& TEXTILES OF TOMORROW
VOLUME 47 NUMBER 12 SERVING THE HOSIERY AND TEXTILE INDUSTRIES EACH MONTH
Textile Technology Center
Looking At More Visible Role
Better Choices With A
You Wear US Well team is taking supply chain
with them to February MAGIC Show
& TEXTILES OF TOMORROW
VOLUME 47 NUMBER 12 SERVING THE HOSIERY AND TEXTILE INDUSTRIES EACH MONTH
The only monthly publication that offers
News About The Industry, From The Industry, For The Industry.
6 Creora® On Track For New Benchmarks In 2007
8 The Supply Chain Is With US
10 Textile Center Looking At More Visible Role
15 ILG’s New CEO – Russ Reighley
17 Deptartment Store Sales Soar
4 Legislative Column — PAUL FOGLEMAN
12 From Washington
The ONLY monthly magazine advertisers in this issue
We appreciate Legwear Trends & Fashions advertisers and encourage you to
dedicated to the hosiery industry consider them when selecting a product or service.
PUBLISHER. . . . . . . . . . . . . . . . . Paul Fogleman
Wellman . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Exeltor . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
EDITOR. . . . . . . . . . . . . . . . . . . . Brent Childers *Fiber and Yarn Products . . . . . . . . . . . 5 Hickory Throwing . . . . . . . . . . . . . . . . . . 18
Hosiery Tech. Center.. . . . . . . . . . . . . . . 9 Southern Colortype . . . . . . . . . . . . . . . . 18
ASSISTANT EDITOR . . . . . . . . . Charlene Nelson Carpenter Legwear Trends. . . . . . . . . . . . . . . . . . . 13 Jones Textile Company . . . . . . . . . . . . . 19
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ART DIRECTOR . . . . . . . . . . . . . J. Johnson Del-Mark . . . . . . . . . . . . . . . . . . . . . . . . . 18 Hyosung . . . . . . . . . . . . . . . . . . . . . . . . . 20
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legislative column by PAUL FOGLEMAN, Director, Hosiery Governmental Affairs Council
Changes are in store for independents and Republicans clude Blue, who was recently ap-
the 2007 Legislature. With unhappy with unbridled spending pointed to fill an unexpired term.
five House members looking in Washington and the U.S. Also in the race as the new year
for support in a bid for the involvement in the civil war in rolled around were Rep. Mickey
speakership next session and Iraq. Michaux of Durham, Rep. Bill
wider margins for Democrats, a Democrats added four western Faison and Rep. Joe Hackney of
more aggressive agenda could be seats in the Legislature, including Orange, Rep. Jim Crawford of
rolled out early. the senate seat formerly held by Vance, and Rep. Drew Saunders
Some tax reform is likely, John Garwood of Wilkes County. of Mecklenburg.
including a lowering of corporate Watauga and Ashe counties saw Rep. Hugh Hollimon, who sent
income taxes, long sought by a Democratic sweep in local up trial balloons early, bowed out
the N.C. Citizens for Business offices. Steve Goss, a retired before the holidays. “I’ve tested
and Industry. And legislation Baptist minister and coach who the waters,” he said with his an-
to give local governments more upset heavily favored David Blust nouncement.
discretion for revenue sources for Garwood’s seat, said “From Whoever gets the nod will
likely will be introduced. An day one we surrounded ourselves probably have the endorsement
example would be impact fees with bright energetic people who from Black. He is still a respected
from residential developers. worked hard.” leader and ally of top leaders in
In Durham, developers are Blust, brother of Rep. John the House.
“contributing” $500 per home to Blust, said scandals and out-of-
In the help with school construction. control spending by Republicans ••••
Better health insurance for in Congress kept the party
North low-income citizens will be on faithful at home. Rep. Paul Stam of Wake Coun-
Carolina the table. Bills dealing with illegal ty has been elected House Mi-
immigrants and their access to •••• nority Leader by his Republican
House, state-funded benefits will be colleagues. He replaces Rep. Joe
among those introduced early in House Speaker Jim Black will Kiser of Lincoln County who an-
Democrats the session. be the former speaker in the 2007 nounced he did not want another
In the North Carolina House, term of the General Assembly. term.
will enjoy Democrats will enjoy their In fact, there will be two other Stam is outspoken and has
their widest margin in over a decade: former speakers-Rep. Dan Blue of sometimes left his own fellow
68-52. But factions among Raleigh and Rep. Harold Brubak- representatives scratching their
widest the Democrats will result in er of Asheboro. They will make heads. He will chair a caucus of 54
Republicans having considerable up an exclusive club. GOP members.
margin leverage, provided they can unite. Former speakers rarely show up He defeated Rep. Fred Steen of
In the Senate, the Democrats for committee meetings. Unof- Rowan County, a former Landis
in over a have a 31-19 advantage. ficially, they function as whips for mayor.
decade: their respective parties, helping
•••• round up votes on the major is- ••••
Democrats captured legislative Before his death three years Should Rep. Drew Saunders
seats in western North Carolina ago, former Speaker Liston lose the race for House speaker,
where Republicans have historical Ramsey remained a quiet, re- all the major leadership positions
strengths going back to the spected figure, rarely seen outside in the state government will be
Civil War. The GOP also has his office. held by representatives east of
voter registration advantages On January 9, House Demo- Alamance County. There is an
in the western part of the state, crats were scheduled to convene anti-Mecklenburg sentiment in
although unaffiliated voters are to begin the process of picking the House, fueled by the relentless
18 to 20 per cent of registration. a speaker who will be one of the attack on Black by the Charlotte
In the last election, Democrats most powerful figures in state media.
worked hard to reach out to government. The candidates in-
4 LEGWEAR TRE NDS AN D TEXTILES OF TO MOR ROW / Dec-06/Jan-07
Creora On Track For New ®
Benchmarks In 2007
few in the industry Hyosung’s commitment to
who would doubt excellence and its desire to
Hyosung achieving stretch beyond the norm
the benchmark it’s set – particularly in terms of the
for creora, particularly quality spandex he purchases
if they’ve followed and the service he gets as a
creora’s meteoric rise customer. He’s been doing
over the previous 13 business with the company
years. And if for some since its spandex brand was
that benchmark isn’t launched in the United States
clear, Greg Vas Nunes, seven years ago.
