William C. (Bill) SmithIndustrial Textile Associates
Greer, SC 29650, USA
www.intexa.com
June 5,, 2009SPESA2009 Orlando1
Technical Textiles 2009
State of the Industry
June 5,, 2009SPESA2009 Orlando2
What are technical/industrial textiles?
A casual definition: "if we don’t wear it as clothing
(apparel), if we don’t use it to decorate our homes
(home furnishings), then it is industrial."
While that may be a bit imprecise, and there is
much overlap, it is functional enough to show
perspective. And it is not too far removed from the
"actual" definition -- as best we have been able to
define it.
Technical Textiles 2009 – State of the Industry
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Technical Textiles 2009 – State of the Industry
Textile Institute (Manchester, UK) says:
Industrial Textiles are: "1) Textile materials and
products intended for end uses other than clothing,
household furnishing, and floor covering, where the
fabric or fibrous component is selected principally,
but not exclusively, for its performance and
properties as opposed to aesthetic or decorative
characteristics, and
2) A category of technical textiles used either as part
of an industrial process or incorporated into final
products."
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Technical Textiles 2009 – State of the Industry
Textile Institute (Manchester, UK) also says:
Technical Textiles are: "Technical materials and
products manufactured primarily for their technical
performance and functional properties rather than
their aesthetic or decorative characteristics, a non-
exhaustive list of end uses include: aerospace,
industrial, marine, medical, military, safety, transport
textiles, and geotextiles."
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Technical Textiles 2009 – State of the Industry
Textile Institute (Manchester, UK) also says:
Technical Textiles are: "Technical materials and products manufactured
primarily for their technical performance and functional properties rather than
their aesthetic or decorative characteristics, a non-exhaustive list of end uses
include: aerospace, industrial, marine, medical, military, safety, transport
textiles, and geotextiles.“
Sounds a lot like the definition of industrial textiles.
A lot like the “casual” definition as well. Confusing?
The industry is difficult to define as there are a lot of
overlapping areas and collected data does not
always agree as to what is counted where.
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Technical Textiles 2009 – State of the Industry
Categories of Technical Textiles
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Technical Textiles 2009 – State of the Industry
1. Agrotech - Fabrics used in agricultural, farming,
landscaping applications
2. Buildtech - Materials used in construction, civil engineering,
temporary buildings, etc.
3. Clothtech -- Technical components of clothing, shoes, etc.
4. Geotech -- Geotextiles and geosynthetics -- materials for
soil control, road reinforcement, landfill liners, etc.
5. Hometech -- Technical components of home furnishings
6. Indutech -- "Industrial" items not categorized elsewhere:
filtration, mechanical rubber goods, sound absorption, etc.
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Technical Textiles 2009 – State of the Industry
7. Medtech – Textiles for medical, hygiene, rescue use
8. Mobiltech - Automobile, truck, trains, buses, aerospace
9. Oekotech - Environmental fabrics; can be from many
other segments, such as filtration, erosion fencing,
and landfill lining.
10. Packtech -- Materials for packaging (i.e. lumber wrap),
protective covering systems, sacks, bulk storage bags
11. Protech -- Protection of persons or property -- firemen's,
chemical hazmat garments, clean room garments.
12. Sportech -- Sports and leisure active wear, outdoors
and sports equipment, sports shoes.
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Technical Textiles 2009 – State of the Industry
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Technical Textiles 2009 – State of the Industry
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Technical Textiles 2009 – State of the Industry
It depends on what you count –not every study agrees.
Pounds of fiber?
Square yards of fabric?
Dollars – production, retail?
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Technical Textiles 2009 – State of the Industry
Approximately 25% of all fiber consumed in US for TT
About 24 million tons of fiber worldwide
Roughly $120 billion worldwide
About $31 billion sales in US
CAGR 3.8%
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Technical Textiles 2009 – State of the Industry
So – Is Dilbert Right?
Numbers are great to have – and necessary to put things into perspective.
It depends on what/how you count!
Market shares, by segment (% total TT fiber usage)
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Source: David Rigby Associates, Manchester, UK; World Market Forecasts to 2010
Technical Textiles 2009 – State of the Industry
Shown to provide perspective
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The state of the industry?
