From the Sector

In the first quarter of 2025, orders for textile machinery recorded by ACIMIT, the Association of Italian Textile Machinery Manufacturers, showed a sharp decline compared to the same period in 2024, down 29%. The index stood at 41.8 points (base year 2021=100).

The negative result reflects both a significant contraction in the domestic market and a pronounced slowdown abroad. In Italy, orders dropped by 57%, while foreign orders fell by 25%. The index for foreign markets stood at 43.3 points, while the domestic figure dropped to 30.5 points. The order backlog at the end of the quarter ensured 3.6 months of production.

The downturn also continues when compared to the previous quarter (October-December 2024), with overall orders decreasing by 15%.

Marco Salvadè, President of ACIMIT, commented: “The sector started 2025 on an even weaker footing than it ended 2024. On international markets, the deep uncertainty triggered by last year’s geopolitical tensions has been further worsened by the tariff decisions implemented by the Trump administration. In the US, orders remain at a standstill as the market awaits the next steps from the President. Some glimmers of hope come from the estimates of global export data for textile machinery in the first quarter: China, India, and Pakistan—key markets for technology suppliers—show signs of recovery compared to the same period in 2024.”

In Italy, the situation is even more critical, with the orders index at its lowest level, even surpassing the slump of 2020. “We need to look beyond 2025 and call on the Government to implement targeted, structural incentives for investments in capital goods, with simple procedures that allow companies to access them quickly”, Salvadè noted.

In the fourth quarter of 2024, the index of orders for Italian textile machines, compiled by the Economics Department of ACIMIT, the Association of Italian Textile Machinery Manufacturers, showed a 19% decline compared to the same period in 2023. In absolute terms, the index stood at 49.6 points (base 2021=100).

This result is due to a slight increase in order intake from the domestic market, contrasted by a decline in foreign markets. Orders in Italy grew by 6%, while abroad a 22% drop was recorded. The absolute value of the index in foreign markets was 48.3 points, while in Italy, it reached 58.5 points. In the fourth quarter, the order backlog ensured 3.3 months of production.

Overall, in 2024, the index recorded a 16% decrease compared to the 2023 average. Domestically, the index grew by 10%, whereas abroad there was a 19% decline.

Marco Salvadè, president of ACIMIT, commented: “The order index for the October-December 2024 period confirms a still weak order intake. The negative trend in machinery demand continues, especially abroad. According to data updated to October 2024, our exports have declined in all major target markets in the first 10 months of the year. Except for the Chinese market, Turkey, India, the United States, and Germany have all seen a drop compared to the same period in 2023.”

Conservation International and Sateri, a leading global producer of textile fibres, have announced the launch of the third phase of the Poyang Lake Ecosystem Restoration Initiative. This new phase marks a critical milestone in restoring China’s largest freshwater lake by integrating carbon neutrality efforts, building on the initiative’s significant success since its inception in 2019.

Located in Jiangxi Province, in the southeastern part of the country, Poyang Lake plays a critical role in regulating floods in the Yangtze River and supports the livelihoods of more than 45 million people living in the province, contributing more than 15% of the Yangtze River’s annual runoff. It is also a wetland of national and global importance, providing a habitat for flora and fauna of high conservation value, including the critically endangered Siberian crane and finless porpoise.

This new phase marks the fifth year of collaboration between Conservation International, a global non-profit organisation dedicated to protecting nature for the benefit of people and the planet, and Sateri. The initiative has seen significant successes since it began in 2019, including:

• Strengthening the management of 473,000 hectares of protected areas across 50 ecological zones;
• Enhancing the capability of 2,000 wetland rangers through capacity-building programme;
• Improving the habitat management of 350 species of wildlife, including the critically endangered finless porpoise and Siberian crane;
• Supporting the construction of five community artificial-wetlands for wastewater treatment, which can treat 56,000 tonnes of agricultural and domestic sewage; and
• Benefiting 25,000 local community members through livelihood support, vocational capacity-building and environmental education programmes.

Zhang Cheng, Program Director at Conservation International China, emphasized the project’s broader impact, "This initiative has truly enhanced biodiversity conservation and ecological education, while empowering local communities with sustainable livelihoods. It demonstrates the value of collaborative approaches in balancing ecological protection with human well-being."

