The US Market for Technical Textiles

Transcription

1 The US Market for Technical Textiles MAY 2002 Prepared by: WOON CHANG & PETER KILDUFF NC STATE UNIVERSITY, COLLEGE OF TEXTILES On behalf of: SMALL BUSINESS & TECHNOLOGY DEVELOPMENT CENTER 5 West Hargett St., Suite 600 Raleigh, NC info@sbtdc.org

2 Table of Contents I. Introduction...1 II. Industry Definition...1 III. Industry size and growth...4 IV. Industry Drivers and Development Trends...13 Home textiles...15 Clothing components...15 Industrial textiles...15 Transportation textiles...15 V. Industry Structure...16 VI. Technical Textile Production in North Carolina...19 VII. Discussion & Outlook VIII. Bibliography & Resources...23 A General References...23 B Statistical References C Journal & Articles This material is based on work supported by the US Small Business Administration (SBA). Any opinions, findings, conclusions, or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. SBTDC Technical Textiles Industry Study 2002

3 List of Tables Table I: Industrial Textile Products...2 Table II: End use Applications for Technical Textile Products Table III: End-use Based Divisions of the Technical Textile Industry According to Techtextil....4 Table IV: Estimated World-wide Consumption of Technical Textiles by End-use Market in Millions Pounds and US$ Millions...5 Table V: Estimated World-wide Growth of Technical Textile Markets Percentages....6 Table VI: Estimated Consumption of Technical Textiles World-wide in 2000 by Product Category with Growth Rate Forecast to Million Pounds and US$ Millions..6 Table VII: World-wide Consumption of Technical Textiles by Geographic Region in Millions Pounds and US$ Millions...7 Table VIII: Total Fiber Consumed in US Technical-Type Textile Products. Millions Pounds Table IX: Woven and Knitted Fabric Consumption for US Industrial Textiles. Thousand Square Yards and Million Pounds...10 Table X: Value of Shipments in Selected Items. Millions Dollars..11 Table XI: US Production of Technical End-use Items..12 Table XII: Employment in Selected Industry Sectors Thousands.18 Table XIII: Capital Investment in Selected Sectors of the US Technical Textile Industry. Millions Dollars.19 Table XIV: Location of Leading Companies in Selected Items Millions Dollars...20 Table XV: North Carolina Industry Data for Selected Items (1997)..21 List of Figures Figure A: Share of Fiber Consumption by End-Use for Technical Textiles in the US in Figure B: The Share of Value of Shipments in Selected Items for Industrial Textiles in the US in Appendix 1997 NAICS Matched to 1987 SIC, Manufacturing, part (NAICS ).25 SBTDC Technical Textiles Industry Study 2002

4 The US Market for Technical Textiles I. Introduction Technical or industrial textiles represent a significant proportion of total textile activity in North America. In 2000, estimates suggest it accounted for some 30% of end-use fiber consumption in the region (around 3.5 million metric tons) and was worth $17 billion. Because of the industry s strong growth, demanding technical requirements and close working relationships between suppliers and customers, many segments offer long-term potential for US companies. II. Industry Definition Technical textiles comprises a diverse range of manufacturing activities tied to broad end-use markets. The industry embraces products ranging from the mundane, such as wiping cloths to the spectacular such as heart valves, aerospace composites and architectural fabrics. The supply chain that connects fiber producers with end-use markets is a long and complex one. It embraces companies vast and small from fiber producers through yarn and fabric manufacturers, finishers, converters, and fabricators who incorporate technical textiles into their own products or use them as an essential part of their business operations. The common characteristic that unifies all technical textile applications, activities and companies is the use of fibers, often engineered in fiber, yarn and fabric form, to provide specific technical performance characteristics to meet the final customer/ market requirements, either as a final product in themselves or as a component in another product. Below are two definitions of technical textiles and industrial textiles: Technical textiles: Textile materials and products intended for end-uses other than non-protective clothing, household furnishing and floorcovering, where the fabric or fibrous component is selected principally but not exclusively for its performance and properties as opposed to its aesthetic or decorative characteristics. Source: Textile Terms and Definitions, TI, Manchester, 10 th Ed.. SBTDC Technical Textiles Industry Study 2002 Page 1