president of Europe and Holt says creora at that time
the Americas, spells made up a small portion of
it out. his inventory. Today, he says
“Our vision is to Hyosung is his leading supplier
become the leader in of spandex.
spandex through our Why?
continued investment “They tailor their business
and commitment to to the customer’s needs,” Holt
the textile industry. says. “They don’t force me to
“Stretching Beyond” is one of the We have invested tailor mine to theirs.”
themes in Hyosung’s new ads that show in personnel, in the Holt cites the company’s
yoga instructors in various poses. creora brand, in new commitment to quality and
innovations and in world the company’s willingness to
class manufacturing.” go the extra mile in terms of
by Brent Childers, Editor vision of global leadership in shared Greg Vas service when others at times
the spandex market. Hyosung Nunes, President of Europe appear almost reluctant to
Performance and beyond. officials say creora’s rapid and the Americas. “Hyosung do so.
The millions of consumers expansion of market share is is continuing to explore Holt described a situation in
who lead active lifestyles know thanks to its state of the art opportunities for additional which a competing coverer was
it takes added performance technology combined with a investment in spandex facilities in a pinch and needed some
to hit that benchmark they’re commitment to excellence to in Europe and the Americas. spandex material fast. But
aiming at – whether two more the textile industry. We had a great opportunity because the company would
laps at the mall or another Over the last year, Hysoung to invest in China and, in the not allow any shipment from
first-place showing at a high has invested in all aspects short term, this expansion a non-vendor, the material
school soccer meet. of its business including will allow us to better serve had to first be funneled back
The words are also new marketing and sales the needs of our customers through the original supplier.
synonymous with personnel, new ad campaign, globally.” Holt said he could have made
management’s outlook for new products, and new assets. Part of the 2007 strategy the shipment to its destination
2007 at Hyosung, the second In October, the company in achieving its ultimate that same afternoon but it
largest global spandex fiber announced its acquisition benchmark for creora is ended up taking two weeks.
producer whose creora brand of the Tongkook spandex Hyosung’s emphasis on a While he recognizes those
spandex product is used in facilities in south-eastern commitment to excellence. burdensome constraints aren’t
the manufacturing of an China. The aquisition adds Many of the company’s new the norm for many suppliers
array of apparel and fabrics an additional 6,000 tons of advertisements feature yoga in the industry, he says such
that compliment those active capacity to its creora brand instructors in various poses issues are never part of the
lifestyles. portfolio with this acquisition. – symbolizing the company’s equation in his dealings with
Hyosung’s spandex division The company is also desire to “stretch beyond” in Hyosung’s spandex division.
knows the correlation between dedicating capital to expand all that they do. That, he says, is a primary
excellence, performance and their existing facilities in Tony Holt, president reason creora makes up the
benchmarks as they drive its Korea and China. of DynaYarn in Graham, largest share of his spandex
creora brand toward their There probably are N.C., knows firsthand about
6 LEGWEAR TRENDS AND TEXTILES OF TOMORROW / Dec-06/Jan-07
Jack Smothers, Hyosung sales represena-
tative for North Carolina, inspects the
company’s Creora product as it runs at
the DynaYarn facility in Graham, N.C.
purchases. performance and comfort.” important focus is its agility
Another reason the Holt says the possible in working with customers on
DynaYarn president sees applications for SpunCover are their product development.
Over the last
Hyosung as a good fit with his unlimited – just as there are Whether its meeting to
company is that its corporate no limits to what DynaYarn discuss the runnability of a year, Hysoung
philosophy of “stretching will do to satisfy a customer’s yarn combination or help set
beyond” the usual boundaries needs. up machines to run a sample has invested
to satisfy the customer is how Jack Smothers, a program, “We are always
his own company seeks to do representative for Hyosung’s available to helping meet their in all aspects
business with its customers. spandex division who covers customers’ needs,” he said.
“We work with Hyosung legwear in North Carolina, Innovation is another area in of its business
because we have a similar says Hyosung and its spandex which Hyosung continues to
commitment to servicing our division has had that same excel and that innovation can including new
customers the way that they philosophy “since day one.” be seen in two of its newest
want to be serviced,” Holt said. “We feel there really should offerings from creora – its C- marketing and
“We are responsive, agile, and be no restraints when it comes 400 introduction that utilizes
innovative. One of our latest to satisfying the customer,” steam-set technology. sales personnel,
innovations is SpunCover™ he said. “In today’s climate, “The creora C-400 and
yarns which combine the you have to be able to turn on creora H-100D are two of new ad
natural spun yarn hand and it on a dime. We at Hyosung the latest offerings and our
the performance of filament make it a priority to get it customers will once again see campaign, new
yarns to deliver improved to the customer when the a commitment to excellence,
durability and anti-pilling customer wants it and not on particularly where it pertains products, and
performance. We offer it for our timetable. And 99 times to developing technology
socks, hosiery, seamless, and out of 100 we have it here the that better meets their needs new assets.
fabric knitting with creora next day.” and improves their products,”
spandex for the ultimate in Smothers said another very
(see Creora On Track on page 18)
Dec-06/Jan-07 / L E G W E AR TRENDS AND TEXTILES OF TOMORROW 7
The Supply Chain Is With US
by Brent Childers, Editor unlike never before, say sponsors of supply the manufacturers will exhibit at an
the 28-company You Wear US Well™ adjacent booth.
A group of U.S. hosiery and exhibition. The theme of the U.S. Want to see the material behind the
apparel manufacturers are companies’ exhibition this spring is superior wicking of Fox River Wick Dry®
“Better Choices For a Better World.” AXT socks? Looking for green, how
headed to Las Vegas in February
Organic socks for a better choice for about a 100-percent recycled stretch yarn?
to offer retail buyers from the environment. High performance Just walk across the hall and talk with the
across the globe a better choice active wear for better choices in health. companies producing those innovative
– products manufactured in the U.S. manufacturers are a better choice for yarns and fibers.