In line with Sateri’s 2030 aspiration of becoming a ‘net positive impact’ company, the newly-launched third phase will advance these successes by focusing on:

• Research on the Freshwater Health Index (FHI) for the basin
• Protection and restoration of small wetlands
• Better climate change mitigation and adaptation for resilience

This collaboration, supported by the Jiujiang Municipal Government of the Jiangxi Province, underscores the shared commitment of both organisations to advancing biodiversity and sustainable development in one of China’s most vital freshwater ecosystems.

The Poyang Lake Basin Ecological Protection Project highlights Sateri’s efforts to address environmental challenges through practical actions and partnerships. The company continues to prioritize biodiversity conservation and sustainability while encouraging collaboration to achieve these goals.

Cai Zhichao, Vice President of Operations at Sateri, emphasised the initiative’s alignment with the company’s sustainability goals, "At the heart of our operations lies a commitment to the bioeconomy, where we aim to protect the natural resources we use. This conservation initiative not only helps us meet our internal sustainability targets but also contributes to advancing the United Nations Sustainable Development Goals (UNSDGs) 6 – Clean Water and Sanitation; 11 – Sustainable Cities and Communities; 12 – Responsible Consumption and Production; 13 – Climate Action and 15 – Life on Land. We accomplish this through innovation, advanced technology and low-carbon practices.”

In September, Ontex reached a binding agreement to sell its Brazilian business activities to Softys SA for an enterprise value of approximately €110 million, enabling improved focus on retail brands and healthcare in Europe and North America. Net proceeds of approximately €82 million are due at closing, which is expected during the first half of 2025, subject to customary conditions.

In October, the social negotiations regarding the transformation of the operating footprint in Belgium were successfully concluded. This transformation fits in Ontex’s footprint optimization, allowing to further strengthen Ontex’s competitive position. The total one-time cost is estimated at €(66) million, of which €(37) million was already recorded in the second quarter.

Q3 2024 results

• Revenue was €468 million, up 1.7% like for like. Volumes, including mix effects, were up 4.4%, driven by contract gains and supportive demand in adult care, and by growth in baby care with new retail customers in North America. Sales prices were 2.6% lower, as expected, reflecting raw material index decreases and investments in increased competitiveness. Forex fluctuations were supportive, adding 0.7%, bringing total growth at 2.4%.
• Adjusted EBITDA was €56 million, up 29% year on year, thanks to volume and mix growth and the cost transformation program delivery, contributing €8 million and €14 million respectively. The operational efficiency improved further by 3.7%, driving stronger profitability and competitiveness. Index-driven lower raw material costs more than compensated for lower sales prices, leading to a €4 million positive net impact. The increase of other operating and SG&A costs had a €(12) million effect, mostly due to continued inflation. Forex fluctuations had an adverse effect of €(2) million. The adjusted EBITDA margin thereby rose to 12.0%, up 2.4pp year on year.
• Operating profit was €8 million, compared to €29 million in 2023. The decrease relates to the transformation of the Belgian operating footprint and reflects the additional one-time provisions taken following the recent successful conclusion of the social plan negotiations.
• Discontinued operations generated a €14 million operating profit, compared to €12 million in 2023. While revenue was 3.0% lower like for like and the adjusted EBITDA margin dropped to 7.6%, reflecting more challenging market conditions, this was compensated by a net gain on disposal, that was triggered by the agreement to divest the Brazilian business.
• Net financial debt for the Total Group dropped €9 million to €579 million over the quarter. Combined with the adjusted EBITDA improvement, the leverage ratio thereby fell from 2.5x at the end of June to 2.4x at the end of September.

2024 outlook

Ontex’s management confirms its guidance for adjusted EBITDA margin, free cash flow and leverage for the full year. While new customers are on-boarded in North America, the ramp-up is phased more gradually over the third quarter and the coming months, leading management to review its revenue growth guidance, now expecting:

• Revenue [1] to grow between 2% and 3% like for like;
• Adjusted EBITDA margin [1] of 12%;
• Free cash flow higher than €20 million;
• Leverage ratio below 2.5x at year end.

