Olivier Zieschank, Economist International Textile Manufacturers Federation (ITMF) olivier.zieschank@itmf.org «Mapping the Textile Industry Destination Africa November 11/12, 2017 Cairo 12.11.2017 1
Contents World textile/apparel industry New disruptive technologies Geographical distribution of the industry Implications for the global textile industry 2
Situation & outlook for the global textile/apparel industry for manufacturing Apparel sales will grow strongest in Asia and the Middle East 3
Innovation in textile manufacturing Faster Less energyintensive Less waterintensive Less laborintensive kwh per kg of yarn (ring-spinning) 3.70 3.60 3.50 3.40 3.30 3.20 3.10 3.00 2.90 Energy consumption in spinning (average of countries) 1993 1995 1997 1999 2001 2003 2006 2008 2010 2012 2014 Ring-spinning, lhs 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Open-end spinning, rhs kwh per kg of yarn (rotor-spinning) High demand for ever more automated and ever more energy- and water-efficient textile machines 4
Industrial trends Mass customization Industry 4.0 Environmental sustainability Infrastructure projects 5
Where are currently the areas of investments in textile manufacturing? 6
Global Shipments of New Textile Machinery (2007-2016) Spinning Machines Texturing Machines Weaving Machines Circular Knitting Machines Flat Knitting Machines Finishing Machines 7
1. Shipments - Short-staple Spindles units per region 16.0 14.3 14.0 12.8 12.5 13.5 million spindles 12.0 10.0 8.0 6.0 12.0 8.6 8.3 7.2 7.0 11.9 10.5 9.9 11.6 10.7 9.8 8.9 9.0 8.3 7.9 7.3 4.0 2.0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 World Asia & Oceania Europe, Turkey Other Africa America, North America, South Europe, West Europe, East Last year world growth: -12% 8
1. Shipments - Short-staple Spindles units per country in Asia & Oceania 100% 90% 80% 70% China Rest of world 60% 50% + 27% 40% 30% 20% 10% 0% Chinese investments increased last year by : +27% 9
1. Shipments - Short-staple Spindles Turkey India China The biggest investors in 2016 Pakistan Bangladesh Vietnam million spindles relative size = number of units per country 10
1. Shipments - Short-staple Spindles 10.0 1.2 9.0 8.0 1.0 million spindles 7.0 6.0 5.0 4.0 3.0 2.0 1.0 million spindles.8.6.4.2.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 China India Pakistan Turkey Vietnam Bangladesh Africa s position relative to world shipments (units) Year Algeria Egypt Morocco Zimbabwe Africa World 2015 8736 42432 6480 2592 60240 9'042'968 2016 79968 13440 93408 7'882'352 11
2. Shipments - Open-end Rotors thousands 700.0 600.0 500.0 400.0 thousands spindles 300.0 200.0 100.0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 World Asia & Oceania Europe, Other America, North America, South Europe, West Europe, East Africa 634.1 582.7 Turkey China India Pakistan Vietnam Thailand Africa s position relative to world shipments (units) relative size = number of units per country Year Algeria South Ethiopia Burkina Djibouti Africa World Africa Faso 2015 568 1120 1688 383'344 2016 2700 772 960 402 4834 634'062 12
3. Shipments - Texturing spindles thousands 900.0 800.0 700.0 600.0 500.0 The biggest investors in 2016 400.0 300.0 200.0 289.5 235.7 100.0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 World Asia & Oceania Europe, Other Africa America, South America, North thousands spindles Europe, East Europe, West Africa s position relative to world shipments (units) Turkey China India Japan Chinese Taipei Indonesia relative size = number of units per country Year Egypt Central African Republic Algeria Nigeria South Africa Tanzania Africa World 2015 6960 8840 960 2880 720 21320 323'284 2016 4560 2160 240 1200 1440 12000 289'482 13
4. Shipments - Shuttel-less looms The biggest investors in 2016 200.0 150.0 Turkey India China thousands 100.0 50.0.0 thousands 84.7 77.2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 World Asia & Oceania Europe, Other Pakistan Vietnam Bangladesh Europe, West America, South Africa Europe, East America, North Africa s position relative to world shipments (units) relative size = number of units per country Year Egypt Ethiopia Algeria Angola Morocco Ghana Africa World 2015 220 255 246 129 30 104 1061 81'563 2016 118 45 2 83 479 84'698 14