It's down – by some estimates 20-40%,
depending on what industry you consider –
and what segment.
The TT industry reaches into every facet of
our economy, and follows it’s up and down.
So, what is happening?
Technical Textiles 2009 – State of the Industry
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Technical Textile 2009 – State of the Industry
A giant lack of confidence!
People are scared, so they put off
buying cars, houses, big ticket
appliances, eating out, taking trips,
even getting their hair cut, and
it impacts the TT industry!
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Technical Textiles 2009 – State of the Industry
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Technical textiles get into many areas of products of our every day life. Most we never see or know.
Using Automotive as an illustration, one can see the myriad of places where TT are used.
While this is one example, one industry, similar things could be developed for most any of the markets in our previous pie chart.
Technical Textiles 2009 – State of the Industry
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The NA automotive industry represents the largest market for technical textiles, in dollars –and by some estimates, the market accounts for about 23% of all technical textiles worldwide.
Technical Textiles 2009 – State of the Industry
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The NA automotive industry represents the largest market for technical textiles, in dollars –and by some estimates, the market accounts for about 23% of all technical textiles worldwide.
Global consumption of technical textile
and nonwovens in mobiltech – textiles
used in transportation - is/was forecast
to reach 3.34 million tons by 2010.
BUT – now it will obviously take a while
longer!
Technical Textiles 2009 – State of the Industry
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Automotive Textile Applications & Content
Cabin Air
FiltersDash Insulation
Seat Bolster
UpholsteryCarpet
Backing
Floor Mats
Wheel House
Insulation
Muffler
Wraps
Package Tray
Facings
Seat Back
UpholsterySunroof
Facing
Headliner
Facing Headliner Scrim
Backing
Sun Visor Facing
and padding
Air Intake Filter
Sound Proofing
Battery Separators
Door Insulation
Trunk
Liner
Rear Shelf
Insulation
Door Upholstery
Tire Reinforcement
Airbags
Seating
Belts and Hoses
Carpets
Seatbelts
Electronic and structural
Composites
Oil and transmission Filters
Eco-friendly dash composites
Gas tank filters
Technical Textile 2009 – State of the Industry
Adapted from Freundenberg Vitek:2008
June 5,, 2009SPESA2009 Orlando
Automotive Textile Application Categories
Facing
Seat Back/Bolster
Seating
Headliner
Carpet
Trunk
Door panel
Package Tray
Cargo facing
Load Floor cover
Pillar cover
Structural
Carpeting
Carpet backing
Headliner Substrate
Door panel
Air bag
Wheel House
Trunk Trim
Tires
Seatbelts
Composites(structural andelectronic)
Belts/Hoses
Filter
Engine
Cabin
Fuel
Exhaust
Transmission
Oil
Acoustic/Thermal
Door panel
Trunk
Dash Insulator
Seat
Anti-Squeak
Package Tray
Floor Insulation
Technical Textiles 2009 – State of the Industry
Adapted from Freundenberg Vitek:2008
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Technical Textiles 2009 – State of the Industry
Each vehicle (cars and light trucks) uses, on the combined average, 33 square yards of textile materials in interior areas (including trunk), and approximately 21 kg of fibrous material.
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Application Weight(kg)
Carpets, interiors 4.5
Upholstery 3.5
Belts, hoses 1.6
Tire cord 1.5
Seat belts 1.9
Airbags 1.2
Composites 4.5
Others 2.2
Total 20.9 kg
Technical Textiles 2009 – State of the Industry
Automotive textile according to current usage(average numbers)
Article: Upholstery in Automobiles; D. Gopalakrishnan, Arpita Nayak;www.Fibre2Fashion.com 5/17/08
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Technical Textiles2009 – State of the Industry
16,000,000 cars = 528 million sq ydsAnd that does not count many unseen “working textiles” – hoses, tires, etc.
