The economy in the United States has recently shown signs of a slowdown in activity. In response, the Administration is taking immediate and long-term steps to strengthen our economy through the implementation of an economic stimulus package and our continued efforts to open up export markets through Free Trade Agreements.

With respect to textiles and clothing, there could be a trend towards greater industry consolidation to create more efficient and competitive producers in the face of tightening domestic markets. As the global economy faces similar challenges, there may be opportunities for new partnerships and increased export markets.

The elimination of quota, retail consolidation, excess supply versus demand and other issues provide challenges to well-developed apparel producers around the world. In the United States, an apparel company will succeed in the face of these challenges if it is well-positioned in terms of finance, market research, investment in technology and a has willingness to expand markets globally.

The US apparel industry seeks out niche opportunities where it is competitive in domestic and global markets, such as performance outerwear and protective clothing for military and other end-users. We see this trend continuing in the future.

Global demand for US apparel brands will continue to be strong. US apparel exports to traditional, “established” markets, such as Europe and Canada, have increased between 2006 and 2007, as have exports to certain FTA markets (Bahrain, Chile and Israel), and to certain Asian markets (China, Hong Kong and South Korea). Growth in US apparel exports to these markets was in the double digits over the period 2006-2007.

According to the US Department of Agriculture, total foreign cotton production will reach record levels during the current season. Cotton acreage has remained high despite relatively low prices for cotton relative to other crops, as improved yields sustain profitability. The introduction of genetic engineering and other agricultural technologies has restrained the cost of growing cotton just as the world economy has boomed. World cotton prices have shrunk relative to petroleum-based fibers and relative to other agricultural products (corn, soyabeans).

Technical textiles hold enormous growth potential for the US textile industry. There is an ever-expanding range of applications for technical textiles. Advances in fiber, yarn, fabric and manufacturing technologies continue to lead to new application opportunities and are helping technical textile manufacturers meet the continuously expanding technical objectives and expectations of their customers.

The US textile and apparel industry remains a major source of economic activity and employment in our economy. From the mill worker in Greenville to the designer in New York to the shipper in L.A., the US will continue to play a major role in global textile and apparel trade.