5 Industrial textiles: A category of technical textiles used either as part of an industrial process or incorporated into final products. Source: Textile Terms and Definitions, TI, Manchester, 10 th Ed. According to the Fiber Organon, industrial uses for fibers in the US are divided into 12 categories, as shown in Table I. End-Uses Transportation Upholstery and Auto Seat Covers Hose Belts Chafer & Other Tire Rope, Cordage & Clothesline Substrate Fabrics Table I: Industrial Textile Products Descriptions Only uncoated types. Substrates for coated transportation upholstery and auto seat slipcovers are shown under Substrate Fabrics. Wrapped, knitted, braided and woven products. Both Rubber and non-rubber mechanical belting. Flippers, liners, bead wrap & breaker strips. All methods of manufacture, i.e., twisted, braided, extruded monofilament, etc. Rope is defined as being 3/16" or greater in diameter, with products less than 3/16" classified as cordage or clothesline. Woven, knit and nonwoven fabrics used as a substrate for flocking, fine gauge tufting and vinyl, rubber or urethane coating, lamination or impregnation. Construction Fabrics Broad woven, nonwoven or spunbonded fabrics, except upholstery and narrow fabrics, used in the construction of automotive seating, upholstered furniture, box springs and mattresses. Agricultural Cloth Luggage, Handbags & Other Soft Goods Civil Engineering Tents, Tarpaulins, Etc. Other Stuffing Source: Fiber Organon Poultry, shade cloth and commodity covers including coated fabric. Soil erosion and stabilization cloth are under Civil Engineering Uses. Only uncoated types. Examples of "soft goods" include military backpacks, athletic backpacks, wallets, briefcases and other softsided containers. Paving, soil erosion and stabilization cloth, drainage applications, roofing and other construction industry materials. Only uncoated items, such as parachutes, deceleration chutes, tow targets and awnings, beach, garden and tractor umbrellas. Substrates for coated items are shown under Substrate Fabrics. Non-engineered fiber and needle batts for filling uses. Fiber Organon also identifies 17 product usage areas for technical textiles as shown in Table II. SBTDC Technical Textiles Industry Study 2002 Page 2

6 Table II: End use Applications for Technical Textile Products End-uses Narrow fabrics Medical, surgical & sanitary Transportation fabric Tires Hose Belting Electrical applications Reinforced plastics Felts Filtration Sewing thread Rope Bags & bagging Coated & protective fabrics Paper & tape reinforcing Fiberfill, stuffing & flock Miscellaneous Source: Fiber Organon Products Woven labels, industrial webbing, shoelaces, tapes (Venetian blinds & industrial), transportation seat belts, auto wind lace, channeling & trim, outdoor furniture webs and zipper tapes Bandages, gauzes, adhesive tapes & plasters, sanitary napkins & tampons, cotton diapers, rayon disposable diapers, surgical gowns and packs Auto seat upholstery & slipcovers, sidewall, headlining and sheeting Tire cord & tire cord fabric, chafer and other tire components Wrapped, knitted, braided and woven products Flat conveyor & transmission belts Electric wire insulation & covering, friction tape and cable wrap, stuffing & identification High and low-pressure laminates used in the manufacture of construction materials, process equipment, transportation uses and marine, missiles, molded electrical parts, housing, seating, trays, etc. Wet & dry papermakers' felts, mattress felts, cushioning and wicking felts Woven & nonwoven filters for wet & dry filtration, tea bags Home sewing, industrial and weight goods, medical sutures Hawsers, baler, harvest twine, clothesline, tying twine, fishnets, seines & netting twine Synthetic yarn in nylon mailbags, olefin lemo mesh & closewoven bags, sandbag, olefin bags for wool bales, carpet backing bale wrap Tents & tarpaulins, substrates for vinyl, rubber or urethane coating, lamination or impregnation, parachutes, deceleration chutes & tow targets, awnings, beach, garden & tractor umbrellas, inflatable dunnage & cushions, airbags and boat & pool covers Gummed and pressure sensitive tapes, nonwoven bonded structure for paper, tape and ribbon reinforcing Used in all applications (apparel, home textiles & industrial) Abrasives, book binding, luggage & handbags, shoes & slippers, tobacco cloth, woven wiping cloths and wall-covering fabrics Techtextil defines 12 main end-use markets for technical textiles. These are listed in Table III. These terms and definitions are not universally used and they are not without their problems. Their main shortcoming is that they are market based definitions and therefore ignore other important criteria that can be used to define industrial sectors or sub-sectors, such as fiber (cotton industry, jute industry); process technology (composites industry, nonwovens industry); activity (fiber industry, finishing industry); or product (carpet industry). Notable, also, is the absence of the military market, the products of which are subsumed under other categories. However, the Techtextil typology provides the most comprehensive attempt to classify the structure of end-use markets for technical textiles. SBTDC Technical Textiles Industry Study 2002 Page 3

7 Table III: End-use Based Divisions of the Technical Textile Industry According to Techtextil Description Markets/ Applications Agrotech Agriculture, aquaculture, horticulture and forestry Buildtech Building and construction Clothtech Technical components of footwear and clothing Geotech Geotextiles for landscaping and civil engineering Hometech Technical components of furniture, household textiles, and floor-coverings Indutech Filtration, conveying, cleaning and other industrial uses Medtech Hygiene and medical Mobiltech Automobiles, shipping, railways and aerospace Oekotech Environmental protection Packtech Packaging Protech Personal and property protection Sporttech Sports and leisure Source: Techtextil/ David Rigby Associates III. Industry size and growth The relative size of global markets for technical textiles and their growth rates are shown in Table IV. Transportation is the largest market, both in volume and value terms, accounting for around one-fifth of all activity. Clothing components, the fifth largest market category in value terms, would appear to have the highest value added, accounting for only 6.4% of fiber consumption but 11.3% of dollar value. SBTDC Technical Textiles Industry Study 2002 Page 4

