Cotton Product Sourcing Situation and Outlook: Cotton ... · 2014. China remains the top U.S....

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Overall U.S. apparel imports are up two percent by quantity and value during the first six months of 2014. However, U.S. cotton apparel imports fell compared to the first half of 2013. U.S. cotton apparel imports are down by two percent compared to the same period one year ago. Only eight of the top twenty U.S. suppliers of cotton apparel products grew during the first six months of 2014. Overall, Western Hemisphere countries are performing better. U.S. cotton apparel imports from Western Hemisphere countries are only down by one percent compared to the two percent drop in total U.S. cotton apparel imports. Some of the major Western Hemisphere producers are shipping more cotton apparel to the U.S. Seventh-ranked El Salvador, eleventh-ranked Nicaragua, sixteenth-ranked Dominican Republic, and twenty-first-ranked Peru all grew compared to the first six months of 2013. Although the price of cotton jumped in March 2014, cotton prices have been steadily decreasing over the past three years. Along with the decline in cotton prices, U.S. imports of cotton apparel also continue to decline. From January to June 2014, the U.S. imported 5,863.8 million SME of cotton apparel products. is is down two percent compared the same period one year ago. However, U.S. imports of man-made fiber apparel grew by seven percent, from 5,377.3 million SME to 5,793.3 million SME during the same period. For the first six months of 2014, the market share of U.S. cotton apparel imports decreased two percent, from fifty-one percent to forty-nine percent. During this same period, the market share of U.S. man-made fiber apparel imports increased by two percent, from forty-six percent to forty-eight percent of total U.S. apparel imports. Following is a list of the top twenty suppliers of cotton apparel to the U.S. during the first six months of 2014, along with the growth rate from January through June 2014. China remains the top U.S. supplier of cotton apparel imports, even though imports from China fell by six percent. Cotton Product Sourcing Situation and Outlook: Cotton Apparel Imports Grow Faster From Western Hemisphere Review of U.S. Imports January – June 2014 IDS International Development Systems Inc. August 2014, Year 15 2

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Page 1: Cotton Product Sourcing Situation and Outlook: Cotton ... · 2014. China remains the top U.S. supplier of cotton apparel imports, even though imports from China fell by six percent.

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Overall U.S. apparel imports are up two percent by quantity and value during the first six months of 2014. However, U.S. cotton apparel imports fell compared to the first half of 2013. U.S. cotton apparel imports are down by two percent compared to the same period one year ago. Only eight of the top twenty U.S. suppliers of cotton apparel products grew during the first six months of 2014.

Overall, Western Hemisphere countries are performing better. U.S. cotton apparel imports from Western Hemisphere countries are only down by one percent compared to the two percent drop in total U.S. cotton apparel imports. Some of the major Western Hemisphere producers are shipping more cotton apparel to the U.S. Seventh-ranked El Salvador, eleventh-ranked Nicaragua, sixteenth-ranked Dominican Republic, and twenty-first-ranked Peru all grew compared to the first six months of 2013.

Although the price of cotton jumped in March 2014, cotton prices have been steadily decreasing over the past three years. Along with the decline in cotton prices, U.S. imports of cotton apparel also continue to decline. From January to June 2014, the U.S. imported 5,863.8 million SME of cotton apparel products. This is down two percent compared the same period one year ago. However, U.S. imports of man-made fiber apparel grew by seven percent, from 5,377.3 million SME to 5,793.3 million SME during the same period. For the first six months of 2014, the market share of U.S. cotton apparel imports decreased two percent, from fifty-one percent to forty-nine percent. During this same period, the market share of U.S. man-made fiber apparel imports increased by two percent, from forty-six percent to forty-eight percent of total U.S. apparel imports.

Following is a list of the top twenty suppliers of cotton apparel to the U.S. during the first six months of 2014, along with the growth rate from January through June 2014. China remains the top U.S. supplier of cotton apparel imports, even though imports from China fell by six percent.

Cotton Product Sourcing Situation and Outlook:

Cotton Apparel Imports Grow Faster From Western HemisphereReview of U.S. Imports January – June 2014

IDS International Development Systems Inc.

