan are gro-wing, deliveries from Germany are falling above average. The next wave of modernization will involve more digitization.

Japan replaces Germany as the most important supplier of textile machines
Digitization is the trend of the future

Internationally, the PRC is by far the largest exportation nation of clothing. According to UN Comtrade after decades of ascent the peak seems to have crossed in 2014 with a record share of global clothing exports of 39.3%. Since then things are developing slowly but continuously downwards. In 2016, the Chinese share was estimated to be 37.1% (compared to 3.8% in Germany). China loses market shares particular in favor of ASEAN countries such as Vietnam, Bangladesh or India.

**Export of clothing by country (SITC 84, export in USD million, share of world exports in %)**
	2008	Share	2014	Share	2015	Share	2016	Share
World export¹⁾	380,000	100	469,000	100	454,000	100	430,000	100
.PR China	120,405	31.7	186,614	39.3	174,702	39.3	159,645	37.1
.ASEAN, thereof:	26,410	7.0	39,928	8.4	40,859	9.0	n.a.	-
.Vietnam	8,724	2.3	20,174	4.3	21,948	4.8	n.a.	-
.Bangladesch²⁾	12,035	3.2	24,584	5.2	26,603	5.9	29,540	6.9
.India	10,986	2.9	17,650	3.7	18,168	4.0	17,932	4.2
.Germany	18,183	4.8	20,349	4.3	17,382	3.8	16,400	3.8

1) from 2014 estimation of world export; 2) based on information provided by partner countries; Source: UN Comtrade

Domestic textile machine manufacturers catching up

In fact, the Chinese textile industry is under considerable pressure because of the increase in personnel expenses. According to a Euromonitor study, the hourly wages of Chinese workers tripled between 2005 and 2016 from USD 1.20 to USD 3.60. Thus the People's Republic not only left classic emerging countries like Thailand ( USD 2.20 ) or Mexico (USD 2.20) behind - not to mention USD 0.70 in India - but is already approaching individual European countries like Portugal (USD 4,50).

More information (in German) on wages and salary costs in China can be found at:
http://www.gtai.de/GTAI/Navigation/DE/Trade/Maerkte/Geschaeftspraxis/lohn-und-lohnnebenkosten,t=lohn-und-lohnnebenkosten--vr-china,did=1718070.html

Many companies face the challenge by greater automation. The Chinese textile companies can increasingly rely on textile machinery made in the country itself. While in 2016, according to official statistics, investments in the sector rose by 8.5% year on year to Yuan 1,142.4 billion (RMB, around USD 172 billion, 1 USD =6.642 RMB, annual average price in 2016), imports of textile machinery fell by 12.5% to USD 2.8 billion. However, there are no statistics on the extent to which sales are distributed by purely local companies or to those with a foreign background.

The fact is that, for example, German textile machine manufacturers have invested heavily locally in recent years in order for being able to meet the needs of their local customers. Against this backdrop, Germany was still able to defend its top spot with an import share of 29.5% against Japan in 2016, but had to cope with a strong minus of 30.6%, while the Japanese increased by 5.8%. Italy, ranked third and the most important Europe an competitor recorded a drop of 16.1%.

Textile machinery imports in the PRC by selected countries
(in USD millions, year-on-year change and share 2016 in %)
	2012	2013	2014	2015	2016	Change	Share
Total, thereof:	4,518.0	4,477.3	4,209.6	3,246.8	2,84.,9	-12.5	100.0
.Germany	1,499.5	1,330.1	1,435.0	1,209.5	839.5	-30.6	29.5
.Japan	1,327.3	1,357.8	1,281.4	721.5	763.3	5.8	26.9
.Italy	479.5	416.7	435.2	407.1	341.6	-16.1	12.0
.Taiwan	189.9	233.6	227.5	207.2	186.9	-9.8	6.6
.Belgium	126.6	211.6	118.5	133.0	123.3	-7.3	4.3

Source: China Customs, GTAI calculation

In the current year 2017, however, the Japanese seem to take the rank of the competitor Germany with an increase of 51% in the first four months. The overall textile machinery import grew by a strong 19.7% after the weak previous year before. Import from Germany however did not benefit from this and fell by 8.9%. As a result the German share of machinery supply decreased from 29.5% (2016 as a whole) to 25.0% in the first four months of 2017, while Japanese companies increased their share from 26.9% to 31.9%.

**Recent import development for textile machinery in 2017, in USD million, changes against last year and share in %**
	Januar bis April 2017	Change	Share
Total, thereof:	1,131.0	19.7	100.0
.Japan	360.4	51.6	31.9
.Germany	282.9	-8.9	25.0
.Italy	130.1	16.8	11.5
.Taiwan	65.4	17.4	5.8
.Belgium	65.3	25.2	5.8

Source: China Customs, GTAI calculations

Production shift continues

Many Chinese textile companies are also thinking about a dislocation production - either to cheaper foreign countries or to the more favorable Chinese hinterland. In 2016, the Autonomous Region of Xinjiang became the main destination for new settlements in the western part of the People's Republic. On average, two new textile factories were opened every day in Xinjiang.