8 Table IV: Estimated World-wide Consumption of Technical Textiles by End-use Market in 2000 Millions Pounds and US$ Millions Pounds millions Percentage of total US$ Millions Percentage of total Transport textiles 4, , Industrial products & 4, , components Medical & hygiene 3, , Home textile & domestic 3, , equipment Clothing components 1, , Agriculture, horticulture & 1, , fisheries Construction 2, , Packaging & containment 1, , Sports & leisure excluding , apparel Geotextiles/ civil engineering , Protective & safety apparel , Ecological protection * , Total 24, , * Also included under other headings. Source: David Rigby Associates/ Techtextil Table V provides an estimate of market growth over the next 5 years. Overall, this reflects a slight slowing of growth rates in the second half of the 1990s. The highest growth rates are predicted for geotextile/ civil engineering markets and environmental protection applications. Transportation and clothing components, owing to their maturity as markets, are expected to expand more slowly. SBTDC Technical Textiles Industry Study 2002 Page 5

9 Table V: Estimated World-wide Growth of Technical Textile Markets Percentages Growth % Volume Value Transport textiles Industrial products & components Medical & hygiene Home textile & domestic equipment Clothing components Agriculture, horticulture & fisheries Construction Packaging & containment Sports & leisure excluding apparel Geotextiles/ civil engineering Protective & safety apparel Ecological protection * Total Source: David Rigby Associates/ Techtextil Table VI provides an analysis of world-wide industry size and growth by broad product category. Although traditional fabrics remain the most important category in value terms, nonwovens are expanding more rapidly, along with composites. Table VI: Estimated Consumption of Technical Textiles World-wide in 2000 by Product Category with Growth Rate Forecast to 2005 Million Pounds and US$ Millions Volume Value Pounds millions % growth to 2005 $ millions % growth to 2005 Fabrics 8, , Nonwovens 7, , Composites 4, , Other textiles 5, , Total 24, , Source: David Rigby Associates/ Techtextil Table VII shows estimates of market size and growth rate by geographic region. The prominence of North America, especially compared with Western Europe is evident. However, Asia has emerged as a larger market, overall and it is growing rapidly, compared with the North American market. Eastern Europe and Others (mainly developing countries) also stand out as excellent growth opportunities. SBTDC Technical Textiles Industry Study 2002 Page 6

10 Table VII: World-wide Consumption of Technical Textiles by Geographic Region in 2000 Millions Pounds and US$ Millions Millions Pounds Volume Share % Growth rate % Value US$ millions Share % Growth rate % Western Europe 5, , Eastern Europe , North America 7, , South America , Asia 7, , Others 1, , Total 24, , Source: David Rigby Associates/ Techtextil Table VIII indicates the relative size and growth rate of US fiber consumption in technical textile products between 1996 and Miscellaneous items (see definitions in Table II) accounted for the largest volume of fibers consumed, followed by fiberfill, medical textiles, nonwoven fabrics not incorporated elsewhere, and tires. Of these, miscellaneous, fiberfill and nonwovens all show average annual growth rates above 6%. Other strong volume growth areas include transportation fabrics (7.8%), filtration cloths (8.0%) and beltings (5.9%). Segments showing low volume growth include medical textiles (2.3%), tires (2.2%) and felts (3.9%). Other areas show contracting fiber usage between 1996 and 2000, with bags (-8.6%) and hose (-9.2%) showing high rates of decline. SBTDC Technical Textiles Industry Study 2002 Page 7

11 Table VIII: Total Fiber Consumed in US Technical-Type Textile Products Millions Pounds Avg. Ann. Growth % Total Technical Fiber Consumption 3, , , , , Miscellaneous Fiberfill, Stuffing & Flock Medical, surgical and sanitary Unallocated nonwovens Tires Rope, Cordage, fishline Coated and protective fabrics Sewing Thread Transportation fabric Narrow fabrics Belting Filtration Felts Bags and bagging Electrical & Reinforced Plastics Hose Paper and Tape reinforcing Source: Fiber Organon. Figure A shows the relative share of these products in US mill fiber consumption in SBTDC Technical Textiles Industry Study 2002 Page 8

12 Figure A: Share of Fiber Consumption by End-Use for Technical Textiles in the US in 2000 Belting 2% Narrow fabrics 3% Transportation fabric 4% Sewing Thread 4% Filtration 1% Bags and bagging Electrical & Reinforced Plastics 1% 1% Felts 1% Hose 1% Paper and Tape reinforcing 0% Miscellaneous 19% Coated and protective fabrics 5% Rope, Cordage, fishline 5% Fiberfill, Stuffing & Flock 18% Tires 10% Unallocated nonwovens 11% Medical, surgical and sanitary 15% Source: Fiber Organon Table IX shows the relative size and growth rate of woven and knitted fabric consumption in technical textile products between 1996 and Other items, comprising tire cord, tufting yarns, thread, rope, cordage and twine accounted for about 1,580 billion pounds, which is the largest volume consumption for technical textiles, followed by woven (993,830 million pounds) and knitted fabric (20,856 million pounds). Overall volumes show a low growth rate, with knit fabrics experiencing a steady decline. SBTDC Technical Textiles Industry Study 2002 Page 9

