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U.S. Broadwoven Fabric Imports Bounced Back in 2018 Due to Rising Supply from India

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U.S. Broadwoven Fabric Imports Bounced Back in 2018 Due to Rising Supply from India

IndexBox has just published a new report: ‘U.S. Broadwoven Fabric Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The revenue of the broadwoven fabric market in the U.S. amounted to $3.6B in 2018, remaining constant against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). Over the period under review, broadwoven fabric consumption continues to indicate a measured drop. The growth pace was the most rapid in 2014 with an increase of 3.7% y-o-y. In that year, the broadwoven fabric market attained its peak level of $4.3B. From 2015 to 2018, the growth of the broadwoven fabric market remained at a somewhat lower figure.

Broadwoven Fabric Production in the U.S.

In value terms, broadwoven fabric production amounted to $3.5B in 2018. In general, broadwoven fabric production continues to indicate a measured downturn. The most prominent rate of growth was recorded in 2014 with an increase of 3.9% against the previous year. In that year, broadwoven fabric production reached its peak level of $4.1B. From 2015 to 2018, broadwoven fabric production growth failed to regain its momentum.

Exports from the U.S.

In 2018, the amount of broadwoven fabric exported from the U.S. stood at 251 tonnes, shrinking by -56.1% against the previous year. Over the period under review, broadwoven fabric exports continue to indicate a drastic contraction. The most prominent rate of growth was recorded in 2017 with an increase of 191% year-to-year. In that year, broadwoven fabric exports reached their peak of 571 tonnes, and then declined slightly in the following year.

In value terms, broadwoven fabric exports amounted to $2.8M (IndexBox estimates) in 2018. Over the period under review, broadwoven fabric exports continue to indicate a drastic shrinkage. The pace of growth was the most pronounced in 2017 with an increase of 100% year-to-year. In that year, broadwoven fabric exports attained their peak of $5.2M, and then declined slightly in the following year.

Exports by Country

Viet Nam (212 tonnes) was the main destination for broadwoven fabric exports from the U.S., accounting for a 85% share of total exports. Moreover, broadwoven fabric exports to Viet Nam exceeded the volume sent to the second major destination, China (13 tonnes), more than tenfold. The third position in this ranking was occupied by Chile (5 tonnes), with a 2% share.

From 2013 to 2018, the average annual rate of growth in terms of volume to Viet Nam totaled +255.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+17.8% per year) and Chile (+186.0% per year).

In value terms, Viet Nam ($2.1M) remains the key foreign market for broadwoven fabric exports from the U.S., comprising 74% of total broadwoven fabric exports. The second position in the ranking was occupied by China ($238K), with a 8.6% share of total exports. It was followed by Colombia, with a 3.5% share.

From 2013 to 2018, the average annual growth rate of value to Viet Nam totaled +157.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (+20.4% per year) and Colombia (+63.4% per year).

Export Prices by Country

The average broadwoven fabric export price stood at $11 per kg in 2018, surging by 21% against the previous year. Over the period under review, the broadwoven fabric export price, however, continues to indicate a moderate shrinkage. The most prominent rate of growth was recorded in 2018 when the average export price increased by 21% against the previous year. The export price peaked at $13 per kg in 2016; however, from 2017 to 2018, export prices remained at a lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Colombia ($22 per kg), while the average price for exports to Chile ($7.5 per kg) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to China, while the prices for the other major destinations experienced a decline.

Imports into the U.S.

Broadwoven fabric imports into the U.S. amounted to 9.2K tonnes in 2018, surging by 2.9% against the previous year. Overall, broadwoven fabric imports, however, continue to indicate a drastic reduction. The most prominent rate of growth was recorded in 2015 when imports increased by 7.1% year-to-year. In that year, broadwoven fabric imports attained their peak of 13K tonnes. From 2016 to 2018, the growth of broadwoven fabric imports failed to regain its momentum.

In value terms, broadwoven fabric imports totaled $69M (IndexBox estimates) in 2018. In general, broadwoven fabric imports, however, continue to indicate a deep contraction. The growth pace was the most rapid in 2018 when imports increased by 3.7% y-o-y. Over the period under review, broadwoven fabric imports attained their peak figure at $97M in 2014; however, from 2015 to 2018, imports remained at a lower figure.

Imports by Country

China (3.3K tonnes), Pakistan (2.6K tonnes) and India (2.6K tonnes) were the main suppliers of broadwoven fabric imports to the U.S., together accounting for 93% of total imports.

From 2013 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by India, while the other leaders experienced more modest paces of growth.

In value terms, the largest broadwoven fabric suppliers to the U.S. were China ($22M), Italy ($17M) and India ($12M), together comprising 73% of total imports.

In terms of the main suppliers, Italy recorded the highest rates of growth with regard to imports, over the last five-year period, while the other leaders experienced a decline.