United States. domestic employment and the myriad of “We will be showing a unique booth
Why a better choice? They say there benefits that come with a robust domestic that demonstrates some of the latest
are a number of reasons but one of the industry. technology available worldwide,” said
primary benefits is the relationship U.S. Buyers will also see an unprecedented Dan St. Louis, executive director of the
companies have with the innovative yarn number of fashionable hosiery and apparel N.C.-based Hosiery Technology Center.
and fiber producers that supply them. products from brands like Fox River™, “Highlights include items made from
And they are taking 14 of those yarn Wigwam@ Cal Cru™, TCK™, and corn, bamboo, wool that’s soft and itch
and fiber producers to the MAGIC others. They’ll also be able to talk with free, antimicrobial fibers, recyclable fibers,
show in Las Vegas in February to the companies producing the innovative moisture and odor management and
demonstrate the benefits of sourcing U.S. yarns and fibers used in the apparel. blends of all of the above.
manufacturers and how technology in the Making its second consecutive showing “Nanotechnology and UV protection
U.S. yarn and fiber industry is creating at MAGIC with two adjacent exhibition products will also be displayed in this
some exiting new products in terms of booths in February, the You Wear US combined booth area,” he added. “Unique
innovation and performance. Well contingent of 14 manufacturers in constructions and apparel techniques
Buyers who stop by Sourcing’s USA February will have some guests – their using the supply chain of fantastic yarns
Pavilion at the upcoming MAGIC supply chain. and fabrics create an array of products not
show will be given choices in a manner Fourteen yarn and fiber producers that
(see Supply Chain is with US on page 14)
8 LEGWEAR TRENDS AND TEXTILES OF TOMORROW / Dec-06/Jan-07
Textile Center Looking At More Visible Role
Legwear Staff career in the textile industry, serving at sources are becoming fewer.
Wellman as vice president of new prod- Anderson’s marketing background
The Textile Technology Center at ucts from 2002 until his retirement and was evident during his presentation as
Gaston College closed out 2006 with an vice president of marketing at Wellman he walked the board members through
upbeat and positive look toward 2007 as from 1992 to 2002. He was previously em- his goals and strategies for next several
the center’s advisory board heard its first ployed with Hoechst-Celanese and Cela- months. With the objective of most mar-
report from its new executive director. nese Fibers Marketing Company prior to keting plans being increased revenue or
The advisory board met Dec. 14 at joining Wellman. activity, Anderson opened his comments
the Textile Center’s facilities on Gaston Anderson holds a master degree in mar- with a report from 2006 revenue collec-
College’s east Campus in Belmont, N.C. keting from New York University and has tions at the center.
Fred Hunneke, president of Domestic completed Harvard Business School’s Pro- In July 2006, he reported zero revenue
Fabrics in Kinston, N.C., presided over gram for Management Development. as the new fiscal year began and as of
the meeting. Anderson prefaced his report with some December the revenues were up to over
The board introduced John Anderson, personal observations he has made since $20,000 - revenues primarily produced
who was hired in November as its new assuming the position Nov. 1. “It’s been from fees charged for testing services and
executive director, and thanked the search an interesting and busy first six weeks,” training programs for its industry clients.
committee for its work in performing its he said. The revenues, Anderson reported, have
duties in the hiring process. Anderson said he sees a lot of untapped been steadily increasing and he said he
During the previous two years as the opportunity for the center in its role as believes those figures will continue on an
Textile Center was transitioning itself to what he described as a “service center upward tick during the second half of fis-
better meet the needs of the industry, it first” and product development resource cal 2006-2007.
often was stated by advisory board mem- for the textile industry. He described the His following comments noted one ele-
bers and industry leaders that the center center’s testing and product development ment of helping ensure the trend - more
needed to better market the services equipment as “first-class.” contact with potential clients. Anderson
it offers. “There is a substantial ‘knowledge noted the in-person contacts and the
It appeared from Anderson’s presenta- mine’ here at the center and that can be number of electronic contacts had also
tion to the board last month that such a turned into opportunity and revenue,” been steadily increasing since July. The
goal also would be one of his top priorities he said. center recorded between 30 and 40 person
and his experience is well suited for Anderson said many of center’s employ- contacts in July as compared to between
that role. ees, particularly longterm employees, have 80 and 90 in December 2006. Electronic-
Anderson, retired vice president of new knowledge and experience that clients person activity showed a similar trend.
products for Wellman Inc., has a long can only get from a few sources and those While he said the in-person contact
The Textile Technology Center advisory
board met December 14 at the center’s
facilities at Gaston College’s East Campus.
10 LEGWEAR TRENDS AND TEXTILES OF TOMORROW / Dec-06/Jan-07
most always is preferred, Anderson said
the electronic contact should also increase Anderson said
as he announced that the center recently
built a web site that was scheduled to go
he sees a lot
online in December. Anderson said the of untapped
center will be expanding the web site with
additional information and resources in
the upcoming months. the center in its
The center’s new director said that he
had already visited two trade show events, role as what he
one in Charlotte and one in High Point
and that the center’s offerings were well
described as a
received by those he talked with at those “service center
Anderson said the center is participat-
ing with the Hosiery Technology Center
in Hickory, N.C., on a major retail show
in Las Vegas in February at which 28 ho-
siery, apparel and yarn and fiber producers
will be on hand to showcase their wares.
The yarn, fiber and fabric producers
joining the manufacturers include Well-
man Inc., Unifi, Carolina Mills, Parkdale
Mills, Beal Manufacturing, Contempora
Fabrics, Carolina Apparel Group, Ham-
rick Mills, Alice Mills Inc., Asheboro
Elastics, Kent Manufacturing, Spectrum
Dyed Yarns, National Spinning and
American Efird. The North Carolina
Textile Organization is also participating
in the event.
Dan St. Louis, director of the Hosiery
Technology Center and a member of the
advisory board, said the February
MAGIC show will be the second show in
which U.S. hosiery and apparel companies
have participated in the show under a
“You Wear US Well” banner. He said one
purpose of the event is to demonstrate to
retailers that domestic apparel manufac-
turers are the better source for products.
