June 12, 2009
A period of heavy investments in most textile machinery segments between 2003 and 2007 came to an abrupt end in 2008. All textile machinery segments recorded lower shipments ranging from 3 percent to 66 percent lower in 2008 compared to 2007 shipments.
This investment boom until 2007 was closely related to China's integration into the World Trade Organization (WTO) structures and the phasing-out of the traditional quota-regime under the WTO Agreement on Textiles and Clothing at the end of 2007-2008. This means that trade in textile and clothing products is no longer subject to quotas but is now governed by the general rules and disciplines embodied in the multilateral trading system of the WTO.
This information comes from the 31st annual International Textile Machinery Shipment Statistics just released by the International Textile Manufacturers Federation. The report covers six types of textile machinery, namely spinning, texturing, weaving, large circular knitting, flat knitting and finishing machinery. The 2008 survey was compiled in cooperation with some 133 textile machinery manufacturers from around the globe, representing a comprehensive measure of world output.
According to Rita Kourlis Samuelson, director of wool marketing for the American Sheep Industry Association, this is not a good sign. "This seems to be an indicator of the current wool business in China. If the confidence in investing in wool textile equipment is down, it is likely that business is also down and confidence has been low. Hopefully, this will change in the coming year with some positive turns in the financial market."
A review of the statistics is available at www.textileworld.com/Articles/2009/June/The_Rupp_Report_Decline_of_Global_textile_machinery_shipments_in_2008.html
Reprinted in part from www.fibre2fashion.com