Import Prices by Country

The average broadwoven fabric import price stood at $7,535 per tonne in 2018, remaining constant against the previous year. Over the period under review, the broadwoven fabric import price, however, continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when the average import price increased by 17% y-o-y. The import price peaked at $8,246 per tonne in 2014; however, from 2015 to 2018, import prices failed to regain their momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2018, the country with the highest price was Italy ($61,521 per tonne), while the price for Pakistan ($4,146 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by China, while the prices for the other major suppliers experienced a decline.

Companies Mentioned in the Report

Milliken & Company, Tk Holdings, BGF Industries, BP Amoco Chemical Company, Glen Raven, Albany International, Polartec, Astenjohnson, National Presto Industries, Culp, Burlington Industries, Xerium Technologies, Propex Operating Company, Westpoint Home, Jay Franco & Sons, Cone Denim, The Hallwood Group Incorporated, Galey & Lord, Hyosung Usa, R B Pamplin, Westpoint International, Collins & Aikman Products Co., Nvh, Nouveau Verre Holdings, Itg Holdings

Source: IndexBox AI Platform

Supply Chain Professionals: Unilever

Unilever is no rookie when it comes to competitive supply chain management strategies, as the company highlighted close to $34 billion for total spend in their May 2018 Supply Chain Overview report. Within those figures, logistics and operations made up 44 percent of the total cost with marketing and business services closely following at 34 percent. The report also revealed the regions heavily involved with the total spend was split between Asia (32 percent), Europe (30 percent) and the Americas (27 percent), which all together made up 89 percent. The remaining 11 percent were split among regions such as the Middle East, Russia, Ukraine, Belarus and Africa. These numbers make it very clear that Unilever boasts a significant global presence and shows no signs of slowing down.

The company has also been making news headlines with efforts toward waste-elimination, which creates an environment supportive of cost reduction and maximizing the use of packaging. Through what’s known as the Loop, premium packaging that is delivered directly to the customer is returned and refilled. Aluminum and glass were among the materials announced in the waste-free shopping system. The goal is to reduce the number of packages being thrown away. Global brands such as Dove and AXE confirmed they will test the Loop system with a stainless steel designed to last for at least 100 cycles, according to Unilever.

“We want to put an end to the current ‘take-make-dispose’ culture and are committed to taking big steps towards designing our products for re-use,” says Unilever CEO Alan Jope. “We’re proud to be a founding partner of Loop, which will deliver our much-loved brands in packaging which is truly circular by design.”

Unilever is a prime example of what it takes to sustain growth when the environment isn’t willing to cooperate. The company released information revealing that 2018 proved to be successful with total growth of 3.1 percent, minus spreads and July Argentina growth. Argentina’s hyperinflation was to blame for the exclusion.

“Looking forward, accelerating growth will be our number one priority,” Jope vows. “With so many of our brands enjoying leadership positions, we have significant opportunities to develop our markets, as well as to benefit from our deep global reach and purpose-led brands. We will capitalize on our strengthened organization and portfolio, and our digital transformation program, to bring higher levels of speed and agility. Strong delivery from our savings programs will improve productivity and fund our growth ambitions.

“In 2019 we expect market conditions to remain challenging. We anticipate underlying sales growth will be in the lower half of our multi-year, 3-5 percent range, with continued improvement in underlying operating margin and another year of strong free cash flow. We remain on track for our 2020 goals.”

Supply Chain Professionals: DHL Supply Chain

Deutsche Post DHL Group subsidiary, DHL Supply Chain, continues making global news headlines through newly implemented green fleet, medical express service expansions, and hiring and retention strategies. More importantly, however, is the company’s expert analysis by taking a closer look into the crystal ball of supply chain trends for 2019. Back in January, the leading American contract logistics provider shared a detailed report highlighting emerging technologies, trends and complexities to come this year.

“Supply chain complexity has been growing for years and several of these trends threaten to create even more complexity,” said Scott Sureddin, CEO of DHL Supply Chain, North America. “However, we are also now seeing key technologies reach a level of maturity that enables them to be used to better manage complexity while also increasing productivity and reducing costs. That makes 2019 a very exciting year in the continuing evolution of the industry.”

This proactive approach makes DHL Supply Chain one of the top supply chain companies on a national and global level. With emerging complexities on the supply chain horizon, the company strategically prepares its operations by acknowledging and carefully evaluating all avenues that make up successful supply chain operations. Whether it be the role technology and automation play, or addressing the talent gap, DHL Supply Chain displays a thorough understanding of what it takes to maintain success in an unpredictable market.

In November, the company announced a $300 million investment to support implementing emerging technologies to not only better enable their own diverse customer base but to also support their customers’ client base. The integration strategy addressed a variety of customer roadblocks within the supply chain, identifying complexities and capacity restraints specifically pertaining to e-commerce and omnichannel. Out of 430 North American facilities, 350 were part of the emerging technology implementation. Technologies integrated were dependent on customer needs and internal innovation research.

“This investment is about a holistic view of emerging technologies that enables our customers to achieve their growth and profitability goals,” Sureddin says. “Our customers’ needs are not homogenous as each business and segment has unique challenges and levels of maturity. Therefore, it is important that our customers can benefit from our experiences and expertise with a variety of emerging technologies.”