10,000,000 cars = 330 million sq yards to be used
= Loss of 198 million square yards of fabric in 2009 if current economic situation continues
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“The United States is a country that depends on the
motor vehicle for transportation, and many of
those vehicles will be made in the US. The
automotive industry will eventually continue to
provide opportunities for economic development
and jobs, and now is the time to plan and prepare
for that bright future …
Until 1984 the automotive industry’s presence in
the south was minimal – since then 32 plants and
42,500 jobs have resulted…”Center for Automotive Research, 3/27/09
Technical Textiles 2009 – State of the Industry
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Technical Textiles 2009 – State of the Industry
Wall Street Journal –January 12, 2009
Detroit is Facing a Scary New Normalcy
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Technical Textiles 2009 – State of the Industry
Wall Street Journal –January 12, 2009
Detroit is Facing a Scary New Normalcy
2013 before back to “normal” 16 Mil car year
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5256
68
85
0
10
20
30
40
50
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Milli
ons
Japan/Korea W. Europe North America
0
10
20
30
40
Millio
ns
Middle East/Africa South America
C/E Europe Greater China
Southeast Asia
43.2 45.4 45.547.9
45.5
8.910.4
22.1
36.8
2007-2013 Growth Rate 0.9%
2007-2013 Growth Rate 8.8%
The Global Outlook for Automakers
© 2008 CSM Worldwide
Global Light Vehicle Production by Region
Technical Textiles 2009 – State of the Industry
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Technical Textiles 2009 – State of the Industry
A Wall Street Journal article in early 2009 stated that
at the present rate of growth, the Chinese auto
industry, with some 80 producers, would soon
reach over 10 million units produced per year as
well – relegating the US to second place. In July
2009, this was realized with China surpassing the
US in sales for 5 of 6 months with China up and the
US car sales down.
China has 25 cars per 1,000 people -- with a
population of almost 1.4 billion, that’s still a lot of
cars (35 million) and potential!
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815
600220
25
25 600
125
Opportunities for GrowthCars per 1000 population
Little Growth Some to Moderate Growth Opportunities Great Potential
Data: Fredonia Group – 2006 Figures
Technical Textiles 2009 – State of the Industry
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Technical Textiles 2009 – State of the Industry
Housing is a major technical textiles application
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Technical Textiles 2009 – State of the Industry
Amidst all the economic doom and gloom, there are a few bright spots:• Inflation has remained under control so far.• Prices are down for most materials.• The stimulus bill will help to mitigate some loss.• There is still a large amount of construction being
put in place.
Investment bank FMI forecasted nonresidentialconstruction would plummet in 2008 and begin atleast three years of contraction. The bottom, interms of both dollar volume and percent decline, will not be until 2010. Residential construction isnot expected to recover until 2011.
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Is everything down? Not quite - - A new report by the
trade group IFAI shows
Military fabrics to be up10% in 2009
Protective clothing will be up 5%
Coated fabrics to be up 3%
Geosynthetics up 5%
The report projects downturns of 4-5% in awnings,
truck covers, and marine fabrics, while lightweight
structures will be down 2%. Source: Industrial Fabric Association International 2009
Technical Textiles 2009 – State of the Industry
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The report says that with the exception
of the military, many of these markets
are heavily impacted by imports, not
just from Asia, but a growing number
of other low-wage areas, including
India and Eastern bloc countries.
Most is in finished products, not fabric(That. Obviously, affects SPESA companies)
Technical Textiles 2009 – State of the Industry
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The military has always been a major
force in developing new technology
and applying it – and will continue
to be.
Example: Protective Clothing
Technical Textiles 2009 – State of the Industry
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The military has always been a major force in developing new
technology and applying it.
It’s protective clothing developments
have been instrumental in adopting
new high performance fibers, and
the fabrics are now being utilized by
the civilian fire service and police,
emergency service providers, and
homeland security.
Technical Textiles2009 – State of the Industry
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Technical Textiles2009 – State of the Industry
Gelevenor Textiles
Offreay
Protective Clothing
Military
Civilian
Fire Service
www.globalsecurity.org
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The military has always been a major force in developing new technology and applying it.
It’s protective clothing developments have been instrumental in adopting new high
performance fibers, and the fabrics are now being utilized by the civilian fire service and
police, emergency service providers, and homeland security.
As the situation winds down in Iraq and new
emphasis on Afghanistan, and the overall
concern to reduce the defense budget, it is
difficult to determine the continued needs of
the military. The Berry amendment (buy
American) is a big help in US companies
supplying the military and now Homeland
Security.
