Textination Newsline

In a world first for the fashion industry, in October 2020 twelve pioneering players came together to break new ground by demonstrating a circular model for commercial garment production. Over more than three years, textile waste was collected and sorted, and regenerated into a new, man-made cellulosic fiber that looks and feels like cotton – a “new cotton” – using Infinited Fiber Company’s textile fiber regeneration technology.
 
The pioneering New Cotton Project launched in October 2020 with the aim of demonstrating a circular value chain for commercial garment production. Through-out the project the consortium worked to collect and sort end-of-life textiles, which using pioneering Infinited Fiber technology could be regenerated into a new man-made cellulosic fibre called Infinna™ which looks and feels just like virgin cotton. The fibres were then spun into yarns and manufactured into different types of fabric which were designed, produced, and sold by adidas and H&M, making the adidas by Stella McCartney tracksuit and a H&M printed jacket and jeans the first to be produced through a collaborative circular consortium of this scale, demonstrating a more innovative and circular way of working for the fashion industry.
 
As the project completes in March 2024, the consortium highlights eight key factors they have identified as fundamental to the successful scaling of fibre-to-fibre recycling.

The wide scale adoption of circular value chains is critical to success
Textile circularity requires new forms of collaboration and open knowledge exchange among different actors in circular ecosystems. These ecosystems must involve actors beyond traditional supply chains and previously disconnected industries and sectors, such as the textile and fashion, waste collection and sorting and recycling industries, as well as digital technology, research organisations and policymakers. For the ecosystem to function effectively, different actors need to be involved in aligning priorities, goals and working methods, and to learn about the others’ needs, requirements and techno-economic possibilities. From a broader perspective, there is also a need for a more fundamental shift in mindsets and business models concerning a systemic transition toward circularity, such as moving away from the linear fast fashion business models. As well as sharing knowledge openly within such ecosystems, it also is important to openly disseminate lessons learnt and insights in order to help and inspire other actors in the industry to transition to the Circular Economy.

Circularity starts with the design process
When creating new styles, it is important to keep an end-of-life scenario in mind right from the beginning. As this will dictate what embellishments, prints, accessories can be used. If designers make it as easy as possible for the recycling process, it has the bigger chance to actually be feedstock again. In addition to this, it is important to develop business models that enable products to be used as long as possible, including repair, rental, resale, and sharing services.

Building and scaling sorting and recycling infrastructure is critical
In order to scale up circular garment production, there is a need for technological innovation and infrastructure development in end-of-use textiles collection, sorting, and the mechanical pre-processing of feedstock. Currently, much of the textiles sorting is done manually, and the available optical sorting and identification technologies are not able to identify garment layers, complex fibre blends, or which causes deviations in feedstock quality for fibre-to-fibre recycling. Feedstock preprocessing is a critical step in textile-to-textile recycling, but it is not well understood outside of the actors who actually implement it. This requires collaboration across the value chain, and it takes in-depth knowledge and skill to do it well. This is an area that needs more attention and stronger economic incentives as textile-to-textile recycling scales up.

Improving quality and availability of data is essential
There is still a significant lack of available data to support the shift towards a circular textiles industry. This is slowing down development of system level solutions and economic incentives for textile circulation. For example, quantities of textiles put on the market are often used as a proxy for quantities of post-consumer textiles, but available data is at least two years old and often incomplete. There can also be different textile waste figures at a national level that do not align, due to different methodologies or data years. This is seen in the Dutch 2018 Mass Balance study reports and 2020 Circular Textile Policy Monitoring Report, where there is a 20% difference between put on market figures and measured quantities of post-consumer textiles collected separately and present in mixed residual waste. With the exception of a few good studies such as Sorting for Circularity Europe and ReFashion’s latest characterization study, there is almost no reliable information about fibre composition in the post-consumer textile stream either. Textile-to-textile recyclers would benefit from better availability of more reliable data. Policy monitoring for Extended Producer Responsibility schemes should focus on standardising reporting requirements across Europe from post-consumer textile collection through their ultimate end point and incentivize digitization so that reporting can be automated, and high-quality textile data becomes available in near-real time.

The need for continuous research and development across the entire value chain
Overall, the New Cotton Project’s findings suggest that fabrics incorporating Infinna™ fibre offer a more sustainable alternative to traditional cotton and viscose fabrics, while maintaining similar performance and aesthetic qualities. This could have significant implications for the textile industry in terms of sustainability and lower impact production practices. However, the project also demonstrated that the scaling of fibre-to-fibre recycling will continue to require ongoing research and development across the entire value chain. For example, the need for research and development around sorting systems is crucial. Within the chemical recycling process, it is also important to ensure the high recovery rate and circulation of chemicals used to limit the environmental impact of the process. The manufacturing processes also highlighted the benefit for ongoing innovation in the processing method, requiring technologies and brands to work closely with manufacturers to support further development in the field.

Thinking beyond lower impact fibres
The New Cotton Project value chain third party verified LCA reveals that the cellulose carbamate fibre, and in particular when produced with a renewable electricity source, shows potential to lower environmental impacts compared to conventional cotton and viscose. Although, it's important to note that this comparison was made using average global datasets from Ecoinvent for cotton and viscose fibres, and there are variations in the environmental performance of primary fibres available on the market. However, the analysis also highlights the importance of the rest of the supply chain to reduce environmental impact. The findings show that even if we reduce the environmental impacts by using recycled fibres, there is still work to do in other life cycle stages. For example; garment quality and using the garment during their full life span are crucial for mitigating the environmental impacts per garment use.
          
Citizen engagement
The EU has identified culture as one of the key barriers to the adoption of the circular economy within Europe. An adidas quantitative consumer survey conducted across three key markets during the project revealed that there is still confusion around circularity in textiles, which has highlighted the importance of effective citizen communication and engagement activities.

Cohesive legislation
Legislation is a powerful tool for driving the adoption of more sustainable and circular practices in the textiles industry. With several pieces of incoming legislation within the EU alone, the need for a cohesive and harmonised approach is essential to the successful implementation of policy within the textiles industry. Considering the link between different pieces of legislation such as Extended Producer Responsibility and the Ecodesign for Sustainable Products Regulation, along with their corresponding timeline for implementation will support stakeholders from across the value chain to prepare effectively for adoption of these new regulations.

The high, and continuously growing demand for recycled materials implies that all possible end-of-use textiles must be collected and sorted. Both mechanical and chemical recycling solutions are needed to meet the demand. We should also implement effectively both paths; closed-loop (fibre-to-fibre) and open -loop recycling (fibre to other sectors). There is a critical need to reconsider the export of low-quality reusable textiles outside the EU. It would be more advantageous to reuse them in Europe, or if they are at the end of their lifetime recycle these textiles within the European internal market rather than exporting them to countries where demand is often unverified and waste management inadequate.

