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Posted August 31, 2015

 

By Devin Steele (DSteele@eTextileCommunications.com)

 

BELMONT, N.C. – Among presentations during the Southern Textile Association’s (STA’s) annual Summer Marketing Forum at Gaston College’s Textile Technology Center-Kimbrell Campus here, Eric Henry of T.S. Designs, Burlington, N.C., offered an overview of his company, his business model and the value he places in made-in-America manufacturing.

STA Summer Marketing Forum – Part 2 of 2

Speaker outlines successful U.S. manufacturing model

Introduced by program moderator Jim Booterbaugh as “the king of environmental stewardship,” Henry, the company’s president, said that the eco-friendly model is the driver and differentiator behind the T.S. Design’s brand. The company, which uses the tagline “Printing T-shirts For Good,” produces and prints T-shirts, tote bags and other items made of cotton grown in North Carolina. T.S. Design’s “dirt to shirt” supply chain is within a 600-mile reach of its headquarters, and Henry knows each of his suppliers on a first-name basis, he said.

 

“We have a completely transparent supply chain,” Henry said. “We’re the only T-shirt maker that connects the T-shirt with the farmer. We buy it from a man named Ronnie. And our business impacts over 600 jobs in the Carolinas.”

 

At whereyourclothing.com, the location for each supplier – including the farmer, the ginner, the knitter, the finisher and the dyer – is mapped out.

 

“That’s transparent,” Henry said. “I believe there is more to gain from sharing the information than withholding it.”

 

The company began its journey toward a triple bottom line – people, the planet and profits – in 1977 as a small, manual screen-printing operation. It soon became a fully automated manufacturing company, printing shirts for a number of big brands, before global trade deals led to customers moving offshore for lower labor costs.

 

But instead of closing shop, Henry and his partners developed a new business model that catered to a then-fringe group: the Green Movement. With the growth of sustainability and a socially conscious society, the T.S. Designs saw its business rise. Today, the company sells largely to local, environmentally conscious businesses and groups, but also prints for any organization looking for a better quality product with a better environmental and social impact, according to its website.

 

T.S. Designs continues to build its brands: Cotton of the Carolinas, American Soil Organic and Cloud Organic, Henry said.

 

Following a presentation on the Trans-Pacific Partnership, Henry offered his opinion of the proposed 12-country trade deal.

 

“I’ve been an strong opponent of TPP because of the lack of transparency and negative external costs,” he said. “Yes, you can get your shirt cheaper, but your neighbor might lose his job. That was my epiphany. Profits are important, but when you run a business solely on the bottom line, don’t be surprised with the results.

 

“I have no problem with global competition,” he said later. “Bring it on. But don’t just bring price to the table.”

 

‘The War for Textile Talent’

 

Doug Coley, president of executive textile search firm Coley Company, Greensboro, N.C., gave an interesting presentation titled, “The War For Textile Talent.” He said he has seen a big bump in textile employment in North Carolina in recent years, particularly in the nonwovens sector, as U.S. products have become more coveted globally.

 

In hiring talent, Coley said it’s important for companies to “sell your employment brand.”

 

“The No. 1 thing candidates tell me they want when making a job change is the opportunity to advance their careers, and I talk to people every day,” he said. “We have to spend time in the interview process to find out what people are really looking for and how we can help them reach their career goals. Share stories about people in the company that you work with and how they have grown their careers. Know what the candidates are looking for.”

 

The second thing people are looking for in a job change is career stability, he added.

 

“If you have some high turnover problems, you need to explain why,” he said. “You have to be transparent with candidates.”

 

On the topic of employee retention, Coley said companies need to be honest with employees and constantly let them know their value.

 

“Retaining people is really about having open communication,” he said. “Your employees have to know that they’re valued. One way they know that is through their pay. The other way is to show your people how they’re making a difference to your company.”

 

Coley pointed out that the average Millennial changes jobs about every four years, which is something to strongly consider when hiring. With that in mind, it’s important to “have a bench.”

 

“Help them with their career growth,” he said. “It may be that that career growth is somewhere else in your company, not in another company. People must feel like they have a growth plan (in order to stay).”

 

In attracting talent, Coley urged attendees to develop networks with colleges and universities, and consider having internship and mentorship programs.

 

“You have to build a career path in your company that will allow those people to grow in your organization,” he said. “The shortage of trained workers is difficult, so the best thing you can do is train internally. Partner the younger employees with the old. Assign a mentor to everyone in your organization so they can see the potential they have long-term in your organization.”

 

Lastly, he said, the textile industry has a negative perception in general, and its companies should be at the forefront in telling its story.

 

“We have a lot of new and exciting things going on that we have to share,” Coley said. “People want things made close to home. We have 100-year-old textile companies that have reinvented themselves. We have brand new technologies. This is where we can grow our talent.

 

“We have a shortage of talent, yes, but we know people want to grow their careers,” he concluded. “You have the ability to let people know how they can grow their careers with you.”

 

What’s happening in synthetic fibers?

 

One of the most popular speakers on the “textile circuit,” Alasdair Carmichael, president of the Americas for PCI Fibres, gave an in-depth look at the synthetic fiber market – which is mostly positive for the North American market.

 

Driving much of the grown is the upswing in North American auto production, he said, from 8.67 million vehicles in 2009 to 16.97 million last year. And, though still poor, housing starts are on the uptick, he added.

 

“The carpet business moves with the housing industry,” he said. “We have been running at half the home starts in the last seven years that we were running the previous 50 years. There has been a lot of investment made in the carpet industry in advance of the recovery.”

 

The National Association of Home Builders (NAHB) is forecasting a 30 percent increase in residential home starts in 2016, he said.

 

On the spinning side, Carmichael noted the “remarkable resurgence of interest and investment” in the U.S., showing the number of companies that are expanding here, along with foreign investment in this country.

 

He opined that 2015 exports are “doing OK, but not growing at a rate to justify seven new plants.” He added that U.S. textiles is “not dead,” but that “TPP is a dark cloud hanging over the industry.”

 

On the export numbers, he said that yarn shipments to NAFTA/CAFTA countries accounted for 87 percent of exports, adding that exports to China were at 7.2 percent, up by 33 percent. Also, about 53 percent of U.S. cotton consumption is exported as yarn, he noted.

 

He also pointed out that the U.S. was No. 2 in the world for open-end rotor shipments last year. “Who would’ve thunk it?” he asked.

 

Overall, he said, synthetic fibers continue to outgrow cotton, and polyester drives all growth, but the U.S. is currently disadvantaged with polyester raw materials.

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