From the Sector

National Council of Textile Organizations (NCTO) President and CEO Kim Glas is testifying on “Supply Chain Resiliency and the Role of Small Manufacturers” before the Small Business Committee’s Subcommittee on Economic Growth, Tax, and Capital Access.
 
In written testimony submitted to the committee, Glas provides an overview of the incredible resiliency of the U.S. textile industry during the COVID-19 pandemic, the impact of the ensuing economic crisis, existing options available to small manufacturers to access capital, and policy recommendations to strengthen the entire industry domestic supply chain.

“One silver lining associated with the immense challenges posed by the COVID-19 crisis is that it afforded the domestic textile industry an opportunity to demonstrate its enormous resiliency, flexibility, and overall value to the U.S. economy,” Glas says in the testimony. “Despite the fact that there was virtually no [full] U.S. production of textile-based PPE prior to the pandemic, the heroic actions of domestic textile manufacturers resulted in the ability to supply homegrown PPE at the height of the greatest healthcare emergency our country has faced in the past 100 years.”

“As we exit the current crisis, rational federal policies are once again needed to ensure a stable overall environment where small businesses can compete and thrive, and targeted initiatives are required to ensure that domestic supply chains for critical materials, such as PPE, exist in the United States,” Glas notes.

Glas details five key policy recommendations supported by 20 trade associations and labor groups, representing the entire domestic supply chain aimed at strengthening the integrated U.S. textile sector:

• Strengthen Buy American procurement rules
• Provide funding assistance for companies to reconstitute domestic supply chains important to U.S. national and healthcare security
• Key contracting reforms
• Streamline the SBA loan application process
• Provide additional funding for workforce training

Please view the full written testimony by NCTO President and CEO Kim Glas here.

U.S. Senator Sherrod Brown (D-OH) and U.S. Representative Kathy Manning (D-NC) wrote to President Biden calling on the Administration to prioritize purchasing fully made in America Personal Protective Equipment (PPE). The lawmakers outline four steps the Administration can take now to ensure our frontline workers have products needed to effectively carryout their critical responsibilities and to support domestic manufacturers who are ready to scale up production and help keep workers healthy and safe.

In their letter, Brown and Manning call on President Biden, through Executive Order and legislative efforts, to:

1. Prioritize the purchase of fully made in America PPE “Berry compliant” to help continue bolstering the U.S. supply chain regardless of purchasing agency;
2. Issue long-term contracts directly to domestic manufacturers when possible to help bolster the domestic supply chains;
3. Adopt a contracting purchase methodology that uses “Best Value” criteria versus “Lowest Price Technically Acceptable” criteria; and
4. Designate a point person in charge of coordinating the government’s efforts to procure PPE and other medical equipment who is responsible for meeting regularly with key domestic manufacturing stakeholders.

A full copy of Brown and Manning’s letter can be found here.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement, urging the government to institute Buy American policy changes to help bolster U.S. manufacturers producing personal protective equipment (PPE) for frontline workers battling the COVID-19 pandemic.

“If the government is sincere about reconstituting a U.S. production chain for medical personal protective equipment (PPE) to resolve the drastic shortages we are experiencing during the current pandemic, it is going to have to make key policy changes to help incentivize domestic production. A strong Buy American mandate for these vital healthcare materials needs to be instituted for all federal agencies, coupled with other reasonable production incentives, to help ensure a strong U.S.  manufacturing base for these essential products.

Our government already has an existing example of such a mandate that serves as an excellent model. The U.S. Department of Defense operates under a fiber-to-finished product Buy American rule for military textiles. This rule ensures that the vital textile materials our U.S. warfighters depend upon, come from a secure domestic production chain that cannot be severed during a military emergency by offshore entities.

There is a bipartisan call for action as members of Congress on both sides of the aisle have begun to acknowledge the need for these types of reasonable and essential policy changes.

Anything short of fully instituting domestic purchase requirements through Executive Order and other legislative initiatives will ensure that PPE production through U.S. supply chains that have been created overnight don’t evaporate as soon as this crisis is over.  

In the midst of the crisis, our failure to confront this challenge will allow for a repeat of the sins of the past that allowed sourcing agents to offshore the entire production of medical PPE in search of lucrative profits. While chasing the lowest cost import may have seemed cost effective at the time, these past few months have demonstrated that we paid a deadly price through this approach by jeopardizing the very lives of frontline medical personnel that are fighting the pandemic.   