Overall, the learnings spotlight the need for a holistic approach and a fundamental mindset shift in ways of working for the textiles industry. Deeper collaboration and knowledge exchange is central to developing effective circular value chains, helping to support the scaling of innovative recycling technologies and increase availability of recycled fibres on the market. The further development and scaling of collecting and sorting, along with the need to address substantial gaps in the availability of quality textile flow data should be urgently prioritised. The New Cotton Project has also demonstrated the potential of recycled fibres such as Infinna™ to offer a more sustainable option to some other traditional fibres, but at the same time highlights the importance of addressing the whole value chain holistically to make greater gains in lowering environmental impact. Ongoing research and development across the entire value chain is also essential to ensure we can deliver recycled fabrics at scale in the future.

The New Cotton Project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 101000559.

Freezing is one of the most common and debilitating symptoms of Parkinson’s disease, a neurodegenerative disorder that affects more than 9 million people worldwide. When individuals with Parkinson’s disease freeze, they suddenly lose the ability to move their feet, often mid-stride, resulting in a series of staccato stutter steps that get shorter until the person stops altogether. These episodes are one of the biggest contributors to falls among people living with Parkinson’s disease.

Today, freezing is treated with a range of pharmacological, surgical or behavioral therapies, none of which are particularly effective. What if there was a way to stop freezing altogether?

Researchers from the Harvard John A. Paulson School of Engineering and Applied Sciences (SEAS) and the Boston University Sargent College of Health & Rehabilitation Sciences have used a soft, wearable robot to help a person living with Parkinson’s walk without freezing. The robotic garment, worn around the hips and thighs, gives a gentle push to the hips as the leg swings, helping the patient achieve a longer stride.

The device completely eliminated the participant’s freezing while walking indoors, allowing them to walk faster and further than they could without the garment’s help.

“We found that just a small amount of mechanical assistance from our soft robotic apparel delivered instan-taneous effects and consistently improved walking across a range of conditions for the individual in our study,” said Conor Walsh, the Paul A. Maeder Professor of Engineering and Applied Sciences at SEAS and co-corresponding author of the study.

The research demonstrates the potential of soft robotics to treat this frustrating and potentially dangerous symptom of Parkinson’s disease and could allow people living with the disease to regain not only their mobility but their independence.

For over a decade, Walsh’s Biodesign Lab at SEAS has been developing assistive and rehabilitative robotic technologies to improve mobility for individuals’ post-stroke and those living with ALS or other diseases that impact mobility. Some of that technology, specifically an exosuit for post-stroke gait retraining, received support from the Wyss Institute for Biologically Inspired Engineering, and Harvard’s Office of Technology Development coordinated a license agreement with ReWalk Robotics to commercialize the technology.

In 2022, SEAS and Sargent College received a grant from the Massachusetts Technology Collaborative to support the development and translation of next-generation robotics and wearable technologies. The research is centered at the Move Lab, whose mission is to support advances in human performance enhancement with the collaborative space, funding, R&D infrastructure, and experience necessary to turn promising research into mature technologies that can be translated through collaboration with industry partners. This research emerged from that partnership.

“Leveraging soft wearable robots to prevent freezing of gait in patients with Parkinson’s required a collaboration between engineers, rehabilitation scientists, physical therapists, biomechanists and apparel designers,” said Walsh, whose team collaborated closely with that of Terry Ellis,  Professor and Physical Therapy Department Chair and Director of the Center for Neurorehabilitation at Boston University.

Leveraging soft wearable robots to prevent freezing of gait in patients with Parkinson’s required a collaboration between engineers, rehabilitation scientists, physical therapists, biomechanists and apparel designers.

The team spent six months working with a 73-year-old man with Parkinson’s disease, who — despite using both surgical and pharmacologic treatments — endured substantial and incapacitating freezing episodes more than 10 times a day, causing him to fall frequently. These episodes prevented him from walking around his community and forced him to rely on a scooter to get around outside.

In previous research, Walsh and his team leveraged human-in-the-loop optimization to demonstrate that a soft, wearable device could be used to augment hip flexion and assist in swinging the leg forward to provide an efficient approach to reduce energy expenditure during walking in healthy individuals.

Here, the researchers used the same approach but to address freezing. The wearable device uses cable-driven actuators and sensors worn around the waist and thighs. Using motion data collected by the sensors, algorithms estimate the phase of the gait and generate assistive forces in tandem with muscle movement.

The effect was instantaneous. Without any special training, the patient was able to walk without any freezing indoors and with only occasional episodes outdoors. He was also able to walk and talk without freezing, a rarity without the device.

“Our team was really excited to see the impact of the technology on the participant’s walking,” said Jinsoo Kim, former PhD student at SEAS and co-lead author on the study.

During the study visits, the participant told researchers: “The suit helps me take longer steps and when it is not active, I notice I drag my feet much more. It has really helped me, and I feel it is a positive step forward. It could help me to walk longer and maintain the quality of my life.”

“Our study participants who volunteer their time are real partners,” said Walsh. “Because mobility is difficult, it was a real challenge for this individual to even come into the lab, but we benefited so much from his perspective and feedback.”

The device could also be used to better understand the mechanisms of gait freezing, which is poorly understood.

“Because we don’t really understand freezing, we don’t really know why this approach works so well,” said Ellis. “But this work suggests the potential benefits of a ’bottom-up’ rather than ’top-down’ solution to treating gait freezing. We see that restoring almost-normal biomechanics alters the peripheral dynamics of gait and may influence the central processing of gait control.”

The research was co-authored by Jinsoo Kim, Franchino Porciuncula, Hee Doo Yang, Nicholas Wendel, Teresa Baker and Andrew Chin. Asa Eckert-Erdheim and Dorothy Orzel also contributed to the design of the technology, as well as Ada Huang, and Sarah Sullivan managed the clinical research. It was supported by the National Science Foundation under grant CMMI-1925085; the National Institutes of Health under grant NIH U01 TR002775; and the Massachusetts Technology Collaborative, Collaborative Research and Development Matching Grant.

• Results of the 21st Composites Market Survey
• Critical assessment of the current business situation
• Future expectations turn negative
• Expectations for application industries vary
• Growth drivers with only slight shifts
• Composites index points in different directions

This is the 21^st time that Composites Germany (www.composites-germany.de) has identified the latest performance indicators for the fibre-reinforced plastics market. The survey covered all the member companies of the umbrella organisations of Composites Germany: AVK and Composites United, as well as the associated partner VDMA.

As before, to ensure a smooth comparison with previous surveys, the questions in this half-yearly survey have been left unchanged. Once again, the data obtained in the survey is largely qualitative and relates to current and future developments in the market.