The regional textile industry office in Xinjiang is expecting an even greater run for 2017, thanks to massive political and financial support. Many jobs however are not created there. On-site visitors report about state-of-the-art facilities operated by only a few specialists. The political message is clear: Chinese textile production should remain in the country, be of a higher quality and, if necessary, be reoriented in the direction of technical textiles.However, at least private fashion manufacturers are skeptical about whether the politically favored "Go-West" actually pays for them. Because there too, wages are likely to rise sooner or later, according to the justified Apprehension.

The fact that Vietnam, Bangladesh, South Korea and Cambodia have entered the league of important PRC purchasing countries within a few years is a result not least of the fact that Chinese (and other) manufacturers already have dislocated production capacities. They return their products from there for sale to China.Nevertheless, the very large displacement wave so far has not yet happened. In fact, certain limits are imposed on the shift, since the target countries often encounter their capacity limits. Added to this is the extraordinary advantageous network of the various production stages in China: from cotton harvesting to textile processing and final finishing.

Future theme digitization As part of the country-wide "Made in China 2025" strategy, the textile industry is trying to exploit the many and new opened possibilities of digitization. In view of the increasing individualization of consumption, more machines will probably be required in the future, which are, for example, able to knit sweaters according to the size, color and pattern of the individual customer. In principle, intelligent networking of production, real shops and e-commerce are seen as the challenge of the future.

More information:
Automation China relocation of production

Source:

Stefanie Schmitt, Germany Trade & Invest www.gtai.de

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30.05.2017

IRAN'S TEXTILE AND CLOTHING INDUSTRY WANTS TO INVEST

But industry continues to be in a crisis
Germany leading textile machinery supplier again

Teheran (GTAI) - Iran's large, traditional textile and clothing industry fights against foreign competition. Although the manufacturers are protected against imports by import tariffs, industry representatives and the Ministry of Industry are talking about massive illegal imports. In order to improve competitiveness, investments in new plants are necessary, but the companies often lack the necessary financial resources. Textile machines from Germany are in high demand.

But industry continues to be in a crisis
Germany leading textile machinery supplier again

Although the Ministry of Industry reports growth for several sectors of the textile and clothing industry for 2015/16 (Iranian year 1394, 03. 21.15 to 03. 20.16), the increased production level remains far below capacity. The data on the average utilization varies greatly, but no estimate is more than 50%, some company representatives report even 30% only. The industry also suffers from quality problems, which are mainly due to the outdated machinery park.
According to official data, there are almost 10,000 factories with about 290,000 employees in the textile and clothing sector. The industry, which is characterized by private ownership, is by government announcements often referred to as a promising economic sector with potential. Nevertheless, according to criticism it is lacking in the necessary support.

Approximately 400 mostly medium and large textile and clothing manufacturers are organized in the Association of Iran Textile Industries (http://aiti.org.ir). The spectrum of the association members ranges from cotton spinning and weaving mills to producers of acrylic and polyester yarns, synthetic fibers, machine-made carpets, wall-to-wall carpet floors, woolen and other blankets and bedspreads, clothing and up to manufacturers of textile machines and spare parts.

The main problem of the Iranian textile and clothing industry is the competition from abroad, particularly from the PR of China and Turkey. The re-exports via the Dubai trade hub have to be added too. Partially high import tariffs are intended to protect the domestic market, but a large part of the imports arrives illegally into the country. A duty of 55% is currently levied on clothing and a reduced rate of 33% applies to deliveries from Turkey. For fabrics 32% are due.

Great interest in modern technology
The Iranian textile industry wants to strengthen its competitiveness both on the domestic and international markets through the modernization of its machinery. The great interest of the sector companies in new technology shows the strong response to conferences and seminars offered by European associations and companies.

In April 2015, the GermanTextile Machinery Association VDMA organized a symposium in Tehran in anticipation of the strong easing of Iran sanctions. About 1,100 local company representatives were able to study the offers from the 36 German textile machinery and accessories manufacturers.
The event showed the interest of the Iranian companies to look for solutions to improve their mostly old, often decades old facilities.

A considerable part of the machinery park came from Europe as already used equipment. A problem were the continuing export controls also. According to industry representatives replacement procurements were made difficult because many parts are classified as dual-use goods. Organizations from Italy and Switzerland also have organized information events for Iran's textile industry.

Machinery import decreased again
The interest in modern technology however leads to limited investments only. Due to the weak financial strength of a large part of the industrial enterprises, intensified state support measures, in particular favorable loans, are requested. The banks lend credits to textile companies with great restraint only and demand high interest rates. According to Iranian customs despite the difficult situation textile and clothing machinery worth USD 324 million were imported in 2015/16. However - this was 11% less than in 2014/15 (USD 364 million).

