Smart Textiles And Smart Strategies Are Key To Textile Industry Survival
Greensboro, NC - Companies in the besieged U.S. textile industry can still survive and thrive, but only if they adapt smart, new strategies that make them a global player. Those that rely on quotas and protectionist legislation are doomed to failure.
This is according to a hard-hitting report issued by Anderson Bauman Tourtellot Vos & Company (ABTV), a turnaround management firm and an ALTMA Group, LLC company.
The research, conducted from a wide variety of sources including recent interim management and consulting engagements by the firm, point to growth opportunities that can give U.S. companies the edge and set them apart from competitors.
"New performance-enhanced products represent the future of U.S. textiles," said Peter Tourtellot, Managing Director of ABTV. "Traditional textile products can still succeed with aggressive branding and better management of the supply chain."
His firm's recommendations:
- Outsource production to cut costs and keep prices competitive. Rising costs for raw materials, energy and human resources make it impossible for U.S. textile firms to compete in high-volume, price sensitive categories.
- Tighten supply chain logistics so that finished products can move quickly to customers rather than taking up expensive warehouse space.
- Practice strong branding. No longer able to compete on price, textile firms must increase margins and profits by product differentiation. Today quality is not enough. Fabrics must offer superior aesthetic or performance features that give them a distinct identity.
- Take advantage of "smart textiles" developed from nanotechnology which protect fabric and improve performance without altering its appearance. The military, biomedical and automotive industries are excellent markets for this type of product.
- Explore the technology for non woven products. This is one of few segments of the textile industry that have added jobs in recent years. Personal hygiene and medical supply companies have an increased need for these products.
- Concentrate on core strengths rather than developing non-textile lines in order to reduce risk. Stay within the industry and continuously improve product through technology and research.
"Traditional textile manufacturing has all but disappeared, but textile companies and brands don't have to disappear with them. A strong commitment to technology and a willingness to change will keep them competitive," Tourtellot said.
SOURCE: Anderson Bauman Tourtellot Vos & Company