He said the August event, in which a
number of U.S. hosiery and apparel manu-
facturers participated, had resulted in $4
million in additional sales.
St. Louis said the February event is
unique in that 14 yarn, fiber and fabric
should be completed by December 2007. interests. He said an example would be
producers will join the “You Wear US
• Randy Vinson, chairman of the Gas- a requirement that they list any business
Well” team. He said this year’s event will
ton College Board of Trustees, presented they do with any state agencies.
help educate retailers about the innovative
an overview of some of the implications Hunneke asked Vinson if that meant
and value-added products coming out of
for the board stemming from new ethics they would also have to report any busi-
the textile sector.
reform legislation adopted the N.C. Gen- ness their companies do with the state.
eral Assembly last year. Vinson said it would.
In other business:
Vinson said all advisory boards to state “Do you think they’d mind if I write on
• Dr. Joe Keith,. dean of the Gaston Col- entities will be required to follow the same there that I would like to do more business
lege East Campus, said the construction rules as other state boards. He said they with them,” Hunneke responded. “Per-
and renovation project to create eight ad- would have to participate in a training ses- haps we need to remind them that they
ditional classrooms, a bookstore and library sion on the new rules and would also have can get better quality and better service
is proceeding with a construction start-date to file documents listing personal financial from North Carolina companies.”
scheduled for May. He said the project
Dec-06/Jan-07 / LE G W EA R TRE NDS A ND TEX TI LES OF TO MO RROW 11
Legwear Trends and Textiles Tomorrow doesn’t believe you should
have to go through an attorney to stay of abreast of what’s happening
in our nation’s capitol. In this issue, we begin a new “From Wash-
ington” feature to keep you abreast of what changes are taking places
in respect to trade policy and other issues important to you and your
business. There’s been a lot of speculation about the change in tone
that may be taking place with the election of a Democrat-controlled
Congress. We kick off our new “From Washington” feature with a
column authored by U.S. Sens. Byron Dorgan and Sherrod Brown.
How Free Trade Hurts By Byron Dorgan and Sherrod Brown
Fewer and fewer Americans support tens of millions of Americans. The Ameri- kind of trade, the agreements force U.S.
our government’s trade policy. They see can Dream of a secure, well-paid job with workers to accept cuts in their pay and
a shrinking middle class, lost jobs and ex- benefits, a nice house and a high-quality benefits so their employers can compete
ploding trade deficits. public education seemed within reach of with low-wage foreign producers. And
Yet supporters of free trade continue everyone who worked hard and played by those workers are the lucky ones. Millions
to push for more of the same—more the rules. of others have lost their jobs as corpora-
job-killing trade agreements, greater tax That is what’s at stake when we talk tions moved overseas to build the same
breaks for large corporations that export about trade policy: America’s middle class products with cheap foreign labor. It is no
jobs and larger government incentives for and the American Dream. coincidence that salaries and wages today
outsourcing. The new mobility of capital and tech- are the lowest percentage of gross domes-
Last month voters around the country nology, coupled with the revolution in in- tic product since the government began
said they want something very different. formation technology, makes production keeping track of this in 1947.
They voted for candidates who stood up of goods possible throughout much of the It took a century to build a thriving
for the middle class and who spoke out for world. But much of the world at the begin- middle class and economic security here
fair trade. They did so because they un- ning of the 21st century looks a lot like the in America. We need to protect that for
derstand what’s at stake. United States did 100 years ago: Work- which we have sacrificed.
Over the past 100 years, Americans ers are grossly underpaid, exploited and We must insist that all trade agreements
have built a thriving middle class. It’s the abused, and they have virtually no rights. have labor, environmental and other pro-
envy of the world, and it didn’t come eas- Many, including children, work 10, 12, 14 tections so that American workers can
ily. hours a day, six or seven days a week, for compete on a level playing field. Trade
At the turn of the 20th century, child only a few dollars a day. agreements must also be reciprocal. The
labor was common; working condi- The result has been a global race to the American market is the most desirable in
tions were often abysmal; there were no bottom as corporations troll the world the world. Every country wants access to
enforced workplace health, safety or en- for the cheapest labor, the fewest health, it. That gives us a great deal of leverage, if
vironmental requirements; no unemploy- safety and environmental regulations, and only we’d use it. Barriers to U.S. products
ment insurance; and no workers’ compen- the governments most unfriendly to labor overseas should not be tolerated.
sation. Workers were attacked and killed rights. U.S. trade agreements paved the Free-trade agreements have protected
for the sole reason that they wanted to way for this race: While rejecting protec- drug companies, international investors
form a union; there was no 40-hour week, tions for workers or the environment, and Hollywood films, yet failed to protect
minimum wage, job security, overtime they protected investors and corporate our communities, our workers and our
pay or virtually any other limit on the ex- interests. environment.
ploitation of employees. The results of such trade agreements We believe there is a better way. Fair
America was split dramatically between are skyrocketing trade deficits—more trade is not the enemy of more trade. It’s
the haves and have-nots. It was a harsh than $800 billion this year alone—and how we expand international trade with-
work world for many: nasty, brutish and, downward pressure on income and ben- out reversing U.S. economic progress.
too often, short. efits for American workers. Why? Because
Worker activism, new laws and court these agreements enable countries to ship Byron Dorgan is a Democratic senator
decisions changed all that during the past what their low-wage workers produce to from North Dakota. Rep. Sherrod Brown
century. As they did, a middle class grew the United States while blocking many is a Democratic senator-elect from Ohio.
and thrived. By mid-century, it became U.S. products from entering their coun-
the engine that drove an ever-expanding tries.
economy in which benefits were shared by Equally important, by enabling this (continued on next page)
12 LEGWEAR TRENDS AND TEXTILES OF TOMORROW / Dec-06/Jan-07
After CAFTA, Ala. Republicans Change Votes On Free Trade By Ben Evans Associated Press
WASHINGTON - Any question countries, that pose less of an immediate sions of Mobile, also voted for the measure
about whether Alabama’s House Republi- threat to domestic textile producers. when the Senate adopted it this weekend.
