The Major Industry Sectors: Fiber, Fabric, Finished Products, And
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Chapter 3 The Major Industry Sectors: Fiber, Fabric, Finished Products, and Machinery Manufacturing Chapter 3 The Major Industry Sectors: Fiber, Fabric, Finished Products, and Machinery Manufacturing The previous chapter outlined broad themes affect- technology that has been developed primarily ing the industry complex that converts fiber into ap- by foreign producers. parel and other end uses. This chapter will exam- 3. Apparel (and other end uses): Manufac- ine the major segments of the industry in greater tured finished products made from textiles are detail, addressing changes in both production tech- dominated by apparel. In recent years, how- nology and patterns of business organization. The ever, the largest growth in finished products has industry will be subdivided as follow’s: been in home furnishings and industrial appli- cations. Textiles are being used for a variety 1. Fiber Production: The process of manufac- of industrial purposes, going far beyond the turing fiber varies greatly, depending primar- traditional uses in automobiles. Textiles are now ily on whether the fiber is made of natural or used in high technology medicine, space ex- synthetic materials. Synthetic fiber production ploration, erosion control, and highway build- is closely allied with the capital- and research- ing. The industries that make finished products intensive chemical industry; the standard in- are diverse, and include many small firms. dustrial classifications (SIC) for synthetic fiber manufacturing are part of the chemical and al- 4. Textile Machinery Manufacturing: In pre- lied products series, and are not grouped with vious generations, the textile machinery man- textile mill products, ufacturing sector was the “mover and shaker” 2. Textile Mill Products: Fabric production is behind productivity growth throughout the in- still primarily accomplished with weaving, though dustry. In recent years, however, few major knitting and tufting are examples of nonwoven technologies have been introduced by U.S. fabrics. The industry is being revolutionized by firms. the shift from shuttle to shuttleless looms, a THE PRODUCTION OF FIBER The fiber sector of the textile industry complex be processed into an almost infinite variety of fab- has undergone substantial change in recent years. ric constructs and styles. z Synthetic fibers have supplanted natural fibers at a rapid rate. Representing less than 10 percent of the Besides the obvious adjustments in the fabric and market in 1940, synthetics captured nearly 75 per- apparel industries, the entire structure of the fiber cent by the mid-1980s. Cotton, which made up over industry has been altered. As synthetics have come 80 percent of U.S. mill fiber consumption in 1940, to dominate the market, so too have the large mul- fell to just over 25 percent by the mid- 1980s.l While tinational chemical companies that are among the rayon and acetate represented the only two man- major producers of synthetic fiber. With new proc- made fibers 50 years ago, today there are thousands esses has come a new level of technology and capi- of individual products in 10 major classes that can tal intensity as well. ‘Richard E. Emmert, “The Long V~ew, presented at the 50th An- ‘American Textile ~fanufactu rers Institute, Textile Highlights, Sep- nual Research and Technology Conference, Textile Research Institute, tember 1986, p 1 Washington DC, Apr. 3, 1980, p, 1 37 38 — Background Natural Fibers The fiber industry is composed of the agricultural The major market for natural fibers in the United sector, which supports the production of natural fi- States is for cotton. It is by far the dominant sector bers—primarily cotton, but also wool, silk, linen, and among natural fibers, with over 90 percent of natu- jute—and the chemical industry sector, which pro- ral fiber consumption and 25 percent of the overall duces manmade fibers. Most fibers are highly sub- fiber market. Wool and silk are negligible in their stitutable; not only do manmade fibers compete overall importance. among each other, but they can substitute for natu- Cotton.—Besides the dominant trends of non- ral fibers. growth in production and a declining share of the In 1980, approximately 17 percent of all fibers fiber market, the market for cotton is unstable from produced in the world were consumed in the United year to year. Major production swings occur due to States; this share fell from close to 20 percent in 1960. differences in weather and growing conditions, ex- Experts believe that the share will continue to fall, port demand for fibers, and U.S. economic condi- reaching 16 percent by 1990. The two major factors tions. Commodity boards of trade provide a market responsible for the decline are a marked slow-down for risk diversification by farmers and cotton pur- in U.S. population growth, along with the substan- chasers who are unsure of