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US
textile industry year-end trade and economic report from ATMI
The
American Textile Manufacturers Institute (ATMI) reported that activity
in the US textile industry deteriorated sharply in 2001 as the crisis
in the US textile industry deepened. Textile mill shipments fell
for the sixth consecutive year as imports of low-cost Asian textiles
increased their share of the domestic market in a weak economic
climate. ATMI president Charles A. Hayes, Guilford Mills, Inc, reacted
to the year-end report by saying, “These numbers reinforce
the need for the United States government to act swiftly to combat
the crisis in the American textile industry. Congress and the White
House must work together to: Pass an economic stimulus package that
provides us with a longer tax loss carryback period; Force other
countries to open their markets to our exports, rather than reduce
US tariffs; Clarify the intent of the Caribbean Basin and other
trade legislation to assure that fabric dyeing and finishing operations
are done in the US; Allow cotton consuming textile mills to purchase
cotton at world prices; Avoid unilateral trade concessions and damaging
agreements that are paid for with US textile jobs; and Step up enforcement
of our borders to stop smuggling of textiles and apparel and other
types of customs fraud. A number of our supporters in the Congress
received commitments from the White House and the House leadership
during the recent debate and vote on trade promotion authority that
these and other critical issues would be addressed. This economic
report drives home the urgency for these commitments to be honored.”
The annual business review issued recently by the American Textile
Manufacturers Institute (ATMI) also showed that: While textile employment
continued its long-term decline in 2001, the rate of decline sharpened
last year. Textile employment fell ten per cent in 2001 to an average
of less than 480,000 workers. By year-end, industry employment had
fallen to less than 450,000, which was about 65,000 workers (nearly
13 per cent) below its level at year-end 2000. Textile mill shipments,
as defined by the North American Industrial Classification System
(NAICS) Category 313 (Fabric, Yarn, Thread, and Finishing), fell
in 2001 for the sixth year in a row. Since peaking in 1995, shipments
have fallen consistently, and, in 2001, were down another 12 per
cent to less than $47 billion.
Textile corporate sales declined for the fifth consecutive year
in 2001, dropping seven per cent to less than $54 billion, the lowest
sales level since 1988. Textile corporate sales are the sales of
corporations whose largest percentage of revenue comes from textile
operations as defined by Standard Industrial Classification (SIC)
system category 22. After suffering the first annual financial loss
for the industry in 2000, the U.S. textile industry returned to
marginal profitability in 2001. However, profits were a modest $300
million which, excluding last year’s loss, were the lowest
since the early 1960s.
The workweek in the textile industry was less than 40 hours during
each month of the latter half of 2001, pulling the average workweek
for the year down more than an hour from that of the prior year.
Meanwhile, the index of aggregate hours worked in the industry fell
12 per cent, reflecting the recessionary pace of industry conditions.
Following two years with no change, the producer price index (PPI)
for selected
textile mill products rose marginally
in 2001. Within the aggregate in 2001, the PPI for yarn was down
two per cent from the prior year, while that for broadwoven greige
fabric rose one per cent.
While total mill fiber consumption fell seven per cent last year
to 15.1 billion pounds, the drop was mostly attributable to dramatic
declines in demand for fabric and yarn intended for apparel and
home furnishings uses. Thus, total fiber consumption on the cotton
spinning system, where yarn for most apparel and home furnishings
use is produced, fell nearly 19 per cent in 2001.
The weaness in domestic demand resulted in an almost one per cent
decline in imports of yarn, fabric, and made-ups. However, despite
the overall decline, textile imports increased in 2001 from such
large Asian exporters as Pakistan, Thailand, Korea, Taiwan, and
Indonesia. Hampered by a strong dollar, U.S. textile exports fell
almost three per cent last year, led by a sharp decline in exports
to NAFTA partners Canada and Mexico and to the EU. However, a near
doubling of exports to the CBI countries almost compensated for
the declines to other destinations.
The American Textile Manufacturers Institute (ATMI) is the national
trade association for the US textile industry.
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