Home / Knowledge / News / Textiles / NCTO urges treasury support for CIT Group

NCTO urges treasury support for CIT Group

16
Jul '09
Cass Johnson (President)
In letters to members of Congress and to Treasury Secretary Timothy Geithner, the National Council of Textile Organizations (NCTO) urged that the government provide necessary assistance to CIT Group, citing member reports of potential bankruptcies and job losses across the textile sector if CIT is allowed to fail.

NCTO President Cass Johnson said, “In this terrible economic climate, our member companies tell us that the loss of factoring and loan instruments from CIT could put many textile companies and their suppliers out of business. Textile mills, like much of the manufacturing base, have seen orders decline by 20 percent or more during the last six months.

Many manufacturers are running on survival mode right now – a major disruption in financing and factoring would be enough to put many of them under, particularly since there is no substitute for an institution which offers the size and breadth of services to small business that CIT does.”

Johnson noted that U.S. textile mills and their suppliers are providing badly needed employment in the rural Southeast which includes some of the most economically distressed region of the United States.

Key Facts about U.S. Textile Industry
• One of the largest manufacturing employers in the United States, the overall textile sector employed over 675,000 workers in 2008. Textile mills alone employed 298,000 workers.
• The 3rd largest exporter of textile products in the world – more than $16 billion in 2008.
• Nearly two-thirds of U.S. textile exports during 2008 went to developing countries. The U.S. textile industry exported to more than 50 countries, with 20 countries buying more than $100 million a year.
• Supplies more than 8,000 different textile products a year to the U.S. military.
• U.S. textile shipments totaled $68.5 billion in 2007.
• Invested more than $9 billion in new plants and equipment from 2001 to 2006.
• Has increased productivity by 50 percent over the last 10 years and ranks second among all industrial sectors in productivity increases. 'Lewis Gossett (gossett@myscma.com)'
• In 2007, textile workers on average earned 136% more than clothing store workers ($524 a week vs. $222) and received health care and pension benefits.

On the Obama administrating decision not to help CIT:
NCTO PRESIDENT Cass JOHNSON said, “It sends a chilling message when the government will bail out Wall Street but then turns its back on the biggest lender to Main Street. We strongly urge the government to reconsider its decision.”

National Council of Textile Organizations


Must ReadView All

Pic: University of Cambridge

Textiles | On 25th Aug 2019

Climate change to shrink GDP of all nations alike: study

Virtually all countries-rich or poor, hot or cold-will suffer...

Pic: Curve-Newyork

Textiles | On 25th Aug 2019

Curve sees over 250 leading intimate apparel brands

Over 250 leading intimate apparel brands showcased their products at...

Pic: Gap Inc

Apparel/Garments | On 25th Aug 2019

Gap Inc net sales down 2% to $4 bn in Q2 2019

Gap Inc, a global retailer offering clothing, accessories, and...

Interviews View All

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Mandeep Nagi, Shades of India

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Lucilla Booyzen,

Lucilla Booyzen

South African Fashion Week (SAFW) is a B2B marketing platform for fashion, ...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search