Critical assessment of current business situation
After consistently positive trends were evident in the assessment of the current business situation in 2021, this slipped in 2022. For the third time in a row, the current survey shows pessimistic assessments. The reasons for the negative mood are manifold. However, the main drivers are likely to be the still high energy and commodity prices. In addition, there are still problems in individual areas of the logistics chains as well as a restrained consumer climate. Despite rising registration figures, the automotive industry, the most important application area for composites, has not yet returned to its former volume. This also illustrates the change in strategy of European OEMs to move away from volume models towards high-margin vehicle segments. The construction industry, the second central area of application, is currently in crisis. Although the order books are still well filled in many cases, new orders are often not forthcoming. High in-terest rates and material costs combined with a high cost of living are placing a heavy burden on private construction in particular. A real decline in turnover of 7% is currently expected for the construction industry in 2023.

The assessment of the business situation of their own company is also increasingly pessimistic. The picture is particularly negative for Germany. Almost 50% of respondents (44%) are critical of the current business situation. The view of global business and Europe is somewhat more positive. Here, "only" 36% and 33% of the respondents respectively assess the situation rather negatively.

Future expectations turn negative
Following the rather pessimistic assessment of the current business situation, future business expectations also turn negative. After an increase in the last survey, the cor-responding indicators for the general business situation are now clearly pointing down-wards. The respondents are also more pessimistic about their own com-pany's future expectations.

The participants apparently do not expect the situation to improve in the short term. It is also noticeable here that the view of Germany as a region is more critical in relation to Europe and the global economy. 22% of the respondents expect a negative develop-ment in Germany. Only 13% expect the current situation to improve. The indicators for Europe and the world are better.

Investment climate clouds over
The currently rather cautious assessment of the economic situation and the pessimistic outlook also have an impact on the investment climate.
Whereas in the last survey 40% of the participants still expected an increase in person-nel capacity, this figure is currently only 18%. On the other hand, 12% even expect a decline in the area of personnel.

The share of respondents planning to invest in machinery is also declining. While 71% of respondents in the last survey expected to invest in machinery, this figure has now fallen to 56%.
 
Expectations of application industries differ
The composites market is characterised by strong heterogeneity, both in terms of materials and applications. In the survey, the participants were asked to give their assessment of the market development in different core areas. The expectations are extremely varied.

The weaknesses already described in the most important core markets of transport and construction/infrastructure are clearly evident. Growth is expected above all in the wind energy and aviation sectors. Expectations about future market developments, on the other hand, are significantly more positive than the figures presented here might suggest.

Growth drivers with only slight shifts
The paradigm shift in materials continues. While in the first 13 surveys the respondents always named CFRP as the material from which the main growth impulses for the com-posites sector are to be expected, the main impulses are now assumed to come from GRP or across all materials. There is a slight regional shift. At present it is mainly North America that is expected to provide the main growth impulses for the industry. Europe and Asia are losing ground slightly.

Composites index points in different directions
The numerous negative influences of recent times are now also reflected in the overall composites index. All indicators are weakening. Both the current and the future assessment are turning negative.  

The total volume of composites processed in Europe in 2022 was already slightly down compared to 2021. After a good first quarter of 2022, there is currently a clear cooling of activity. It remains to be seen whether it will be possible to counteract the negative development. Targeted intervention, including by political decision-makers, would be desirable here. However, this cannot succeed without industry/business. Only together will it be possible to further strengthen Germany's position as a business location and to maintain or expand its position against the backdrop of a weakening global economy. There are still very good opportunities for composites to expand their market position in new and existing markets. However, the dependence on macroeconomic developments remains. The task now is to open up new market fields through innovations, to consistently exploit opportunities and to work together to further implement composites in existing markets. This can often be done better together than alone. With its excellent network, Composites Germany offers a wide range of opportunities.

• Current crises are dampening mood in composites industry
• Pessimistic outlook
• Subdued investment climate
• Varying expectations for application industries
• GRP is still a growth driver
• Composites Index continues to decline

This is the 19th time that Composites Germany has identified the latest performance indicators for the fibre-reinforced plastics market. The survey covered all the member companies of the three major umbrella organisations of Composites Germany: AVK, Leichtbau Baden-Württemberg and the VDMA Working Group on Hybrid Lightweight Construction Technologies.

As before, to ensure a smooth comparison with the previous surveys, the questions in this half-yearly survey have been left unchanged. Once again, the data obtained in the survey is largely qualitative and relates to current and future developments in the market.

Current crises are dampening mood in composites industry
Both the economy in general and industry in particular are struggling with numerous challenges at the moment. The Covid-19 pandemic has now had a negative impact for over two years and is still affecting a range of segments of the composites industry. One area that has been hit especially hard by the resulting losses is the mobility sector. Another major strain has been a sharp rise in energy costs recently. Above all, we can expect price increases in fuel and gas to become a central issue over the next few months. In addition, there are still problems along international supply chains, coupled with steep increases in raw material prices, partly due to bottlenecks in the supply. The war in Ukraine has put an additional strain on many business sectors, affecting their supply chains, in particular.

In the current survey, both these and other effects have had a major negative impact on the mood in the composites industry.

The assessment index for the current general economic situation is showing a clear decline.

Compared to the last survey, the assessment of the respondents’ own business situations has dropped significantly and for the first time in eighteen months. However, this decline has been far less severe than during the onset of the Covid-19 pandemic.

Pessimistic outlook
Furthermore, there has been a substantial decline in expectations for the future market development. The key figures for the general economic situation have been declining sharply and have reached an all-time low since the beginning of the survey. The respondents are also less optimistic about future expectations for their own companies.

However, respondents are less extreme when assessing the business situations of their own companies. Despite negative spikes, this curve is far less steep, showing that respondents are expecting less dramatic effects on their own companies than on the industry as a whole.

Subdued investment situation
Although, as expected, the investment climate has also become subdued, it should be noted that, in all, expectations are still relatively high. 70% of all respondents believe that machine investments are possible, or they are planning for it. This figure is somewhat lower than in the previous market survey, but it shows a far less dramatic development than the other factors mentioned above .

Varied expectations for application industries
We already mentioned the high level of heterogeneity of applications in the composite sector. In the survey, respondents were asked to provide assessments of market developments in various core sectors.

Their expectations clearly differ substantially from one another.

The proportion of pessimistic expectations has generally been rising for all application industries. While these expectations are almost entirely within a single-digit range, there has been a clear rise in the proportion of those expecting a deterioration of the market in the various application industries. Similar to the last surveys, major drops are expected above all for the automotive, aviation and mechanical engineering sectors. For the first time, however, we can now also see rather negative expectations on the infrastructure and building sector. Yet this is a segment which often reacts quite slowly to temporary economic fluctuations and has so far shown itself to be relatively resilient towards the above-mentioned crises. It remains to be seen whether such forebodings will come true, or whether the construction industry will continue to hold its own in the face of the current negative forces.

Growth drivers remain stable
Geographically, the survey shows that the most important growth stimuli for the composites segment are expected to come from Germany, Europe and Asia.