**Germany: export of textile, clothing and leather machinery to Iran 2013 to 2016 (in EUR 1,000):**
HS-Pos.	Description	2013	2014	2015	2016 -11 months
	Total	16,248	39,966	48,993	25,827
84.44	Machinery for jet spinning etc. of synthetic or artificial material	83	2,991	325	1,005
84.45	Machines for preparation or processing for spinning and doubling etc.	2,145	6,699	7,140	2,612
84.46	Weaving looms	8,009	20,896	30,873	11,941
84.47	Machines for knitting, sewing, gimping, tulle, lace, embroidery, net knitting and tufting etc.	642	712	618	1,444
84.48	Auxiliary machines and devices for machines of positions 84.44, 84.45, 84.46 or 84.47	4,400	7,347	7,760	6,412
84.49	Machines for the manufacturing of felts and nonwovens	6	0	77	0
84.51	Machinery and devices for washing, drying, ironing, pressing, etc. (excluding machines of pos. 84.50).	634	915	1,629	1,672
84.52	Sewing machines	321	380	543	673
84.53	Machines and devices for processing of hides etc.	8	26	28	69

Source: Eurostat

Germany is traditionally the leading textile machinery supplier in Iran, followed by Italy. However, the sanction phase brought a turnaround in favor of Asian suppliers. According to VDMA calculations, the most important suppliers of textile machinery exported to Iran in 2013 a value of EUR 85 million only (excluding dryers, and clothing and leather technology), of which 33% were attributed to the PRC, followed by Germany (16%), Turkey (12%), Korea (Rep., 7%) and Italy (5%). Deliveries of clothing and leather technology amounted to EUR 113 million in 2013, led by Korea (Rep.) with 53%, the PRC reached 36%, Germany came to 0.3% only.

The VDMA data for 2015 show for textile machinery Germany as the leading supplier again. At the textile machinery exported to Iran German suppliers accounted for a share of 30%, the PRC fell to 22%, Turkey reached 12%, Korea (rep.) 6% and Italy 4 %. In the clothing and leather technology the Chinese-Korean dominance remained in 2015 (PRC: 49% from EURO 131 million and Korea (rep.): 41%)..

**PR of China: Exports of textile, clothing and leather machinery to Iran 2013 to 2016 (in USD 1,000):**
HS-Pos.	Description	2013	2014	2015	2016- 11 months
	Total	84,518	133,739	103,055	75,748
84.44	Machinery for jet spinning of synthetic or artificial fibers	16,457	5,319	1,990	1,925
84.45	Machines for preparation or processing of materials for spinning, doubling etc.	288	2.602	2.844	1,269
84.46	Weaving looms	2,650	6,039	4,103	1,836
84.47	Machines for knitting, gimping tulle, lace, embroidery, knotting and tufting etc.	6,672	10,795	8,642	7,878
84.48	Auxiliary machines and devices for pos.84.44, 84.45, 84.46 or 84.47 etc.	5,684	17,061	7,319	3,921
84.49	Machines for the manufacturing of felts and nonwovens	2,053	2,029	5,540	2,900
84.51	Machinery and devices for washing, drying, ironing, pressing, etc. (excluding machines of pos. 84.50).	11,368	15,894	16,559	13,728
84.52	Sewing machines	33.567	49.714	38.191	36.182
84.53	Machines and devices for the processing of hides	5.779	24.286	17.867	6.109

Source: China Customs

According to Eurostat exports of textile, clothing and leather industry machines of the EU28 Group to Iran increased between 2013 and 2015 from EUR 38 million to EUR 89, with Germany accounting for 42% respectively 55%. Italy delivered EUR 10.4 million in 2015 (2014: EUR 14.0 million, 2013: 6.3 million). The deliveries of the EU28 Group and Germany also were declining in 2016.

Iran´s textile and clothing industry wants to invest

More information:
Iran, textile and clothing industry

Source:

Robert Espey, Germany Trade & Invest www.gtai.de

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21.03.2017

NEW SECTOR REPORT ON CURTAINS, SCREENS AND SUN PROTECTION PUBLISHED

Innovative solutions are still waiting to be discovered

The latest edition of the study: Curtains, Screens and Sun Protection has been published. In February 2017, the market researchers and analysts from Marketmedia24 and NoceanZ wanted to know it exactly: How do consumers think in terms of curtains, screens and sun protection? A fashionable and emotional factor is accounted by almost 46 percent of people buying such products. Desire for a new decoration or the discovery of a great new idea is initiating shopping. For many consumers this happens even every five years.

Innovative solutions are still waiting to be discovered

The power of emotions plays a decisive role - the trend professionals know and recognize in the new "hygge-like" lifestyle (derived from the Danish happiness philosophy Hygge) the return of the consumers back to familiar, even magical worlds – say back home. Where, by the way, one does not go back to the times of cocooning, but rather enjoy live with family and friends in security and individuality.

However, consumers showed the marketing strategies of the sector the red card: The technological added value of modern articles is hardly significant, brands have a just marginal importance, therefore purchasing happens primarily priced-oriented. Eva Barth-Gillhaus, a member of the authors’ study team, is certain: "Our consumer survey reveals clearly that in the sales orientation of the manufacturers the communication with consumers missed out. This is regrettable because many brands have a lot to offer.

For the brave, however, a wide field opens up for brand strategies to add emotional appeal, pointing out added value and innovation. The value of habitation and the potential of modern products provide an ideal basis. B2C communication undoubtedly is a tour de force, where creative viral strategies and the use of social media may help to save some advertising EUR." The expert predicts that sector campaigns, especially breadthwise, could bear fruit more quickly, but at the same time she has to limit the feasibility: "Perhaps an illusion, but the alternative is interchangeability, dependence on the market partner and the primacy of the price."

