Setting the Stage: «The Global Textile (Machinery) Industryoriginafrica.org/documents/Origin Africa 2017... · · 2017-10-06Energy consumption in spinning (average of countries)

1

Dr. Christian Schindler

Director General

International Textile Manufacturers Federation (ITMF)

Setting the Stage:

«The Global Textile (Machinery) Industry

in Disruptive Times”

Origin Africa 2017

September 25/26, 2017

Mauritius

06.10.2017 1

Contents

2

1) Situation & outlook for the global textile/apparel industry for manufacturing

2) New disruptive technologies and innovation in textile manufacturing

3) Where are currently the areas of investments in manufacturing?

4) Implications for the global textile industry

Contents

3





Textiles & Clothing Exports 2000 – 2014

Billion. USD

Quelle: World Trade Organization, International Trade Statistics

52.206 53.476 61.865 78.962 95.284 115.213144.071

171.541 185.760 167.085206.691

248.185 255.064284.013 298.300

84.349 79.00080.500

88.000

108.000

112.000

122.848

138.739144.089

120.517

124.914

140.973129.281

137.600

146.100

0

100

200

300

400

500

600

700

800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

OthersIntra-EEUBangladeshMexicoVietnamTaiwanIndonesiaPakistanTurkeyIndiaKoreaUSAHong KongExtra-EEUChina

4

World Population (in bn)

5

6

Apparel sales will grow strongest in Asiaand the Middle East

Apparel Market Size ofSelected Countries 2015 to 2020

7Source: Euromonitor

Region Retail value in USD bn, constant 2015 prices, fixed

exchange rate

Mean annual growth rate

2015 to 2020 (%)2015 2020

China 276 341 4.3

India 50 70 7.2

Indonesia 8 10 5

Vietnam 2 3 5

Subtotal (C+I+I+V) 336 424 4.8

Egypt 2.5 2.6 1

Morocco 1.3 1.4 2.3

Nigeria 3.9 4.7 3.6

South Africa 8.9 9.6 1.6

Subtotal (E+M+N+SA) 16.5 18.3 2.1

USA 267 289 1.6

EU 299 303 0.3

USA and EU combined 566 592 0.9

World 1'306 1'475 2.5

8

Store-based retailing remained flat while …

9

… internet retailing grew strongly since 2010.

Contents

10





Competitiveness of the textile and apparelindustry

• Textile and apparel manufacturing in constant search forhigher productivity:

• Faster

• Less labour-intensive

• Less energy-intensive

• Less water-intensive

This results in high demand for ever more automated and ever more energy- and water-efficient textile machines

• Necessities for the industry:• Increase of R&D activities

• Networking with suppliers and customers to develop new products (e.g. technical textiles or functional textiles) and processes (e.g. digitization of the textile value chain)

• Monitoring of market for technological innovations

• Monitoring of market trends

11

12

Energy efficiency has improved constantly

Source: ITMF

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2.90

3.00

3.10

3.20

3.30

3.40

3.50

3.60

3.70

1993 1995 1997 1999 2001 2003 2006 2008 2010 2012 2014

kW

h p

er

kg o

f ya

rn

kW

h p

er

kg o

f ya

rn

Energy consumption in spinning(average of countries)

Ring-spinning, lhs Open-end spinning, rhs

Over the last two decades the energy consumption of ring-spinning machines on average of Brazil, India, Italy, Korea and the USA – these countries continuously took part in IPCC since 1993 - fell by over 9% from 3.5 to 3.2 kilowatt hour (kWh) per kilogram (kg) of yarn.

The energy efficiency of rotor spinning machines improved even more, whereby consumption dropped from 3.6 to 1.4kWh per kg, a drop of 61% .

Energy costs in ITMF’s survey include the costs relating to the actual power consumption of the machines, the illumination and the air conditioning.

New disruptive technologies & processes

• Digital printing & finishing

• Internet

1) Mass Customization !!!

“… use of flexible computer-aided manufacturing systems to produce custom output. Those

systems combine the low unit costs of mass production processes with the flexibility of

individual customization.” (Wikipedia)

“Producing goods and services to meet individual customer's needs with near mass production

efficiency.” (Tseng, M.M.; Jiao, J. (2001)

13

New disruptive technologies & processes(continued)

• Internet of Things (IoT)

• Big data

2) Industry 4.0 !!!

“The fourth industrial revolution, is the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of Things and cloud computing. …

The basic principle of Industry 4.0 is that by connecting machines, work pieces and systems, businesses are creating intelligent networks along the entire value chain that can control each other autonomously.

Some examples for Industry 4.0 are machines which can predict failures and trigger maintenance processes autonomously or self-organized logistics which react to unexpected changes in production.”

(Wikipedia)

14


• Internet of things

• Big data

2) Industry 4.0 !!!