Where materials are concerned, we are seeing a continuation of the ongoing paradigm shift. Whereas, in the first 13 surveys, respondents always mentioned CRP as the material with the most important growth drivers in its environment, the most important stimuli are now being expected to come consistently either from GRP or from all materials.

Composites Index continues to decline
The industry is currently going through an extremely tense and difficult period, characterised by rising costs, supply chain issues, lack of availability of certain semifinished products and raw materials, increasing political instability and very pessimistic expectations for the future. All the relevant indicators of the current composites survey are pointing downwards at the moment. After some slight recovery over the last 18 months, the Composite Index has therefore clearly been weakening this time and has been dropping to new low points, especially concerning future expectations.

Industry in general, but particularly also Germany’s composite industry, has always shown itself to be very resilient towards crises and has often cushioned negative developments quickly. The total production volume for composites in Europe last year already reached its pre-crisis level of 2019. Germany continues to be the most important manufacturing country in Europe, with a market share of nearly 20%. Hopefully, the slowdown in the coming months will be less severe than expected and the composites industry will remain on an upward trajectory. We will continue to be optimistic, as composites are highly diverse and therefore a key material of the future.

The next Composites Market Survey will be published in January 2023.

Companies today face a variety of increasingly complex risks. Not least the pandemic has shown how crises can pose an existential threat to companies. The FReE tool of the Fraunhofer Institute for High-Speed Dynamics, Ernst-Mach-Institut, EMI, allows companies to measure their resilience and subsequently be prepared for upcoming crisis scenarios.
 
Our world is highly complex and prone to disruption: Natural disasters, cyberattacks, power outages, terrorist attacks, pandemics and other crisis scenarios can threaten companies existentially. The corona pandemic has shown us how vulnerable the German economy really is: According to the Federal Statistical Office, in 2020 the economy fell into a deep recession after ten years of growth; especially in the second quarter of 2020, economic output saw a historic slump. There will be other crises after this pandemic. The classic methods of risk analysis and risk management, which only take into account expected risks, do not adequately protect companies against major losses.

“Companies often only consider the most likely scenarios rather than focusing on possible crisis events,“ says Daniel Hiller, Head of business unit Security and Resilience at Fraunhofer EMI in Freiburg. Teams at Fraunhofer are establishing resilience as a new security concept to help prepare organizations and companies for crises. The results of their research work include the online tool Fraunhofer Resilience Evaluator FReE and the KMU-Lagebild software, both designed to enable companies to measure and evaluate their resilience and to carry out a resilience analysis before, during and after a disruptive event.
 
The five-stage concept “Prepare, Prevent, Protect, Respond and Recover”
The online tool FReE allows companies to plan resilience strategically, to implement the abstract concept in their company and to put it into practice on management level. FReE is based on the five-stage concept “Prepare, Prevent, Protect, Respond and Recover.”  

The software comes with a list of 68 questions related to the five resilience stages. The answers provide the company with some initial information needed to assess resilience. The five stages are ordered chronologically, starting with a what-if scenario. During this Prepare stage companies prepare for disruptive situations, which helps avert damage using preventive measures during the Prevent stage.

“An aluminum processing plant, for example, might want to protect its premises with security fences and cameras, because thieves usually break in at night to steal aluminum,“ says Hiller, illustrating the first two stages using a classic example. The Protect stage, as the name suggests, aims to protect; this might include safeguarding important infrastructures or buildings with additional concrete layers or walls. If it was not possible to stave off the disaster, the Respond stage comes into play. It is now important to quickly identify the cause and extent of the damage and to preserve critical supply functions. After the incident, companies should systematically draw lessons from the crisis in order to be better able to avert future risks and to boost their resilience in a cyclical iterative process – researchers call this stage Learn and Adapt.
 
The FReE tool takes the user through the list of questions, which are ordered chronologically into the sections before, during and after a disruption and cover all company divisions. These including personnel, finance, infrastructure and technology. The tool allows you to filter by division during the evaluation process. “For example, a controller can set the filter such that only results related to finance are shown,” says Hiller. Possible questions include: “Is there a disaster manager in the event of a disruption?“, “What are their qualifications and powers?” or “What are the financial reserves for emergencies?” The evaluation is shown in the radar chart, with the worst result being at zero percent in the graticule.

FReE is available in three versions: The free web-based quick version includes 15 questions. The full version, which includes the complete list of 68 questions, is available on a project basis. The accompanying consulting project is based on the paid version. As part of the consulting project, Hiller and his team work together with the companies to develop appropriate measures to boost resilience and eliminate weak spots. Furthermore, additional questions can be added to the FReE tool to adapt it to the needs of specific industries. Many SMEs are already using the quick version and are planning to update it to the full version.

KMU-Lagebild project
While FReE enables companies to assess their resilience on their own, the KMU-Lagebild project supports them in carrying out a comprehensive resilience assessment. The researchers model all procedures and processes on the computer using the available data. By inputting hypothetical disruption scenarios, you can see how the system reacts to them and which countermeasures have to be taken. “By asking yourself not only what the most likely disruptions are, but also what potential incidents there are, you broaden your view of the risks. What’s more, resilient companies exhibit a high level of adaptability and flexibility,” says Hiller in summary.

Contact restrictions, mandatory use of face masks, home office: The Coronavirus has turned our daily lives upside down and reduced public life almost to zero. The impact of the pandemic has even further in-creased the existing pressure for action to achieve the Sustainable Development Goals. And that is why, it is not surprising that the issues of sustainability, climate protection and digitization are gaining ground in the industry's and consumers' awareness. New management qualities are required.

Textination talked to Sonja Amport, Director of the STF Swiss Textile & Fashion Institute, about the new training course CAS Sustainability Management in Textiles. After career experiences in the industry and in associations, the business economist with a master's degree in International Management has been contributing her knowledge of textiles, education, business administration, as well as marketing and sales to STF with vigor and passion since 2015.

The history of the STF Swiss Textile & Fashion Institute began in 1881. In this year Pablo Picasso was born and Billy the Kid was shot. The Tales of Hoffmann by Jacques Offenbach was premiered and Thomas Alva Edison built the world's first electric power station. The Breuninger department store opened at Stuttgart's market square and Rudolph Karstadt's first store in Wismar.
What led to the foundation of STF during this period of time and what values do you still feel committed to today?
In 1881, the textile industry in Switzerland was thriving. Companies in the sector of spinning, weaving, finishing and others burgeoned. However, there was a shortage of trained specialists who could have operated or repaired the machines. This is why the companies teamed up and founded the STF Swiss Textile & Fashion Institute - a place for education and training of specialists for the Swiss textile and clothing industry. For this reason, the STF is still organized as a cooperative today. Therefore, we are still committed to the values of competence, customer orientation, innovation, inspiration and passion to this day.

