NCTO CONGRATULATES WILLIAM “BILL” McCRARY ON 50TH ANNIVERSARY AT WILLIAM BARNET & SON, LLC

WASHINGTON, DC – The National Council of Textile Organizations (NCTO) is honored to congratulate Mr. William “Bill” V. McCrary Jr. on a significant tenure – celebrating 50 years of employment in the U.S. textile industry with William Barnet & Son, LLC, a synthetic fiber/yarn/polymer firm headquartered in Spartanburg, S.C. with plants and/or offices in the Americas, Europe and Asia.

Bill McCrary joined William Barnet & Son, LLC on July 1, 1970. He now serves as Chairman and Chief Executive Officer for the company, a position he has held since 2001.

“Bill McCrary is an outstanding leader in the textile industry – but, even more importantly, a wonderful human being.  Bill’s deep commitment to his company, employees and the entire community is a model for us all.  His strong voice advocating for manufacturing has benefited the entire industry and we are so very grateful for his outstanding service,” said NCTO President and CEO Kim Glas.

Throughout his career at Barnet, McCrary has also demonstrated strong leadership on behalf of the broader U.S. textile industry by serving as NCTO chairman from 2017-18, after having served as NCTO vice chairman the prior year. He also served for three years on NCTO’s Board of Directors before moving into his current role as an officer.

Former NCTO President and CEO Auggie Tantillo, who headed the organization during Mr. McCrary’s leadership, said the following: “Bill McCrary seamlessly stepped into the role of NCTO chairman and national leader of the U.S. textile industry. The power of his intellect and the persuasiveness of his personality were an invaluable asset to our industry and workforce on numerous policy matters. The entire U.S. textile sector owes him a great debt of gratitude for his effectiveness, professionalism and dedication to our industry.”

Mr. McCrary’s career includes leadership positions with various other industry associations, such as Chairman of the American Fiber Manufacturers Association and Chairman of the South Carolina Manufacturers Alliance. He is the 2016 recipient of the Roger Milliken Defender of Manufacturing Award, a member of the Palmetto Business Forum, and a graduate of Duke University. McCrary is a dedicated resident of Greenville, SC, where he has dedicated his time to numerous initiatives developed for the benefit of the community, including the institution of the McCrary Blood and Marrow Transplant Unit within the Greenville Hospital System and the Phase II expansion of Cancer Survivors Park. 

NCTO congratulates and thanks William “Bill” McCrary on a long and productive career that has benefited not only his organization and community, but the U.S. textile industry on the whole.

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • U.S. employment in the textile supply chain was 585,240 in 2019.
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019.
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019.
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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NCTO Announces Winner of the 2020 Paul T. O’Day Memorial Scholarship

WASHINGTON, DC – The National Council of Textile Organization’s (NCTO) Fiber Council announces Lauren Biggs of Charlotte, NC as the recipient of the 2020 Paul T. O’Day Scholarship Award.  She is the daughter of Sheila Price and Alexander Graham Biggs, III, who is employed by Unifi, Inc.

Ms. Biggs graduated in June with high honors from Myers Park High School.  She will attend the University of South Carolina entering the program for Computer Science this fall.  She is grateful to the NCTO Paul T. O’Day Scholarship Committee for choosing her as this year’s scholarship recipient stating, “Your generosity is truly humbling and greatly appreciated. Being awarded the Paul T. O’Day Scholarship will make a huge difference in my finances while I work to achieve my goal of becoming a creative problem solver, leader and innovator in the fiber industry just as Mr. O’Day was for so many years.  Thank you again for this honor.  I hope to one day give back to those who gave so much.”

NCTO Fiber Council Chairman David Poston, President of Palmetto Synthetics LLC, commented, “We are pleased to recognize Ms. Biggs’s record of achievements and passion for learning as we name her the 2020 recipient of our Paul T. O’Day Memorial Scholarship.  On behalf of the Fiber Council, we congratulate Ms. Biggs and wish her continued success in her academic career.”

The scholarship program was created in 2014 in honor of Paul T. O’Day who served as President of the American Fiber Manufacturers Association (AFMA) for more than three decades. The Association merged with the National Council of Textile Organizations (NCTO) in April 2018, and NCTO’s Fiber Council now administers the scholarship program.  Recipients receive a $5,000 award each year, totaling $20,000 for four years of study.  Sons or daughters of NCTO’s Fiber Council member company employees are eligible to apply.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

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NCTO Elects South Carolina Yarn Manufacturing CEO as Chairman – Council Chairs & Board Members Elected

WASHINGTON, DC – The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished sewn products, held its officer elections for fiscal year 2020 today.

