From the Sector

ITM, to be held in Istanbul at the beginning of June, will once again see a strong participation of VDMA member companies. Almost 90 exhibitors from Germany will exhibit at the trade fair, most of whom are members of the VDMA. In addition to the VDMA member companies exhibiting with their own booth, numerous VDMA members will be represented in Istanbul via agents. They cover nearly all different machinery chapters with a focus on spinning, nonwovens, weaving, knitting, warp knitting and finishing.

In Istanbul, the VDMA members will show their latest innovations. In technological terms, significant trends are digitalisation and automation. These themes have been present for some time but will continue to play a central role in meeting the challenges for many years to come. Another trend that has also been around for a while is sustainability. Today it is much more than a buzzword: Efficiency in energy, raw materials or water as well as recycling are not feel-good issues but have a real economic and social background.

For the textile machinery manufacturers organised in the VDMA, Turkey is a major trading partner. In 2023, textile machinery and accessories worth approximately 350 million euros were exported from Germany to Turkey, which made Turkey the second biggest sales market for German companies. After three years in which China was the most important supplier of textile machinery to Turkey, Germany has now regained this top position.

Turkey is at the doorstep of Europe, which gives Turkish textile producers a powerful geographic advantage over Asian sourcing destinations. The textile companies in the region have a deep experience and know-how in making the highest quality textile and apparel for leading markets of Europe and employs a young, dynamic, and well-educated workforce.

But ITM is not just a place for visitors from Turkey, as Dr. Harald Weber, Managing Director of the VDMA Textile Machinery Association explains: “It should not be forgotten that ITM not only attracts visitors from Turkey, but also from the Middle East, Central Asia and North Africa. Turkey's proximity to the European Union and its fully integrated textile value chain also make it interesting in terms of the EU's strategy for sustainable and circular textiles and the increasing importance of recycling in the future.”

For Italian textile machinery sector, 2024 has begun without anything seemingly special. The first quarter has seen the orders index, as reported by the Economics Department of ACIMIT – the Association of Italian Textile Machinery Manufacturers – remain stationary compared to the same period the previous year. In absolute terms, the index came in at 61.2 points (basis: 2021=100).

This result is due to entirely different trends between the domestic and foreign markets. On the home front, orders were up 15% compared to the first three months of 2023, whereas orders abroad fell by 4%. The absolute value of the index on foreign markets came in at 59.4 points, in comparison to a 73.9 points in Italy. In both cases, new orders remained well below the numbers recorded for 2021, considered as a base year. During the first quarter, order backlog reached 4 months of assured production.

ACIMIT president Marco Salvadè thus commented the data: “The orders intake for the period from January to March 2024 confirms an overall sense of caution on foreign markets in planning new investments. The global geo-political framework remains complex, and these uncertainties are reflected in the buying decisions of many textile manufacturers. Therefore, our primary markets, which include China, Turkey and India, have failed to record any clear signs of growth in demand.”

On the contrary, domestic orders appear to be slightly on the rise. “Following a sharp decline in 2023, new orders from the beginning of the current year have recovered partially,” states ACIMIT’s president. “However, I don’t believe conditions are yet right for a clear inversion of this trend. Here in Italy as well, many investments remain on hold, awaiting the implementation of Transition 5.0 plan. Subsequently, we’ll be in a position see whether the domestic market will react positively to the adoption of these new measures.”

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement welcoming the appointment of Katherine White as Chief Textiles and Apparel Negotiator for the U.S. Trade Representative’s Office (USTR).

“Katherine White is an excellent choice for the critical position of Chief Textiles and Apparel Negotiator. We are also grateful to U.S. Trade Representative Ambassador Katherine Tai for elevating this position back to a political appointee role, which is historically how it has been designated.

Katherine comes to this position with an outstanding resume, including a strong knowledge base and expertise in manufacturing policy and on textile-related trade issues, having worked most recently as an International Trade Policy Advisor on the House Ways and Means Committee, and prior to that, at the U.S. Department of Commerce and the White House.