If you had to introduce your educational institution in 100 words to someone who doesn't know the Schweizerische Textilfachschule: How does the school define itself today and on which fields of activity does it focus?
The STF Swiss Textile & Fashion Institute stands for sustainable educational competence covering the entire life cycle of a textile, fashion or lifestyle product. With the "STF-LAB", the STF positions itself as an educational service provider with three business fields. The core field is "Education", where the STF offers numerous training and further education courses, from basic education to bachelor's and master's degrees. In the "Incubator & Makerspace" (STF Studio), the main focus is on shared infrastructure, mutual inspiration and the thereby together achieved progress. In the third business field, "Think Tank & Consulting", the school acts as a think tank, where experts can be "hired" and part-time management is offered.

Keyword life-long education: What further education programs does the STF offer for the textile and clothing industry, even after a successful degree?
Which industry sectors and which countries are you focusing on?
Firstly, we offer a variety of informal modular courses for the textile and clothing industry as well as retail, in which one can achieve a good overview of a specific topic within 45 lessons. Such as: Welding & Bonding, Smart & Functional Textiles, Start-up in Fashion or the Steiger Stitch Module, where you learn to program your own knitting designs and then knit them on a "Shared Machine" at STF. We also offer two-week intensive summer courses each year, for example in Sustainable Fashion Design. In terms of formal education, I can recommend our master’s program in Product Management Fashion & Textile in German or our two CAS in Sustainability Management in Textiles. Once with face-to-face classes in German and once via e-learning in English. At the moment, we are focusing our programs on Germany, Austria and Switzerland (DACH region). Our internationalization strategy was abruptly stopped due to Covid-19. With our English master's programs, we were focusing particularly on the Indian and Chinese markets We are now strategically repositioning ourselves with English language courses and will start marketing again from 2022 onwards. The goal is to provide flexible, modular master's programs with a high e-learning component, so that costs remain moderate and travelling can be reduced.

Sustainability has changed from a buzzword to a matter of course: The latest OTTO Trend Study even says, that sustainable consumption has entered the mainstream society. What does this mean for the textile and clothing industry? Are the companies positioned in terms of personnel in such a way, that they have professionally incorporated this complex of topics into their service portfolio?
Swiss companies have recognized, that they only have a chance against foreign competitors, if they are capable of innovation, consistently operating in a niche and can stand out through sustainable production. Sustainability is therefore an absolutely central USP. With this in mind, many companies are dealing this and, of course, also send their employees to us for further training.

The STF offers - so far being the only one in the German-speaking area - an internationally recognized further education in the field of Sustainability Management in Textiles as a Certificate of Advanced Studies CAS. Which sub-areas from design, production, process optimization to marketing does the certificate cover?
The STF offers the internationally recognized University of Applied Sciences certificate in collaboration with SUPSI, the Scuola Universitaria Professionale della Svizzera Italiana in Ticino.

In the degree program, we look from a holistic perspective and at the entire value chain of a textile, i.e. from design to production and to marketing, global challenges, where sustainability acts as a multilateral solution. In addition, the normative and strategic management of sustainability, topics related to social responsibility as well as initiatives and standards for the textile industry are highlighted. An important element of the CAS are raw materials and products, i.e. not only sustainable fibers but also fabrics or the use of chemical agents. Last but not least, aspects around biodiversity, animal welfare, marketing, labeling as well as possible future scenarios and best practice examples are highlighted.

Who could be interested in the CAS Sustainability Management in Textiles and why? What impact can the certificate have on a career?
The CAS is attractive for managers who are generally concerned about the strategic orientation of a company, as well as for specialist employees in design, product development, purchasing, sales or quality management who are responsible for operationalizing the sustainability strategy. And of course we always welcome young designers with their own fashion labels willing to break new, sustainable grounds and to stand out from the rest. The push in professional life is strongly related to one's own personality. So far, however, all graduates have found attending the further education program to be extremely beneficial for their own career paths.

What about the formal aspects of the CAS? For example, are there selection criteria, by when do you have to register, what does the curriculum look like, and what are the fees for attendants?
We start the educational courses at the end of August each year. Early registration, preferably by mid-May, is recommended to secure a place. In the face-to-face course, 120 lessons take place in Zurich and Ticino, costs of CHF 5,900. -, including teaching materials and examination fees, can be expected. In the e-learning course, with a few days of on-site attendance, the content is taught synchronously by Microsoft Teams, usually by the same lecturers. Here, the fee is CHF 5,600.

These costs do not include personal expenses as well as travel and accommodation costs.

Those who are interested can find the facts & figures on our homepage (available in German only):
(www.stf.ch/kurse/cas or www.stf.ch/kurse/cas-online)

The COVID-19 pandemic has clearly shown us the limitations of mobility. How have you responded to this as an educational institution?
Physical limitations can easily be overcome with e-learning. One of the reasons why our classes continued regularly throughout the pandemic period. For the period after Covid-19, we are planning, in addition to face-to-face study modules, further online-only seminars, such as our CAS-Online. These will be offered increasingly in English as well. We are also currently testing possible forms of hybrid lessons. Meaning, while some are educated on-site in Zurich, people who have to travel a long way, such as those from Germany, Austria and Switzerland (DACH region), can attend the lessons virtually and live from a distance.

The past year has left its mark on the textile and apparel industry. When you look back on a year of "state of emergency" - what positive experiences do you take with you, where do you see a need for improvement?
It was definitely a year of a state of emergency! One positive aspect is, that we at STF were ready and able to teach online from day one of the lockdown. The learners, students and my team all showed the greatest understanding and flexibility. But as an institute in the textile, fashion and lifestyle sector, teaching also thrives on visual materials. Being able to feel and smell the yarns and fabrics, as well as to discuss the experiences in person, are important learning experiences. It is definitely a challenge to implement such key learning elements online. Overall, Covid-19 has catapulted us forward as an institution in regards to the topic of digitization by what feels like two years. However, I would be grateful if we could return to normality as soon as possible and to an everyday life with "less distance".

Breaking new ground means willingness to make decisions, overcoming fears - and thus courage to fail. Not every project can succeed. In retrospect, which decision that you made for the STF profile are you particularly pleased about?
I'm proud to say that most of the projects we tackle are successful. There is almost always a way. Sometimes, as you move forward, you just have to adjust the direction a bit to get where you want to go. A groundbreaking innovation was certainly the modularization of (almost) all degree programs. Students can therefore benefit from a wide range of choices and create their own curriculum.

A second decision I'm grateful for was that, as a small institute, we invested a lot in expanding our digital capabilities and infrastructure at a very early stage, which we are now benefiting from. With very well-trained lecturers and a learning platform, a VM platform and modern 3D software in various subject areas, we consider ourselves a pioneer in e-learning and digitalization across Europe. Capabilities, which also pay off in terms of sustainability.

