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The Indian Textile Journal - March 2012 Viewpoint
US Bouncing Back?

According to some US official government statistics, the 2011 American textile related business has slightly increased and is expected to continue in 2012. American textile shipments will be around USD30 billion and apparels will amount to USD 9.5 billion whereas rugs will be around USD 19 billion. The load capacity for textiles settled at 62% and the one for textile products and apparel at 68%. The installed capacities in both branches remained almost stable. In other words, the industries have defended their positions. Also employment levels remained practically stable, however at higher wages than 2010, an upward trend is again expected for 2012. Considering textile and apparel imports it is noteworthy that in 2011 they decreased slightly to under US D 55 billion but China’s share was remaining at around 54% thus declining slightly. The American textile and apparel trade deficit increased again and reached around USD 94 billion. Recently some American newspapers announced the first retrorelocation of outsourced manufacturing capacities from China to the USA, however the first prominent one is not in textiles but in the wooden area. There are predictions that also some textile capacities will be relocated to America from China and other Asian countries. The reasons behind: currency impacts, rising costs in China, high energy costs and a change in the demand pattern. Another decisive factor is the use of offered incentives by the US government. However it can be expected that production prices in the States will - after a more distinct rise in 2011 - not dramatically increase in 2012 no matter what sub branches you are looking at. The total 2011 operating profits of mills and mill products as well as for apparel somewhat halved, mostly because of higher material costs but it is expected that this situation will improve markedly during 2012.

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