The fact that costs for sensors, communication, data storage and data analytics have dropped significantly in the past, have made it possible to record and process data about physical systems.

According to Gartner there were 2.4 billion connected devices. By 2020 this number will reach 7.6 billion.

“Data analytics and machine connectivity are the way to get to the next level of productivity.”

Mr. Bill Ruh (Chief Digital Officer, General Electric)

15

16


“We always overestimate the change

that will occur in the next two years and

underestimate the change that will occur

in the next ten.”

Bill Gates


• Increase of Population

• Higher Energy Demand

• Higher Fiber Demand

• Climate Warming

3) Sustainability !!!

Global population will increase to around 10 billion people.

Energy consumption will increase by more than 50% by 2040.

More fibres will be needed (up to around 115 million tons by 2030).

Fast Fashion intensifies demand for fibres.

• Circular Economy

• Recycling

• Bio-based Textiles

17


• New Infrastructure Projects

• New Markets

• New Consumers

4) Infrastructure Projectsa. One Road, One Belt Initiative (OROB-Initiative)

b. Panama Canal

c. Suez Canal

Improving existing infrastructure.

Developing and building new infrastructure.

Creating more regional economic integration.

18

Contents

19





Global Shipments of New Textile Machinery(2007-2016)

20

• Spinning Machines

• Texturing Machines

• Weaving Machines

• Circular Knitting Machines

• Flat Knitting Machines• Finishing Machines

06.10.2017

1. Shipped Short-staple Spindles(2007– 2016, World & Regions)

mill

ion

spin

dle

s

- 12%

06.10.2017 21

12.8

8.6

7.2

12.5

14.3

10.5

11.6

9.89.0

7.9

12.0

8.3

7.0

11.9

13.5

9.910.7

8.98.3 7.3

0.1 0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.1

0.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World Asia Europe Americas Africa

ChineseInvestments

1. Shipped Short-staple Spindles(2007–2016, China‘s Share)

mill

ion

spin

dle

s

+9%

06.10.2017 22

perc

en

tage

share

12.8

8.6

7.2

12.5

14.3

10.5

11.6

9.89.0

7.9

6.1

3.7

5.0

7.9

8.9

6.4 6.2

4.4

3.3 3.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

World China

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China Rest of world

1. Shipments of Short-staple Spindles(2016, 6 Biggest Investors)

mill

ion

spin

dle

s

06.10.2017 23

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

China India Bangladesh Vietnam Turkey Pakistan

1. Shipments of Short-staple Spindles(2007 – 2016 - China &India)

mill

ion

spin

dle

s

06.10.2017 24

0

1

2

3

4

5

6

7

8

9

10

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

China India

1. Shipments of Short-staple Spindles 2007 (2016 - Bangladesh, Indonesia, Pakistan, Vietnam)

06.10.2017 25

mill

ion

spin

dle

s

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Bangladesh Indonesia Pakistan Vietnam

Textile Machinery Shipments to Africa

06.10.2017 26

Short-staple Spindles

Algeria Egypt Morocco Zimbabwe … Africa World Africa's Share

2016 80'000 13'400 0 0 93'400 7'882'400 1.2

2015 8'800 42'400 6'500 2'600 60'300 9'043'000 0.7

Circular Knitting Machines

South Africa

Egypt Ethiopia Mauritius … Africa World Africa's Share

2016 20 312 52 45 660 26'160 2.5

2015 143 359 133 18 830 26'660 3.1

Shuttle-less Looms

Algeria Egypt Ethiopia Morocco … Africa World Africa's Share

2016 2 118 45 83 480 84'700 0.6

2015 246 220 255 30 1'060 81'600 1.3

Contents

27





Textile Mill Consumption

• Advent of synthetic fibres

– Wearing comfort improves

– Functional clothing

– Technical textiles

– Easier to control quality and quantity

• Cotton consumption stagnated in recent years due to both volatile and relative high cotton prices since2010.

• While on paper there are hugecotton stocks, in reality most of thecotton is not freely available (China).

28

Source: PCI Fibres (2015)

0

20

40

60

80

100

120

Mill

ion

to

ns

Textile Mill Consumption, World

Wool Cotton Man-made fibres

29

Fiber Production - World (in million tons)

2015 2020 ** %-changeCotton * 24.055 25.467 5.9Wool * 1.131 1.147 4.3Acrylic 1.705 1.701 -1.8Nylon (filament) 3.955 4.3 10.4

Nylon (staple) 0.144 0.149 2.1Polypropylene (staple) 0.797 0.787 -2.0Polypropylene (filament) 2.735 2.844 3.7Polyester (staple) 15.868 17.262 11.3Polyester (filament) 32.162 40.064 32.2

Cellulosic (staple) 4.935 5.736 20.3Cellulosic (filament) 0.39 0.421 9.1Total MMFTotal Fibre Production