In addition to the appointment of a new chairman and vice chairman, NCTO elected chairs for each of its four councils. NCTO is comprised of four councils to ensure a broad representation of the industry supply chain. Each council has an allotted number of members who are elected to the association’s Board of Directors, in addition to the Executive Committee.

“I am pleased to announce our new officers, council chairs, and board and executive committee members for NCTO’s 2020 fiscal year,” said NCTO President and CEO Kim Glas. “David Roberts (CEO of Cap Yarns) has been elected our new chairman and succeeds Leib Oehmig (CEO of Glen Raven Inc.), who did an outstanding job serving in the role for more than a year.”

“This is a critical juncture for our industry as we continue to navigate through an uncertain business environment this year. I could not be prouder of our industry, which has stepped up and retooled to produce critical personal protective equipment (PPE) for frontline workers battling the COVID-19 pandemic. With the support of our newly elected officers, NCTO will continue to work on behalf of its members to shape policies that will help our industry persevere and thrive. Through a dedicated association staff and a committed group of industry leaders, we will ensure that together we continue to have a seat at the table in Washington.”

Elected as NCTO Chairman and Vice Chairman for 2020 are:

  • Chairman – David Roberts, CEO of Cap Yarns, Inc.
    • Mr. Roberts is CEO of Cap Yarns, Inc., based in Clover, South Carolina.  Cap Yarns is a specialty yarn manufacturer and a leader in developing unique yarns for the knitting and weaving industry.
  • Vice Chairman – David Poston, President of Palmetto Synthetics LLC
    • Mr. Poston is President of Palmetto Synthetics, based in Kingstree, South Carolina. Palmetto Synthetics is a leading specialty synthetic fiber producer that has provided specialty thermoplastic fibers to companies across the globe.

Elected to the NCTO Board of Directors during the various Council meetings were the following:

Fiber Council – Lowell Bivens of PHP Fibers; John Freeman of Nan Ya Plastics America; Chuck Hall of William Barnet & Son; Rich Lemerise of The LYCRA Company; Alejandro Sanchez of DAK Americas; and Chip Stein of Stein Fibers

Yarn Council – Jim Booterbaugh of National Spinning Co.; Tom Caudle of Unifi; Charles Heilig of Parkdale Mills; Peter Iliopoulos of Gildan; Marty Moran of Buhler Quality Yarns Corporation; and Allen Smith of American & Efird

Fabric and Home Furnishings Council – Norman Chapman of Inman Mills; Kathie Leonard of Auburn Manufacturing; Chad McAllister of Milliken & Company; Leib Oehmig of Glen Raven, Inc.; Dirk Pieper of Sage Automotive Interiors; and Mike Shelton of Valdese Weavers

Industry Support Council – Cyril Guerin of Picanol; Ian Mills of Fi-Tech; and Gary Romanstine of Marzoli

Elected by their respective Councils to serve on the Executive Committee were:

Lowell Bivens of PHP Fibers; John Freeman of Nan Ya; Tom Caudle of Unifi; Peter Iliopoulos of Gildan; Norman Chapman of Inman Mills; Leib Oehmig of Glen Raven Inc.; and Ian Mills of Fi-Tech

Elected to chair the Councils:

Fiber Council: David Poston of Palmetto Synthetics

Yarn Council: Marty Moran of Buhler Quality Yarns Corporation 

Fabric and Home Furnishings Council: Leib Oehmig of Glen Raven, Inc.

Industry Support Council: Ian Mills of Fi-Tech

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

  • U.S. employment in the textile supply chain was 585,240 in 2019.
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019.
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019.
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

www.ncto.org

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NCTO Urges Government to Institute Buy American Policy to Boost Manufacturing of Personal Protective Equipment

WASHINGTON, DC– National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today, urging the government to institute Buy American policy changes to help bolster U.S. manufacturers producing personal protective equipment (PPE) for frontline workers battling the COVID-19 pandemic.

“If the government is sincere about reconstituting a U.S. production chain for medical personal protective equipment (PPE) to resolve the drastic shortages we are experiencing during the current pandemic, it is going to have to make key policy changes to help incentivize domestic production. A strong Buy American mandate for these vital healthcare materials needs to be instituted for all federal agencies, coupled with other reasonable production incentives, to help ensure a strong U.S.  manufacturing base for these essential products.

Our government already has an existing example of such a mandate that serves as an excellent model. The U.S. Department of Defense operates under a fiber-to-finished product Buy American rule for military textiles. This rule ensures that the vital textile materials our U.S. warfighters depend upon, come from a secure domestic production chain that cannot be severed during a military emergency by offshore entities.