Eight sales channels are mainly responsible for the sales on the German market for curtains, screens and sun protection. Handicraft and converters represent the strongest market power, followed by the retail trade. The furniture stores are the number one for the majority of the res-pondents when it comes to purchasing of curtains, screens and sun protection products. However, this result is not a true reason for joy for those persons involved. Men prefer to buy (about 21%) in hardware stores while women (just under 25%) prefer furniture stores, but only if they do not prefer to sew the curtains and decoration shawls themselves, what is favored by at least 5%. As number two online providers came out of the total survey.

Anyone who is familiar with the life span of furnishing articles will be surprised about the renewal rhythm at the window. While, for example, living room luminaires with an average hanging time of 15 to 25 years prove to be extremely long-lasting, curtains, screens and sun protection products seem to be fast exchanging. After all, almost 39% say they replace the products every five years. A similar group of the same size changes even more frequently.

At first sight, functional and fashionable buying impulses are balanced. It does not seem to be surprising that 58% of the interviewees call protection from the sun and about 40% the desire for dim-out as purchase reasons. On the other hand, the high number of those who can be infected by "great" discoveries is astonishing.

When asked, "Which brand names do you know spontaneously?", the respondents named more than 180 brands. Among them Ado and Goldkante or Otto and My Home as two separate brands. But also stationary and virtual shopping sources were used as brand names for curtains, screens and sun protection such as Amazon, Bon Prix, Textilshop.de, Ikea, DM, Obi, Poco, Tchibo and interior decorators.

The fact that in a representative survey consumers also named Nivea and Nivea Sun as brand names for curtains, screens and sun protection products, and that the furniture retailer Ikea, after Velux and Ado reached the third highest degree of recognition, shows a dilemma that not only gives the manufacturers / suppliers of the sector a reason to think about.
With such a low degree of brand awareness it is not surprising, that brand products can seldom be found on the shopping lists of consumers. For a real desire this low brand awareness is not sufficient enough. Therefore almost 50% decide on the price. Whether it is a known brand name or a brand product is not important.

But in principle the signs bode well , for textile living as well as for the offers of curtains, screens and sun protection. Several megatrends and market factors link together to form a powerful market engine. The construction boom and the general demand for residential space are important drivers. In the first eleven months of 2016 already 340,000 new apartments or renovations were approved, 63,600 or 23% more than in the same period of the previous year.

Who as a manufacturer or supplier in the market for screens and sun protection as well as curtains has to decide about larger investments or product innovations - needs to get as much information as possible about the medium and longer-term market development. What has to be expected for the next eight to ten years, until about 2025? Is the growth of the past few years continuing? Is more growth still possible? Or will it weaken, for example because the market is simply saturated? The new sector report 2017 about curtains, screens and sun protection products provides a solid basis for answering such questions.

More information:
Curtains Sector report Sun rpotection

Source:

Textination GmbH

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EuroShop 2017: Retailers eager to invest

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14.03.2017

EUROSHOP 2017: RETAILERS EAGER TO INVEST

With over 113,000 visitors and 2,368 exhibitors the largest EuroShop in its 50-year history

Great international attendance confirms its special global position
In focus: digitalisation, omnichannel and emotionalisation of the shopping experience
Accompanying forums very highly attended

After five days, on 9 March 2017 saw the world’s largest trade fair for retail investment requirements, EuroShop 2017, draw to a close in Düsseldorf with the best result in its 50-year history: the 2,368 exhibitors from 61 nations report unanimously on very good to excellent contacts and business deals. Furthermore, very lively post-fair business is anticipated. Over 113,000 visitors (round about 4% over the last event) came to the Rhine to gather information on the range of products, trends and concepts for retailers and their partners on display here in the 18 exhibition halls extending over 127,000 m² of net exhibition space.

Hans Werner Reinhard, Managing Director at Messe Düsseldorf, is delighted: “EuroShop 2017 has further exceeded all the top scores achieved at EuroShop 2014. At its anniversary event it was able to once again show how young and creative the sector and its trade fair are.”

The exhibitors across all exhibition areas spent months preparing for EuroShop 2017 so as to be able to meet the competition with convincing innovations. And they encountered an outstanding response: trade visitors were delighted with product variety and the level of innovation at the stands as well as with the excellent quality and great creativity of the stand presentations.

A total of 138 countries were represented on the visitor side. Commenting on this Reinhard said: “We could not be happier with the trade visitor breakdown. We are recording a constantly high level of demand from Germany and a significant rise in interest from abroad. Throughout the world it is known that EuroShop in Düsseldorf is the global No.1 trade show in the sector demonstrating what the future of retail looks like.”

Held every three years, EuroShop 2017 kicked off with a completely new concept. Its refined profile with seven clearly defined dimensions (POP Marketing, Expo & Event Marketing, Retail Technology, Lighting, Visual Merchandising, Shop Fitting & Store Design and Food Tech & Energy Management) went down well with exhibitors and visitors alike – because this meant exhibitors could be positioned in their optimum segment while visitors conveniently found the suppliers they needed according to area of interest.