Cascale, formerly the Sustainable Apparel Coalition, has published a white paper that details how the organization’s Higg Brand & Retail Module (BRM) can help companies meet their regulatory reporting obligations under European Union (EU) law. The paper, titled “How the Higg BRM Supports CSRD Reporting Obligations,” speaks specifically to how the tool is continually evolving to support companies in meeting their regulatory reporting requirements under the EU’s Corporate Sustainability Reporting Directive (CSRD).

In the face of today’s challenging and ever-changing legislative landscape, brands and retailers require reliable tools to support them in meeting compliance requirements. The Higg BRM is the leading framework specific to the textile, apparel, and footwear industry designed for brands and retailers to evaluate, assess, and improve Environmental, Social, and Governance (ESG) performance. The tool assesses 11 critical impact areas along global value chains to foster a holistic approach to sustainability, and is available on Worldly, a sustainability data and insights platform.

The Higg BRM has evolved to assist brands and retailers in fulfilling reporting obligations, while also supporting companies in the development of consistent corporate sustainability strategies to streamline efforts and reduce redundancy across sustainability initiatives. Beginning in 2024, Cascale conducted a thorough analysis of the European Sustainability Reporting Standards (ESRS), which provides specific guidance on how companies should report on sustainability. Cascale mapped how the standards align with the Higg BRM, offering a clear pathway for organizations aiming to comply with ESRS. As detailed in the white paper, there is a 65 percent content overlap between the ESRS and the Higg BRM.

While the Higg BRM aligns broadly with ESRS on sustainability topics, it also delves deeper into issues that are specific to the textile, apparel, and footwear sector. This focus on sector-specific material issues ensures Higg BRM users can expect a comprehensive tool that not only meets general reporting requirements but also emphasizes the nuances and priorities unique to the industry.

Cascale is currently hosting an ongoing webinar series titled “Navigating Legislation & the Higg Index,” which highlights how the Higg Index tools serve as a valuable resource and can offer specific guidance on reporting requirements. The most recent webinar, co-hosted by Cascale and Worldly, provided an in-depth discussion on how the Higg BRM intersects with key pieces of legislation at the EU level, such as the CSRD.

Cascale is committed to continuously evolving, updating, and refining the Higg Index to meet the needs of its members, Higg Index users, and the industry. In collaboration with Worldly, the Higg BRM will be further refined to enhance alignment with the CSRD and other relevant regulations. By identifying and bridging gaps, the Higg BRM continues to support stakeholders in achieving a more structured and transparent approach to sustainability reporting.

Women play a decisive role in achieving social and economic improvements for entire communities, including those involved in cotton production. Nonetheless, female farmers continue to face systemic disadvantages. Cotton made in Africa (CmiA) is pursuing gender justice to redress this imbalance, and the results of a recent study reveal significant progress in this regard.

A recent study shows women taking leadership through Cotton made in Africa as lead farmers. In this position, they serve as role models; they offer other female farmers someone to turn to; and they establish co-operatives together with other women to increase both their autonomy and their financial independence by creating new sources of income.

A major factor in this success has been collaboration with African cotton companies in the cultivation regions. This involves regular verifications to assess whether the partners’ activities comply with the standard’s requirements. The verifications are structured around a large selection of indicators that address issues including whether gender-related training was completed or whether projects promoting gender justice were conducted. Over the past years, this approach has not only raised awareness of gender equality among village communities but also increasingly challenged or dissolved traditional norms among the partner companies’ management and staff, thereby resolving inequities and empowering women at the systemic level. The study revealed that respondents see Cotton made in Africa as playing a highly supportive role. Intensive communication through training, verifications, and discussions with other cotton companies has given partner companies a clear awareness of how important gender justice is. As a result, they have become significantly more active in this regard, thereby encouraging women to assume a stronger position in agriculture and the communities. This is reflected in the fact that over 80 percent of both male and female respondents in Mozambique disagreed with the statement that care work should only be done by women. At least 60 percent of female and male farmers surveyed apply the skills and knowledge acquired through the training, which expressly addresses gender-specific aspects. In addition, over 80 percent of surveyed women stated that they receive the same share of proceeds from cotton sales as the other members of their families.

CmiA’s gender study was based on the internationally recognised Women’s Empowerment in Agriculture Index, which aims to measure and improve the role of women in agriculture. In addition to the survey of over 500 farmers, 26 qualitative interviews and around 30 group discussions were conducted in cotton-growing areas of Mozambique (in south-eastern Africa) and Benin (in western Africa) in order to ensure a representative sample.