There is a bipartisan call for action as members of Congress on both sides of the aisle have begun to acknowledge the need for these types of reasonable and essential policy changes.

Expanding domestic purchase requirements through Executive Order and other legislative initiatives will ensure that PPE production through U.S. supply chains that have been created overnight don’t evaporate as soon as this crisis is over.

In the midst of the crisis, our failure to confront this challenge will allow for a repeat of the sins of the past that allowed sourcing agents to offshore the entire production of medical PPE in search of lucrative profits. While chasing the lowest cost import may have seemed cost effective at the time, these past few months have demonstrated that we paid a deadly price through this approach by jeopardizing the very lives of frontline medical personnel that are fighting the pandemic.  

This is a national security issue. It’s also a vital healthcare issue and it is decision time for U.S. policymakers. If our country is to be prepared for future deadly pandemics such as the one it is now facing, reasonable policy changes need to be implemented to ensure that we strengthen our domestic supply chain to address America’s security, safety and healthcare requirements.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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NCTO, Textile Executives Back July 1 Implementation of USMCA

WASHINGTON, DC– The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber though finished sewn products, issued a statement today with textile executives stressing the critical importance of moving ahead with the U.S.-Mexico-Canada Agreement (USMCA) and lauding U.S. Trade Representative Robert Lighthizer for setting July 1 as the implementation date now that the U.S. has taken the necessary final procedural steps.

“We commend Ambassador Lighthizer for moving forward with USMCA, a critical trade deal that will greatly benefit the U.S. textile industry at a time when domestic producers–facing significant challenges due to the impact of the COVID-19 pandemic–have mobilized to convert their production lines to manufacturing personal protective equipment (PPE) for frontline workers during this crisis,” said NCTO President and CEO Kim Glas.

“Sustaining the $20 billion in apparel and textile trilateral trade between the U.S., Mexico and Canada is absolutely critical at this time. USMCA, which makes several key improvements over the former North American Free Trade Agreement (NAFTA) will go a long way to increasing the textile industry’s exports, as well as investments and capacity in the U.S. We need to maintain and expand a Western Hemisphere supply chain to meet national emergencies head on in the future,” Glas added.

Mexico and Canada are the two largest export markets for the U.S. textile and apparel industry, totaling nearly $11.3 billion in 2019.

“I think USMCA is vitally important. It provides this hemisphere with production capabilities to counter Asia and other developing areas,” said Jay Self, president and CEO of Greenwood Mills. “The improved trade agreement offers speed to market and that is such a critical factor not only for our traditional fabric business, but also for our production of face masks and gowns for frontline workers battling the coronavirus. Anything we do to make this hemisphere more competitive is to our advantage.”

Greenwood Mills, a family-owned textile company in Greenwood, S.C., has converted its denim jeans production at a factory in Mexico to PPE production of non-medical face masks and hospital gowns.

“USMCA creates more certainty in the Western Hemisphere and allows us to have a vision of how to continue to build the domestic textile platform and supply chain, while giving us the confidence to re-invest,” said Cameron Hamrick, president of Hamrick Mills. “This trade agreement makes several improvements, and our hope is it will spur more investment in the Western Hemisphere. Now is the time more than ever to have a strong regional supply chain in the Western Hemisphere.”

Hamrick Mills is a 119-year-old company based in Gaffney, S.C. and producer of greige woven fabrics in both polyester/cotton blends as well as 100% cotton. The company has also pivoted to PPE production to help frontline workers.

 “Localized cooperation up and down the supply chain is of paramount importance to securing our economy in a predictable manner and as a model for increased investment for all stakeholders,” said James W. McKinnon, CEO of Cotswold Industries, Inc. “The implementation of USMCA is critical to the continued health and growth of the U.S. textile industry and our regional manufacturing partners. It’s times like this that highlight the importance of a robust regional manufacturing base in the Western Hemisphere.”

Cotswold Industries is a vertically-integrated textile engineering and marketing company that manufactures and distributes technical barriers, knitted and woven industrial fabrics and non-woven substrates, many of which the company has utilized for the production of PPE products.

NCTO worked with the administration during negotiations on USMCA and successfully lobbied for several provisions and improvements that were subsequently incorporated in the trade deal that will close loopholes and strengthen U.S. Customs enforcement.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

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Parkdale Mills Collaborates with FDA, Gates Foundation, Others to Supply Swabs for Coronavirus Tests

WASHINGTONParkdale Mills subsidiary U.S. Cotton, the nation’s largest manufacturer of cotton swabs, has joined in an effort with the Food & Drug Administration (FDA), the Gates Foundation, UnitedHealth Group and Quantigen to ramp up production of spun synthetic swabs to help the country’s frontline health care workers administering tests for the COVID-19 disease.

