Industry News | 9/18/24
Updated: Oct 16
Explainer: Five Reasons Fashion Brands Should Back Next Gen Materials
Just Style | September 18, 2024
A new report from the Material Innovation Initiative (MII) seeks to establish why fashion brands make the switch from traditional petrochemical- and animal-based materials like leather, silk, down, fur, and wool to Next Gen materials which the organization says replicates the performance of their animal-based counterparts by using biomimicry approaches while being more sustainable.
Update: MII announced yesterday that it will be shutting down operations. Read more here.
“After a thorough evaluation and much deliberation, the board of directors and the executive leadership team have made the difficult decision to wind down MII’s operations,” per an email from Thomasine Dolan. “While this is goodbye for MII, we hope the impact of our work will continue to resonate across the industry.”
Major Fashion Brands Still Rely on Synthetic Fibers: Report
Fashion Dive | September 17, 2024
Major fashion brands are still using synthetic fibers, despite mounting regulatory pressure, nonprofit Changing Markets Foundation said in a report released last week. The nonprofit studied the use of synthetic fibers at 50 companies in fast fashion, sports, and luxury. According to the report, Zara owner Inditex uses a higher volume of synthetic fiber than any other brand studied, and its use of fossil fabrics grew by nearly a fifth since Changing Markets’ previous survey. Meanwhile, fast fashion giant Shein had the highest ratio of synthetic to natural fibers, with 82% of its material output made from fossil sources.
ITMF: Apparel Supplier Megastorm on Lack of Demand, High Costs
Just Style | September 17, 2024
The fantastic Laura Husband of Just Style spoke last week with International Textile Manufacturers Federation’s (ITMF) secretary general Dr. Christian P. Schindler about the state of the industry. Click the link below for Dr. Schindler’s insights on the current geopolitical climate, supply chains, and the role of artificial intelligence for the industry.
84% of U.S. Manufacturers Anticipate a Recession in Next Two Years
Sourcing Journal | September 17, 2024
About half (49%) of U.S.-based suppliers believe a recession will hit the market in 2025 — and the vast majority (84%) think it will happen within the next two years, according to recent research from digital manufacturing solutions provider CADDi.
The group’s survey of more than 330 U.S. manufacturing professionals highlighted a number of headwinds facing the sector and driving down confidence in future performance, including a talent shortage, slowing speed to market, and limited access to historical data to track trends and predict future outcomes. More than half (56%) of American supply chain professionals said their organization lacks sufficient access to skilled labor, and 50% said they’re facing issues equipping their existing workforce with the skills to take on strategic roles.
Supplier Diversity Programs Gain Steam as Top Execs Buy In
Sourcing Journal | September 17, 2024
New data from Supplier.io, a software-as-a-service company that helps companies track the outputs of supplier diversity and ESG programs, shows that many companies are making progress toward building out more robust supplier diversity programs, though they are still spending time ironing out specific reporting metrics and processes.
Aylin Basom, CEO of the company, said supplier diversity can help companies enhance their reputation, increase business outcomes, and compete in an uncertain supply chain environment. Adding differing suppliers to a company’s network can help prevent major disruptions in the event of an issue impacting at-large supply chains.
SPESA MEMBER SPOTLIGHT | Lectra Announces a Strategic Partnership with Six Atomic
Press Release | September 16, 2024
Lectra announced today a strategic partnership with the Singapore-based company Six Atomic. Founded in 2020, Six Atomic develops and sells SaaS solutions based on Artificial Intelligence, particularly generative intelligence, to streamline and accelerate the garment design and development process for the fashion market.
This AI Tool Connects Brands to Suppliers — And Does the Negotiating
Sourcing Journal | September 16, 2024
Cavela, an artificial intelligence-powered sourcing solution, has announced its official launch, along with $2 million worth of fundraising from XYZ Capital.
The platform uses AI to connect fashion brands with suppliers based on a description of the good the brand needs to produce, then negotiates on their behalf to find the best quality at the right price. Thus far, Cavela has integrated with more than 200,000 suppliers and tested with several dozen brands, including workwear brand Western Welder Outfitting.
Here’s the official release from Cavela: Cavela Raises $2 Million to Automate Product Sourcing for E-Commerce
USTR Finalizes Action on China Tariffs Following Statutory Four-Year Review
USTR Press Release | September 13, 2024
The heightened tariffs go after strategic product categories, including electric vehicles, batteries, critical minerals, semiconductors, and solar cells. The final tariff structure includes 14 product categories that cover thousands of items. The first tariff hikes are set to go into effect on September 27th, with the next increases at the start of 2025 and 2026. Additional coverage can be found here.
SPESA MEMBER SPOTLIGHT | Zünd Unveils Innovative Loading System with Integrated Registration
Press Release | September 13, 2024
Zünd has launched an innovative loading system involving a table extension and integrated registration system. This solution enables simultaneous loading, job identification and registration of various material types and formats – all carried out swiftly, precisely, and reliably – while the production process is ongoing.
Biden-Harris Administration Takes Aim at De Minimis Exemption
Supply Chain Dive | September 13, 2024
The Biden-Harris administration plans to limit the types of goods that can be shipped via the de minimis exemption while enhancing information collection for such shipments, according to an announcement from the White House. The administration also urged Congress to pass reform legislation by the end of this year, specifically calling for the exclusion of import-sensitive products like textiles and apparel from de minimis eligibility.
SPESA MEMBER SPOTLIGHT | INDA Showcases Sustainability Advancements in Nonwovens, Manufacturing
Press Release | September 12, 2024
INDA, the Association of the Nonwoven Fabrics Industry, announced the release of the International Fiber Journal’s (IFJ) special sustainability issue dedicated to nonwovens. This special edition, which was sponsored by INDA, is a key piece of the association’s 2024 strategic sustainability initiative, launched at the beginning of 2024 in response to feedback that sustainability remains one of the nonwovens industry’s highest priorities.
