JTATM - North Carolina State University

State of the Union of the Textile Industry in North Carolina: Improving Global Market Competitiveness with Identification and Assistance of Core Competencies

Stacey Frederick, Ph.D. Student

Summer 2006 the North Carolina State University College of Textiles was awarded a research grant to study the textile complex in North Carolina in order to identify opportunities for improving global competitiveness for North Carolina companies. Dr. Nancy Cassill led this project, along with Dr. Blanton Godfrey, Dr. Trevor Little, and Stacey Frederick with funding provided by the North Carolina Legislature, Division of Policy, Research and Strategic Planning. A final report, with recommendations and an implementation plan was delivered to the North Carolina Legislature July 2006. The following is the executive summary of this study:

With the anticipated growth of global production and consumption of textile-related products and services, there are opportunities and challenges for the North Carolina textile complex. The North Carolina textile industry (“textile complex”) consists of all production, marketing and services of textile products, from the fiber to the ultimate consumer, including auxiliary services needed to manufacture, finish, market and distribute the product. Textile products are unique, as there are diverse end-use markets for textiles: apparel, home textiles, industrial/technical, automotive, and medical.

North Carolina has continued to play a significant role in the global textile complex, as well as in the North Carolina economy. As a global leader in textile production and marketing, North Carolina is recognized as the headquarters for major global companies, as well as a leader in products, markets, processes, and services. Historically, North Carolina has consistently led the other 50 United States in textile production (ranked #1 among all 50 U.S. states), and currently ranks as the fourth largest apparel state in the nation in terms of employment. Within the last ten years, the global textile complex has undergone a major restructuring, due in part to trade liberalization as well as growth (products, production, markets) within the global industry. While both production and consumption of textile and apparel is anticipated to increase, a major shift has occurred in both the global textile production and marketing:

Firms are marketing their products in the most profitable places in the world (predominantly developed countries), and manufacturing in the most economical and efficient places in the world (increased shift to developing countries).

This restructuring of the global complex has provided challenges and opportunities for the North Carolina textile complex. Even with North Carolina’s historical dominance in textiles, this is the first research study that looks extensively at the existing North Carolina textile complex (fiber-> consumer, with auxiliary firms) and outlines assistance for North Carolina companies. In addition, this study’s findings present a new, holistic way of looking at the North Carolina textile complex. The purpose of this research study was to conduct an analysis of the of textile complex in North Carolina and identify ways to assist these companies using the wealth of resources North Carolina has to offer. With North Carolina’s historical dominance in the global textile complex, the study’s outcomes can have significant impacts on the North Carolina textile complex, as well as the North Carolina economy. A Steering Committee provided the researchers with inputs and guidance for this project. This Steering Committee was comprised of personnel from industry, government, trade associations, and academe.

Specifically, North Carolina Department of Commerce secured NC State College of Textiles personnel’s assistance in four areas:

A research framework, Global Textile Competitiveness Framework, was developed by the researchers to evaluate the economic competitiveness of today’s North Carolina textile complex. This framework consisted of strategies and tactics that related to variables such as product, market, design, technology, manufacturing and supply chain dimensions. To accomplish the four objectives, a North Carolina Textile Complex Database was developed. This study’s database provides an up-to-date, sortable and searchable database (with 90 variables) of the North Carolina textile complex. The North Carolina Textile Complex Database is in EXCEL format, with a total of 1,500 textile complex establishments represented. The 90 variables can be broken into seven (7) key areas including: facility, demographics, geography, supply chain, product mix, market mix, technology, and global involvement.

The study’s results provided an overall picture of the North Carolina textile complex. The textile complex has a presence in 90 of the 100 counties in North Carolina. While the majority of these companies are private (91%), the North Carolina complex employs in excess of 120,000 people and sales that total over $35 billion. North Carolina is unique in that it has representation in all sectors of the textile complex; fiber, yarn, fabric, finishing, hosiery, apparel, household textiles, machinery, chemicals, post production, retail, and research and development.

Geographic and industry clusters exist in the North Carolina textile complex that provide productivity, innovation and stimulate new business opportunities. Geographic clusters exist in the Triad, Triangle, Charlotte and Hickory areas. Industry clusters in North Carolina include the traditional manufacturing cluster as well as the new emerging clusters of trade, distribution, creative/innovative, post-assembly customization, and financial. The geographic and industry clusters provide opportunities for both industry growth and creative programs to enhance the overall competitiveness of the textile complex.

The new/emerging clusters provide opportunities for creative programs to be shared with the North Carolina textile complex. These programs include: import-ready, supply chain management, global business strategy, design/development/creative innovative, as well as marketing programs. These programs can be provided by the North Carolina Department of Commerce, as well as through collaboration with universities, community colleges, and industry associations. Future research includes building an information warehouse as well as developing the performance industry in North Carolina.