Given the prominence of both the agency and her political appointment, we know she will play a highly instrumental role in shaping policy impacting our industry. She is a fantastic choice.  We thank Ambassador Tai for the redesignation of this critical office and her support for our textile industry and its workforce. We also sincerely thank Dr. Laurie-Ann Agama for her service in the role through this transition.

We could not be more delighted to work with Katherine in her new capacity and look forward to coordinating with her on manufacturing and worker-centered trade policy that will help bolster the vital domestic textile sector.”

Glen Raven hosted United States Trade Representative (USTR) Ambassador Katherine Tai in an important visit to the company’s yarn spinning manufacturing facility and headquarters for its Sunbrella® flagship brand in Burlington, N.C. followed by an industry supply chain roundtable.

Ambassador Tai’s visit coincides with USTR’s Federal Register notice for public input to inform the administration’s development of trade and investment policy initiatives related to a domestic supply chain resilience plan.

USTR has highlighted domestic textiles as a critical part of the supply chain. The textile sector, which includes yarns, fabrics, apparel and other finished goods, will be part of its fact-finding investigation into shaping policy tools that could be deployed to enhance supply chain resilience. The office is requesting input on policies that are currently working well for these sectors, and those that are not working well, in advancing domestic supply chains.

The Ambassador’s visit to Glen Raven included a tour of the Sunbrella facilities, a design and innovation center, and a roundtable discussion with several other textile executives based in North Carolina who highlighted the significant impact of the sector to the U.S. economy.

Glen Raven, a family-owned company founded in 1880, operates five manufacturing facilities in North and South Carolina employing 2,500 people, including their joint venture with Shawmut Corporation. The company is currently in the process of scaling a $250 million multi-phase U.S. capacity expansion plan of its facilities and infrastructure to meet customer demand.

STFI will be presenting high-end textile products and solutions at Techtextil 2024. The highlights from current research results and innovations provide an insight into the digitalisation of textile production, show applications for 3D printing and smart technical textiles and provide examples of particularly sustainably designed products as well as innovative approaches for protective and medical textiles.

The central highlight of STFI's presence at Techtextil is a robot system that demonstrates the automated processing of a bobbin frame on a small scale. The pick-and-place application demonstrates camera-supported gripping of the bobbins. The robot is part of the STFI's “Textile Factory of the Future” which demonstrates automation solutions for the textile industry in a laboratory environment.

From the field of sustainable products and solutions, a sleeping bag with bio-based and therefore vegan filling material and a natural fibre-based composite element for furniture construction, in which LEDs and capacitive proximity sensors for contactless function control have been applied using embroidery technology, will be on show. Printed heating conductor structures demonstrate current research work for the e-mobility of the future, as the individually controllable seat and interior heating should ultimately reduce weight and save energy compared to conventional heating systems.

While a protective suit for special task forces protects against the dangers of a Molotov cocktail attack, a shin guard and a knee brace with patellar ring illustrate the process combination of 3D printing and UV LED cross-linking. Other highlights from lightweight textile construction include the rib of a vertical rudder of an Airbus A320 and a green snowboard made from recycled carbon fibres.

A new promotional initiative aims to boost trade relations between Italy and India in the textile sector. 11 Italian textile machinery manufacturers will be taking part in the forthcoming technological symposia scheduled in New Delhi and Mumbai from 9 to 12 April. The two events, organized by the Italian Trade Agency and supported by the Ministry of Foreign Affairs and International Cooperation, will allow Italian companies to showcase their technologies to a selected audience of Indian textile entrepreneurs.

The textile sector is of great significance in the Indian economy, contributing more than 2% of the GDP and allowing the Country to be among the largest exporter of textile and apparel items. Moreover India represents the third largest foreign market for the Italian textile machinery industry.

In 2022 India imported Italian textile machinery for a total value of about 200 million euro. Referring to the first 9 months of 2023, the value shows a slight decrease compared to the value for the same period of the previous year, but the forecast for the current year remains positive.