62.69187.877

73.26499.878

21.517.3

* Consumption figures

** Forecast

Source: PCI Fibres (2015)

30

World Man-made Fibre Production by Country/Region (million tons)

2015 2020 * %-change

China 40.000 48.097 20.24Western Europe 2.295 2.232 -2.75Eastern Europe 0.602 0.654 8.64Turkey 1.241 1.392 12.17Africa/Middle East 0.702 0.782 11.40Chinese Taipei 1.965 1.700 -13.49North America 2.836 3.091 8.99India 5.259 6.775 28.83Japan 0.681 0.641 -5.87South Asia 4.600 5.322 15.70S. Korea 1.698 1.552 -8.60Australasia 0.035 0.038 8.57Total Fibre Production 61.914 72.276 16.74

* ForecastSource: PCI Fibres (2015)

31

World Polyester Production by Country (million tons)

2015 2020 * %-change

Polyester (staple)

Polyester (textile filament)

Polyester (staple)

Polyester (textile filament)

Polyester (staple)

Polyester (filament)

China 9.600 22.000 10.270 28.150 6.98 27.95

India 1.375 3.275 1.700 4.180 23.64 27.63

USA 0.657 0.181 0.700 0.188 6.54 3.87

Turkey 0.245 0.196 0.261 0.206 6.53 5.10

Chinese Taipei 0.525 0.820 0.495 0.645 -5.71 -21.34

South Korea 0.660 0.585 0.655 0.470 -0.76 -19.66

Indonesia 0.715 0.795 0.790 0.940 10.49 18.24

Thailand 0.315 0.355 0.340 0.374 7.94 5.35

Malaysia 0.106 0.255 0.107 0.255 0.94 0.00

Vietnam 0.165 0.090 0.225 0.145 36.36 61.11

Bangladesh 0.062 0.062 0.073 0.064 17.74 3.23

Others 1.443 0.352 1.646 0.588 14.07 67.05

Total 15.868 28.966 17.262 36.205 8.78 24.99

* ForecastSource: PCI Fibres (2015)

32

Economic catch-up in Asia continues

Growing global GDP, current prices (billion USD)

GDP per capita, current prices (USD)

Sources: IMF, UN

• Global GDP is expectedto increase by over 30% from 2015 to 2021

• Economic growth in emerging anddeveloping countries will be strong

• Asian retail markets fortextile and apparelbecome more and moreimportant

• Customer preferencesin Asian countries change towardsWestern-style. On theother hand, Asian-style will influence textile industry

Year World USA China IndiaMiddle East & North Africa

Sub-SaharanAfrica

2015 73'600 18'037 11'182 2'073 2'843 1'504

2021 98'632 22'767 18'033 3'650 3'975 1'855

Growth % 34.0 26.2 61.3 76.1 39.8 23.3

Year World USA China IndiaMiddle East & North Africa

Sub-SaharanAfrica

2015 10'014 56'084 8'141 1'600 6'704 1'563

2021 12'713 67'940 12'857 2'611 8'478 1'651

Growth % 27.0 21.1 57.9 63.2 26.5 5.6

33

Strong increase in fibres consumption

in China and India

Higher per capita fibre consumption (kg per capita)

Source: PCI-Fibres (2015)

Year WorldWest

EuropeTurkey

North

AmericaChina India

Africa /

Middle East

2016 11.5 23 11.5 39.8 15.5 5.4 5.0

2020 12.2 24.2 13.4 40.4 18.3 5.9 5.7

2030 13.4 24.5 16.2 40.0 20.1 7.9 6.9

Global Textile Mill Consumption (in ‘000 tons)

34

0

20,000

40,000

60,000

80,000

100,000

120,000

1960 1970 1980 1990 1995 2000 2005 2010 2015 2020 2030Cotton Wool Cellulosic (staple)

Cellulosic (filament) Polyester (staple) Polyester (filament)

Nylon (staple) Nylon (filament) Polypropylene (staple+filament)

Acrylic

2030: 47'813

2030: 19'433

2030: 27‘814

35

Summary

- Growing global textile & apparel Market

- Share of e-commerce is on the rise

- New technologies allow mass customized production

- Internet of Things (IoT) offers new potential to increase productivity

- Sustainability is a trend and an integral part of business (CSR)

- Infrastructure projects (Suez-Canal) – Creating new opportunities

- Textile production concentrated in Asia (especially in China)

- Shifts of textile production to other countries (mainly in Asia)

- Production in other regions (Africa, Americas, Europe) has more

potential due to

- Technologies (digital and 3-D printing, automation)

- Fashion trends (fast fashion)

- Reduced cost differentials

- Sustainability (traceability, circular economy)

- Global fiber consumption is on the rise (GDP and population)

- Man-made fibers (mmf) are benefiting most

- Within mmf, polyester filaments are growing strongly

- Wool has become a «luxury» fibre

- Is cotton is becoming a «luxury» fiber as well?