13 Table IX: Woven and Knitted Fabric Consumption for US Industrial Textiles Thousand Square Yards and Million Pounds Avg. Ann. Growth % Consumption in thousand-square yards Knit * 73,129 71,695 71,599 70,854 66, Woven * 6,060,906 6,283,518 6,496,857 6,584,470 6,481, Consumption in million pounds Knit 23,402 22,804 22,664 22,852 20, Woven 1,006, ,095 1,020,869 1,020, , Other** 1,410,390 1,442,945 1,498,272 1,419,626 1,575, Notes: * Square yards of woven and knitted fabric consumption includes competing materials such as plastic film, leather, and paper ** Other includes tire cord, tufting yarns, thread, rope, cordage, twine, etc. Source: National Cotton Council of America US production of technical textiles Official data covering the technical textile industry is incomplete. Government data under the Standard Industrial Classification scheme (SIC) and the recently introduced North American Industry Classification System (NAICS) provide only a partial view of the technical textile industry. The definitions within both the SIC and NAICS systems (see Appendix) focus on broad activities or product categories eg yarn and thread mills, knitting mills and narrow fabric mills. Within this framework, there is a lack of definition with regard to end-use markets served. Many of the industry sectors defined under the above systems combine both companies involved in consumer textiles and those in technical products (including many who are involved in both). Hence, providing a clear picture of industry structure via Census data is not possible. The analysis below therefore is confined to those technical textile sectors that are reasonably defined under SIC or NAICS classifications. These included tire cord and fabrics, nonwoven fabrics, cordage, and twine, textile goods not elsewhere classified (nec), textile bags, canvas and related products, automotive trimmings, apparel findings and related products, fabricated textile products, nec and luggage. In 2001, the total value of shipments of these sectors [Table X] reached about US$27,900 million with 3.4% annual average growth rate. Strong value growth areas include nonwoven fabrics (5.3%), automotive trimmings, apparel findings & related products (4.5 %) and textile bags (3.6%). Segments showing low value growth include textile goods, nec (2.6%), canvas and related products (2.2%) and tire cord and fabrics (-0.5%). SBTDC Technical Textiles Industry Study 2002 Page 10

14 Table X: Value of Shipments in Selected Items Millions Dollars Avg. Ann Growth % TOTAL 24, , , , , Tire Cord and Fabrics 1, , , , , Nonwoven Fabrics 3,760 4, , , , Cordage, and Twine Textile Goods, nec 2, , , , , Textile Bags Canvas and Related Products 1, , , , , Automotive trimmings, Apparel 7, , , , , findings & Related products 2399 Fabricated textile products nec 4, , ,790 4, , Luggage 1, , , , , Source: Manufacturing USA Figure B shows the relative share of value of shipments across these sectors of the technical textile industry in Figure B: The Share of Value of Shipments in Selected Items for Industrial Textiles in the US in 2001 Fabricated textile products, NEC 18% Luggage 5% Tire Cord and Fabrics 4% Nonwoven Fabrics 16% Cordage, and Twine 4% Automotive Trimmings, Apparel Findings and Related Products 33% Textile Goods, NEC 10% Textile Bags 4% Canvas and Related Products 6% Source: Manufacturing USA SBTDC Technical Textiles Industry Study 2002 Page 11

15 Table XI provides details of production of various technical textile products in the US between 1996 and 2000, based on National Cotton Council data. The strong volume growth products include belts (10.2%), rope, cordage & twine (3.5%) and medical supplies (3.4%). Products showing high rates of decline include shoes & boots (-17.9%), bags (-8.3%), tobacco cloth (-7.6%) and tarpaulins (-6.1%). Table XI: US Production of Technical End-use Items Avg. Ann Growth % Abrasives, principally woven (Mil. Syds) Automobile uses, excl. protective/ replacement seat covers (Mil. Syds) Tire cord & tire cord fabric (Mil. Lbs) , , , Awnings, woven (Mil. Syds) Bags, woven (Mil. Lyds) Belts, Machinery (textile content only) (Mil. Lbs) Boat covers & tops, woven (Mil. Syds) Book bindings, excl. loose-leaf binders (Mil. Syds) Filter cloth, woven (Mil. Syds) Hose (textile content only) (Mil Lbs) Luggage, handbags & purses (Mil. Syds) Medical supplies (Mil. Syds) 3, , , , , Papermaker s felts, woven (Mil. Syds) Rope, cordage & twine, excl. hard fiber/jute/paper (Mil. Lbs) Shoes & boots, excl. waterproof (Mil. Syds) Sleeping bags, woven (Mil. Syds) Tape pressure sensitive, excl. medical (Mil. Syds) Tarpaulins, woven (Mil. Syds) Tents & camper trailers, woven (Mil. Syds) Thread, industrial (Mil. Lbs) Tobacco cloth (Mil. Syds) Wall covering fabric (coated), woven & nonwoven (Mil. Syds) Wiping & polishing cloths, woven (Mil. Syds) Zipper tape, narrow woven (Mil. Syds) Notes: Syds -- Square Yards, Lbs. Pounds, Lyds. -- Linear Yards Automobile uses, Belts and Hoses are estimated volume and not exactly matched with original source data Source: National Cotton Council of America SBTDC Technical Textiles Industry Study 2002 Page 12

