From the Sector

European Textiles and Clothing (T&C) industry coming out of the Covid19-crisis, but facing new challenges ahead. This recovery may however be disrupted by the current supply chain and energy problems. Latest economic data on the European T&C industry confirm further recovery from the corona pandemic. The textile activity has now surpassed its pre-pandemic level from Q4 2019 (+3.6%); the clothing sector still remains 11.5% below, but continues to improve.

In quarter-on-quarter terms, the EU turnover showed signs of improvements across the sector. The textile turnover increased by +3.3% in Q2 2021, after slightly contracting in Q1 2021. Similarly, the business activity in the clothing sector expanded by +7% in Q2 2021, after increasing by +1% in the previous quarter.
 
In the 2nd quarter 2021, the EU-27 trade balance for T&C improved, resulting mostly from an increase of export sales across third markets and a drop of textile imports. T&C Extra-EU exports boomed by +49% as compared with the same quarter of the previous year. T&C Extra-EU imports went down by -26% as compared with the same quarter of the previous year, following a decrease of imports from some main supplier countries. EU imports from China and the UK collapsed due to a combination of Brexit and weaker demand in Europe.
 
During the second quarter of 2021, job creation was slowly stabilising in the textile industry (-0.2% q-o-q), while employment in the clothing sector continued to be affected by lower levels of production activity in industry during the first part of the year (-1.2%). When compared to its pre-pandemic level in Q4 2019, EU employment in Q2 2021 was still 4.4% down in textiles and 11.8% down in clothing.

However, this fragile recovery is hampered by higher shipping costs and prices’ increase in raw materials and energy. The cost of energy, in particular gas, has increased more than 3 times since the beginning of this year. Since the announcement of the EU’s “Fit for 55” package, we have seen CO2 prices rising above €60. This inevitably has an impact on the industry’s competitiveness, especially in a global context. The future recovery is also threatened by some factors limiting production, such as shortage of labour force and equipment, which are putting additional pressure on T&C industries.

Director General Dirk Vantyghem commented on these latest figures: “Our companies have shown great resilience during the pandemic, and their latest export performance is an encouraging sign of recovery. This recovery may however be disrupted by the current supply chain and energy problems. Once again, recent developments show that this transition towards more sustainable production can only work if organised in a global context, avoiding carbon leakage and with an effective level playing field. This must be considered in the upcoming EU Textiles Strategy.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today on the White House announcement that President Biden will sign an executive order today, “ensuring the future of America is Made in America by all of America’s workers.”  Further, NCTO launched a new industry video campaign today that outlines steps the Biden administration and Congress must take to re-shore the production of personal protective equipment (PPE) and the entire supply chain for critical products. The video can be found here: MakeAmericanPPE.

National Council of Textile Organizations President and CEO Kim Glas said:
“We commend President Biden for taking action in his first days in office to strengthen our domestic supply chain and manufacturing base with a “Made in America” executive order directing the federal government to spend taxpayer dollars on American-made goods produced by American workers using American-made components.

Increasing the domestic procurement threshold and the price preferences for domestic goods under the current Buy American law will bolster domestic production and stimulate more investment in U.S. manufacturing.

We believe it is critical that taxpayer dollars are used to invest in American manufacturing and our workforce. It is essential that we close loopholes in our Buy America laws, expand application and product coverage of domestic content rules, and close unnecessary contract waivers that undermine American manufacturing and its workforce.
 
We look forward to working with the Biden administration and Congress on immediately strengthening our domestic procurement laws. The COVID-19 crisis was exacerbated when foreign supply chains broke down leaving our frontline workers vulnerable, underscoring the vital need for America to manufacture essential medical products at home. We look forward to working with the Biden administration on implementing this Executive Order, and with members of Congress to push critical bipartisan legislation to help ensure this onshoring effort is fully realized.

We also sincerely thank Senator Sherrod Brown (D-OH) and Representative Kathy Manning (D-NC) for their leadership in sending a recent letter to President Biden, requesting the president prioritize “Made in America” personal protective equipment (PPE) purchases and outlining key steps the administration can take to produce and procure quality American-made PPE for frontline workers.”

Anglo Recycling Technology is on course to deliver no less than a million of its special nonwoven mats for hydroponically growing herbs to a major customer in the Middle East this year. The Growfelt-branded products arose from the discovery back in the late 1990s by Anglo Recycling’s owner Simon Macaulay, that the Sussex-based retail supplier of salads, Van Heineken Brothers (now Vitacress), used nonwoven felts on which to grow its cress.

“I drove down to see the company’s production manager, Chris Moncrieff and discovered they were indeed growing cress on felts, but they were made from virgin materials and he liked the idea of maybe using a blend of virgin fiber offcuts of cotton, wool, and polypropylene,” he explains. “That’s how Growfelt was born. For the first six years, we supplied exclusively to Vitacress and in return, they helped us to bring our factory up to food-grade standard and to set in place a testing regime for Salmonella E-Coli coliforms and listeria.”

In recent years, however, Anglo Recycling, which is based in Whitworth, near Rochdale in the UK, has significantly broadened its customer base. It now offers a core of three growing media products to meet the differing needs of customers across Europe, the Middle East, and the Far East, whether for retail presentation and appearance or for water holding.

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).

ROICA™ experts showcase the world-first ROICA Eco-Smart™ Family that offers 2 responsible made yarns: a GRS (Global Recycled Standard) version 3 certified yarn and the world’s first yarn awarded Cradle2Cradle Material Health Gold Level Certificate and Hohenstein Environment compatibility certification.
ROICA Eco-Smart™ Family is a range of the world's first responsibly made premium stretch fibers, which create ROICA™ smart yarns that offer sustainable solutions with impressive certifications:

• Global Recycled Standard (GRS) certified by Textile Exchange - ROICA™ constructed with more than 50% pre-consumer recycled content.
• Cradle to Cradle Certified™ Gold Level for Material Health product and ingredients - ROICA™ yarn evaluated throughout the supply chain for lower impacts on human and environmental health. Striving toward eliminating all toxic and unidentified chemicals for a safe continuous cycle. Hohenstein Environment Compatibility Certificate - ROICA™ proudly breaks down without releasing harmful substances.

At the corporate level, ROICA™ has achieved the following certifications: Oeko Tex 100, ISO 14001:2004, ISO 9001:2008. Moreover, ROICA™ mills in Germany achieved the certification of ISO 50001:2001.