5. Shipments Circular knitting machines thousands 40.0 35.0 30.0 25.0 20.0 15.0 thousands spindles 10.0 5.0.0 The biggest investors in 2016 28.0 24.2 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 World Asia & Oceania Europe, Other America, South Europe, West Africa America, North Europe, East Africa s position relative to world shipments (units) Turkey China Vietnam India Bangladesh Indonesia relative size = number of units per country Year Egypt Ethiopia South Djibouti Mauritius Morocco Africa World Africa 2015 375 133 146 25 18 23 847 27'476 2016 325 54 21 118 47 41 696 27'980 15
6. Shipments Electr. flat knitting machines thousands 150.0 100.0 50.0.0 139.6 131.4 The biggest investors in 2016 Turkey 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 China 150'000 100'000 World Asia & Oceania Europe, Other thousands spindles Europe, West Europe, East America, South Africa America, North Shipments to China from abroad and from China Italy India Vietnam 50'000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Bangladesh Chinese domestic shipments Shipments from outside China Africa s position relative to world shipments (units) relative size = number of units per country Year Kenya Mauritius Madagascar Morocco Egypt South Africa Africa World 2015 202 170 85 64 83 17 759 70'137 2016 296 90 94 63 10 46 655 139'636 16
7. Shipments Finishing Machinery (2016, Fabrics (Woven & Knits) Continuous) 200 180 160 1200 1000 machines 140 120 100 machines 800 600 80 400 60 40 200 20 0 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 Washing (stand- alone) Bleaching- Line Dyeing- Line (CPB) Dyeing- Line (Hotflue) Mercerizing- Line * Relax Drying/ Tumbling Africa Asia Europe South America North America Not specified Sanforizing/ Compacting 0 2015 2016 Stentering Africa Asia Europe South America North America Not specified 17
Implications for the global textile industry 18
Textile Mill Consumption Textile Mill Consumption, World Million tons 120 100 80 60 40 20 0 Advent of synthetic fibres Wearing comfort improves Functional clothing Technical textiles Easy to control quality and quantity Cotton consumption stagnated in recent years due to both volatile and relative high cotton prices since 2010. While on paper there are huge cotton stocks, in reality most of the cotton is not freely available (China). Wool Cotton Man-made fibres Source: PCI Fibres (2015) 19
Fiber Production - World (in million tons) 2015 2020 ** %-change Cotton * 24.055 25.467 5.9 Wool * 1.131 1.147 4.3 Acrylic 1.705 1.701-1.8 Nylon (filament) 3.955 4.3 10.4 Nylon (staple) 0.144 0.149 2.1 Polypropylene (staple) 0.797 0.787-2.0 Polypropylene (filament) 2.735 2.844 3.7 Polyester (staple) 15.868 17.262 11.3 Polyester (filament) 32.162 40.064 32.2 Cellulosic (staple) 4.935 5.736 20.3 Cellulosic (filament) 0.39 0.421 9.1 Total MMF Total Fibre Production 62.691 87.877 73.264 99.878 21.5 17.3 * Consumption figures ** Forecast Source: PCI Fibres (2015) 20
Summary - Growing Global Textile & Apparel Market - Share of e-commerce is on the rise - New technologies allow mass customized production - Internet of Things (IoT) offers new potential to increase productivity - Sustainability is a trend and an integral part of business (CSR) - Infrastructure Projects (OROB-Initiative) Creating new opportunities - Textile production concentrated in Asia (especially in China) - Shifts of textile production to other countries (Asia and partially Africa) - Production in other regions (Africa, Americas, Europe) has more potential due to - Technologies (digital and 3-D printing, automation) - Fashion trends (fast fashion) - Reduced cost differentials - Sustainability (traceability, circular economy) - Global fiber consumption is on the rise (GDP and population) - Man-made fibers (mmf) are benefiting most - Within mmf, polyester filaments are growing strongly - Wool has become a «luxury» fibre - Is cotton is becoming a «luxury» fiber as well? 21
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