16 IV. Industry Drivers and Development Trends Demand for technical textiles is closely linked to the overall level of economic activity in the economy. Hence, as evident in the trends described above it is a relatively low growth industry. However, demand is also being driven by technical innovation that is resulting in the wider application of textile materials across a broad range of end-uses, often through substitution for other materials. Clearly, demand for specific products is tied closely to the fortunes of the diverse market segments they service. Below, the market drivers and development trends across the range of end-use markets broadly defined by Techtextil (but including a military segment) are briefly outlined. Agricultural Textiles This market comprises all textiles that are used by the agricultural and fishing industries, including such diverse items as nets, ropes, twine, and fabrics for cover and containment. The agricultural market is driven by the benefits technical textiles provide in terms of improved productivity and reduced need for chemicals. Overall, this sector represents a low growth area and products are below average unit value for the technical textile industry. Building and Construction Textiles The building and construction market represents a moderate growth segment for technical textiles. Large quantities of relatively low value textiles are used in building for insulation purposes. The market is very cyclical in nature but has strong development potential. Building safety and health standards require development, testing and acceptance procedures and buying influences include architects, construction engineers, contractors and regulatory bodies. It is believed that an area with strong potential is temporary and semi-permanent structures for emergency shelter and commercial events. Packaging This market comprises diverse packaging uses, including traditional bags and sacks made from jute, cotton and flax but increasingly from woven polypropylene. An important segment is so-called flexible intermediate bulk containers (FIBCs) for powdered and granular materials. Another non-traditional product application is the use of lightweight nonwovens and knitted structures for the food industry. These include knitted netting for fruit, absorbent mats for fresh produce, and nonwovens for tea and coffee bags. Another segment is textile reinforcement for tapes and envelopes. SBTDC Technical Textiles Industry Study 2002 Page 13

17 The packaging market represents a moderate growth area, though there is a growing (environmental) need for re-usable packages and containers and it is believed there will be new opportunities for textile products in this market. Geotextiles Geotextiles are used in rail and road embankments, reservoirs, river and coastal protection, and landscaping. Geotextile functions include reinforcement stabilization, separation, containment drainage and filtration. Some applications are temporary and some are permanent. The market is characterized by a great diversity of needs - no two installations are the same. Product values are usually low but installations can use vast quantities of fabric. Nonwovens account for the bulk of demand, due to a combination of economics and technical characteristics. However, there is increasing interest in composite fabrics that combine the advantages of different textile constructions, including knitted fabrics, wovens, nonwovens and membranes. Overall, this market is small but is expected to growth strongly as geotextiles become more widely applied. Protective textiles and safety clothing These products comprise fabrics used in apparel and non-apparel applications for protection against cuts, abrasion, ballistic and other forms of impact, fire and heat, hazardous materials, electricity, weather, cold and poor visibility. They also include protection for instruments and processes eg clean rooms. The market is quite small but exhibits moderately strong growth and products are generally of high unit values. Due to increasing health and safety issues at work this may be an increasingly attractive segment. Sports Textiles Due to the increase of interest in sports and outdoor activities and the influence of major sports events such as World Cup and Olympic games, this sector is expected to show a high growth rate. Today s sports and outdoor activities demand high performance equipment and apparel. The light weight and safety features of textile products have become important in their substitution for other materials. Medical and hygiene textiles The largest medical and hygiene markets are baby diapers, wipes, adult sanitary and incontinence products. These markets are relatively mature (except perhaps the last). Also, as many are disposable they add a significant burden on the environment. Medical and surgical products include low value-added items such as bedding and gowns, and medium to very high value added products such as dressings, sterilization packs, sutures and orthopedic pads. Hi-tech products such as SBTDC Technical Textiles Industry Study 2002 Page 14

18 sutures have a long product development, testing and commercialization time. Also, many companies are deterred by the medical industry s reputation as a target for litigation. High growth is confined to innovative highly specialist items. Overall, unit values are above average for the industry. Home textiles One of the largest technical textile markets, this sector comprises household textiles and furnishings used in contract applications and by the upholstered furniture industry. The latter include fiberfill and wadding applications in bedding, cushions, sleeping bags and furniture backings. The output of this sector shows slightly-below average unit values for the industry. Market growth has been reasonably strong. Clothing components This sector comprises sewing threads, interlinings, waddings and insulation materials used in clothing and footwear. Given the contraction of the US apparel industry the market has declined. However, the expansion of apparel manufacturing in the Caribbean basin still offers growth prospects for US companies and products have high unit values, suggesting a specialized industry. Industrial textiles This segment includes textiles used directly in industrial applications or incorporated into other industrial products, such as filters, conveyor belts and abrasive belts, as well as reinforcements for printed circuit boards and seals, gaskets and others industrial equipment. This is one of the largest market sectors and a moderately strong growth area. Transportation textiles This sector comprises all textiles used in cars, trucks, trains and aircraft. It is the second largest market sector in North America. Products range from carpeting, trunk-liners and upholstery through beltings, tire cords and composites for aircraft bodies. The market is mature and consequently shows only low growth. Unit values, however, are above average for the industry. SBTDC Technical Textiles Industry Study 2002 Page 15