The dominant themes at EuroShop 2017 were the continuing digitalisation in retail, tailor-made omnichannel solutions and emotionalisation of the shopping experience in the store.

Online retail is currently fuelling investment in physical stores in the sector. This is because competition from suppliers online means retailers have to make their stores ever more attractive. At the same time, the dovetailing of physical and online stores is generating new retail and interior design concepts. Modern information technology is becoming ever more important here.

“Customers expect both – on the one hand the shopping experience on site in the store and, on the other, delivery to their own front door. Conventional physical retail is now increasingly developing it online activities and large online retailers are looking more and more to opening their own stores. EuroShop has managed to bring both worlds together,” explained Michael Gerling, Managing Director of the EHI Retail Institute, adding: “Physical stores and online retail are growing ever closer together, which is why at EuroShop the exhibition segments of shop fitting and technology are increasingly merging.”

EuroShop 2017 also highlighted that the top priority for stores themselves was unadulterated emotionalisation! Storytelling was at the forefront of many concepts, solutions and products at EuroShop 2017. Whether it was architecture, design, lighting or the embedding of state-of-the-art media in the shop fitting, everything has to follow a joint dramaturgy to give customers that certain kick. So it comes as no surprise that visual merchandising is continuing to gain great significance in the custom design of retail spaces. Here retailers’ willingness to invest in Germany has virtually doubled, according to an EHI study presented at EuroShop.

However, retail is also investing heavily in LED technology and refrigeration technology. This was not just another result from the EHI study, it was also visible in the halls of the exhibition centre. Here energy saving and sustainability are top priorities for retailers – which is why EuroShop Special Ecopark with its accompanying forum met with such a great response.

Overall, the accompanying lecture forums on the different EuroShop dimensions were avidly attended and many EuroShop visitors took valuable ideas home with them from the international line-up of practicefocused lectures, be this from the Architecture & Design Forum, the EuroCIS Forum, the Omnichannel Forum, the POPAI Forum or the Expo & Event Forum.

The next EuroShop will be held in Düsseldorf from 16 to 20 February 2020 and the next EuroCIS, as an annual event focusing on retail technology themes, will already run from 27 February to 1 March 2018.

More information:
POP Marketing Expo & Event Marketing Retail Technology Lighting Visual Merchandising Shop Fitting Store Design Food Tech & Energy Management

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Central America imports more textile machinery

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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

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

More information:
Central America textile machinery textil- and clothing industrie

Source:

Quelle: Ulrich Binkert, Germany Trade & Invest www.gtai.de

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BREXIT: Italian economy relatively little affected

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09.08.2016

BREXIT: ITALIAN ECONOMY RELATIVELY LITTLE AFFECTED

Banking Crisis comes to a head
Foreign Trade rather little affected
Tourism Industry looks at the Development of the British Currency

Milan (GTAI) – According to a study by the rating agency S & P Italy is among the European countries that are least affected by the Brexit referendum. Nevertheless, the after the Brexit resulting market turmoil threatens to slow the fragile recovery of the Italian economy and to lead the already ailing banks in a crisis. The United Kingdom is the fourth most important export market for Italian goods; British tourists are a major source of income for the tourism.

Banking Crisis comes to a head
Foreign Trade rather little affected
Tourism Industry looks at the Development of the British Currency

The outcome of the British referendum threatens the delicate recovery of the Italian economy. The business association Confindustria has reduced its GDP growth forecast for 2016 from 1.4% to 0.8%. However, compared to other EU Member States and according to various studies, Italy is little affected directly of the intended withdrawal of the United Kingdom from the EU, but the indirect effects through the market turbulence could become serious.

In a study about the “Brexit sensitivity" of 20 countries made by the rating agency S & P Italy comes on the penultimate place, ahead of Austria. The study analyzes the Brexit effects in the fields of export, finance, foreign direct investments and migration. The reasons for Italy's position are obvious: Compared to other European countries, exports of Italy to the United Kingdom are relatively small. In addition, the financial sector is "relatively Italian". In a European comparison, foreign direct investments in Italy are low; this also concerns the share of investment from the United Kingdom in Italy.

According to the S & P study among the Italian economic areas the activities of the financial sector are the most affected by the Brexit. Volatile markets as a result of the Brexit provide further uncertainty in the sector, which, after the long economic crisis is suffering among other things in their balance sheets under bad loans. In the days after the event the share prices of the Italian banks plunged into the depths. The Italian Government is negotiating with the EU on a new bailout.

The UK is an important trading partner

The decision of the British could have a negative impact on the Italian exports in various sectors. According to the Italian statistical office ISTAT the United Kingdom is ranked 6 of the trading partners in Italy. At the same time, the UK is the fourth largest market for Italian goods. The overall imports from the United Kingdom were EUR 10.6 billion in 2015, while the exports were significantly higher at EUR 22.5 billion. In 2015 the share of the total Italian exports amounted to 5.5%. The Italians sold more only in the United States (8.9%), France (10.5%) and Germany (12.6%).