U.S. Cotton has developed a fully synthetic, polyester-based Q-tip-type swab that can be used in coronavirus diagnostic testing.  The U.S. Food and Drug Administration just announced that these synthetic swabs – with a design similar to Q-tips – could be used to test patients for the coronavirus.

U.S. Cotton, based in Cleveland, Ohio, plans to leverage its large-scale manufacturing capacity to rapidly increase production of large quantities of the polyester swabs, which are in short supply for testing kits across the country.

The FDA has determined that spun synthetic swabs can be used in COVID-19 testing based on the results from a clinical investigation stemming from its collaboration with UnitedHealth Group, the Gates Foundation and Quantigen. 

John Nims, President of U.S. Cotton said, “We stand ready to serve in this important fight and want to do all we can to help deploy these testing kit swabs for the American people. We greatly appreciate the collaborative efforts with the UnitedHealth Group, Quantigen, and the Gates Foundation to help support these necessary clinical studies to help advance this critically needed product to market.” 

Anderson Warlick, Chair & CEO of Parkdale/U.S. Cotton said, “Many thanks to Dr. Peter Navarro for his incredible leadership and for all his support.  We also greatly appreciate our Ohio Senators Sherrod Brown and Rob Portman and Governor Mike DeWine in these efforts.”

This is the second major COVID-19 relief project that Parkdale has helped lead. Earlier Parkdale constructed an entire supply chain that includes Hanes, Fruit of the Loom, and many other U.S. companies in the production of PPE masks desperately needed by frontline medical staff treating the virus.

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

202.684.3091

www.ncto.org

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NCTO Statement on Administration’s 90-Day Tariff Deferral

WASHINGTONThe National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today, voicing concern over the administration’s executive order instituting a non-reciprocal 90-day deferral on certain tariffs. The temporary postponement of duties does not apply to products with antidumping or countervailing duties or those products subject to penalty duties under Section 232, 201 and 301.  As further details of the order emerge, we are closely reviewing the implications for the U.S. textile industry.

“At a time when domestic textile producers and its workforce have mobilized to transform their production lines to manufacture the personal protective equipment (PPE) supplies for frontline healthcare and medical workers fighting the COVID-19 pandemic, the administration’s decision to defer duties for 90 days on the vast majority of products imported into the United States is counterproductive.

This move contradicts the administration’s top stated priority of rebuilding American manufacturing and buying American and could have severe negative implications for the entire U.S. textile industry, whose companies and workforce already are facing enormous economic hardship.

We support the need to temporarily eliminate barriers to the entry of emergency medical supplies and certain PPE inputs tied directly to the COVID-19 response. But make no mistake, the key drivers behind efforts to defer tariffs have nothing to do with facilitating access to PPE products or stopping the spread of COVID-19.

Our industry is being asked to do extraordinary things.  We are heeding that call, but we need help to ensure the supply chains we are creating overnight don’t evaporate tomorrow.  We need strong procurement policies and additional funding for our industries to ramp up and retool – not further measures that incentivize offshore production. We need to maximize the U.S. domestic production chain right now to every extent possible in helping fight COVID-19 and make the products American frontline workers desperately need. 

We need to provide immediate and substantial relief to our manufacturing sector and their workforce who are suffering enormously right now. It’s critical that we have a long-term U.S. government plan to ensure that we aren’t relying on offshore producers to make medically necessary, live-saving PPE.  We shouldn’t be providing handouts to reward the very companies that helped offshore these industries so many years ago.

Tariffs are one of the few mechanisms in place to help partially address the challenges U.S. manufacturers face in competing with imports from countries with exceptionally low wages, poor working conditions, and minimal environmental and safety standards.”

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

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NCTO Statement on Administration’s Reported Tariff Deferral


WASHINGTONThe National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement from NCTO President and CEO Kim Glas today in response to the administration’s plan to institute a 90-day deferral on MFN tariffs,  as reported by numerous press outlets.

The reported plan being pushed by the importing and retailing industries would defer certain tariffs, including those on finished apparel products. It is an ill-advised policy that will hurt the U.S. textile industry at the very time it is answering the call of the nation to produce medical supplies to battle the coronavirus pandemic. 

NCTO has been at the forefront of the efforts to deploy resources, converting production lines to manufacture urgently needed medical supplies like face masks and their textile components,  to address the critical need for personal protective equipment and other medical and sanitation supplies in the fight against the coronavirus.