19 Military textiles This is a large end-use market comprising a mixture of low value/ low tech and high value/hi-tech products. It includes uniforms, medical products, composites used in military equipment, temporary buildings, camouflage fabric, netting and FIBCs. This is also an area of considerable technical development and potential growth. Company strategies Intensified competition in apparel and household textile markets is encouraging more textile companies to seek new avenues for business development, including expansion into technical textile markets. They are being hindered by barriers to entry including, a lack of information about these markets; the high costs of new product development and/or alteration of production set-ups; and the difficulty of breaking into segments where strong relationships bind customers to established suppliers. These problems are encouraging realignment through mergers, acquisitions and divestitures, as companies seek to build positions in and release resources by exiting weaker business areas. Since technical markets are not immune to competition from developing countries, many US companies are focusing on high specification, high-tech products. Through investment in product innovation and high levels of service they are developing close partnerships with customers to open-up new growth markets and provide insulation from international competition. An increasing number of companies are also discovering export opportunities for technical textiles. Across many developing countries there is a growing need for these products but an inadequate industrial base to manufacture them. Increasingly, US firms are finding attractive markets abroad. V. Industry Structure Overall, the structure and composition of the technical textile industry is as diverse as the products it manufactures and the markets that it serves. In some respects it is a microcosm of the textile fiber complex as a whole, comprising large multi-national corporations, such as Du Pont and Freudenberg, through large domestic and international companies, such as Milliken, together with a multitude of small and medium-sized companies. The latter are typically highly specialized, focusing on a specific process or product. As a crude rule of thumb, larger companies tend to be found upstream in the fiber, yarn and fabric forming sectors. Smaller and medium-sized companies are more prominent in the downstream finishing and fabricating sectors of the industry. SBTDC Technical Textiles Industry Study 2002 Page 16

20 Although some larger companies, such as Milliken, have diversified technical textile activities and markets, it is believed that there are few companies that could be classified as diversified technical textile groups. For example, although companies such as Freudenberg do supply a diverse range of markets, their focus is on nonwoven products. Market entries into the technical textile arena are typically achieved by one of three mechanisms: New business start-ups, involving entrepreneurs who perceive new market opportunities or who have developed new product technologies and obtained financial backing; diversification of established textile companies into technical markets through internal development or acquisition, as markets in consumer products are lost; the entry of foreign technical textile companies into the US market through acquisitions or green-field investments. There is no documentary evidence as to the relative importance of these three mechanisms. However, it is likely that all three are significant and that diversification of established companies is probably the most important of the three. In parallel with the mainstream textile industry, the production chain from fiber to finished product can be long and complex. Basic fabric substrates can be processed in a variety of means to achieve specific effects, such as waterproofing, or they may be combined into composites. These will then often be subject to further processing including fabrication and assembly into a finished product, either as the item itself or as a component of a larger product. SBTDC Technical Textiles Industry Study 2002 Page 17

21 Table XII indicates employment growth in SIC sectors that largely comprise technical textile products. The total workforce in these segments of the industry increased slightly between 1997 and 2001, reaching 211,000 in the latter year. The largest segment is automotive trimmings, apparel findings and related products, with 40% of the total. This is followed by fabricated textile products not elsewhere classified (21%) and nonwoven fabrics (10%). The strongest employment growth rate has been in nonwoven fabrics (5.7%) and textile bags (4.3%). Those showing rapid decline include tire cord & fabric (-5.2%) and canvas & related product (-3.2%) industries. The growth rate is relatively low mainly to due to increases in labor-saving capital investments and rapid import penetration. Table XII: Employment in Selected Industry Sectors Thousands Avg. Ann. Growth % TOTAL Tire Cord and Fabrics Nonwoven Fabrics Cordage, and Twine Textile Goods, NEC Textile Bags* Canvas and Related Products Automotive Trimmings, Apparel Findings and Related Products 2399 Fabricated textile products, NEC * Excludes luggage due to a lack of data Source: Manufacturing USA SBTDC Technical Textiles Industry Study 2002 Page 18

22 Table XIII indicates the trends in capital investment across the same sectors. It shows strong growth rate in automotive trimmings, apparel findings and related products (5.4%) and textile goods, nec (4.0%). By contrast it shows a decrease in tire cord and fabrics (-8.1%) and canvas and related products (-6.6%). Table XIII: Capital Investment in Selected Sectors of the US Technical Textile Industry. Millions Dollars Avg Ann Growth % TOTAL Tire Cord and Fabrics Nonwoven Fabrics Cordage, and Twine Textile Goods, NEC Textile Bags Canvas and Related Products Automotive Trimmings, Apparel Findings and Related Products 2399 Fabricated textile products, NEC Luggage Source: Manufacturing USA VI. Technical Textile Production in North Carolina Table XIV provides an analysis of the number of leading companies in North Carolina compared with the US as a whole. It suggests that North Carolina is not as significant in technical textile production as it is in consumer textile production. However, this data should again be interpreted with caution as many companies classified under consumer product categories also manufacture some technical items. SBTDC Technical Textiles Industry Study 2002 Page 19

