040715_NCTO AM 2015_Review_Part2

Posted April 7, 2015

WASHINGTON, D.C. – The U.S. textile industry needs to continue to develop a comprehensive and consistent public relations message to properly brand itself in the eyes of Washington policy makers and others, said outgoing National Council of Textile Organizations (NCTO) chairman James C. “Jay” Self III.

As such, during NCTO’s 12th Annual Meeting here last month, he announced that the council is undertaking a new initiative.

"The NCTO board voted to approve a public relations campaign that is directed at painting the accurate and positive image that the U.S. textile industry so richly deserves,” said Self, president of Greenwood Mills, Greenwood, S.C. “This campaign will brand the industry for what it is – a technology driven, capital intensive innovator of high-quality products that is fully competing in the 21st century global marketplace.

“For too long,” he added, “we have allowed our opponents in Washington to define us as outdated and uncompetitive. This simply is not the case. It is our responsibility, to promote a positive and vibrant image of our industry.”

The NCTO’s message to the Obama Administration and Congress is simple, Self said: After years of erosion in the sector, the U.S. textile industry has not only stabilized, but it is continuing to make a substantial contribution to the U.S. economy in practically every key economic indicator, including investment, output, employment and exports.

“That is why each of you here today and those not in attendance owe it to yourselves, your companies and most importantly to the people who depend on you for their livelihoods to get involved in the advocacy of this industry,” he said.

From the standpoint of Greenwood Mills, the decision to support industry advocacy efforts in Washington is easy, Self added.

“Over the past 125 years, Greenwood Mills has built an incredible legacy in the local communities where we have production facilities,” he said. “One bad legislative initiative or one negotiating giveaway made to get a trade deal could undo much of what we have accomplished. To maintain this positive growth, all we would ask of our government is that they create a stable and logical policy environment that fully recognizes the value of our industry and our workforce, and the potential for further expansion of our exports.

“My challenge to all of you is if you are involved, stay involved,” he said. “If not, get involved, and support this organization.”

State of the Industry report

Also during his State of the Industry report, Self pointed out that 2014 was a year of continued and broad-based economic success for the domestic textile sector. In key economic indicators, the U.S. industry has stabilized and is continuing to attract new investments, he said.

Over the past two years, more than 13 foreign and domestic companies have made public announcements regarding their intentions to invest more than $2 billion in new U.S. textile facilities and equipment, he noted. These investments are projected to provide approximately 3,000 new jobs in North Carolina, South Carolina, Georgia and Louisiana, he said. This $2 billion does not include the ongoing re-investment activities that domestic textile companies have made, such as expansion announcements by NCTO members, he added.

“The textile industry is adding jobs for the first time in two decades,” he said. “There has been a 45 percent increase in exports since 2009. U.S. textile shipments totaled $56.7 billion in 2014, and shipments have increased by one-fifth since the recession.”

Self reminded attendees that the U.S. textile industry is the third largest exporter of textile products in the world. Exports of all textile products were nearly $18.3 billion in 2014 and there has been a 45 percent increase in exports since 2009.

“These impressive economic indicators allow us to deliver a powerful message to policy makers and the general media,” he said. “Namely, that the U.S. textile industry is not just surviving, we are in fact an extremely vibrant, prosperous sector that is making an enormous contribution to the national economy and our national defense. Moreover, the need to promote an accurate and positive industry image is absolutely critical in light of pressing policy matters that directly and significantly impact our industry. This is especially true as our most important policy issue, the TPP (Trans-Pacific Partnership) agreement, moves closer to a conclusion.”

Over this past year, NCTO staff and leadership have had a virtual non-stop engagement with the U.S. government to convince them of the need to secure a sustainable TPP agreement, he added.

Having an effective voice

Having an effective voice in Washington isn’t cheap, Self said, and the industry faces an extremely well-funded opposition. Many parties in Washington take a dramatically different policy position to the textile industry, he added, showing a chart indicating the millions of dollars in lobbying expenses spent by several large retailers and their trade associations.

NCTO Annual Meeting – Part 2

IMPROVING INDUSTRY'S IMAGE

Council launches P.R. campaign to paint accurate, positive picture

“We have spent years playing defense while state-owned and subsidized textile industries in Asia have plundered our markets. Over the last few years, with the help of a strong and growing textile industry in NAFTA and CAFTA, our industry has stabilized, and most of our companies are profitable. It is time we take the offensive and act like the important and vibrant industry that we are. We frankly must become a stronger and more substantially funded organization.”

Jay Self

NCTO Chairman and

President, Greenwood Mills

"This table does not show the substantial resources that governments such as China, Vietnam and others spend in Washington to influence trade policies to their benefit,” he said. “Consequently, we must be realistic about the challenges that our industry faces. With that said, we have been effective, surprisingly so, when you consider the figures that I just reviewed.”

To the industry’s advantage is the fact it still employs and is supported by millions of employees, both in the U.S. and throughout the NAFTA and CAFTA regions, he said. The NCTO is defending full-time and stable manufacturing jobs that provide a working wage and good benefits, he added. Its pay averages nearly two and a half times that of a typical retail employee, he noted.

“We have spent years playing defense while state-owned and subsidized textile industries in Asia have plundered our markets,” Self said. “Over the last few years, with the help of a strong and growing textile industry in NAFTA and CAFTA, our industry has stabilized, and most of our companies are profitable. It is time we take the offensive and act like the important and vibrant industry that we are. We frankly must become a stronger and more substantially funded organization.”

Other issues

Beyond TPP, other significant policy developments are evolving, Self said. An effort to reach a free trade agreement with Europe, known as the Transatlantic Trade and Investment Partnership (TTIP) is well underway. While these negotiations are moving at a slower pace, there are challenges associated with TTIP, he noted. Among them:

The European Union favors a fabric forward as opposed to a yarn-forward rule; and
The EU is pressing for access to U.S. military contracts.

“Consequently, the European agreement will also demand considerable resources and attention on our part,” Self said.

Beyond negotiation of these important trade agreements, Congress is actively considering a number of initiatives that directly impact U.S. textiles, he said. They include items such as:

Trade Promotion Authority (“fast track”);
The Miscellaneous Tariff Bill;
Reauthorization of the Ex-Im Bank;
The Nicaragua TPL;
The African Growth & Opportunity Act (AGOA);
Extension of Haiti trade benefits; and
The OUTDOOR Act

“All of these initiatives require the active attention of NCTO members and staff as we attempt to shape the outcome of legislation in each of these areas,” Self said. “Beyond these various issues, NCTO continues to upgrade our efforts to interact with government procurement agencies, especially within the Department of Defense.”

He also pointed out that NCTO added 33 new members over the last year.