These unnecessary tariff concessions would benefit importers and retailers at the direct expense of manufacturers on the front lines of the COVID-19 response and send a demoralizing message.

Tariff deferrals would severely exacerbate ramifications for the U.S. economy, manufacturers and workers and open the floodgates for imports.

If the U.S. government makes tariff concessions during this crisis, it will be inviting a virtual tsunami of imports further devastating domestic manufacturing as it attempts to regain its footing.     

We urge the administration to abandon any moves to defer tariffs on finished products. It would only serve to allow importers to exploit the current crisis, while dealing a severe blow to U.S. manufacturing and its workers.  

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NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 585,240 in 2019. 
  • The value of shipments for U.S. textiles and apparel was $75.8 billion in 2019. 
  • U.S. exports of fiber, textiles and apparel were $29.1 billion in 2019. 
  • Capital expenditures for textile and apparel production totaled $2.5 billion in 2018, the last year for which data is available.

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CONTACT: Kristi Ellis

(202) 684-3091

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Coalition of Iconic American Apparel Brands & Textile Companies Heeds Call of Nation to Produce Medical Face Masks

March 21, 2020

WASHINGTONA coalition of iconic American apparel brands and textile companies, responding to the urgent call of the White House for medical supplies, have come together to build a supply chain virtually overnight and fast-track the manufacturing of medical face masks to help hospitals, health care workers and citizens battling the spread of the COVID-19 disease.

Parkdale Inc.– the largest yarn spinner in the U.S. headquartered in North Carolina—helped lead the effort to build the coalition with Hanesbrands, Fruit of the Loom and six other companies to set up a manufacturing supply chain and begin ramping up production of the masks.

The coalition consists of iconic American brands such as Hanesbrands and Fruit of the Loom, often competitors in the marketplace, who are banding together for the greater good of a nation facing one if its most monumental challenges.

American Giant, Los Angeles Apparel, AST Sportswear, Sanmar, America Knits, Beverly Knits and Riegel Linen are also part of the coalition working tirelessly to respond to a national emergency in the nation’s time of need.

Dr. Peter Navarro, assistant to the President and director of the White House Office of  Trade and Manufacturing Policy, worked with the coalition and helped expedite the production of these masks. The first face masks have been approved by the U.S. Department of Health and Human Services.

The companies expect to begin production on Monday and will make the first deliveries by mid-week.

They are dedicating their assets, resources and manufacturing capacities to create a high output of facemasks. Once fully ramped up in four to five weeks, the companies expect to produce up to 10 million facemasks per week in the United States and in Central America.

If companies are interested in dedicating resources to help the cause, please reach out to the National Council of Textile Organizations at kellis@ncto.org

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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NCTO Supports Administration’s Proposals on Economic Stimulus in Coronavirus Response; Rejects Importer Attempts to Remove China 301 Tariffs on...

The National Council of Textile Organizations (NCTO), representing the full spectrum U.S. textiles from fiber through finished sewn products, issued a statement today welcoming the Trump administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak, but the organization urged officials to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.

“The president has outlined the need for a broad economic stimulus package that would include various tax incentives to help impacted industries and workers. We support the administration’s efforts to bolster the economy as a response to the coronavirus outbreak, while opposing add-ons to any stimulus package designed to exploit the crisis,” said NCTO President and CEO Kim Glas.

“Any push by importers and retailers to take advantage of the situation and press for removing China 301 tariffs on finished consumer goods—a penalty imposed by the administration in a separate investigation of China’s illegal intellectual property (IP) abuses—should be rejected immediately,” she said. “Tariff breaks on finished products will only pad the pockets of retailers that have long benefitted from China’s trade abuses, and ultimately will not be passed on to the consumer,” Glas said.

“Granting importers a tariff break would essentially let China off the hook for systemic IP violations that have displaced U.S. workers and undermined U.S. leverage in negotiating a phase two agreement,” Glas continued.

As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on Sept.1 from 15 percent to 7.5 percent.

“NCTO has strongly supported applying tariffs on finished products as a key negotiating leverage but opposes keeping tariffs in place on certain inputs that are not made in the U.S. such as select dyes, chemicals and textile machinery. NCTO has long-argued tariffs on these inputs hurt domestic competitiveness for U.S. textile manufacturers,” Glas said.

Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in the sector; while fiber, yarn, and fabric imports from China only represent 6.5 percent, according to government data.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

  • U.S. employment in the textile supply chain was 594,147 in 2018. 
  • The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
  • U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
  • Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

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(202) 684-3091

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