The interview was conducted by Ines Chucholowius, Managing Director of Textination GmbH

Further information:

• Master in Product Management Fashion & Textile
  www.stf.ch/kurse/master-pm/
• CAS in Sustainability Management in Textiles
  (in German with classroom instruction and in English as an online course of study)
  www.stf.ch/kurse/cas/ or www.stf.ch/kurse/cas-online/

Climate protection is one of the major challenges of our time. It is becoming increasingly clear that a substantial transformation of industrial value chains and production processes is needed in order to meet the climate protection targets of the Paris Agreement. Carbon-neutral hydrogen will play a decisive role in this transformation: the discussion paper published jointly by industrial stakeholders and scientists shows the crucial relevance of hydrogen for the energy transition, outlines the challenges associated with the development of the necessary infrastructure and also addresses policymakers by providing clear recommendations for action.

IN4climate.NRW publishes its first discussion paper.

National and global energy and climate protection scenarios make it clear that carbon-neutral hydrogen will be key for energy transition in the future. Hydrogen is of vital importance for climate-neutral production in the chemical and steel industries. It can also replace fossil fuels both in industry and in the transport and mobility sectors. It is easy to transport and store, thus making a significant contribution towards sector coupling. In the future, therefore, a high demand for hydrogen is expected – according to current scenarios this could amount to more than 600 terawatt-hours per year.

“Due to its central location in Europe and the unique potential it offers in terms of industry and research, North Rhine-Westphalia is an ideal model region and starting point for developing a hydrogen economy in Germany and Europe,” explains Professor Manfred Fischedick, Vice President of the Wuppertal Institute and head of the working group on hydrogen at IN4climate.NRW. Eight industrial companies (AirLiquide, Amprion, BP, Covestro, Open Grid Europe, RWE, Shell and thyssenkrupp) and four research institutes (the Wuppertal Institute, Fraunhofer UMSICHT, BFI and IW Köln) together have developed the paper. The authors see hydrogen as the key to success in terms of industrial transformation and a climate-neutral future. At the same time, hydrogen offers great opportunities for economic growth in NRW and Germany – with an estimated potential added value running into billions and a high potential for future-proof jobs.

All the companies contributing to the discussion paper are already involved in projects which promote hydrogen technologies and thus set the course for a key role for hydrogen in the future. The projects focus, for instance, on carbon-neutral steel production, the production of hydrogen on an industrial scale using electrolysis, the development of the transport infrastructure by converting natural gas pipelines, the use of green hydrogen in refineries, and the promotion of sector coupling.

New hydrogen strategy
“We now need the necessary regulatory conditions and positive economic incentives to make climate-neutral hydrogen accessible to the whole of the industrial sector,” explains Klaus Kesseler, Head of Climate Protection, CO2, Approvals at thyssenkrupp Steel AG. “We welcome the fact that the federal government is stressing the importance of hydrogen in its 2030 climate protection programme and compiling a national hydrogen strategy; in our opinion, the creation of an efficient transport infrastructure is of paramount importance to this strategy. Climate-neutral hydrogen is currently not competitive – the hydrogen strategy must address this problem. What is more, we need additional capacity for electricity generated from renewable energy sources to produce hydrogen,” Kesseler goes on to explain.

The paper was written by the IN4climate.NRW working group on hydrogen. The participants of the platform develop new cross-sector ideas to promote industrial climate-friendly processes and products. The discussion paper on hydrogen is the first publication from IN4climate.NRW.

The People's Republic of China has experienced unprecedented economic growth since the late 1970s, with average double-digit growth rates. Over the past 10 years, the country has become the export world champion and holds the position as the second largest economy after the USA for almost as long. Along with the economic boom, modern China faces major challenges, including high wage increases, massive environmental problems and overcapacity in many industrial sectors.
 
Unlike at the beginning of the opening policy more than 40 years ago, when foreign investors with the appropriate technology and know-how were targeted, China is now pursuing a strategy to strengthen the domestic market. With the support of the "Made in China 2025" decree adopted in 2015, the Middle Kingdom is to become one of the leading industrial nations in three ten-year programs by 2045. In doing so, the government is focusing on promoting innovation, increasing production efficiency, optimizing the industrial structure and "green" production. Key sectors such as robotics, medical technology, electromobility and modern agricultural technology are defined as particularly eligible. The development of Industry 4.0 is also of great importance.

    Source: GTAI, Ministry of Foreign Affairs    

China's regions have developed at different rates. Although the economically strong regions at the east and southeast coast of the country generate about half of the annual GDP, the areas in central and western China are recovering dynamically. With the "go-west" policy, since the turn of the millennium, the Chinese government has been increasingly working to promote and develop the western regions, increasing the attractiveness of the affected regions to foreign investment and business settlements. 

Another ambitious project is designed for decades: The “One Belt and One Road” initiative, i.e. the revival of the "Silk Road", which connects more than 60 states in Asia and Europe via land and water. Planned and already implemented billion investment in the construction of ports, railways and telecommunications equipment. Opportunities for German companies exist above all for providers of special equipment in rail, shipping, port and aviation technology. 
 
German-Chinese economic relations have developed very well in recent decades. At the beginning of 2014, the first Chinese Chamber of Commerce (CHKD) in Europe was founded in Berlin to promote the intensification of trade relations. Since 2011, Germany and China have been conducting regular government consultations that include comprehensive strategic partnerships.  

In 2018, German exports to China amounted to EUR 93 billion. Imports from China today amount to more than EUR 100 billion. With a trade volume of about EUR 200 billion in 2018, Germany is by far China's most important European trading partner. For Germany, the People's Republic of China is again the most important trading partner in Asia and the third most important worldwide. The main products supplied to China are machinery, motor vehicles and automotive parts, electrical engineering and chemical products. Around 5,200 German companies are based in China; around 900 Chinese companies have settled in Germany. 
          
Trade Fair Industry
Although China's economy is slowing, the world's second-largest economy continues to grow. Investments worth billions in infrastructure, housing, climate and environmental protection, combined with the construction and expansion of trade fair venues, have made China the most important trade fair venue in Asia, and this position is undisputed. Especially in cities such as Beijing and Shanghai, the professionalism of the trade fair organizers is high, above all because of the numerous international cooperation. 
 
The fairs in Beijing, Shanghai and Guangzhou continue to characterize the Chinese fair landscape. Beijing as an important trade fair location is characterized by its proximity to political decision-makers and the extensive expansion of infrastructure. The majority of the major trade fairs take place in Shanghai and the concentration of international organizers is high.  

The increased reorientation of the Chinese economy on the domestic market also influences the further development of the Chinese trade fair landscape, as the exhibition industry is increasingly turning to the service sector, digitization, automation, health, education and high-quality consumption.  

The "New Silk Road" project also has a major influence on the Chinese trade fair industry: Chinese organizers are increasingly conducting trade fairs and trade fair participations in countries that are to be linked via the Silk Road. In 2018, 76 trade fair organizers were involved in 718 trade fairs in 33 countries, an increase of around 14% compared to the previous year. Most of the fairs were classified as multi-sector and machine-building exhibitions. With an increase of 19% compared to the previous year, the majority of the exhibition-related projects were realized in Russia.