Italian companies participating in the symposia, all of which are ACIMIT members, are: Autefa, Cubotex, Danitech, Lafer, Mcs, Monti-Mac, Reggiani Macchine, Salvadè, Savio, Sicam, Testa.

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.”

This year’s edition of ITMA ASIA + CITME proved to be a success for the exhibiting VDMA member companies. Measured by booked square metres, Germany had the largest contingent, among the foreign exhibitors. More than 40 VDMA member companies were exhibiting their innovative products in Shanghai.

Dr. Janpeter Horn, chairman of the VDMA Textile Machinery Association noted: “Although facing a difficult market situation, this year’s edition of ITMA ASIA + CITME has exceeded the expectations, both in terms of the number of visitors and the quality of the talks. The significant number of foreign visitors to the fair was particularly pleasing.”

Solutions were demonstrated for more sustainable textile productions by most of the exhibitors, and here the VDMA members presented their technologies for saving water, energy and raw materials under the heading “Smart technologies for green textile production.”  

Dr. Uwe Rondé, CEO, Saurer Intelligent Technology AG explained: “Saurer is satisfied with both the number of visitors and the quality of the discussions. Our booth was full from morning to evening with customers focused on latest technologies within the three mega trends: recycling, automation and digitalisation. Although machine utilisation in the spinning mills is still well below average, people are already gathering information and thinking about what to invest in once the market recovers.”

Benjamin Reiners, owner of Reiners + Fürst stated: „This year’s ITMA ASIA + CITME has exceeded our expectations by far. Especially the first day - a Sunday - has brought many high-quality customers and exclusively decision makers to our booth. We estimate about 20% international customers mainly from Bangladesh, Egypt, India, Iran, Pakistan, Uzbekistan and Vietnam. All customers agreed that the market situation at the moment is difficult, capacity usage is between 50-75% in the ring spinning sector and improvement is expected not before the 2nd half of 2024. Nevertheless the general spirit is very positive.“

“This ITMA ASIA was a great success for Trützschler. We welcomed a large number of Chinese visitors to our booth, as well as a significant number of interested international visitors”, said Dr. Bettina Temath, Head of Global Marketing Trützschler Group SE.

Georg Stausberg, CEO of the polymer processing solutions division and chief sustainability officer of the Oerlikon Group stated: „We can look back on a successful show where we were able to meet many of our customers not only from China, but also from Pakistan, India and Indonesia, for example.”

“A very well-attended trade fair, with interesting discussions, great innovative topics, in line with the modern and rapidly developing China" noted Wolfgang Schöffl, head of product line weaving machines and member of the extended management, Lindauer Dornier.

The VDMA Textile Machinery Association and VDMA China were present at the fair, to support the members e.g. with regard to IPR. With the help of a VDMA expert and a contracted law firm, the member company Sahm submitted a complaint application for patent infringement disputes during the exhibition to the onsite IPR office. Both parties, Sahm, and the Chinese company, that used patented design without permission reached an agreement: The Chinese company had to stop displaying functions and designs involving patent infringement on site which meant the removal of some structural parts and the covering of key components protected by patent protection.

Dr. Harald Weber, managing director of VDMA Textile Machinery concluded: “Asia, and China in particular, represent the primary foreign markets for the VDMA member companies in the sector. The Chinese market is the main destination for their exports. Other major export destinations in Asia include India, Pakistan, Bangladesh and Uzbekistan. ITMA ASIA + CITME provides a unique platform to showcase technologies for customers directly in Asia. The VDMA member companies are looking forward to the coming edition of the fair from 14 to 18 October 2024 in Shanghai.”

The latest survey of VDMA members' subsidiaries in China gives reason to hope that the economic situation in the Chinese textile industry could also improve significantly in the second half of the year. In addition, European textile machinery manufacturers are urged to be present on the most important market and at the trade fair and to offer Asian customers most advanced technology for their demanding challenges.

