Latin American Manufacturers Make a Pitch at Material World

MIAMI BEACH, FLA.—Western Hemisphere manufacturers showing at the April 8–10 run of the Material World trade show in Miami Beach, Fla., are still confident that they can make a difference in the global apparel marketplace, especially since China is currently facing growing pains and many of its customers are re-evaluating their supply chains.

Latin American sourcing was a key topic at the show, which featured manufacturing resources and factories as fabrics and technology from more than 400 exhibitors showing at the Miami BeachConvention Center.

With the United States contemplating another free-trade agreement with another Latin American nation, Colombia, some U.S. producers are again looking within the Western Hemisphere as an alternative to rising labor rates in coastal China. U.S. importers and exporters are also dealing with a weakened dollar, and some Latin American factories hope to capitalize.

“We’re ready,” said Tony Malouf, export manager for Hilos y Telas S.A., a textile factory based in Guatemala. “We have to take the steps [to compete], but which steps?”

Malouf was part of a panel sponsored by the U.S. Department of Commerce’s Office of Textiles and Apparel. He said free-trade agreements will help but suggested that Latin American countries band together and work as a group.

“You can’t be as effective when you are using five fingers rather than one fist to compete,” he said.

While there may be a window, Malouf warned it may only be half open, as producers look to emerging countries such as Vietnam and others wait for the restrictive trade measures on China to end, as scheduled, at the end of this year.

Meanwhile, Latin America is attempting to solidify several free-trade agreements. The latest involves Peru and is expected to be wrapped up this summer.

“There’s more investment and access to this market,” said Fernando Albareda, commercial counselor for the Peruvian consul general in Miami, who was at the show promoting the upcoming Peru Moda trade show.

As far as Colombia’s FTA goes, it has been put on hold by Congress, but House Speaker Nancy Pelosi told Los Angeles Mayor Antonio Villaraigosa and business leaders in Washington recently there may be a bipartisan way to approve the pact.

Even textile companies said they are seeing minor shifting away from Asia.

“A lot of people are burned out on Asia; it’s not that cheap anymore,” said Luke Harris, vice president of manufacturing for Solid Stone Fabrics, based in Martinsville, Va.

Harris said buyers were taking advantage of the company’s stock program as a way to speed up production. Solid Stone secures products six weeks ahead of offshore orders.

The company markets textiles for the dance and swim markets, including foil prints on Italian fabrics from Carvico.

The green and sustainability themes remained important at the show, although man-made swim fabrics and novelties appeared to gain the lion’s share of buys.

“[Eco fabrics are] really a small part of our business, but people are asking for it,” said Steve Carr of Carr Textile, based in Fenton, Mo. The company highlighted a 7-ounce organic twill, which it stocks in 24 colors. The fabric meets GOTS (the “global organic textile standard”) certification and is approved by the International Organic Certification Group.

Lawrence Serbin of Los Angeles–based Hemp Traders said his business was up 50 percent, with interest especially high for eco-friendly materials such as hemp, bamboo and soy.

Even printers were going for a green footprint. BASF debuted a new pigment system that eliminates the need for agents such as formaldehyde, and Insta Graphics released a PVC-free printer.

Tech Solutions highlights West Coast

A number of California resources took part in the Technology Solutions section of the show, which featured design and production software, sales tools, and other systems.

Los Angeles–based Tukatech Inc. rolled out a new series of life-like dress forms called Noir. The forms feature a skin sensor that provides feedback as to whether a bra or swim strap is binding too tight and helps with other fitting scenarios.

Tukatech also released a new version of TukaPlan, its product lifecycle management application that is aimed at managing the production cycle.

The company was one of several PLM exhibitors at the show.

Fred Isenberg, vice president of sales for Miami Lakes, Fla.–based New Generation Computing, which is a leading PLM supplier, said more companies will be looking to technology to help streamline supply chains. He noted that rising labor costs in China may push demand deeper into mainland China, where labor is cheaper. As a result, companies will have to adjust their supply chains.

“Comp-store sales are down. Margins are being challenged. Money is cheaper. There’s more of a need for technology right now,” Isenberg said.

Isenberg noted that the U.S. government’s recently passed Economic Stimulus Act provides a number of incentives for investing in U.S.-based technology this year, and that may help.

Other West Coast exhibitors included Kristine Gloviak of PAD System Technologies. Gloviak, with general manager Aziz Mitri, showed the company’s latest CAD software, which was being promoted at 50 percent off the list price. They saw manufacturers from Florida and Canada and entered into negotiations for a contract with a major entertainment company.

Orange County, Calif.–based software company RepSpark showed its salessoftware system at Material World for the first time. Company Chief Executive Officer Meghann Butcher said she received some good bites. The product enables sales associates to place orders from the field as well as generate reports and chart inventories. It also has a B2B capability with direct customer access.

Other exhibitors came to the show with new looks, perhaps indicating a consolidating marketplace. Lawson Software, coming off the acquisition of San Francisco PLM specialist Freeborders, has already integrated the staffs and was showcasing its PLM products.

John Brislin, president of New York– based Zymmetry, was in the Enovia MatrixOne booth because the companies have joined forces in a marketing agreement to augment Enovia’s Apparel Accelerator application with Zymmetry’s sourcing application.

The partnership gives the company’s customers a way to integrate the entire supply chain from design to retail, Brislin said.

Attendees included Muditha Senanayake of Cal Poly Pomona, who was scouting the technology offerings at the show. The company recently installed a [TC]2 body scanner on campus to digitize body measurements for use in apparel manufacturing.

“It helps to see all the new technologies and developments for our educators as well as passing it on to the students,” he said.