Cotton made in Africa shares the United Nations’ views on the significance of gender equality, as outlined in the Sustainable Development Goals (SDGs), especially SDG 5. In its own work as a sustainability standard, CmiA also follows international norms and frameworks, such as ILO conventions or Agenda 2030; at a higher level, CmiA promotes gender equality in the textile industry by participating in expert groups like the Partnership for Sustainable Textiles’ strategy committee for gender equality.

Cascale (formerly the Sustainable Apparel Coalition) will host Manufacturer Forum: Shanghai on June 28, part of an annual series of events designed to amplify the voices of manufacturers around the globe. Featuring targeted programming designed to address local challenges faced by manufacturers, the event will highlight solutions provided by Cascale’s Higg Index suite of tools and growing list of impact initiatives. The event takes place at the Shanghai New International Expo Center in collaboration with ISPO Shanghai, the multi-segment summer trade show.

Following successful runs in Bangalore, Dhaka, and Shenzhen, Manufacturer Forum: Shanghai will further facilitate pre-competitive collaboration in order to share best practices and collectively address critical challenges. Keynote speakers include Colin Browne, the organization’s newly-appointed CEO, and Scott Raskin, CEO of Worldly, Cascale’s technology partner and event sponsor.

Reflecting “Catalyst for Change,” the current theme of Cascale’s Manufacturer Forum series, the Shanghai event reinforces the organization’s commitment to support an open exchange between manufacturers and better understand their needs and ongoing challenges to jointly develop solutions.

Over 200 attendees are expected to attend the event, which brings together manufacturers with business leaders and critical stakeholders. Programming will cover a wide range of topics, including what manufacturers need to know about global policy, how strategic partnerships can drive industry change, the evolution of Higg FEM and verification processes, and the latest on decarbonization impacts. To aid goal and target-setting, there will also be dedicated training on setting Science-Based Targets for decarbonization, as part of an evolving and interactive program.

Multiple global regulations set to take effect in the coming years have made traceability an imperative for retailers and brands. These include the Digital Product Passport, the Corporate Sustainability Due Diligence Directive, and the New York Fashion Sustainability and Social Accountability Act, to name a few.

While companies are aware of the importance of traceability, research indicates that they are not prepared to comply with upcoming legislation. A recent KPMG survey highlighted that 43% of executives at major enterprises had no visibility or were “largely unclear” about the performance of their Tier 1 suppliers. At the same time, only 28% of companies had clear visibility into Tier 2 suppliers.

TradeBeyond’s recently published Supply Chain Traceability Guide, the latest installment of its Retail Sourcing Report series, highlights the myriad challenges that companies face in implementing effective traceability programs. This report is relevant for all industries, and is especially topical for the apparel and footwear sectors, which are under increasing scrutiny to enhance traceability to ensure sustainability.

The report highlights retail’s slow progress in achieving transparency, as evidenced by the Fashion Transparency Index, which found that the average transparency score across 250 of the world’s largest brands and retailers was just 23%. That suggests that progress on transparent disclosure of social and environmental data is still lagging.
 
The report shows that brands fall short on most key measures of sustainability and traceability, including publishing a responsible code of conduct and providing visibility into their Scope 3 carbon footprint. The United Nations Economics Commission found that only a third of the top one hundred global clothing companies track their own supply chains. One of the obstacles is complexity. More than two-thirds (69%) of fashion companies report that complexity of their global business networks is an obstacle to visibility.

In addition to a lack of visibility, false sustainability claims are also rampant. Greenpeace found that in the apparel and footwear sector, 39% of sustainability claims are false or deceptive. Lack of third-party verification of ESG measures is also rampant.

The highest scoring brands in the 2023 Fashion Transparency Index included luxury brands such as Gucci and retailers such Target Australia, Kmart Australia, OVS, and Benetton. These companies back up their commitment with solid action on multiple measures of traceability.

Along with legislative requirements, consumers are a key driving force pushing companies to improve their traceability initiatives. McKinsey research found that 66% of consumers consider transparency to be a key factor when making a purchase decision and 73% of consumers would pay more for products with transparency into production and sourcing.