Since 2015, the Chinese State Council has been pursuing the strategy of making the domestic trade fair industry more international and transparent by 2020. For example, the approval of new trade fairs is to be gradually decentralized and responsibility transferred to the provinces. There is a noticeable professionalization of trade fairs outside the traditional trade fair locations of Beijing, Shanghai and Guangzhou. In addition, China has developed into the world's largest e-commerce market, i.e. online platforms are used as distribution channels for products. This development is also increasingly affecting trade fairs as a marketing instrument, as traditional aspects of trade fairs are virtualized.   
 
The main problem for the Chinese trade fair industry remains the great complexity of the Chinese trade fair market with its many trade fair offerings, which vary greatly in terms of quality. In addition, the "Go West" strategy of the Chinese government to promote and develop the western regions has resulted in a large number of trade fair centers that are often not profitable due to their low capacity utilization. In 2018, for example, around 9.83 million m2 of exhibition space is said to have been available in 164 exhibition centers in China. More than half of the exhibition grounds had a utilization rate of less than 10%. The competition between trade fair locations for trade show themes and thus exhibitors and visitors lead to overlapping themes and schedules. Sufficient information or independently collected data on space utilization, exhibitor and visitor numbers are scarce and make it difficult for everyone involved to make the right trade fair selection.

Trade fair cities and exhibition venues
In China, many large exhibition centers have been built during the last 10 years. In 2018, 164 exhibition centers with a hall area capacity of 9.83 million m² were counted. That were 11 exhibition centers or 480,000 m² more than in 2017. Shanghai is the most important exhibition hub in the country - two of the largest exhibition centers are located here.

Additional fairgrounds were built over the last years e.g.in the provinces Shandong and Guangdong. With a covered exhibition area of 1.54 million m2 spread over 21 fair grounds the southern province Guangdong takes the top position in China.

German Engagement
In a comparison of countries, the People's Republic of China takes first place concerning German trade fair organizers’ self-organized events abroad. The concepts of these events are based on the standards of leading international trade fairs in Germany. Almost all major German trade fair organizers are active in China. By far the most attractive market is the economic metropolis of Shanghai.

Outside the leading trade fair cities of Shanghai, Beijing and Guangzhou, German organizers are active in Chengdu, Changsha, Foshan, Nanjing, Shenzhen, Wuhan, Qingdao and Xian. 

* preliminary
**Self-organized events by German trade fair organizers are advertised by AUMA with the label "German Trade Fair Quality Abroad" (GTQ). 
Source: AUMA database
 
Foeign Trade Fair Program 
In the PRC, German companies can present themselves at numerous well-established trade fairs under the umbrella brand "made in Germany" within the Foreign Trade Fair Program. The trade fair participations in the form of German Pavilions cover a large part of the capital goods sector, such as mechanical engineering, food and packaging machinery, automotive supply industry, plumbing, heating, air conditioning, agricultural technology, health care to chemical and environmental engineering. But also, furniture, fashion and consumer goods fairs have been an important part of the program for many years. China is the most important trade fair venue for German companies within the Foreign Trade Fair Program, with Shanghai remaining by far the most important trade fair location.

Contacts
Delegation of German Industry and Commerce Beijing
E-Mail: info@bj.china.ahk.de 
Homepage: http://www.china.ahk.de

Delegation of German Industry and Commerce Shanghai
E-Mail: office@sh.china.ahk.de  
Homepage: http://www.china.ahk.de

Delegation of German Industry and Commerce Guangzhou
E-Mail: info@gz.china.ahk.de  
Homepage: http://www.china.ahk.de

Embassy of the Federal Republic of Germany
E-Mail: embassy@peki.diplo.de  
Homepage: http://www.peking.diplo.de

AUMA e.V.
Natalja Winges
Manager
Regions: Eastern Europe, Central and East Asia
Tel.: +49 30 24 000 124 Fax: +49 30 24 000 320
E-Mail: n.winges@auma.de

More than 400 exhibitors representing 682 brands and approximately 30,000 trade visitors and key opinion leaders (KOLs) took part in ISPO Beijing and Alpitec China held at the China International Exhibition Center (CIEC) from January 16 to 19, 2019. This year, the most important sports trade fair in the Asia-Pacific region was jam-packed with numerous forums, trends and innovative products and services relating to winter sports, outdoors, health & fitness, and manufacturing & suppliers. Soccer also featured for the first time.

“The Chinese have discovered a passion for soccer and their enthusiasm for it continues to grow. European clubs and leagues in particular are a huge source of inspiration for the emerging Chinese soccer market. ISPO Beijing has found a strong new partner in Bundesliga International for continuing to drive the soccer boom in Asia over the next few years,” says a delighted Elena Jasper, Exhibition Director ISPO Beijing. The specially created Football Activation Area played host to seven German first-league teams, namely Bayer 04 Leverkusen, Borussia Dortmund, Borussia Mönchengladbach, Eintracht Frankfurt, FC Schalke 04, VfB Stuttgart and VfL Wolfsburg. They challenged visitors to take part in various activities such as Speed Goal and Goal Wall Shooting and created a thrilling soccer atmosphere for them. The program also featured the Football Forum, which was held on the opening day of the trade fair. High-profile speakers from the clubs set out their strategies for activating the market in China and presented concepts for promoting and encouraging fresh young talents as well as ideas on brand positioning.

Winter sports continue to be popular thanks to Olympics
Winter sports have proven to be hugely popular for several years now, especially in view of the upcoming 2022 Beijing Winter Olympics. As well-known brands and exhibitors in this segment, Burton and Oakley made a welcome return to ISPO Beijing. The Market Introduction Program, designed for brands keen to penetrate the Chinese market, also focused on this area. As part of the two-day seminar program, representatives of 10 brands from across Europe, Asia and the U.S. gained a solid understanding of the specific ins and outs of the Chinese market thanks to industry experts in distribution, online and offline retail and commercial law, and made preliminary contacts.

The Asia Pacific Snow Conference was held for the 11th time in collaboration with the longstanding partner event Alpitec China, the leading trade show for mountain and winter technologies. Representatives from the technology, sports and tourism industries discussed advances being made with China’s ski resorts as well as models and measures for developing, maintaining and expanding them.

Ski Resort Tour participants were given an insight into the infrastructure of the winter sports resorts and treated to a taste of what to expect from the Olympics. Three 2022 Winter Olympics training venues and sites were on the itinerary, namely the Shougang Olympic Park, Wanlong Ski Resort and Genting Ski Resort Secret Garden. “China’s professionalism in preparing for the major sporting event is very impressive. Sports venues are being designed and built in line with the very latest standards. The Olympics will be just the start of China’s development as a winter sports nation,” says Klaus Dittrich, Chairman and CEO of Messe München.

