The State of the Industry Depends on Your Definition, But the Glass is Still Half Full

With a new year before us, Techtextil North America Symposium director Bill Smith shares his views on how the technical textiles industry is faring.

Since the inception of TTSNA, I have made presentations at each event on “The State of the Industry.” As a “glass is half full” type of person and a great supporter of our industry, I prefer to focus on the positive aspects rather than bemoan the difficult areas, such as production of fabric to finished products going offshore.

The fact remains that the application and usage of technical textiles in the North American market continues to be innovative and to grow. The difficulties we hear so much about lie in who is making the fabric and, increasingly, the products that go into these new and growing areas.

So the question is one’s definition of the “technical textiles market.” Is it defined as:

• the overall usage of textiles to solve problems and to make possible or aid in the manufacturing of products; or
• how much fabric (or fiber or yarn) is produced for such applications?

It is a valid question and one of great importance to those involved.

How Much Have We Really Lost?
To be sure, mills have closed due to competition from low-wage countries. But many also have closed due to higher productivity with newer equipment, resulting in the need for fewer plants.

What has happened is that while North American manufacturers may be making close to the same amount of fabric that has traditionally been made, market share has been lost to low-wage areas, even as our needs have grown.

Also, many of the new areas and some traditional ones (such as filtration) have been largely taken by nonwoven technology. Plus, while many manufacturing plants have closed, the fabric needed to support those plants has been lost – or has it?

Look at the automotive industry, viewed by some to be the largest user, in terms of dollars, of technical textiles in North America. Thousands of workers at the U.S. automotive “big three” have been laid off and scores of plants closed. Yet offshore companies have opened new plants here. And while the U.S. is considered a “mature” market for automobiles and offers little real growth, the number of automobiles produced remains fairly steady, continuing the market need for technical textiles. While the demand is there, one must be concerned with how long it will be before many of the interior fabrics are made offshore.

While the European Union and NA are developing new technology and innovative products and applications, many Asian and South American countries as well as Africa offer great opportunities for building new infrastructure or supplying products within those countries. Many NA companies are setting up alliances and manufacturing facilities in those regions and have been doing so for some time.

Industry consolidation also provides the benefits of economies of scale. Consider Safety Components – now part of International Textile Group (ITG). Safety Components has access to capabilities available within ITG operations to do things they never could before and they are using those capabilities to develop innovative products. Glen Raven’s acquisition of John Boyle Co. and Astrup provides greater vertical capabilities, increased control over distribution and entry into new areas.

The industry has shifted. There’s new technology, new techniques, new global markets and new ways of doing business. While change is difficult, we have seen it throughout history. Some adjust, some emerge and some fall by the wayside, yet the market and opportunities continue to grow for those willing to embrace change and adjust to the “new marketplace.” Yes, the glass is still half full.