The report also highlights key challenges to overcome in the journey to traceability, including effective communication between stakeholders, compliance with new regulations, technology barriers, and data complexity.

On the positive side, the industry is responding with sophisticated technology, including software systems that incorporate artificial intelligence and blockchain-enabled traceability, which provide the required visibility and compliance.

Traceable fiber technology, which allows for traceability from the material origin of a product until its end-life, provides the option of a “fiber-forward” rather than a “product backward” approach to achieving traceability.

Aside from the regulatory and consumer drivers, there is a strong business case for implementing traceability, which includes cost savings, operational efficiency, brand protection and reducing supply chain risk. As such, TradeBeyond expects a rapid evolution in traceability programs across industries, especially in those that lag in best-practices.

While there has been considerable progress in recent years toward accurately tracing the complete origins of products, much more needs to be done. Brands and retailers must intensify their efforts to stay compliant with escalating regulations and align with evolving consumer preferences.

Cascale, a non-profit alliance for driving impact in consumer goods (formerly the Sustainable Apparel Coalition), announces Colin Browne as its new Chief Executive Officer, effective May 1, 2024.

Browne previously served as Interim CEO and Chief Operating Officer of Under Armour, a Cascale member. During his tenure at Under Armour, Browne oversaw sustainability efforts and, in addition, led significant transformations across supply chain, go-to-market and technology. In 2023, the company shared achievements related to its environmental footprint, product circularity, and renewable energy goals – some accomplished with Cascale’s Higg Index suite of tools.

Prior to joining Under Armour, Browne was managing director of Asia Sourcing for VF Corporation, a Cascale member that includes The North Face, Timberland, Vans, and Smartwool brands. In addition to his experience leading brands, Browne also spent four years running manufacturing plants in Thailand and began his career at Bally Shoe factories in the UK. He has lived and worked in the UK, South Korea, mainland China, the Philippines, Thailand, Hong Kong SAR, and the USA; his international experience and localized approach underscore his commitment to Diversity, Equity, and Inclusion (DEI) both in and outside of the workplace. Browne also served as the Chairman of the American Apparel and Footwear Association and was on the board of the World Federation of Sporting Goods Industries. As a member of the Worldly Board, the leader in environmental and social impact data for the apparel and footwear industry and the exclusive platform for Cascale’s Higg Index tools, Browne will ensure a unified approach to advancing sustainability initiatives across both organizations.

During his first 100 days with Cascale, Browne will connect with the organization’s 300+ members across the value chain, emphasizing manufacturer engagement and relationship building. He will also engage Cascale’s broader ecosystem of stakeholders including NGOs, governments, and academia. Browne is personally committed to Cascale’s vision to lead the consumer goods industry to combat climate change, foster decent work for all, and build a nature-positive future.

In the fourth quarter of 2023 Italian textile machinery orders index, drawn up by the Economics Department of ACIMIT, the Association of Italian Textile Machinery Manufacturers, appears to be stationary compared to data recorded for the same period in 2022. In terms of absolute value, the index stood at 82.4 points (basis: 2015=100).

This is the result of an upswing in orders from foreign markets, counterbalanced by declining orders on the domestic front. While orders in Italy decreased at 18% rate, a 4% increase was observed abroad. The absolute value of the index on foreign markets amounted to 77.9 points, whereas it came in at 126.2 points domestically. Overall for the fourth quarter, the average order backlog yielded 3.7 months of assured production.

For the whole 2023 year, the index declined 25% overall compared to the 2022 average (absolute index of 82.4). On the home front however, the index dropped 24% (absolute index of 124.5), while slipping 25% abroad (absolute index of 78.4).

ACIMIT president Marco Salvadè commented the data: “The orders index for October – December 2023, as elaborated by our Economics Department, confirms an intake of orders that is still weak, with a negative trend in demand for machinery that is ongoing for the domestic market.” Nonetheless, the orders index abroad shows a slight increase. “We estimate that the global geopolitical context is still a source of concern,” continued Salvadè, specifying that, “For the first nine months of 2023, Italian exports on major global markets (i.e. China, Turkey, India and the United States of America), confirm a widespread decline. However, some positive signs emerged in the fourth quarter of last year, as reflected by the latest orders index. For 2024 we expect a consolidation of this trend reversal.”