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					Legwear Trends
   &                       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
        U.S. Supply
                 Chain
  You Wear US Well team is taking supply chain
     with them to February MAGIC Show
Legwear Trends
   &                                                           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.

                                                                                  inside
                                                               FEATURES

                 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

                                                               COLUMNS
                 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
                                                                    Groz-Beckert . . . . . . . . . . . . . . . . . . . . . 16        Roselon Industries.. . . . . . . . . . . . . . . . 19
ART DIRECTOR . . . . . . . . . . . . . J. Johnson                   Del-Mark . . . . . . . . . . . . . . . . . . . . . . . . . 18    Hyosung . . . . . . . . . . . . . . . . . . . . . . . . . 20

MARKETING DIRECTOR. . . . .              Denise Hatcher                                                        To Advertise in Legwear Trends please call
P.O. Box 1708, Hickory, NC 28603 Tel.: 828.322.7766                                                                 Brent or Denise at 828.322.7766
                                 Fax: 828.322.4868
                                                                                            * Advertisement concept and design by the Legwear Trends creative team.
                                                                                             Like what you see? We offer reasonable design and advertising packages.
                 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-        ••••
       68-52.                                            sues.
                    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
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                                      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
                                                                        Hosiery Technology
                                                                            Centers helping
                                                                        broaden companies’
                                                                          marketing efforts.




    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
                                                                                                               opportunity for
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
events.
   Anderson said the center is participat-
                                                                                                                           first”
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
                                                                         From Washington
                                                                           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
                            US
  The Supply Chain Is Withpage 14
                       from
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
                                                                                                                 Officer Named
    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
                                                                                                              the company.
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
           from page
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.
reduced shrinkage.
   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;




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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
Textile Associates.
  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
30 years.
  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
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