cans regret their support for the Central Also, it passed relatively easily, 212-184, But they said they did so only because it
American Free Trade Agreement last year so the Alabama delegation was under far was packaged with other measures, in-
became clearer as Congress voted on simi- less pressure from GOP leaders to go cluding popular tax breaks and an offshore
lar pacts with Haiti and Vietnam. along. drilling provision that will funnel new oil
All five of the state’s Republican law- Jim Schollaert, who runs a consulting revenues to Alabama and several other
makers reversed their votes on CAFTA firm representing domestic sock manufac- Gulf states.
and opposed the new trade measure, turers, said political pressure also played a Because of the heavy sock-manufac-
which allows duty-free imports of apparel role. Southern textile manufacturers par- turing presence in his district, Aderholt
from Haiti and establishes normal trade ticularly objected to the Haiti portion of has come under particular criticism for
relations with Vietnam. the bill, which they complained allows the supporting CAFTA. He voted for the
“I think it’s fair to say it’s going to be country to send duty-free imports to U.S. measure only after President Bush called
difficult for the congressman to go too far markets even if it uses fabrics or partially him personally and White House officials
in voting for more trade liberalization” completed products from third-party agreed to work for several protections for
without protections for domestic manu- countries such as China or India. domestic sock producers.
facturers, said Hood Harris, chief of staff “I think the Republicans saw many of So far, the Bush Administration has not
to Rep. Robert Aderholt, a Republican their free-trade colleagues punished in won those protections, and manufacturers
from Haleyville. the last election, and that may have had in Aderholt’s district fear a flood of im-
Aderholt was among several Alabama something to do with their vote,” Schol- ported Central American socks once the
Republicans who in 2005 criticized laert said. trade deal is fully implemented.
CAFTA over its potential damage to the In a twist, Alabama’s two Democratic Aderholt met recently with Commerce
U.S. textile industry but then voted for it congressmen, Bud Cramer of Huntsville Secretary Carlos Gutierrez to push for a
at the last minute after GOP leaders and and Artur Davis of Birmingham, voted sock safeguard that would reinstate tariffs
the White House twisted arms to win for the more recent measure after voting and said he was pleased with the adminis-
support. against CAFTA. tration’s commitment.
Alabama Republicans Spencer Bachus of Cramer could not be reached for com- In explaining his trade votes, Ever-
Birmingham, Jo Bonner of Mobile, Terry ment. But Davis said he decided that the ett said he generally takes “a dim view”
Everett of Rehobeth and Mike Rogers of Haiti-Vietnam measure did not have of free trade bills but was persuaded to
Saks also supported CAFTA, despite ob- nearly the potential for harm as CAFTA. support CAFTA when an official from
jections from many textile manufacturers “The reality is the five CAFTA coun- Phillips-Van Heusen Corp. told him the
that it would cause job losses. tries are much more likely to be a threat measure would help save local jobs at the
The CAFTA bill, one of President to Alabama companies than Haiti,” Davis company’s plant in Ozark.
Bush’s major legislative priorities for 2005, said. “They are much more developed “They were not truthful with me,” he
barely passed, 217-215. economies ... Haiti has been one of the said. “Months after CAFTA passed, Van
On Friday, the stakes weren’t as high. poorest countries in this hemisphere.” Heusen in Ozark was shuttered and the
The Haiti-Vietnam bill affects smaller The state’s two Republican senators, jobs were gone.”
trading partners, including several African Richard Shelby of Tuscaloosa and Jeff Ses-
Manufacturers Push For Trade Deals From MSNBC
December 29, 2006 the trade deals are sent to Congress by over the trade pacts.
U.S. manufacturers are stepping up lob- President George W. Bush. The push by The Democrats want tougher labour
bying efforts in Washington over imper- industry reflects the increased importance provisions included in trade agreements to
illed trade deals they see as vital to growth of exports for manufacturers during an protect both foreign and domestic workers
next year. economic slowdown at home. - an approach considered by the European
Jim Owens, chairman and chief execu- Frank Vargo, of the National Associa- Union.
tive of heavy machinery producer Cater- tion of Manufacturers, said manufactur- But manufacturing groups have resisted
pillar, has held meetings with key Demo- ing would depend heavily on exports to this step, arguing for maximum flexibility.
crats such as Senator Barack Obama, the sustain even moderate growth next year. Unions counter that manufacturers such
presidential hopeful. “Reducing trade barriers will spur as Caterpillar exploit low labour standards
The Democratic mid-term election vic- greater exports,” he said, adding that com- to hold back wages. Concessions on labour
tory has cast doubt on whether Congress panies were “turning up the volume” on standards would be unpalatable for manu-
will ratify trade deals with Colombia, Peru lobbying. facturers.
and Panama. So far lobbyists see no movement on If a compromise is elusive, the Bush ad-
Industry lobbyists have been drawing the sticking point between Democrats in ministration could force a high-risk vote
on contingency funds and the time of top Congress and the Bush administration in Congress, which could end in over-
management to try to win votes before
(see From Washington on page 17)
Dec-06/Jan-07 / L E G W E AR TRENDS AND TEXTILES OF TOMORROW 13
The Supply Chain Is Withpage 14
typically found in the marketplace.” square foot. such as superior fit, comfort, moisture
Some of biggest names in U.S.-based “That’s part of what we are management, UV protection,
yarn and fiber producers are joining the demonstrating at this show,” St. Louis thermal, and antimicrobial and odor
apparel manufacturers as part of the “You said. “They’ve asked us to bring the control properties along with eco-
Wear US Well” exhibit that made its first entire supply chain and we are doing that environmentally friendly organic and
appearance at MAGIC last fall. Those – literally.” biodegradable options.