future cotton supply and tial industrial progress demonstrated by developing demand. But weather and changing trade have still countries. kept cotton prices unstable, causing variations in price of up to 50 percent from one growing season On the other hand, per-capita fiber consumption to another. For example, large crop yields in the 1979 is much higher in the United States than in other and 1981 seasons, combined with a slowing of over- countries of the world, with a level of 58 pounds per seas demand for cotton fiber, led to sharply reduced person versus an average world consumption in cotton prices in 1982. And U.S. plantings of cotton 1983 of 15.5 pounds per person. But U.S. consump- for harvest in the 1983-84 season were down almost tion may have peaked, falling to under 56 pounds 35 percent, in response to low prices and new gov- 3 per person by 1985; at the same time, world con- ernment acreage management policies.4 Nonethe- sumption grew sharply. World growth in fiber con- less, the United States remains a major world ex- sumption is a critical factor for U.S. firms to consider porter of cotton; although exports fell off substantially as they develop marketing strategies. Of the total in 1985-86, most forecasts predict a significant re- growth in world fiber consumption, two-thirds is due covery for this marketing year. Japan, South Korea, to increases in per-capita consumption and one-third and other Pacific Rim nations are the major pur- from population increase. chasers of U.S. cotton, accounting for approximately Cotton represented a much higher market share 60 percent of U.S. exports. of 1983 world fiber production, 48 percent, than of Within the United States, nearly all of the cotton 1983 U.S. fiber production, 25 percent. And yet world fiber grown and produced comes from the south and production of manmade fibers has shown a growth west. The top five cotton producing States are re- parallel to U.S. production since the 1940s, and is sponsible for 75 percent of U.S. cotton production. only today growing faster than U.S. production. The Texas leads with 30 percent of the U.S. total, followed United States is currently the leading world producer by California with 28 percent, Arizona with 13 per- of manmade fibers. China is the largest producer of cent, Mississippi with 10 percent, and Louisiana with cotton, with the United States being second. Aus- 4 percent. Over 99 percent of U.S. cotton is the Up- tralia is the world’s leading wool producer; wool pro- land variety; the remaining share is American Pima.5 duction in the United States is insignificant in the world market, at 1.5 percent of total production. *’iCotton Monthly Re\’lew of the World Situation, ” ]nternatlonal Cot- ton Advisor~ Committee, vol. 36, No, 11, June 1983. 3Te.wde Organon, Textile Economics Bureau, vol. 57, No. 5, May 1986. 5Textile Organon, vol. 52, No. 1, January 1981, pp. 1-16. 39 Wool.-Wool production amounts to only 1.5 per- offset by closings of facilities in these countries. Most cent of U.S. mill fiber consumption, most of which fiber industry analysts expect little change in these is imported. While consumption has been rising in trends in the future. recent years, a growing share of that consumption The U.S. synthetic fiber industry consists of ap- was made up of imports. proximately one dozen large multinational corpo- rations, which are horizontally integrated. Du Pent, Synthetic Fibers 7 Celanese, Monsanto, and Allied are entirely Ameri- Without question, the major development in the can-owned companies, and rank among the 10 largest fiber industry is the growth of the synthetic fibers world firms. The top 10 producers in the United sector. The first half of the 20th century was marked States account for almost 90 percent of U.S. produc- by the introduction of a large number of synthetic tion. Du Pent, the largest, has far more fiber sales fibers, and the second half of the century by their value than its closest competitor, Celanese. Du Pent rapid adoption by consumers. Rayon was the first and Celanese are followed by Allied, Monsanto, East- major synthetic to be produced, starting in 1910. Ace- man, Akzona, Badische, Hercules, and Avtex. Of the tate production began in the 1920s, followed by the top five fiber companies in 1982, Celanese had the production of synthetic nylon and vinyon, as well highest fiber sales as a percent of all corporate sales, as rubber and glass, in the 1930s. During the 1940s, at nearly 40 percent. If measuring size by corporate production of saran, metallic fibers, modacrylic, and sales rather than fiber sales alone, Du Pent remains olefin began. During the 1950s, acrylic, polyester, the leader, followed by Eastman and Monsanto.s triacetate, and spandex came onto the market. In These companies compete in the markets for six dis- 1961, production of aramid fibers became commer- tinct fibers: polyester, nylon, acrylic, polyethylene, cial; by the mid-1970s, polyester had clearly emerged polypropylene, and acetate.