Posted June 2, 2014
Since eTC’s launch on March 24, we’ve published a number of positive announcements that speak well to the health of the U.S. textile industry. Not that these favorable reports surprise me – heck, that the industry was on such an upward trajectory played a large role in my decision to create this website. But the rate of these good news items hitting our email and the wires is impressive.
It’s one thing to hear company representatives talk up the well being of the industry. But it’s another to see them put their money where their mouth is. The words “investment” and “expansion” have been frequently typed here over the last two-plus months, and I’m happy to see companies placing their faith and funds in the same place.
Most recently, National Spinning and Unifi, Inc. joined the ranks of Highland, Gildan, Martex, Suminoe, Monterey and others that have issued releases announcing growth or improvement plans. National Spinning said it is making a “major capital investment” in its Whiteville, N.C., yarn-spinning plant. The move, it said, will “enhance and increase
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production capabilities in technical yarns through modernization and the addition of production equipment.” National didn’t give much more detail when contacted, but we gather that this expenditure is substantial.
In our recent interview with Jim Chesnutt, National’s chairman and CEO, he mentioned the firm is financially strong, in large part due to its diversification efforts. The employee-owned company operates four businesses, including a craft producer, a real estate firm and a nonwovens operation. Now that’s diverse.
National’s recent history that includes divergence into non-textile areas doesn’t exactly parallel other textile companies’ paths to viability. But a common theme among many that are growing is diversification in some form, whether it’s in product lines, sectors or markets. Companies have had to get out of their decades-old comfort zones to find a niche – or a lifeline – while in most cases performing smarter, leaner and harder. That takes forward-thinking leaders, formulated plans and firm fortitude.
Often, diversifying has meant joining forces to expand products, brands or capacities, such as Milliken’s recent decision to buy Westex in order to strengthen its flame-resistant fabrics portfolio. (Not that Milliken was ever in any danger of losing its strong position in the manufacturing realm.) Or Tex Tech Industries’ recent acquisition of Chapman Innovations that includes its flagship thermal fabrics brand, CarbonX®.
In the face of continued global competition, regulation and trade legislation, U.S. textile companies have learned to make the bold moves to get where they are today. That is, to a corner-turning point with upward mobility and a favorable outlook.
Perhaps it’s too early to call our industry’s players the Comeback Kids. So let’s just go with the Coming Back Kids.