companies include Wellman Inc., Unifi, In addition to the benefits offered from An example of that innovation from the
Carolina Mills and Parkdale. having the complete supply chain at hand, yarn and fiber producers is Unifi’s aio®, an
Two of the leading sponsors of the You St. Louis says there’s one other aspect of advanced all-in-one fiber technology that
Wear US Wear exhibit are St. Louis’ the U.S. manufacturers philosophy that combines multiple performance features
Hosiery Technology Center (HTC) retailers may find appealing. directly into the molecular structure
and the South Carolina-based National “No quotas, no duties, no tariffs and no of a single yarn. At MAGIC, Unifi
Association for the Sewn Products problems,” he said. will introduce its newest aio® offspring
Industry (SEAMS). Hosiery and apparel manufacturers –Repreve® Sorbtek®, a 100-percent
The HTC, with its prototyping and lined up for the You Wear US Well recycled polyester yarn with moisture
testing facilities, has been credited as exhibit in February include Fox River management; and Repreve® Reflexx®, a
an integral part of the formula that has Mills, Wigwam Mills, A.S. Tees 100-percent recycled stretch yarn.
kept U.S. hosiery and sock producers Manufacturing, Carolina Apparel Group Other examples of fiber and yarn
competitive in today’s global marketplace. Inc., Earl’s Apparel Inc., Cal Cru, Huitt innovation on tap at the U.S.A Pavilion is
SEAMS has played a similar role for its Mills, R. Evans Hosiery, Southern Wellman Inc.’s Comfortel® and Sensura®,
U.S.-based apparel manufacturers. Hosiery Mills, Twin City Knitting, polyester yarn offerings that have
St. Louis has visited many MAGIC Central Carolina Hosiery and Hickory extraordinarily soft hand and superior
shows in the past. As countries in Brands. moisture management.
MAGIC’s Sourcing Zone over the The yarn and fiber producers joining Looking to take advantage of your
years multiplied dramatically, St. Louis the manufacturers include Wellman Inc., customers’ desire for environment-
realized a lacking presence of a U.S.-based Unifi, Carolina Mills, Parkdale Mills, friendly products? Several of the U.S.
manufacturer exhibition. Last year, he Beal Manufacturing, Contempora Fabrics, manufacturers will be displaying their
along with SEAMS officials, assisted in Hamrick Mills, Alice Mills Inc., Asheboro socks and apparel made with Ingeo™ – a
developing the first You Wear US Well Elastics, Kent Manufacturing, Spectrum new fiber brand based on the principles
exhibit. Dyed Yarns. Non-manufacturing of sustainability: economic prosperity,
“We have heard so many different participants joining the yarn and fiber social responsibility and environmental
retailers say ‘bring us the entire supply producers are the North Carolina Textile improvement.
chain’ as they emphasize the importance Organization and the N.C.-based Textile Sarah Friedman, executive director
of that supply chain to quick turns,” St. Technology Center. of SEAMS, says the premise behind the
Louis said. The sheer hosiery, sock and seamless February exhibition is showing buyers an
When you have inventories turning 7 to categories that will be featured include in-depth look at a variety of U.S.-made
10 times a year, St. Louis said its obvious but are not limited to men’s, women’s and apparel products – from fiber to finished
why today’s retailers seek manufacturers children’s dress/casual, outdoor, sports product.
that can deliver products to meet those specific and seamless apparel. “With the innovation coming from our
schedules. The geographic proximity and Innovation in the material that goes yarn and fiber producers, visitors to the
rapid supply chain response of U.S.-based into apparel is one of the driving forces U.S.A Pavilion are going to have more
companies enable retailers to buy smaller behind fashion forward products. U.S.- choices than ever before,” Friedman said.
quantities of colors and skus. based companies have leveraged fiber “They’ll see manufacturers who with their
It also can mean quick replacement technology to its fullest and that allows suppliers are setting standards in fashion
of hot selling items; increased sales due them to create an ever-growing repertoire and quality.”
to fewer stock outs, ability to order of innovative products and fashion
smaller quantities; fewer markdowns and forward styles.
closeouts due to having less inventory By integrating these cutting edge
or the wrong inventory; increased retail components, their products afford
inventory turns and increased sales per consumers with value added features
14 LEGWEAR TRENDS AN D TEXTILES O F TOMO RROW / Dec-06/Jan-07
New CEO Says Its All About The Chief Merchandising
Retail Partner’s Success And How International Legwear
ILG Is Contributing To It Group recently an-
nounced Doug Auer
has been named chief
By Brent Childers, Editor difficult process.”
merchandising officer. In
The transition is part a
this capacity, Auer will
HICKORY - Knowing a restructuring plan that ILG
be responsible for all cus-
retail customer’s formula for initiated in July and several key
tomer-facing aspects of
success and being a contributor components of that plan have
to it - that’s how Russ Reighley been put in place over the last
Auer became vice
sums up his philosophy as the several months. The company
president of marketing of
new CEO at International announced in October the ap-
Ellis Hosiery Mills (Ellis)
Legwear Group (ILG), one of pointment of Reighley as Pres-
in 2000 and maintained
the nation’s largest sock manu- ident, and later in November,
that role through ILG’s
facturers. ILG announced a refinancing
acquisition of Ellis in
“That’s who we are and that of its senior credit facility Russ Reighley with wife Marcia. 2003 until 2004. Before
is who we are going to be,” which management officials
joining Ellis, Auer held
Reighley stated in a recent in- deemed a milestone for the Kayser Roth Hosiery where he senior sales and market-
terview. company’s continued success. held senior management sales ing roles at Seneca Knit-
Reighley’s appointment as Reighley thanked Kennedy positions. ting Mills, Sara Lee Sock
CEO was approved at an ILG and the Board of Directors for Reighley, at age 61 and a Company, and Chipman
Board of Directors meeting its vote of confidence. career in the industry, in a Union Inc.