Valuable knowledge transfer throughout all segments
An extensive supporting program was also provided for the other trade fair segments. The Sports Industry Forum focused on the topic of new investment opportunities for the sports business in China, including with regard to digitalization. Sport injuries and rehabilitation options were the main focal points of the Health & Fitness Forum. The China Climbing Report was published as part of the China Rock Summit. In the ISPO Textrends Area, international consultant for textile trends, Louisa Smith, presented the textile trends relating to materials, fibers, cuts and accessories set to take the industry by storm in the next few years. At the ISPO Award Exhibition and the ISPO Startup Village, visitors gained an overview of the most important innovative products and latest ideas to be devised by young entrepreneurs.

Creation of an advisory committee for ISPO Beijing
An international advisory committee has been set up in order to further develop and bring ISPO Beijing even more in line with the needs of the market, exhibitors and trade visitors. Representatives of exhibitors’ interests, industry representatives and partners met for the first time ever on the eve of this year’s event in order to discuss the strategic direction of the trade fair. The consensus amongst all participants was that the current format of ISPO Beijing represents a solid base with plenty of potential. New segments such as Sports Fashion and Travel should be added to the event in the future and the target group of key opinion leaders (KOLs) should be further expanded. Exchanging experience with Europe is the primary focus of interest.

The next ISPO Beijing will be held from February 12 to 15, 2020 at its new location, the China International Exhibition Center (CIEC).

For more information on ISPO Beijing, please visit https://www.ispo.com/en/beijing

• Exports rise in the country's most important industrial sector.

Phnom Penh (GTAI) - Cambodia's clothing exports are growing steadily. However, two factors cloud the prospects for the future.

Cambodia's garment industry is the backbone of the Kingdom's export-oriented economy. Industry exports account for around 40 percent of the gross domestic product (GDP). More than 800,000 Cambodians are employed in over 800 companies. That is more than 85 percent of all factory workers in the country.

Apparel and footwear exports reached USD 8.0 billion in 2017, according to Cambodian customs. This represented an increase of 9.6 percent compared with 2016. Proud growth rates between 7 and almost 15 percent were already achieved in previous years. GTAI estimates on the basis of partner countries' imports an even higher export volume of around USD 12 billion.

More than 70 percent of the country's total exports of goods regularly come from the sector. Shoes accounted for exports of USD 873 million (+14.4 percent) in 2017. Foreign business with shoes has been improving for some years now and has been able to increase its share of exports to over 10 percent. With an unchanged share of 46 percent compared to the previous year, the EU continued to play a major role among the customers in 2017, followed by the USA with 24 percent.

The value-added volume of the sector is low and the road to an integrated textile industry in Cambodia is still long. Machines, raw materials and design come from abroad in the form of a CMT model ("Cut Make Trim"). Fabrics, yarns and haberdashery have to be imported in order to keep the local clothing industry "on the runway". In 2016, according to the United Nations Comtrade Database, USD 4.1 billion worth of textiles came into the country for processing - about 60 percent of which came from China. Textile imports have risen proportionally to clothing exports in recent years.

The garment industry is dominated by foreign companies, mostly from the Asian neighborhood China, Hong Kong (SVR), Singapore, Malaysia or South Korea. Many manufacturers produce to order for multinational brands such as Adidas, Puma, Gap, H&M, Marks & Spencer or Uniqlo. In principle, the complete contract manufacturing is intended for export.

Rising wages fuel fear of competition
After years of growth the sector is looking to the future with concern. The country is increasingly in danger of losing market share to its competitors - for example in Myanmar, Vietnam or Bangladesh - primarily due to rising wage costs. In January 2018, the monthly minimum wage for workers was raised to USD 170, up from USD 153. Compared to 2013, when a minimum of USD 80 was required by law, there has now been more than a doubling.

The annual agenda included regular increases of around 10 percent. According to the Cambodia Garment and Footwear Sector Bulletin of the International Labor Organization (ILO), workers who worked the full month, including overtime payments and incentives, were paid an average wage of just under USD 243 in 2017. Last year, it was USD 225.

In the past, low wages were mainly responsible for the attractiveness and competitiveness of Cambodian industry. This advantage is crumbling year after year as a result of the increase of minimum wages. An end to this politically motivated development is not in sight. The government can imagine, referring to expert recommendations, that minimum wages will be raised to USD 250 per month by 2023.

If the trend continues, companies are likely to migrate and not too many new investors will pitch their tents in Cambodia, critics warn. In 2017, sector companies invested nearly USD 270 million in 55 projects. This represented 5 per cent of the Kingdom's total investments. In the previous year, this share had been 9 percent.

Industry representatives complain that the costs grow faster than the productivity. Automation of production processes is becoming more and more urgent in order to keep up with productivity. However, both the lack of skilled workers and an infrastructure in need of improvement are serious bottleneck factors. There are also critics who are generally pessimistic about a possible automation in the sector. Cambodia could only score points through low labor cost advantages. Automated mass production is reserved for countries that have a reliable and cost-effective power supply and are closer to the sales markets.

Will the trade routes to the EU remain free?
Even more worrying would be the EU's cancellation of the preferential trading system EBA ("Everything But Arms"). Finally, the exemption of Cambodian clothing from customs duties is at stake on the main market. A discontinuation is likely to trigger a wave of migration of the clothing industry. Quite a few companies have taken the EBA initiative alone as an opportunity to establish themselves in the Kingdom.

In addition, the view wanders across the border to Vietnam. Manufacturers there could soon benefit from a free trade agreement with the EU. Vietnam is also participating at the Asia-Pacific Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP), while Cambodia remains outside. If the trade arrangements remain unchanged, Cambodia may get off with a black eye. However, the other factors should not be ignored. Transport and general export costs are also considered comparatively high compared with Vietnam or China.

Cambodian exporters are currently benefiting from the trade dispute between the USA and China. The National Bank of Cambodia (NBC) semi-annual report supports this assumption. According to the study, apparel and footwear exports rose by 11 percent in the first six months of 2018 compared to the same period of last year to reach a volume of USD 4 billion. Since July 2016, clothing, shoes and travel goods (suitcases, bags, etc.) can be delivered duty-free to the USA. According to the Garment Manufacturers Association of Cambodia (GMAC), shipments of travel goods to the USA in the first half of 2018 reached an amount of around USD 160 million - three times the previous annual exports.

Cambodia's imports of textile machinery amounted to USD 127.3 million (SITC 724) in 2017 according to the UN Comtrade database. This was 11.4 percent more than in the previous year. About 60 percent of the capital goods came from China; the remaining deliveries are relatively evenly distributed among other Asian countries. German deliveries only appear very sparsely in the statistics. Used machines from abroad are more likely to be in demand, but are not recorded statistically.