The National Council of Textile Organizations (NCTO), spanning the entire spectrum of U.S. textiles from fiber to finished sewn products, commended Congress for passing the Fiscal Year 2024 National Defense Authorization Act (NDAA), legislation that will help preserve the Berry Amendment supply chain and direct the Department of Defense to expand its procurement of domestically-made textile goods for military use.

“We applaud the House and Senate for getting NDAA across the finish line and are pleased the legislation will now go to President Biden for his signature,” said NCTO President and CEO Kim Glas. “NCTO sincerely thanks Rep. Don Davis (D-NC) for sponsoring language expressing concern about offshoring textile manufacturing and highlighting the need for the DOD and Defense Logistics Agency (DLA) to procure more domestically-produced textile goods for military use. The language also requires the DOD to report on the feasibility of requiring American-made home textile goods to be used on military installations.”

“We also want to thank Rep. Joe Courtney (D-CT) who sponsored language expressing concern about economic factors impacting the capacity of the U.S. textile industry to meet DOD requirements and calling on the agency to assess labor shortages, contract forecasting and lack of investment in manufacturing capabilities and report back to Congress.”

Finally, this NDAA report language calls for DOD to report to Congress its assessment of the textile industry as it relates to labor shortages, contract forecasting and lack of investment in manufacturing capabilities.

“The domestic textile industry and supply chain are vital to the warm industrial base for the production of critical items that contribute to our nation’s health and safety. It is imperative that Congress and the administration continue to support this industry—a key contributor to our national defense that supplies over 8,000 products a year to our men and women in uniform—through expanded government procurement of American-made items. The NDAA is critical to supporting this manufacturing base,” Glas said.

EURATEX welcomes the unanimous vote in support of the new rules of origin under the PEM Convention, as a historic achievement. Facilitating trade and investments in the “PanEuroMed” region (covering 27 EU member states and 24 partner countries in the neighbourhood region)¹ is top priority region for the EU, as trade with these countries accounted for €677 billion in 2023. For the EU textile and clothing sector, the region represents 35% of its exports and 21% of its imports.
 
In 2013 the European Commission adopted a package of proposals aimed at increasing trade between the European Union and neighbouring countries in the Pan-Euro-Mediterranean (PEM) region. The proposal introduced modernised rules of origin of the PEM convention, lifting the prohibition of duty-drawback and introducing the principle of “full cumulation”.

Today, after ten years of intense negotiations which EURATEX supported, the European Commission reached a full and final agreement with all PEM partners. This is a landmark achievement that will unlock the full potential of the Euro-Mediterranean area as the biggest and most integrated region of advanced manufacturing and trading of sustainable textiles and clothing. The rules adopted today will accelerate the integration of T&C supply chains and boost T&C production and trade within the region, both in the East and Southern borders of the EU. In a moment when companies are looking at moving their production from Asia to nearby, like-minded and more reliable countries , it is very timely to have the PEM Convention implemented.

EURATEX’s President, Mr Alberto Paccanelli, commented: “This is a strategic trade deal that can help European companies recover from the multiple crisis which we face since 2020”. He continued “We call on the European Union to not stop here, but keep up the efforts to secure trade deals that are good for European companies and their competitive position in the world. The next objective should be the adoption of the EU-Mercosur Agreement and a conclusive settlement of all trade disputes with the United States”.    
 
According to Director General Dirk Vantyghem, “today’s unanimous vote in favour of the modernised PEM rules is good news for our industry.. We should now engage with these partner countries to fully exploit the potential of these new rules. EURATEX is ready to engage in an industrial dialogue with the companies from the PEM Countries to facilitate their transition to the new framework”.

¹ The PanEuroMed contracting parties are: the EU, the EFTA States (Switzerland, Norway, Iceland and Liechtenstein), the Faroe Islands, the participants in the Barcelona Process (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the territories of West Bank and Gaza, Syria, Tunisia and Turkey), the participants in the EU's Stabilisation and Association Process (Albania, Bosnia and Herzegovina, the Republic of North Macedonia, Montenegro, Serbia, Kosovo), the Republic of Moldova, Ukraine.