last month. Reighley, who “The reason I’m here is to recent interview with Legwear Reighley welcomed
will continue serving as ILG’s support the employees who Trends and Textiles Tomor- Auer’s arrival. “We are
president, replaces Shannon have helped establish ILG as row, said he is not looking for focusing everything at
Kennedy, a member of ILG’s one of largest sock producers accolades. “I just love the busi- ILG on customer sat-
Board of Directors who was in the U.S.,” he said. “ILG ness,” he said. isfaction. Doug and his
serving as interim CEO. Ken- has tremendous potential and He emphasized his commit- team will combine the
nedy will continue serving as a its employees have the talent ment to the 500 ILG employ- industry’s best sales,
member of the board. to make it happen. My role ees and said he’s reminded of marketing, and design
The board had been search- simply is put-ting together a their contribution each morn- professionals to produce
ing for a permanent CEO roadmap. But it’s the dedicated ing when he walks through the products and services
since Kennedy assumed the and hard-working employees plant. “They are the reason that exceed the wants and
role of interim CEO in July. that are driving this company I’m here,” he said. needs of American con-
“It is with great pleasure that to a successful future.” Reighley said ILG will sumers. We are fortunate
I announce the appointment Reighley served as president continue to focus on its retail to have attracted Doug’s
of Russ Reighley to the posi- of Ellis Hosiery Mills from partners and already has been experience and strategic
tion of President and CEO 2000 until ILG acquired it implementing a number of thinking to ILG,” said
of ILG,” Kennedy said in a in 2003, and has served as a new strategies to better serve Reighley.
press release. “Having Russ consultant for ILG since 2005. the customers’ needs. Auer will oversee four
assume the responsibilities During Reighley’s tenure with “Every retailer has a separate service areas at ILG,
of CEO is, in my opinion, an Ellis Hosiery, its revenues financial formula,” he said. including sales, market-
ideal outcome to our search. grew from $65 million to $95 “To be successful, you have to ing, design, and account
Russ fully provides the indus- million. His commitment to understand that formula and services. His team will
try expertise, credibility, and position the company as not contribute to it.” include William (Tim)
on-site presence the company just a vendor but a “trusted ad- Looking ahead, the new Kanzler, John Ceneviva
demands and deserves. He is visor” to its customers earned CEO said he also foresees ILG (senior vice president of
perfectly suited, prepared, and Ellis “Category Captain” sta- moving more production to marketing and general
committed to continuing our tus at Kmart, “Supplier of the the western hemisphere. “I manager of the Peds®
strategic restructuring. The Quarter” four times at Wal- don’t thinking running off- Division), Kimberly Bost
board fully supports his vision Mart, and “Supplier of the shore for everything is the way (vice president of design
for the company’s future, and Year” at Wal-Mart in 2002. to go,” he said. and merchandising), and
will continue to work closely Reighley’s prior sock and ho- In today’s retail world, Jan Burton and Terah
with Russ and management to siery experience includes Mon- Reighley said companies must Van Sickler (account
continue our progress in this arch Hosiery/Jefferies Hosiery, deliver the right products at managers).
Sara Lee Sock Company, and
(see New CEO on page 17)
Dec-06/Jan-07 / L E G W E AR TRENDS AND TEXTILES OF TOMORROW 15
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Department Stores Sales Soar
Past Sales by Specialty Stores
by Charlene Carpenter, Legwear Fashion Editor cialty apparel stores coupled with efforts by department stores to
step up their offerings.
Hosiery manufacturers who sell to department stores say their “I think, in many cases, that the quality level at certain special-
sales are reflecting what the national media is calling a literal ty stores has diminished as high-quality domestic manufacturers
comeback in department store sales. have been replaced by offshore production” says a manufacturer
Consumers are once again looking to department stores for who asked not to be named.
fashion and quality, say hosiery manufacturers. Department “As long as specialty stores were ahead of the curve with qual-
stores have once again become a destination point for shoppers ity, fashion and price, they attracted consumer dollars, but when
once again, say Department Store executives like Myron G. Ull- they began focusing more on the price component as opposed to
man, the chief executive of J. C. Penney. quality and fashion, consumers began giving a closer look to de-
They are not just talking—the proof is in the numbers. After partment stores, which in many cases, have spruced up a little bit
four decades of declining sales, department stores sales have and improved their images.”
steadily risen, and during the past year, they have overtaken sales Department store executives attribute the comeback to efforts
at specialty stores. by stores like Saks, Nordstrom, Bloomingdale’s, Macy’s and
Sales at department stores open at least one year grew 4.1 per- Kohl’s to spruce up their stores and develop stronger, more fash-
cent compared with sales at specialty apparel stores which experi- ion-conscious brands.
enced a 1.3 percent increase during the same period, according to In the midst of those changes, consumer tastes have shifted
the International Council of Shopping Centers. from specialty store brands to name-brand clothing and acces-
“We have seen growth in sales to the upper end department sories sold by department stores.
stores,” says Lisa Elliot of Angel Hosiery. “I think people are see- Another factor may be that the merger of Sears and Kmart
ing the quality at these particular stores over Wal-Mart, and they along with the merger of Federated and May department stores
are willing to pay for quality when they know it will be there.” resulted in store closing and left consumers who shopped at those
Jay Johnson of Johnson Hosiery which make men’s dress stores to shop at other department stores.
socks says he has seen the trend in “a fairly significant way.” The Consumers, they say, want more options which is exactly what
HUE brand has seen a double digit increase in department store department stores with their store brands and name brands offer
sales during recent months, says Jody Eskenazi of Kayser-Roth versus the limited options offered by specialty stores which de-
Corporation. Eskenazi attributes the increase in legwear sales to sign most of their own clothing.
several factors including “the cold weather this fall, the recent Whatever the reason, analysts says the trend is expected to
footless tights craze and the fact that legwear in general has been continue, and that once the holiday sales are tallied, the gap
a must-have accessory for fall 2006.” between department store sales and sales at specialty stores will
Some domestic manufacturers attribute the growth in depart- surely widen.
ment store sales to a decline in the quality being offered by spe-
New CEO From Washington
from page 15 from page 13
the right time. He cited an Reebok®, Keds®, Dickies® whelming defeat of the trade moting bipartisan consensus
example of how Target turns Starter®, and Wrangler®, as plans. on trade was cited by a person
its inventory seven times a year well as private label products Senior administration of- close to Caterpillar as the aim
while some turn inventory 10 in partnership with numer- ficials have sounded an alarm- of meetings between Demo-
times a year.” ous leading retailers. ILG’s ist note in recent briefings at crats and Mr Owens, a past
While the company has had customers include JC Penney, the White House. Ed Lazear, Republican donor.
