ATHLETIC FOOTWEAR
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SUPPLY COMPONENTS: A Brief Overview
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International Trade Patterns |
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Corporate Powers |
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New Technology |
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Political Determinants |
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Global Standards |
THE TEXTILE
INDUSTRY IS MOVING SOUTH OUT OF THE UNITED STATES.
The overall textile industry is losing money and as a result subdivisions within the industry are moving their labor to countries such as Mexico. The trend to move south began when the textile industry migrated from New England to the South. The pattern is reoccurring as textile industries move further South to Mexico. Environmental problems such as a lack of water, an essential element to the textile production, has not been at an adequate level in regions such as Greensboro, North Carolina. This region is a primary location for production within the U.S. However looking at the decline in production, despite the expanding manufacturing facilities and cheap labor, there are import restrictions in Central and South America that make it difficult for the U.S. to penetrate the market. As a result the export of textiles fell 15% last year and the stock value continues to fall.
THE PETROCHEMICAL INDUSTRY IS MOVING
TOWARDS CHEAPER LABOR.
Within the petrochemical industry the
same search for cheaper resources in other countries as a means for competitive advantage
is not focused on the labor but rather the costs of the feedstocks. In general the business is becoming more and more
vertically integrated in an effort to be a more self-sufficient industry.
WHO ARE THE INDUSTRY LEADERS?
The
textile industry subdivides into four major categories that are all inter-linked. The petrochemical industry is the largest industry
within the chemical industry. The
petrochemicals are then used to make synthetic fibers that are used to make the fabrics
that supply the apparel industry. While the
main powers within the petrochemical industry are profiting, such as Dow, Borealis and Exxon Chemical Company. The big name
textile companies include: Burlington
Industries, Guilford Mills and Fieldcrest Canon. While this market is mostly
located in the Southern region of the U.S. the textile industry is beginning to seek out
cheaper labor in foreign countries primarily in Central and South America.
THE DEVELOPMENT OF THE INTERNET
The internet plays a key role in the developing technology companies are using to further production. Within the textile industry, is adopting their business to the internet as a means to save time and money. Within the petrochemical division web based technology is used to maximize operational efficiency, expand market and sales resources and improve customer service.
THE DEVELOPMENT OF NEW FIBERS
In addition to the internet, new materials are being used in new products. For example, Kolon a textile company, produces “ultra fine fibers” such as X20 a highly waterproof material is a unique fiber to the industry. Shell Chemical Company expects to “change the course of the fiber industry” with the production of PTT (polytrimthlele terephtalate).
THE DEVELOPMENT OF NEW MACHINERY
Neuron scattering devices that create
“designer molecules” were recently discovered and are expected to perform better
in synthetic fibers.
` CURRENT EVENTS --
In
the 1970’s there was an oil price shock that directly affected the petrochemical and consequently
the overall fabric industry. More recently,
the financial crisis in Asia has caused a continual decline in the price of
petrochemicals. On a more local level, when
the Guilford County refused to build a reservoir needed for a feedstock, the factory
relocated to Mexico. In an effort to support
globalization trends that seek out the best product no matter where the location is, GATT and WTO were
both agreements that provided free and global trade.
ENVIRONMENTAL ISSUES
There
have been various environmental incidents that have heightened awareness and brought about
various environmental standards. For example, gasification feedstocks are filled with sulfur and metals that are bad for the water. As a result petrochemical companies will seek out
feedstocks in other countries where the standards are lower and prices are cheaper in
order to cut down on production costs. On a
more local level, Unifi a textile company, was accused for various sewer problems in
Greensboro County.