THANK YOUFOR YOUR ATTENTION!

www.itmf.org

3606.10.2017

http://www.itmf.org/

0

2

4

6

8

10

19

74

19

77

19

80

19

83

19

86

19

89

19

92

19

95

19

98

20

01

20

04

20

07

20

10

20

13

27.06.2011 37

2. Shipped Open-end Rotors Evolution in the world & regions China’s share

5 Biggest Investors 2016 : China, India, Turkey, Vietnam, Pakistan

Evolution in selected countires Installed OE-Rotors Capacity

(1974 – 2015)

633.7582.7

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

World Asia Americas Europe Africa

0%

20%

40%

60%

80%

100%

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

China Rest of world

0

20

40

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Bangladesh Indonesia India Vietnam

+ 66% + 92%

Thousands

ofro

tors

Thousands

ofro

tors

Mill

ions

ofro

tors

27.06.2011 38

3. Shipped Texturing SpindlesEvolution in the world & regions China’s share

5 Biggest Investors 2016 : China, Japan, Turkey, Chines Tapei, India

Evolution in selected countires

288.5

235.4

0.0

200.0

400.0

600.0

800.0

1000.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016World Asia Europe Americas Africa

- 11% - 14%

0%

20%

40%

60%

80%

100%

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

China Rest of world

0

20

40

60

80

100

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Indonesia India Turkey

Thousands

ofspin

dle

sT

housands

ofspin

dle

s

27.06.2011 39

4. Shipped Shuttel-less loomsEvolution in the world & regions China’s share

5 Biggest Investors 2016 : China, India,, Bangladesh, Turkey, Pakistan

Evolution in the world per product China’s share in Water-Jet looms

Thousand u

nits

+ 4% + 11%

84.7 77.2

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


84.745

0.020.040.060.080.0

100.0120.0140.0160.0180.0

World China

Since 2010 more Chinese participants

Thousand u

nits

Thousand u

nits

0

20

40

60

80

100

120

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Air-Jet Water-Jet Rapier/Projectile0%

20%

40%

60%

80%

100%

20072009201120132015

China Rest of world

Evolution in the world per product

27.06.2011 40

4. Shipped Shuttle-less loomsEvolution in selected countries

Thousand o

funits

units

units

0

5

10

15

20

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Japan Turkey U.S.A.

0200400600800

1,0001,2001,4001,600

19

74

19

77

19

80

19

83

19

86

19

89

19

92

19

95

19

98

20

01

20

04

20

07

20

10

20

13

Installed Shuttle-less looms Capacity

27.06.2011 41

5. Shipped Circular Kniting Machines Evolution in the world & regions China’s share

5 Biggest Investors 2016 : China, India, Bangladesh, Vietnam, Turkey

Evolution in selected countires

Units

- 3% - 21%

Thousand o

funits

26.022.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


0%

20%

40%

60%

80%

100%

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

China Rest of world

0

1000

2000

3000

4000

5000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


27.06.2011 42

6. Shipped electr. Flat Knitting Machines

Evolution in the world & regions China’s share

5 Biggest Investors 2016 : China, Bangladesh, Vietnam, Turkey, India

Evolution in selected countires Shipments to China from

abroad and from China

units

+ 99% + 86%

units

139.6130.1

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


0%

20%

40%

60%

80%

100%

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

China Rest of world

0

5000

10000

15000

20000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Bangladesh India Turkey Vietnam

0

20,000

40,000

60,000

80,000

100,000

120,000

2007200820092010201120122013201420152016

Chinese domestic shipments

Shipments from outside China

units

machines

7. Shipments of Finishing Machinery(2016, Fabrics (Woven & Knits) Continuous)

06.10.2017 43

machines

0

20

40

60

80

100

120

140

160

180

200

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

Washing(stand- alone)

Bleaching-Line

Dyeing- Line(CPB)

Dyeing- Line(Hotflue)

Mercerizing-Line *

Relax Drying/Tumbling

Sanforizing/Compacting

Africa Asia Europe South America North America Not specified

0

200

400

600

800

1000

1200

2015 2016

Stentering

Africa Asia

Europe South America

North America Not specified

machines

7. Shipments of Finishing Machinery(2016, Fabrics (Wovens & Knits) Discontinuous)

06.10.2017 44

0

500

1000

1500

2000

2500

2015 2016 2015 2016 2015 2016

Air Jet Dyeing Overflow dyeing Jigger Dyeing /BeamDyeing

China World ex China World

Documents

Setting the Stage: «The Global Textile (Machinery) Industryoriginafrica.org/documents/Origin Africa 2017... · · 2017-10-06Energy consumption in spinning (average of countries)