23 Table XIV: Location of Leading Companies in Selected Items Millions Dollars Number of Companies Sales* ($ Million) SIC North Carolina Employment** (000) NC US NC US Tire Cord and Fabrics Nonwoven Fabrics Cordage, and Twine Textile Goods, NEC Textile Bags Canvas & Related Products Automotive Trimmings, Apparel Findings and Related Products Fabricated tex. products, NEC , Luggage Sources: Manufacturing USA Ward s Business Directory of U.S. Private and Public Companies, Volume 1 and 2, 1998 and 2000 * Sales indicate total sales of the company ** Employment indicates total number of employees Table XV provides data on the number of establishments and employment in certain defined technical textile sectors for 1997, the last full census year. Some 213 establishments accounted for $1.3 billion of output and employed nearly 10,000 workers. Miscellaneous textile products accounted for the largest employment (4,565 employees), slightly ahead of nonwovens (4,056). However, nonwovens was by far the largest sector in value terms, accounting for $813 million in output, compared to $385 million for miscellaneous textiles. SBTDC Technical Textiles Industry Study 2002 Page 20

24 Table XV: North Carolina Industry Data for Selected Items (1997) No. of Establishments Value of Industry Shipments Rank* ($ Million) Employment US NC TOTAL 213 1, ,928 NAICS Nonwoven Fabric Mills , Textile Bag Mills Canvas and Related Product Mills Rope, Cordage, and Twine Mills Tire Cord and Tire Fabric Mills All Other Misc. Textile Prod. Mills , Luggage Manufacturing Notes: All Other Miscellaneous Textile Product Mills include Recovered fibers Padding and upholstered filling, batting and wadding Embroideries Other trimmings and findings & etc. * For industry rank, the 'US' column indicates the total number of states participating in the industry and the 'NC' column indicates NC's rank in that specific industry. Source: Manufacturing USA The technical textile industry in North Carolina has the benefit of a wellestablished textile infrastructure. This includes locally-based chemical and machinery manufacturers, strong textile educational and research institutions; active trade institutions; a pool of skilled labor and the availability of land and manufacturing premises at relatively modest prices for development. Universities are playing an important role in supporting the industry in North Carolina. Faculty at the College of Textiles at NC State, the leading specialist textile technology college, work with technical textile companies on technology development and market research projects. The main activities are in nonwovens (Nonwovens Co-operative Research Center) and in protective apparel (Textile Protection and Comfort Center). There are also specialized research activities in medical textiles and in market research (Textile and Apparel Business Intelligence Consortium). Spin-offs from University research do occur. A notable example is the three-d woven fabrics company 3Tex Inc. The College of Textiles at NC State also provides technical short course programs to educate workers and management. SBTDC Technical Textiles Industry Study 2002 Page 21

25 VII. Discussion & Outlook Overall, as competition continues to escalate across traditional apparel-related textile sectors, many US textile companies are seeking to switch over to technical products that are less vulnerable to import and price changes. The growth rate of most technical textile segments is not high but contrasts sharply with the declining fortunes of the apparel-related segments of the industry. The development of the technical textile industry in the US has been underpinned by a number of key competitive advantages. These include: the size and cutting-edge nature of demand in the US market; the high quality of US textile engineers the technical strengths of supporting educational and research institutions, the technical and commercial strengths of suppliers such as chemical and man-made fiber firms. Utilizing these strengths will be a critical factor in determining the future success of the industry in the US. Specific success factors include the following: high levels of investment in product innovation to develop high specification products of dependable quality and improved product solutions that could open-up new end-use segments. In particular, there is a need to understand and harness emerging product, process and business technologies. Investment in the development of close working relationships with customers to provide excellent service Investment in market research to identify opportunities and how best to exploit them The active development of export markets. As noted above, a number of factors could hinder successful development of the industry. Firstly, although the technical textile industry is less vulnerable than apparel-related textile industry to global competition, it nevertheless will face growing competition from companies in developing and other industrialized countries. Secondly, there is a lack of information about market needs that obscures opportunities. Thirdly, there are high investment needs for new product development and/or alteration of production and distribution/ marketing set-ups. Finally, in some instances, there are difficulties of breaking into market segments where there are strong relationships between customers and suppliers. SBTDC Technical Textiles Industry Study 2002 Page 22