to make some tough decisions Kmart, Kohl’s, Payless Shoe chairman of Bush’s Council Mr Owens expects revenue
over the last year, Reighley said Source, and Wal-Mart. The of Economic Advisers, said growth next year to come from
he’s looking forward to 2007 as company sells its products “isolationist” trade moves and sales of earthmovers in oil and
they remain diligent in being through a number of channels tax increases by Democrats mining markets such as Latin
the best possible fit for their including mass merchants, were a big risk to the economy America.
retail partners. department stores, specialty and could provoke recession. Trade deals can provide
ILG manufactures and retailers, and food and drug This view is not shared by all duty-free access to new mar-
markets socks and legwear for stores. economists. kets, cheaper imports of raw
men, women, and children. The company is headquar- Mr Bush used his year-end materials and the flexibility
The company owns the Peds® tered in Hickory, where Reigh- press conference to point to to move production of com-
brand and markets a variety ley resides with his wife Mar- opportunities for cross-party ponents and finished goods
of licensed brands, including cia. They have three children. co-operation on trade. Pro- overseas.
Dec-06/Jan-07 / L EG W E A R T RENDS A ND T EX TI LES OF TO MOR ROW 17
Creora On Track7
Smothers said. excellent coloration; and color uniformity after molding. It
He said the technology used with creora C-400 allows can also be used for unique styling tool to create patterns in
reduced shrinkage and minimizes yellowing. In addition, he seamless and circular knit.
said the product offers whiter and more vibrant whites and at Whether the excellent coloration that creora H-100D offers
the same time gives the finished product a much softer hand. or finished products that wear longer and more comfortable
Another major benefit he said sock and hosiery manufacturers – beyond that of the competitor – it’s obvious the company’s
with steam-settable garments also will find with creora C-400 commitment to excellence and a desire to perform well beyond
is that their products will wear longer and the comfort level will the norm is very evident in the products they offer.
remain with that longer wear. Couple that with a reputation of doing whatever it takes to
Smothers said the C-400 also has added value for seamless service the customer and it’s also somewhat obvious that creora
products as the new creora product gives steam-settable from Hyosung may soon be setting a new benchmark – meeting
garments for seamless improved hanger appeal as garments the needs of DynaYarn and their other customers as they
appear size right. He said the seamless garments using C-400 drive to their goal of becoming the No. 1 global spandex fiber
will find their garment maintains its original size longer and has producer.
Another product that Hyosung has introduced is the creora
H100D – a black solution dyed spandex elasthane for hosiery,
seamless, intimate apparel, ready-to-wear and active wear.
Smothers said the 100D product allows for blacker blacks that
are trend right and more luxurious. He said creora H-100D
produces deeper, darker shades; eliminates shiny grinthrough;
Packaging & Labeling
Flexible Film, Board, Paper
Design Through Production
2927 Sidco Drive • Nashville, TN 37204 • Phone 615-256-1631
Fax: 615-726-2320 • E-Mail: email@example.com
18 LEG WE A R T R E N D S AN D TE XTI LE S O F T O MO R R O W / Dec-06/Jan-07
Muir Lyon, Founder
Yarn Sales Firm
Muir P. Lyon, who for 56 years was a leading figure in yarn sales, died
November 30, 2006, after a year-long bout with cancer. He retired from
Pembroke Textile Associates in 2004.
In 1948, after returning from the U.S. Army, Lyon started his career in
yarn sales. He was a founder of Lyon Schenck and Steck Inc., which also
included Jim Schenck and Fred Steck . The firm later became Pembroke
During his career, Lyon was recognized for his fair dealing and integrity.
He served as president of the Carolina Yarn Association and was a supporter
of the Carolina Hosiery Assn. and its predecessor, the Catawba Valley
Hosiery Assn. He also was president of the Young Men’s Bible Class at First
Presbyterian Church in Greensboro.
An accomplished horseman, Lyon was master of the Sedgefield Hunt for
As the senior partner, Lyon was instrumental in building Pembroke Textile
Associates into a leading yarn sales organization. The organization now
includes Gayle Owens, Hall Trundle, Dan McLaurin and Jean Jessup.
U.S. Consumers Took New Paths In 2006
Competition from Asian hosiery revenue upswing led footwear stores, same store sales were flat. The chain
manufacturers continued to grab the an important class of trade for hosiery employed one of the nation’s top public
attention of domestic hosiery companies manufacturers. Following were Shoe relations firms to tackle image problems
in 2006. But the less-heralded news was Pavilion at 19.5 per cent, DSW at 19, involving employee pay and benefits,
in the shift of retail growth in the United Genesco at 15.4 and Shoe Carnival at 11.1 health insurance, and the reputation for
States. Smaller retail stores out-performed per cent. crushing small, independent stores.
the larger operations in percentage With the acquisition of May Stores, Wal-Mart’s efforts to attract more
of growth. Federated Department Stores had revenue affluent shoppers with brands and to
And department stores—especially the growth of 41.1 per cent. But this rate will lure those customers from Target Stores
Federated stores dominated by Macys— level off with the integration of same- did not work, according to reports. In
staged a comeback. store sales going forward. But Belk Stores December it fired its marketing director.
Sporting goods stores were among with 21.9 per cent growth and Kohl’s In the U.S. marketplace, Wal-Mart
those that set a sizzling growth pace. with 14 per cent turned heads. High- stumbled in 2006.
Gander Mountain reported revenue up end department stores Neiman-Marcus But for other retailers, last year was a
25 per cent, followed by Dick’s Sporting with 8.4 per cent revenue growth and period of growth and developing niches.
Goods at 24.4 per cent. They were Nordstrom with 8.3 per cent outpaced American consumers definitely were
followed by The Sportsman’s Guide at such giants as Wal-Mart. changing their buying patterns.
22.7 per cent and Hibbit Sporting Goods Wal-Mart, the nation’s number one
at 16.6 per cent. retailer, surprised the financial markets
Baker’s Shoes with a 29.1 per cent before Christmas when it reported that
Dec-06/Jan-07 / L E G W E A R TRENDS AND TEXTILES OF TOMORROW 19