China'S Factories Lose Their Competitive Edge, And The US Textile Industry Is In The Second Spring.

According to Xiaobian, the world's clothing and shoe net, with the rise of China's cost, the textile industry with small profit margins has been seriously affected.

China's production workers have greatly improved their annual wages, but failed to improve their production capacity. Chinese factories lose their competitive edge.

With the technological pformation of the textile industry, many companies are considering the adoption of highly automated and environmentally friendly production facilities in the southeastern United States, because the infrastructure needed for the textile industry has been completed in the southeastern United States.

Changes in the global economic situation, social situation and political environment have a major impact on the textile industry.

Production technology is being revamp and consumption trends are changing.

China used to be the lowest cost textile industry in the world, but because of the rapid growth of the number of middle class families and the sustained economic development, the production cost of American textile producers in China has been increasing.

Policy changes and US tariffs are making companies consider pferring production lines back to the United States.

For these reasons,

There are signs of recovery.

Background of US textile exports

From 1994 to 2005, more than 900 thousand workers in the United States were unemployed in textile and clothing industry.

Since 1960s, low cost of labor and new industrial capacity in China, India and Brazil have made the textile industry a loss making business in the United States.

Most textile companies in the United States choose to suspend business or move their businesses abroad, and the textile industry in the US seems never to return to hope.

Textile industry returns to the US

Back to 2017.

Textiles as a highly automated and environmentally friendly industry return to the United States.

Over the past five years, a large number of foreign textile enterprises have invested in the United States, and the location of their factories has been concentrated in the southeastern part of the United States.

These locations are based on decisions made near the port, low cost and quality workforce.

With the increasing public awareness of consumer society, many retailers urge suppliers to build an environment-friendly factory to gain public support.

Since the southeast of the United States was once covered with textile mills, the infrastructure needed for the success of the industry was in place.

Sewage treatment plants already have the ability to handle such sewage without massive capital investment.

At the same time, there are still a large number of skilled labor force to support the novice industry.

The training program has been put in place to help workers prepare for highly automated facilities and universities have developed textile projects.

In 2015, $2 billion invested in the US textile industry.

Experienced industrial recession

The enterprise is being reorganized and automated production is carried out.

The United States is currently the third largest textile exporter in the world, and its exports increased by 39% between 2009 and 2015.

China's wage increase

China is the largest textile exporter in the world, and a new generation of middle class is emerging in China, with an average annual wage increase of 15%.

The annual wage of Chinese production workers has been greatly improved, but it has failed to increase production capacity.

This unbalanced wage growth has lost China's competitive edge.

High energy efficiency in the US

The use of shale oil has brought significant competitive advantages to the United States.

Lower natural gas prices reduce the cost of industrial electricity in the US.

The Michael Porter of Harvard Business School says the United States is leading the world in 10 to 15 years in the use of these non-traditional resources.

Changes in US policies stimulate domestic exports

In January 23, 2017, President Trump signed an executive order to create an export led growth model that supports free trade, including 11 Pacific countries other than China.

The agreement will gradually eliminate about 18000 tariffs among participating countries and help small companies understand export rules and trade barriers.

Trump believes that the termination of the p Pacific Partnership Agreement (TPP), enterprises will directly invest in the United States, in order to avoid import tariffs and slow logistics pport.

Trump raised 20% tariffs on Mexico's imports and raised 35% of tariffs on China.

These tariffs will have a significant impact on the textile industry.

Although it is impossible to predict the impact of these policy changes on the textile market, at least companies will invest time and resources to increase their capacity in the US.

Technological innovation in manufacturing process

Although the United States has made great advantages in production costs, cost saving is not the most economical way of manufacturing for manufacturers.

The work of textiles before the tailoring and sewing process can be done mechanically, and these work will continue to be carried out in low labor cost and labour intensive countries such as Vietnam, Mexico and Honduras.

However, the United States has a huge competitive advantage in high-tech materials manufacturing.

From 2009 to 2015, the investment in yarn, fabric and textile manufacturing increased from 960 million US dollars to US $1 billion 700 million, an increase of 75%.

Smart textiles are fabrics developed through new technologies.

From 2004 to 2014, the annual growth rate of the global intelligent textile industry was 18%, while the growth rate of smart textiles in the United States has exceeded 27%.

For the purpose of

For modernization, SoftWear Automation of Atlanta recently launched a sewing machine called sewbot.

Sewing was once considered a fine job for human beings, but sewbot used cameras to monitor needling and the use of ultra light machines to control fabric movement.

If sewbot is popularized to the market, the mode of production of the textile industry may undergo more drastic changes.

The textile industry in the United States, especially in the southeast, is growing well.

The infrastructure left behind by the former textile mills provides stable development conditions for the textile industry.

The textile and garment industry will develop globally, but the United States will attract more comprehensive and competent practitioners and provide one of the largest consumer markets in the world.

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