August 2014, Year 15

Nº 2

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Cotton Apparel Imports for Year-To-Date June 2014(By Quantity)

Country Market Share Growth1 China 28.23% -6.63%2 Vietnam 11.23% -1.47%3 Bangladesh 10.98% 8.38%4 India 6.19% 2.65%5 Indonesia 5.49% -8.00%6 Honduras 4.98% -8.45%7 El Salvador 4.25% 3.94%8 Pakistan 4.22% 1.48%9 Cambodia 4.17% 1.03%10 Mexico 4.05% -4.91%11 Nicaragua 2.13% 6.04%12 Sri Lanka 1.93% 2.07%13 Haiti 1.74% -6.94%14 Thailand 1.50% -4.29%15 Guatemala 1.47% -3.09%16 Dominican Republic 1.35% 19.86%17 Philippines 1.30% -20.54%18 Egypt 0.76% -12.41%19 Malaysia 0.58% -7.04%20 Jordan 0.46% 12.27%

U.S. Cotton Apparel Imports YTD June 2014

Other5.32%Pakistan

4.22%

India6.19%

Bangladesh10.98%

Western Hemisphere20.75% ASEAN

24.30%

China28.23%

Major U.S. Apparel Imports from Western Hemisphere Suppliers

Western Hemisphere countries continue to be a major source for U.S. imports of cotton apparel. The Western Hemisphere supply chain remains a successful competitive strategy for making cotton apparel. Despite the decrease in overall cotton apparel production, Western Hemisphere production of Men’s and Boys’ Cotton Knit Shirts, Men’s and Boys’ Cotton Trousers and Shorts, and Men’s and Boys’ Cotton Woven Shirts continues to grow. Following is a review of the most important cotton apparel imports.

Cotton Knit Shirts, Men’s and Boys’ (Category 338)U.S. total imports from January through June 2014: 92,297,855 dozen or 1.1 billion knit shirts

1. Honduras2. China3. Haiti4. El Salvador5. Mexico6. Nicaragua7. Vietnam8. India9. Pakistan10. Bangladesh11. Indonesia12. Dominican Republic13. Guatemala14. Peru15. Thailand

Cotton Trousers and Shorts, Men’s and Boys’ (Category 347)U.S. total imports from January through June 2014: 40,537,871 dozen or 486.5 million pairs of trousers

1. Bangladesh2. China3. Mexico4. Vietnam5. Pakistan6. Indonesia7. Cambodia8. Nicaragua9. Egypt10. Honduras11. Sri Lanka12. India13. Lesotho14. El Salvador15. Kenya

Cotton Woven Shirts, Men’s and Boys’ (Category 340)U.S. total imports from January through June 2014: 16,657,786 dozen or 199.9 million pairs of underwear

1. Bangladesh2. China3. Indonesia4. Vietnam5. India6. Mauritius7. Sri Lanka8. Malaysia9. El Salvador10. Honduras11. Mexico12. Nicaragua13. Egypt14. Philippines15. Pakistan

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Plant:351 Contempora Drive Lumberton, North Carolina 28358Phone: (910) 738-7131 Fax: (910) 738-9575 Web Site: www.contemporafabrics.com

Contact name / number:

Mr. Ronald RoachPresidentOffice: (910) 738-7131 ext 218 Cell: (910) 258-3585 E-Mail: [email protected]

Mr. Alex WhitleyDirector of SalesOffice: (910) 738-7131 ext 210 Cell: (910) 258-4264 E-Mail: [email protected]

List of Senior Management:

Mr. Ronald Roach, President Mr. Carey Read, VP Finance Mr. Danny Church, VP Manufacturing Mr. Alex Whitley, Director of Sales

History of Company:

Contempora Fabrics, Inc was founded in 1972 by Lacy Nance. In 1988, the company became a 100% employee owned company. Each employee has a vested interest in the company. The entire management team has over 150 years of combined textile experience. Contempora has 185 circular knitting machines in a 150,000 square foot facility on 29 acres. We are known for our versatile product mix and capacity to produce two million pounds per month. Relationships with fabric converters, manufacturers, major brands, and retailers have helped keep our business viable in a changing textile market. The ability to do contract work, greige goods, or finished fabric has allowed Contempora to work on all levels to meet the various needs required by the customer. Research and development are a priority to help keep our customers aware of the latest trends. Relationships with most major fiber suppliers allow us to be first to market in most cases with the latest technologies.

A recent expansion into body size jersey and 3 end fleece machines helped us round out our versatility.

Equipment listing:

Rib machines 10, 14, and 18 cut. Double knit machines 14, 18, 20, 22, 24, 28, 32 cut. 26’’ single knit machines 12, 14, 18, 20, 22, 24, 28 cut. 30” single knit machines 14, 16, 17, 18, 20, 22, 24, 28, 36 cut. 26” terry machines 16, 18, 20 cut. 30” 3 end fleece machines 13, 14, 18 cut. Body size jersey machines all sizes 22 and 28 cut.

Products:

Circular knits including body size jersey, jersey, rib, 2 end fleece, 3 end fleece, pique with collars and welts, thermals, French terry, terry, performance fabrics, and other novelties. All fabrics with and without spandex.

End Uses:T-shirts, sportswear, dresses, juniors, golf apparel, career uniform apparel, military, performance apparel, base layer underwear, team sports.