The risks for the Italian exports may not be underestimated; experts expect a loss of Italian exports to the United Kingdom of EUR 1 to 3 billion. The losses concern primarily the processing industry. According to the study "Il Brexit e l'Italia" of the research institute Nomisma of June 2016, 97% of the Italian exports are finished goods. The most important product groups of Italian exports to the United Kingdom are machinery and equipment (EUR 3.5 billion), food and beverages (EUR 3.1 billion), chemical products (EUR 2.6 billion), Automotive and - parts (EUR 2.6 billion), fashion and clothing (EUR 2.3 billion) and processed and unprocessed metal products (EUR 1.5 billion).

Particularly dependent on British customers are the wineries and furniture designers. For the Italian wine sector the United Kingdom is one of the most important markets. In 2015 Italian wine producers were able to sell wine worth of EUR 745 million, accounting for a share of 14% of total Italian wine exports. The Italian furniture designers sold in 2015 products worth of EUR 950 million to the United Kingdom, what represents a share of 10% of total Italian furniture exports.

Northern Italy has close economic ties with the United Kingdom

According to the Nomisma study the Italian regions are different linked with the economy in the United Kingdom. More than two thirds of Italian exports to the United Kingdom are coming from northern Italy. Nevertheless, northern Italy is less affected by the Brexit than southern Italy, because the proportion of northern Italian exports to the United Kingdom of the total exports of northern Italy is markedly lower than in the south.

From the southern Italian region of Basilicata 15% of the exports go to the United Kingdom. The high rate is due to the Fiat factory in the municipality of Melfi, where two car models are being produced. From Abruzzo and Campania circa 10% of the regional exports are sold in the United Kingdom.

eyond the foreign trade the Italian restaurant and hotel operators are anxious about the impact of the Brexit: According to Banca D'Italia British tourists ranked on the 6th place of tourists and business travelers in 2015. However - the 4.4 million British visitors expended on average per capita significantly more per day than any other European travelers. Overall the expenditure of the British amounted to just over 3 billion euros in 2015 - or more than 8% of the total expenditure of foreign tourists in Italy. A devaluation of the British currency could affect adversely both the number of tourists as well as their expenditure per capita.

Source:

Robert Scheid, Germany Trade & Invest www.gtai.de

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IVC introduces the 16th Edition of the Study "The Fiber Year" with Key Sector Data

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10.05.2016

IVC INTRODUCES THE 16TH EDITION OF THE STUDY "THE FIBER YEAR" WITH KEY SECTOR DATA

Fiber Production for the first Time in five Years lower than Consumption

In a press conference on May 3rd 2016, the industry association IVC published in an established tradition both the national and the global sector data: Andreas Engelhardt, CEO of The Fiber Year GmbH left no question about all important raw materials, natural and synthetic fibers and nonwovens unanswered and presented In his study a forecast horizon till 2020. 20 country profiles of leading production as well as consuming nations completed next to statements from sector experts and an extensive statistical annex the new edition. The key messages were focused on production, consumption and trading volume.

For the first time in five years fiber production is less than consumption

Since 2008 the global fiber production dropped again for the first time.

Fiber Production for the first Time in five Years lower than Consumption

For the first time in five years fiber production is less than consumption

Since 2008 the global fiber production dropped again for the first time. The global volume fell by 0.7% to 94.9 million tons. The decline was decisive caused due to cotton which experienced its steepest decline in forty years. The production in the current season is estimated with 22.0 million tons, a decrease of 15.6% compared to the previous season. With a slight decrease in demand by 2.2% at the same time the stocks remain with over 20 million tons still at an enormous height. High growth rates of China's chemical fiber industry let expect a massive supply surplus. The global fiber demand in the past year has grown to 96.7 million tons. This represents an increase of 3.1% over the previous year, the weakest growth in four years due to a continuously decreasing growth of demand.

With a world population of about 7.3 billion people, this results in an average consumption per capita of 13.3 kg of textile materials for garments, home textiles, carpets and technical textiles. Synthetic fibers showed an increase of 6.6% to 60.7 million tons, significantly driven by a growth of polyester. The increase is largely caused by the area of filament yarn, as staple fibers achieved a moderate growth of 2.4% only. This can be seen as a recovery after this part of the sector showed in the last year a decline for the first time since 2008.

Cellulose fibers showed for the first time after seven years with strong growth a slight fall in production of 1.2% to 6.1 million tons. The market is almost completely dominated by staple fibers. Due to a growth across Europe and Asia viscose fibers could increase their volume by 1.1% to 4.9 million tons. In contrast Acetate showed a loss in a second consecutive year. A decreasing production activity was seen in all markets and regions with a global slump of 7.5% to 0.9 million tons. This drastic cut was significantly stronger than the losses in the end-use consumption, which can be seen as a clear indication of global destocking. The long-term shrinkage of cellulosic yarns for textile applications has developed further, so that the global supply of about 350 000 tons is equivalent to the level of the early 1930s.

The market for natural fibers experienced with a reduction of 13.2% to 28.1 million tons the biggest annual decline since 1986, which is mainly due to cotton. The production of wool was unchanged at 1.1 million tons while for bast fibers a reduction of about 5% is expected.

In a focus on the different countries, the People's Republic of China could further strengthen its dominant position with an increase in production output by 8.9% to more than 47 million tons. The United States could consolidate their second place despite a slight decline of 2.5% to 2.9 million tons, while India experienced a continued decline in the fifth following year to 2.6 million tons.

