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ITMF's International Production Cost comparison 2008
Jan '09
The International Textile Manufacturers Federation (ITMF) has released the 2008 edition of its biennial International Production Cost Comparison – the only consolidated source for benchmarking the yarn and fabric production costs prevailing in 8 of the world's most important textile manufacturing countries: Brazil, China, Egypt, India, Italy, Korea, Turkey and the USA.

The results reveal that in the different segments analysed the lowest production costs are achieved in different countries. Total costs in ring-spinning are the lowest in India, closely followed by Turkey. In rotor-spinning the lowest total costs are recorded in the US followed by Turkey and India. In texturing Korea proves to realize the lowest total costs followed by India.

In weaving of ring yarn fabrics total costs are similar low in India, China, Egypt, Brazil, Turkey and Korea. Woven rotor yarn fabrics can be produced at the lowest costs in Brazil, India and Turkey. The production of knitted ring yarn fabrics can be realized at lowest costs in India followed by Turkey, whereas the lowest total costs of knitted rotor yarn fabrics can be achieved in the US followed by Turkey. Total costs of woven textures yarn fabrics are the lowest in India.

The report is designed to highlight the changing cost structure in the primary textile industry, by tracing the impact of cost factors borne by manufacturers and presenting them on a standardised basis. This allows the reader to readily compare elements of total manufacturing costs across representative production facilities.

The presentation of manufacturing and total yarn & fabric costs incorporates a detailed breakdown into the various cost components per kilogram of yarn and per meter of fabric, showing their relative importance in the countries under review.

The study incorporates a wide range of influences on the cost picture, from externally-determined factors like raw material and machinery prices through to the local prices of labour, capital, energy and other inputs to production.

The textile industry segments analysed are Spinning, Texturing, Weaving and Knitting, and individual results are supplied for ring-spun, o-e, and textured yarns, and for fabrics woven and knitted from each of these yarn types.

Manufacturing costs covered in the report are based on parameters specified by the textile machinery companies Rieter, Oerlikon Barmag, ITEMA Weaving (Sultex) and Mayer & Cie., and thus the cost structure for each country is derived from both “bottom-up” (investment analysis) and “top-down” (surveyed) standpoints.

The CD-ROM of the 2008 edition of the International Production Cost Comparison can be purchased from the ITMF at the price of CHF 310.

International Textile Manufacturers Federation

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