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Plant:237 Mills AvenueCentral, SC 29630Phone: (212) 689-3432 Fax: (212) 545-0603 Web Site: www.cotswoldindustries.com

Contact name / number:

Mr. James McKinnonCEO Telephone: (212)-689-3424E-Mail: [email protected]

Mr. Bill BroadwayPresidentE-Mail: [email protected]

List of Senior Management:

Mr. James McKinnon, CEO Mr. Bill Broadway, President

History of Company:

Founded in 1954 and now in its third generation of family

management, Cotswold is a leader in the development and

distribution of technical textiles and apparel fabrics. As a

vertically integrated manufacturer, converter and distributor,

Cotswold brings its customers quality and value from fiber to

a finished product.

Central Textiles manufactures cotton and polyester blended

fabrics for apparel, military, home furnishings and industrial

applications. The facility is fully vertical and processes fiber

from yarn spinning to airjet weaving.

Products:

Cotton Woven Fabrics (basket weave, broadcloth, chambray,

herringbone, muslin, poplin, printcloth, sateen, sheeting,

shirting-broadcloth, shirting-oxford, special purpose fabrics,

twill, customized fabrics)

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Plant:1823 Boone Trail RoadSanford, NC 27330Phone: (919) 776 9940Fax: (919) 718 2300Web Site: www.frontierspinning.com

Contact name / number:

Mr. John W. Garris IIIDirector, International SalesPhone: (919) 776 9940Fax: (919) 718 2300E-Mail: [email protected]

List of Senior Management:

Mr. John Bakane, CEOMr. Robin Perkins, President Mr. George W. Parker, President-Frontier MarketingMs. Barbara F. Walton, CFOMr. John M. Maness, V.P. of Manufacturing

History of Company:

Frontier Spinning Mills is a world class yarn spinner operating multiple manufacturing sites in North Carolina and Alabama.

With a weekly production of approximately 4,500/MT per week, it ranks as one of the largest yarn spinners in the world. Frontier’s offerings include a diverse product mix of Carded Open End, MJS and MVS yarns in a wide variety of counts and blends. Frontier’s quality assurance begins with the selection of US cotton fiber that is chosen to achieve the best possible results for our customer’s processes and end uses. Our spinning facilities are equipped with the latest generation of spinning systems available and interfaced with continuous on line quality monitoring to insure superior spun yarns. Frontier also invests in advanced training and education to insure its work force is highly skilled and trained in a concerted effort to produce the world’s finest spun yarns.

Frontier’s manufacturing facilities are located within easy and convenient travel to major highways and ports to ensure efficient and cost effective transportation and aid in the speed to market that is demanded by customers today. With convenient access

to multiple East Coast ports serviced by major ocean carriers, this proximity allows customers multiple options to respond quickly to fashion trends and ever changing market demands. Frontier also recognizes that customer satisfaction cannot be achieved through investment in technology alone. Frontier’s staff of dedicated associates focuses on bringing customer service to levels unsurpassed in the industry. Our Customer Service representatives recognize and understand that today’s competitive environment demands quick responses to inquiries and delivery schedule requests. We are confident that our service is just as exceptional as the yarns we produce. Frontier’s commitment to excellence is easy to recognize

Products:

• 100%cottonOpen-Endyarns4/1to32/1• 100%cottonSoftSpunyarns4/1to30/1• OrganiccottonyarnsOpen-End6/1to30/1• Polycottonyarns6/1to39/1• Open-EndSlubyarns• MJSyarns12/1to50/1• MVSyarns26/1-30/1• Heatheryarns4/1to30/1

End Uses:

• CircularKnittingYarns• WeavingTwist-(warp&weft)• HosieryYarns• HeatherYarns• AirJetYarns• Medical&IndustrialYarns

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Plant:P.O. Box 48515 W. Buford StreetGaffney, SC 29342Phone: (864) 489-4731Fax: (864) 487-9946Web Site: www.hamrickmills.com

Contact name / number:

Mr. Jim HopkinsVice President, SalesE-mail: [email protected]

Mr. Roy LockettVice President, Sales E-mail: [email protected]

List of Senior Management:

Mr. W. Carlisle Hamrick, PresidentMr. Charles Hamrick, CFOMr. Lyman Hamrick, Vice President, ManufacturingMr. Roy Lockett, Vice President, SalesMr. Jim Hopkins, Vice President, Sales

History of Company:

Hamrick Mills, Inc. is a fifth generation family-owned textile company. The corporate office and two manufacturing facilities, the Hamrick Plant and the Musgrove Plant, are all located in Gaffney, South Carolina. The company is a leading producer of high quality, light to medium weight woven fabrics for use in the home furnishings, industrial, and apparel markets.