Trading volume grows unabated

According to the World Trade Organization (WTO) during the year 2014 the textile and clothing exports reached around USD 820 billion. The for the yearbook researched trade flows of 26 countries and the EU (28) estimate that the worldwide export will fall to USD 780 billion in 2015. While the Chinese exports developed a first decrease in six years, Bangladesh, Cambodia, Myanmar and Vietnam were able to continue to raise their export value. The dynamic development particular of Vietnam with its booming textile industry can be attributed to the influence of free trade agreements.

Fiber production in Germany

Despite international trends and many political challenges, which increasingly plague the German chemical fiber producers, man-made fibers "made in Germany" are still no dying species, Dr. Wilhelm Rauch, managing director of the industry association said.

While in 2014 the chemical fiber industry in Germany suffered a decline in production volumes of 6.1%, the production volume stabilized at almost the same prior-year level. The production of cellulosic fibers remained with a reduction of - 6.8% (previous year - 8.6%) - conform to the worldwide slump of cotton. Synthetic fibers (in particular Polyester) however achieved a slight increase of + 1.6% (last year - 4.9%). Thus the reduction in production volumes kept with - 0.9% in limits.

As consequences of this a sales decline of - 4.8% and associated necessary personnel adjustments with -1.4% are alarming signals, that the site conditions for chemical fiber producers in Germany (and Europe) are urgently in a need of improvement. A positive turnaround could certainly bring a fair competition protecting and an industry-friendly approach of the EU business policy. But the emphasis of the current policy debates - about the recognition of the market economy status of China as an example of politically motivated developments let suppose a very different intension, so Mr. Rauch. Despite unfavorable economic expectant conditions it is to owe the commitment and innovation power of the local manmade fiber sector that they claim to withstand the international competition.

Nevertheless, the sector would appreciate a somewhat lower political headwind.

Fiber processing

In 2015 the processing of all types of fiber in Germany could not keep the level of the previous year and suffered a decrease of -11.6%. The total imports of chemical fibers - mostly from the 28 EU countries with +54% followed by Asia with + 40% - show a plus of 1.1% (synthetic staple fibers +1.9% and filaments +1.7%), while cellulosic fibers suffered a slump of -7.4%. The total export is declining slightly (- 2.0%). Despite the reduction of total exports, here the shares in the various regions of the world compared to the previous year stood unchanged.

Further information is available at:

Andreas Engelhardt

CEO

The Fiber Year GmbH

Hauptstraße 19

9042 Speicher, Schweiz

Tel.: + 41 / 71 / 450 06 82

E-mail: Engelhardt@thefiberyear.com

Creta Gambillara

Economics and Public Relations

Industrievereinigung Chemiefaser e.V.

Mainzer Landstraße 55

60329 Frankfurt am Main

Tel.: 069 / 279971 – 39

E-mail: Gambillara@ivc-ev.de

IVC stellt 16. Auflage der Studie „The Fiber Year“ mit den Kernbranchendaten vor

More information:
IVC, Mitgliederversammlung, Chemiefasern The Fiber Year

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05.01.2016

HEIMTEXTIL 2016: SPECIALIST PROGRAMME FOR THE HOTEL TRADE, DESIGN AND ARCHITECTURE

The significant growth in exhibitor numbers is a clear indication that Heimtextil remains the most important platform in its sector in 2016 and that the themes are very much in line with the sector's current preoccupations. From 12 to 15 January 2016, Heimtextil will assemble more than 2,700 exhibitors at the world's largest trade fair for home and contract textiles. The range of products covers the world's largest international selection of contract textiles for the hotel trade, architectural use and interior design. More than 350 of the Heimtextil exhibitors, who come from all over the world, will be presenting their portfolios under the 'Contract Creations' seal.

The range of contract products and services not only covers a multitude of materials and suppliers of all qualities and all pricing levels; visitors can also expect an exciting mix of new stimuli as well as experienced partners to help with their ideas and projects. Guided tours of the fair and a lecture programme specially dedicated to hoteliers and architects will provide valuable input. Moreover, in its uniquely inspiring showcase for trends, the 'Theme Park' in Hall 6.0, Heimtextil offers an excellent overview of current and future trends, something that is unique in interior design anywhere in the world. The 'Theme Park' also risks a glance into the future of 'Hospitality' and showcases some stimulating and visionary ideas.

As a first port of call and a meeting place for architects and hoteliers, the 'Salon Interior. Architecture. Hospitality' in Foyer 4.0 provides an inviting venue. It not only offers a comfortable atmosphere in which to take a break from the hustle and bustle of the trade fair. It is also the meeting point for trend scouts, as well as for the guided tours for architects and hoteliers and it is where attendees of the lecture programme can find out about the subjects to be covered, the speakers and where they can sign up for the lectures.

The enormous range of products at Heimtextil is subdivided into clearly identifiable sections. 'Contract' logos on the stands indicate that the exhibitor carries a range of contract textiles and/or solutions for furnishing hotels, restaurants and other commercial or public spaces. The Contract Guide offers lots of help in finding your way around and contains an overview of all the suppliers of contract textiles exhibiting at Heimtextil. This index is directed at architects, hoteliers, planners and interior designers. The Contract Guide will be available for people to take away at various points throughout the Exhibition Centre and is a service that Messe Frankfurt offers free of charge to both exhibitors and visitors.