This is a national security issue. It’s also a vital healthcare issue and it is decision time for U.S. policymakers. If our country is to be prepared for future deadly pandemics such as the one it is now facing, reasonable policy changes need to be implemented to ensure that we strengthen our domestic supply chain to address America’s security, safety and healthcare requirements.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

To Accelerate Public-Private Cooperation in Supply Chain Transparency

Asia Pacific Rayon (APR) has joined the first neutral and public traceability platform capable of visualising blockchain-based supply chain data from multiple companies and sources. It aims to help businesses across industries respond to consumer demands for ethical and environmentally friendly products.
The neutral and safe space for collaboration is provided by the World Economic Forum and created in collaboration with Everledger, Lenzing Group, TextileGenesis™, and the International Trade Centre. APR will contribute to Phase 2 of the initiative which seeks to incorporate more data sources.

“APR has started harnessing the potential of enterprise blockchain technology to enable customers to trace finished products back to the plantation forest origins on a smartphone app. To be able now to connect our data to other similar industry initiatives is a natural next step for APR, as is extending the benefits of our upstream traceability to the rest of the textile value chain.

Enhancing Follow Our Fibre with New Mill Sustainability Dashboard

Launched in mid-2019, APR’s blockchain-based Follow Our Fibre allows customers and stakeholders to scan its viscose product with a user-friendly app to access data that traces the product’s journey from plant nursery to viscose manufacturing and on to seaports. In October 2019, APR announced a collaboration with TrusTrace to integrate Follow Our Fibre with the latter’s T-Trace module. This helps connect APR’s upstream data to downstream textile value chain actors such as yarn and fabric customers and fashion brands.

More recently, a sustainability dashboard tracking key mill environmental performance indicators has been added to Follow Our Fibre. The dashboard presents APR’s performance in its first year of operations where a baseline has been established for quarterly tracking, reporting and continuous improvement.
The performance indicators follow key industry standards being set by ZDHC for Man-Made Cellulosic Fibres (MMCF), as well as the European Union Best Available Technologies (EU BAT).

The National Council of Textile Organizations (NCTO) held its 16th Annual Meeting March 19-21 in Washington, DC.  Elected as NCTO officers for 2019 are:

• Chairman – Leib Oehmig, CEO of Glen Raven, Inc.
• Mr. Oehmig is CEO of Glen Raven, Inc., based in Glen Raven, North Carolina.  Glen Raven is an innovative leader in textile research and development, dying, spinning, weaving and finishing, and distribution and logistics.
• Vice Chairman – David Roberts, CEO of CAP Yarns, Inc.
• Mr. Roberts is CEO of CAP Yarns, Inc., based in Clover, South Carolina.  CAP Yarns is a specialty yarn manufacturer and a leader in developing unique yarns for the knitting and weaving industry.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers.  

• U.S. employment in the textile supply chain was 594,147 in 2018.  
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.  
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.  
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

On the occasion of the State Visit to Italy by Their Majesties The King and Queen of The Netherlands and a Dutch trade delegation led by the Minister for Foreign Trade and Development Cooperation, Mrs Lilianne Ploumen, the Italian and Dutch fashion and textile industry will join hands.
MODINT, the Dutch association for the Fashion and Textile industries and lead of the fashion mission and Sistema Moda Italia (SMI), the Italian association for the Fashion and Textile supply chain in Italy, have concluded a Memorandum of Understanding (MoU) which emphasizes the growing interaction between the Dutch and Italian fashion and textile industries.
During the Best of Both Event on Friday June 23rd in Milan, the Minister and a delegation of Dutch and Italian VIP’s and innovators active in the Fashion and Textile industry will witness the signing of a promising Memorandum of Understanding (MoU). The MoU defines actions by MODINT and SMI to help the Dutch and Italian fashion and textile industries work together on recycling, labour standards, sustainable raw materials and domestic production.
Modint and SMI are both members of the International Apparel Federation (IAF), an international organisation that supports industry development by helping to build intelligent connections among its members. In the MoU, Italian and Dutch businesses will explain how they cooperate, how they can support sustainable value chains, how they envision their business growing together in the coming years, and what their respective governments can do to support that growth.