
|
U.S. Home Textiles Industry Undergoes Radical Shift To A Global Sourcing Model
What a difference a decade makes. In the mid-'90s, the United States
home textiles industry was dominated by companies that had been
manufacturing products domestically since the 1800s. In the past
10 years, however, nearly every major U.S. manufacturer has instituted
sweeping changes in its supply chain, moving aggressively into global
sourcing.
Virtually all major home textiles suppliers source at least some products internationally today, a fact borne out of import statistics from the U.S. government. U.S. textiles and apparel imports totaled $95.6 billion in 2005, an increase of $5.7 billion, or 6.4%. Imports of home textiles alone totaled $14.9 billion, according to figures from the U.S. Department of Commerce. This contrasts sharply with imports of home textiles a decade earlier: in 1995, U.S. imports totaled a mere $1.47 billion.
 | | China is becoming the leading supplier of home textiles to the U.S., providing a wide variety of merchandise such as these bath towels from producer Zibo Yungtao Textiles. |
Asian countries have become the dominant manufacturers of home textiles
in the world, led by China. Textile and apparel imports from China
jumped 42.6% in 2005, to $26 billion. Other leading sources of textiles
and apparel imports include Mexico, India, Indonesia, Vietnam, Bangladesh,
Pakistan, Hong Kong, Canada and Cambodia.
Industry executives and government officials cite a number of reasons
spurring the shift to global sourcing, including the elimination
of quotas and the establishment of Free Trade Agreements and decreased
duties. Many countries have lower labor costs than the U.S. and
have invested heavily in modern manufacturing techniques, making
home textiles production overseas more cost-effective than domestic
manufacturing.
Although most U.S. manufacturers have moved to a global sourcing
strategy, many have developed a hybrid domestic and international
business model: for example, even companies that have shifted to
overseas manufacturing maintain sales, marketing and design operations
in the U.S.; some also preserve U.S. manufacturing facilities, albeit
on a more limited scale.
Many U.S. manufacturers are exploring export opportunities as well.
According to the Commerce Department, 2005 exports of home textiles
totaled $2.3 billion. This contrasts sharply with exports of just
$332 million in 1995.
 | "The Bush Administration is committed
to helping the U.S. textile industry remain viable, globally competitive
and cutting edge,"— Matt Priest, U.S. Commerce Department deputy assistant secretary
|
The U.S. Office of Textiles and Apparel is monitoring both U.S.
imports and exports, and is promoting U.S. products with various
special events and seminars. "The Bush Administration is committed
to helping the U.S. textile industry remain viable, globally competitive
and cutting edge, said Commerce Department deputy assistant
secretary Matt Priest. "OTEXA is here to aid in that goal by
supporting the industry in expanding to new markets through exporting,
FTA negotiations and market outreach."
In the private sector, leading trade show organizer George Little
Management LLC has identified global home textiles sourcing as a
critical growth market and is launching a new trade show, Global
Home Textiles in Orlando, Florida, May 8 to 10, 2007.
Global Home Textiles is positioned as a crucial new venue for international
suppliers to reach the U.S. home textiles industry, and is the only
major market in the U.S. for international home textiles manufacturers.
"The radical change in the U.S. home textiles industry to a
global sourcing model presents significant opportunities for growth
in the international arena," explains Penny Sikalis, vice president
and group show manager for George Little Management. "U.S.
manufacturers have evolved into global sourcing operations, and
as a result, our trade shows are evolving to service their changing
needs."
For more information on the Global Home Textiles Show, please click here.
For more information on Chinese home textiles producers, please click here.
|

|

|