Technical Textiles 2009 – State of the Industry
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Technical Textiles 2009 – State of the Industry
Carbon Composites
Ever expanding applications
Siource: Zoltek
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Technical Textiles 2009 – State of the Industry
Carbon composites in aerospace
Source: Paul Pendorf, AMTII for TTNAS 2009
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Technical Textiles 2009 – State of the Industry
Medical – a growing dynamic in technical textiles
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What to do?
Technical Textiles 2009 – State of the Industry
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The secret to prospering in the
industry is to find the areas of
opportunity and potential (and they
are there), up and down the chain -
and outward - line extension, and
exploit them.
Leading companies are doing this.
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The secret to prospering in the industry is to find the areas of opportunity
and potential (and they are there), up and down the chain - and
outward - line extension, and exploit them.
Companies must build on what they do
best: use innovative and creative ideas
and techniques, develop new
applications, appropriately use new
technology, add value, differentiate
themselves from the competition
Technical Textiles 2009 – State of the Industry
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Technology?
Nanotechnology
Carbon nanotubes
New variants of older fibers
New fibers - electrospinning
Smart/Intelligent materials
Electronic integration
Green applications
Developing new technology is one thing –
how you apply and use it is the key.
Technical Textiles 2009 – State of the Industry
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Behold – the inflatable car!
Technical Textiles 2009 – State of the Industry
XP Industries
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Technical Textiles 2009 – State of the Industry
XP Industries
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Skeptical?
Think Zodiac boats!
Think Outside the Box!
Technical Textiles 2009 – State of the Industry
XP Industries
Whether things good or bad may depend on where
you are on the chain
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Technical Textile 2009 – State of the Industry
Fibers
Fabrics
Fabricator
User
weavers
knitters
nonwovens
chemicals
finishers
spinners
coaters, laminators
producer, end products
industrial
consumerMany/all areas interact
Whether things good or bad may depend on where
you are on the chain
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Technical Textiles 2009 – State of the Industry
Fibers
Fabrics
Fabricator
User
weavers
knitters
nonwovens
chemicals
finishers
spinners
coaters, laminators
producer, end products
industrial
consumerMany/all areas interact
Imports
Domestic
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An important point:
In virtually every sector, there are areas doing
well, even if the segment as a whole is down.
Example: Within the composites section, while
fiberglass composites are down, certain
segments of carbon reinforced composites are
doing well.
Technical Textiles 2009 – State of the Industry
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Most economists see recession end in '09 – AP 5/27/09
US Housing Starts Surge, Inflation Slower - 3/17/09
(April housing starts decline dramatically – sales of previously
owned home rose 2.9 percent in April -- it’s a roller coaster ride)
Worst Might be Over – 3/26/09
Consumer Spending Increases for Second Straight
Month – 3/27/09
US consumer mood lifts – Reuters - 5/26/09 Biggest 1 month
jump in consumer confidence since April 2003
“… (US) economic recovery will be a long, slow slog, with a key
manufacturing indicator (factory activity in the Mid-Atlantic region)
showing only marginally less weakness and an outlook for rising
unemployment even when growth resumes. – Reuters 5/21/09
Technical Textiles 2009 – State of the Industry
Some Recent Headlines
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Conclusion: I have
optimism for a
Great Future,
How about you?
Technical Textiles 2009 – State of the Industry
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The state of the industry? It's down –
yes, but it is amazingly resilient.
The country needs/uses technical
textiles in so many areas.
As the economy improves, we'll emerge
from this down time to be stronger than
ever! We have before and we will do it
again.
Technical Textiles 2009 – State of the Industry
• Change culture from reactive to proactive; textiles
still have the ability to provide an environment that
attracts the best people
• Your products are a commodity ONLY if you treat
them so; low margins are only for those who
accept them
• Innovation is not dead in the textile business; it
must be driven by customer needs
• Look upstream and downstream for opportunity
• Dream, and excite your business like never before
We control our own destiny!
June 5,, 2009
a
aaaa
Rick Black, Performance Fibers, April 21, 2009 TTNAS
Technical Textiles 2009 – State of the Industry
TTSNA 200956 SPESA2009 Orlando
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For further information about this presentation, contact:
Bill Smith, ITA864-292-8121
Technical Textiles 2009 – State of the Industry
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