La-Z-Boy Streamlines Supply Chain with Mexico Consolidation
Supply Chain Dive | September 12, 2024
La-Z-Boy is consolidating its cut and sew operations in Mexico to optimize costs, President and CEO Melinda Whittington said in an August earnings call. The focus on plant efficiencies in Mexico is part of La-Z-Boy’s larger strategy to build a more dynamic supply chain, according to Whittington. She added that the furniture maker considers its North American manufacturing footprint as a “key differentiator” for production.
To Close Out Fashion Week, Governor Hochul Announces First Round of Grants From the New York State Fashion Innovation Center
Press Release | September 12, 2024
The Fashion Innovation Center, created and funded through Empire State Development’s Division of Science, Technology and Innovation (NYSTAR), seeks to expand the use of renewable animal, plant, and bio-manufactured fibers in the fashion industry, and bolster a resilient farm-to-fashion ecosystem throughout New York State, fostering innovation and sustainability in the sector.
“Nothing is more synonymous with New York than fashion, and this industry generates more than $25 billion a year in wages for hardworking New Yorkers," Governor Hochul said. “With these grants through the Fashion Innovation Center, we are working together to advance innovative solutions and build a more sustainable industry.”
This announcement comes after a nonprofit coalition of corporations based in New York City called on the industry and government leaders to invest in the region’s fashion future. You can read more about that here.
And one more for you on the NYC fashion industry: Can New York City Become a Fashion Manufacturing Capital Again?
How Investing in Generative AI Improves the Customer Experience
Sourcing Journal | September 10, 2024
Coresight Research’s latest market report, done in partnership with Digital Wave Technology, took a deep look into the use of generative AI and data by retailers. The firm examined how companies are using the technology and where investments are being made. What they found is a “fragmented landscape” of retail applications as well as investments that are pegged to soar over the next few years. Additional coverage on how AI is being leveraged across the supply chain can be found here.
A separate report from Coresight Research dove into how demographics influence where consumers are shopping for apparel and footwear. When it comes to apparel, footwear, and accessories purchases there is a clear division between different pay brackets and ages on determining where consumers shop. You can check out that report here.
Bio-Derived LYCRA Fiber To Be Introduced
Textile Technology Source | September 9, 2024
The LYCRA Company, a fiber and technology provider for apparel and personal care products, has announced its bio-derived LYCRA® fiber made with QIRA®, which the company says is the industry’s first renewable spandex available at scale. The fiber will be launched in the first half of 2025.
Made from annually grown field corn, it’s expected to reduce the carbon footprint of LYCRA® fiber by up to 44%, while delivering equivalent performance to the original fiber. The company’s aim is to help accelerate decarbonization in the fashion industry.
Trump, Harris and China Weigh In on Tariffs Ahead of Impending Increases
Sourcing Journal | September 7, 2024
In the wake of the Biden Administration’s deferral of a final determination on steep tariff increases on China-made industrial goods, presidential candidates Donald Trump and Kamala Harris are seeking to make their positions known.
Trump Proposal To Cut Tax Rate for U.S. Manufacturers Spurs Flurry of Questions
Wall Street Journal | September 6, 2024
Earlier this month, Donald Trump pledged to New York’s business elite that he would “once again turn America into the manufacturing superpower of the world.” To do so, he said, he would cut the corporate tax rate to 15% from 21% for companies that make their products in the U.S., and expand tariffs on foreign-made goods.
The old provision led to disputes over what, exactly, counts as domestic production. Congress repealed the domestic-production deduction in the 2017 law, choosing instead to lower the corporate tax rate across the board. Some economists said Trump’s new proposal would likely spark a similar debate, though they added it was hard to judge the idea without more detail.
SPESA MEMBER SPOTLIGHT | Detroit’s Fashion Future: ISAIC and Carhartt Showcase Innovation at Month of Design
The Michigan Chronicle | September 5, 2024
Detroit’s fabric of innovation is set to unfold on September 11, 2024, as the Industrial Sewing and Innovation Center (ISAIC) partners with Carhartt to present a forward-thinking event during the Detroit Month of Design. The “ISAIC + Carhartt Fashion Experience” promises to deliver an immersive look at the future of fashion and manufacturing in the heart of the city, further cementing Detroit’s resurgence as a creative powerhouse. The event will take place at 5800 Cass Avenue from 4:30 PM to 6:30 PM, offering attendees a chance to witness first-hand how the city is shaping the national and global textile industry.
Industry Shows Signs of Hope with Solid Exhibitor Reports from Techtextil North America
eTextileCommunications | September 5, 2024
Exhibitors at Techtextil North America, which took place at the Raleigh Convention Center August 20-22, reported to eTC mostly positive results of the annual trade show. With more than 20 countries represented across the show floor, the 2024 edition showcased exhibits from China, Colombia, Egypt, India, Italy, Spain, Taiwan, Thailand, Turkey, Turkmenistan, and many more. Devin also shared this recap from the Messe Frankfurt team.
Nearshoring Boom Isn’t Just a Mirage, Western Hemisphere Suppliers Say
Sourcing Journal | September 4, 2024
Brands are indeed expanding their sourcing portfolios to include new locales in Central America, South America, Mexico, and the U.S., they told Sourcing Journal — and they’re doing so at a more rapid rate than they have in recent years. Quality, speed to market, and the desire to diversify away from China are weighing heavy on the minds of buyers and sourcing executives, they reported.
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