Hamrick Mills’ mission is to serve customers by focusing on quality, innovation and superior service. Hamrick Mills will also strive to continually improve the operations of our company by implementation of technology or processes that increase customer satisfaction and add value to their products.

Products:

Woven fabrics in a variety of widths, ranging from 41” to 140” and weights from 2 oz per square yard to 6 oz per square yard. These fabrics are offered in a range poly/cotton blends, as well as 100% cotton. Constructions are mainly plain weave with some dobby capacity available. Various types of filling yarns can be easily run with the company’s modern Sulzer projectile and AirJet looms.

Yarn is spun on Murata Jet Spinning and Murata VortexSpinning, in the range of 20’s to 40’s (Ne) English yarn count.The company offers many common print cloth styles and has the ability to weave special fabric constructions for specific customer needs.

End Uses:

Shirting fabric Pocketing, waistband lining, innerlining fabric Coating Substrates for Athletic tapes, book bindings, industrial aprons Sheeting fabric Drapery and lining fabric High pressure laminated fabric for printed circuitry

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The U.S. Department of Agriculture (USDA) released its updated U.S. crop outlook for the upcoming season. USDA placed the estimated 2014/15 U.S. cotton plantings at 11.40 million acres and an estimated crop of 17.50 million bales. Upland production was estimated at 16.95 million bales and extra-long staple production at 556,000 bales.

Prepared by: Economic Services - National Cotton Council

2014 U.S. Crop Outlook

U.S. COTTON CROP, 2014-15

PLANTEDACRESThou.

HARV.ACRESThou.

YIELD PERHARV.ACRE

Lb.

5-YEARAVG.YIELD

Lb.

480-POUND BALES

Thou.

UPLAND

SOUTHEAST 2,763 2,742 945 847 5,400

Alabama 375 373 894 773 695

Florida 115 114 926 756 220

Georgia 1,450 1,440 967 883 2,900

North Carolina 470 465 939 824 910

South Carolina 265 263 876 847 480

Virginia 88 87 1,076 880 195

MID-SOUTH 1,460 1,430 1,096 949 3,265

Arkansas 360 350 1,193 986 870

Louisiana 200 195 1,157 903 470

Mississippi 400 395 1,130 972 930

Missouri 250 245 1,087 1,002 555

Tennessee 250 245 862 854 440

SOUTHWEST 6,733 5,662 639 648 7,535

Kansas 43 42 686 660 60

Oklahoma 240 220 818 682 375

Texas 6,450 5,400 631 647 7,100

WEST 235 231 1,550 1,484 746

Arizona 140 139 1,606 1,499 465

California 65 64 1,650 1,595 220

New Mexico 30 28 1,046 1,083 61

TOTAL UPLAND 11,191 10,065 808 804 16,946

TOTAL ELS 178 176 1,517 1,407 556

Arizona 10 10 1,200 1,001 25

California 150 149 1,611 1,458 500

New Mexico 5 5 686 852 7

Texas 13 12 960 917 24

ALL COTTON 11,369 10,241 820 819 17,502

Source: USDA-NASS August Crop Production Report.

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COTTON COUNCIL INTERNATIONAL HEADQUARTERS & LATIN AMERICA

1521 New Hampshire Avenue, NW Washington, DC 20036, USAPhone: (202) 745-7805Fax: (202) 483-4040

Vaughn Jordan,International Program DirectorEmail: [email protected]

CBI OFFICE:C.C. Plaza Colonial Oficina 1-11A,San Rafael de Escazú, San José, Costa RicaPhone: (506) 2288-2626 / 2289-8680Fax: (506) 2289-5124

Floribeth González-Schuyler,Regional Manager, México, Central America & The CaribbeanEmail: [email protected]

ANDEAN OFFICE:Cra. 14 No. 94A-44Office 402Bogota, ColombiaPhone: (57) 1-623-3132Fax: (57) 1-623-3076

Nina Maldonado,Regional Manager, Andean RegionEmail: [email protected]

KOREAN OFFICE:Leema Building, Suite 303, 146-1Soosong-Dong, Chongro-KuSeoul 110-755, KoreaPhone: (011-82-2) 722-3681/2Fax: (011-82-2) 722-3684

Won-Jung Choi,Program ManagerEmail: [email protected]

COTTON INCORPORATEDHEAD OFFICE

6399 Weston Parkway Cary, NC 27513, USAPhone: (919) 678-2326Fax: (919) 678-2231

LATIN AMERICA OFFICE:Av. Insurgentes Sur 1605 - 9 - C03900 Mexico, DF, MexicoPhone: (52-55) 5663-4020Fax: (52-55) 5663-4023

Jaime Flores,Director, Supply Chain Marketing – Latin AmericaGlobal Account Management GroupEmail: [email protected]