Furthermore Heimtextil presents the results of a recent study about the importance of textiles for the high-quality hotel sector in form of a Management Report which will be published at the beginning of the fair. The Management Report will be available on the Heimtextil website.

Lecture programme: Interior.Architecture.Hospitality

In collaboration with the architecture magazine AIT and the IHA Hotel Association, Heimtextil offers a varied programme of lectures for architects, interior architects, designers and hoteliers. All lectures will take place in the Europa Room in the Foyer of Hall 4.0 on 13 and 14 January 2016.

The trade journal AIT offers an exciting programme of lectures and panel discussions, each lasting approximately half an hour and involving internationally renowned architecture firms. On the afternoon of 13 January, all sessions will come under the banner of “compact.good.exclusive – the new luxury in residential construction”. On Thursday 14 January, from 1:00 p.m. onwards, the theme will be: 'Travel yesterday and today – Hotel architecture as a retreat in a foreign environment'.

On the morning of 14 January 2016, the German Hotel Association (IHA) will report on trends and developments as they relate to sustainability in the hotel industry. Specialist speakers such as Martina Baumgärtner (ALEGRIA), Christoph Haub (REMONDIS), Frank Martin (Cofely Deutschland) and Florian Zeitler (Electrolux Professional) will give details of sustainable hygiene solutions and technologies in the hotel trade. They will deal, in their lectures, with the following subjects amongst others: “Outsource or do the cleaning yourself?” and “What challenges does a modern environmental management system bring?” Individual topics range from housekeeping to economical energy provision. The event will be rounded off in the morning by the distinguished tourism expert Olaf Schlieper from the German Tourist Office. He will give a concentrated overview of the challenges of sustainable travel.

Architects and designers select Heimtextil products

Some 30 architects and interior architects will be looking for a new generation of innovative products from the sections on contract textiles, textile room dividers and sunshade systems, wall coverings, wallpapers and furniture that are on display at Heimtextil. The results of AIT's trendscouting activities will be available in the 'Salon Interior. Architecture. Hospitality' in Foyer 4.0. For those with a particular interest in innovation, the trend scouts will be offering a guided tour of the award-winning exhibitors.

In addition, the architecture journals AIT and xia will, in cooperation with Heimtextil, once again be organising the 'Innovation Award Architecture and Textile Contract'. This award underscores the importance of architectural quality in textile products and interior-design solutions. The competition is aimed at architects, interior architects and designers, as well as industrial companies and companies that process textile products, contract textiles and interior-design solutions.

The Award Ceremony for 'Architecture and Textile Contract' competition and the 'AIT Trend Scouting Display' will be held in the Europa Room, Hall 4.0, on 13 January 2016 at 5:00 p.m. The exhibition to accompany the innovation awards can be seen on the AIT stand throughout the trade fair. The nominated products from the AIT's trend scouting exercise will be displayed in Foyers 5.1 / 6.1 and will also be identified on the exhibitors' stands.

Finest Interior Award 2015

Heimtextil is a partner in this year's 'Finest Interior Awards' and, with them, seeks to honour the creative work of interior architects, interior designers, interior decorators and furnishings consultants. The 'Finest Interior Awards' were presented in November 2015 as part of a formal evening event in the Dutch Embassy in Berlin, and were given for particularly individual and professional contract furnishing projects. The Netherlands are the official partner country for this year's 'Finest Interior Awards'. The winning exhibits are there to be discovered at Heimtextil 2016 in a special display in Hall 11.0.

Guided tours for architects and hoteliers

In cooperation with the trade journals AIT and Hotel Design/AHGZ, Heimtextil will be offering guided tours tailored to the needs and interests of architects and hoteliers. The meeting point for all tours is the 'Salon Interior.Architecture.Hospitality' in Foyer 4.0.

From 11:00 a.m. onwards on both Wednesday 13 January and Friday 15 January, the trade journal AIT will present the product innovations for contract furnishings on offer from well-known manufacturers, which they, in conjunction with leading international interior architects, have identified. On the Wednesday, the tour will be led by Ushi Tamborriello (ushitamborriello Innenarchitektur_Szenenbild). On the Friday it is the turn of Sabine Krumrey (bki brandherm + krumrey) to take those with a special interest in this area through the halls. Each tour lasts approximately two hours. On 14 January 2016, also at 11:00 a.m.,
the AIT trend scouts will offer a tour which takes in the 15 products selected by architects and interior designers.

In conjunction with the trade magazine HotelDesign/AHGZ, Heimtextil will be inviting decisionmakers in the hotel industry to a conducted tour of the trade fair. In the company of Corinna Kretschmar-Joehnk from Hamburg architects JOI Design and Ms. Denise Boxler, Head of Design at Pentahotels, participants will get an overview of furnishing trends in the hotel and contract industries. The tours start at 11:30 a.m. and 3:00 p.m. on 14 January 2016.

Further informationen about Contract Creations on Heimtextil: www.heimtextil.de/contract