26 VIII. Bibliography & Resources A General References 1. Adanur, Sabit., Wellington Sears handbook of industrial textiles, Lancaster, PA : Technomic Publishing Co., Inc., Horrocks, A.R. and Anand, S.C., Handbook of technical textiles, Boca Raton [Fla.] : CRC Press ; Cambridge, England : Woodhead Pub. Ltd., in association with The Textile Institute, Dickerson, K.G., Textiles and apparel in the global economy, Upper Saddle River, N.J. : Merrill, Cremeans, J.D., Handbook of North American industry, Lanham, Md.: Bernan Press, 1999, pp Svedova, J., Industrial textiles, Amsterdam ; New York : Elsevier, Fung, Walter., Textiles in automotive engineering, Lancaster, Pa. : Technomic ; Cambridge : Woodhead, U.S. Industry & Trade Outlook, New York : DRI/McGraw-Hill : Standard & Poor's ; Washington, D.C. : U.S. Dept. of Commerce/International Trade Administration, 2000, ch.9. B Statistical References 8. Cotton counts its customers [serial], Memphis, Tenn., Economic & Market Research Service, National Cotton Council of America., Various years. 9. Manufactured fiber handbook, Washington, DC : Fiber Economics Bureau, Fiber organon [serial], Roseland, N.J. : Fiber Economics Bureau, Inc., Various years. 11. Manufacturing USA, Detroit : Gale Research, 6 th & 7 th edition. C Journal & Articles 12. Ishtiaque, S.M., Aggarwal, A.K. & Dayal, Amit., Technical textiles: Concepts, applications and prospects, Colourage, Nov. 1998, pp Byrne, Chris., What are the technical textiles?, Industrial Fabric Products Review, Sep. 1997, pp Byrne, Chris., A world of technical textiles, Industrial Fabric Products Review, Sep. 1999, pp Shishoo, R.L., Technical textiles Technological and market developments and trends, Indian Journal of Fibre & Textile Research, Vol. 22, Dec. 1997, pp Fabrics of spacetime, Textile Month, March 2000, pp.6-7 & &41. SBTDC Technical Textiles Industry Study 2002 Page 23

27 17. Technical textiles: a look at their international future, Knitting International, 1997, 104(1239), pp Technical textiles, Textile Horizons, Nov. 1998, pp David Rigby Associates, Hometech: An overview of developments and trends in the world market for technical textiles in home furnishings applications, Nonwoven Industry, April 1999, pp David Rigby Associates, Sporttech: Trends in the world market for technical textiles in sports and leisure applications, Australasian Textiles & Fashion, Jan/Feb. 1999, pp Pelc, C.E., The year of the wipe, [online] North American nonwoven consumption up 3.4% but price under pressure as material cost rise, Nonwoven Market, April 24, 2000, Vol. 15, No. 8, pp David Rigby Associates, Technical textiles for home furnishingsdevelopments and trends, Textile Horizons, Feb. 1999, pp Rigby D. & Jeffery R., Future market trends in technical textiles in Europe, International Textile Bulletin: Nonwovens-Industrial Textiles, 2001, 47(3), pp David Rigby Associates, Growth opportunities in technical textiles and nonwovens in Asia, Wagner, I., Technical textiles are the theme of the future, Knitting Technology, 2001, 23(4), pp Market share of technical textiles higher than previously assumed, Australasian Textiles and Fashion, 1997, 17(3), pp SBTDC Technical Textiles Industry Study 2002 Page 24

28 APPENDIX 1997 NAICS Matched to 1987 SIC, Manufacturing, part (NAICS ) 313 Textile Mills NAICS U.S. Description Codes 1987 NAICS SIC 1987 U.S. SIC Description 313 Textile Mills 3131 Fiber, Yarn, and Thread Mills Fiber, Yarn, and Thread Mills Yarn Spinning Mills u R 2281 Yarn Spinning Mills *2299 Textile Goods, NEC (yarn of flax, hemp, jute, and ramie) Yarn Texturizing, Throwing, and u E 2282 Yarn Texturing, Throwing, Winding Mills Twisting Mills Thread Mills u R *2284 Thread Mills (except finishing) *2299 Textile Goods, NEC (thread of hemp, linen, and ramie) 3132 Fabric Mills Broadwoven Fabric Mills N 2211 Broadwoven Fabric Mills, Cotton 2221 Broadwoven Fabric Mills, Manmade Fiber and *2231 Broadwoven Fabric Mills, Wool (Including Dyeing and Finishing) (except wool finishing only) *2299 Textile Goods, NEC (broadwoven fabrics of jute, linen, hemp, and ramie and handwoven) Narrow Fabric Mills and Schiffli Machine Embroidery Narrow Fabric Mills u R 2241 Narrow Fabric and Other Smallware Mills: Cotton, Wool, Silk and Manmade Fiber *2299 Textile Goods, NEC (narrow woven fabric of jute, linen, hemp, and ramie) Schiffli Machine Embroidery u E 2397 Schiffli Machine Embroideries Nonwoven Fabric Mills R 2297 Nonwoven Fabrics *2299 Textile Goods, NEC (nonwoven felt) Knit Fabric Mills Weft Knit Fabric Mills u R *2257 Weft Knit Fabric Mills (except finishing) *2259 Knitting Mills NEC (finished articles of weft knit fabric) Other Knit Fabric and Lace Mills u R *2258 Lace and Warp Knit Fabric Mills (except finishing) *2259 Knitting Mills NEC (finished articles of warp knit fabric) 3133 Textile and Fabric Finishing and Fabric Coating Mills Textile and Fabric Finishing Mills Broadwoven Fabric Finishing Mills u N *2231 Broadwoven Fabric Mills, Wool (wool broadwoven fabric finishing only) 2261 Finishers of Broadwoven Fabrics of Cotton 2262 Finishers of Broadwoven Fabrics of Manmade Fiber and Silk SBTDC Technical Textiles Industry Study 2002 Page 25