1. Copyright NWtexnet 2007 Past and future textiles in the NW Bill Mills, NWtexnet

2. Copyright NWtexnet 2007 Presentation Historical overview Historical overview How the NW textile industry has developed………………… How the NW textile industry has developed………………… Key drivers Key drivers Collaboration Collaboration Industry examples…. Industry examples….

3. Copyright NWtexnet 2007 Historical Overview Employment changes in NW textile industry: Employment changes in NW textile industry: 1953: 505,000 1953: 505,000 1975: 185,000 1975: 185,000 1987: 96,000 1987: 96,000 1997: 64,000 1997: 64,000 2004: 31,000 2004: 31,000

4. Copyright NWtexnet 2007 Historical Overview #2 Lancashire industry built on cotton processing Lancashire industry built on cotton processing First textile processes to be out-sourced, close to raw material source First textile processes to be out-sourced, close to raw material source Much of this move occurred 1950-1970 Much of this move occurred 1950-1970 NW industry moved into technical textiles NW industry moved into technical textiles

5. Copyright NWtexnet 2007 Historical Overview#3 Rest of the UK industry based on apparel manufacture Rest of the UK industry based on apparel manufacture The move overseas did not start in large amount until mid-1980s, in East Midlands and Scotland The move overseas did not start in large amount until mid-1980s, in East Midlands and Scotland These regions are still suffering the fall-out These regions are still suffering the fall-out NW has had longer to react to market forces NW has had longer to react to market forces

6. Copyright NWtexnet 2007 Key Drivers for the sector today: Survival Survival Perpetual innovation Perpetual innovation Supply chain developments Supply chain developments Move to higher value markets Move to higher value markets Collaboration Collaboration Learning from the past Learning from the past Balanced sourcing Balanced sourcing

7. Copyright NWtexnet 2007 Survival Move into higher value products Move into higher value products More technical applications More technical applications Technical textiles: What are they: Technical textiles: What are they: Textiles where there performance is of greater importance than their appearance Textiles where there performance is of greater importance than their appearance Examples…………. Examples………….

8. Copyright NWtexnet 2007 Perpetual Innovation Supply chain globally is consolidating, many technical textile companies are 4 th or 5 th tier. Supply chain globally is consolidating, many technical textile companies are 4 th or 5 th tier. To remain at that level they must innovate and develop…………..continually To remain at that level they must innovate and develop…………..continually

9. Copyright NWtexnet 2007 Supply Chain changes Consolidation: Consolidation: Through M&A Through M&A Inward investment Inward investment Year-on-Year price reduction Year-on-Year price reduction Due to textile position in supply chains this can have a huge effect Due to textile position in supply chains this can have a huge effect

10. Copyright NWtexnet 2007 Higher value markets As a rule : Higher value = higher margin As a rule : Higher value = higher margin As a rule : Higher value = higher technical content = more difficult to copy (hopefully) As a rule : Higher value = higher technical content = more difficult to copy (hopefully)

11. Copyright NWtexnet 2007 Collaboration Inter - company Inter - company Inter - group Inter - group Inter - region Inter - region Inter - country Inter - country Inter - continent Inter - continent

12. Copyright NWtexnet 2007 Learning from the past Examples: Examples: Example 1 : Example 1 : Airbag manufacture: Dobby weaving Airbag manufacture: Dobby weaving Example 2 : Example 2 : Spacer fabrics: Velvet weaving Spacer fabrics: Velvet weaving

13. Copyright NWtexnet 2007 Learning from the past#2 IP protection is key IP protection is key Textile industry is cyclical………todays problems are not new only different…! Textile industry is cyclical………todays problems are not new only different…! Still a low margin industry. Still a low margin industry.

14. Copyright NWtexnet 2007 Balanced sourcing Commodity products imported cheaper Commodity products imported cheaper Used as base materials Used as base materials Spread the risk Spread the risk

15. Copyright NWtexnet 2007 The NW cluster today 480 companies 480 companies 20,500 employees 20,500 employees T/O £1.9 billion pa T/O £1.9 billion pa

16. Copyright NWtexnet 2007 The cluster today#2 Supplying into : Supplying into : Aerospace Aerospace Automotive Automotive Military Military Protective clothing Protective clothing

17. Copyright NWtexnet 2007 Joint collaboration Joint research bids Joint research bids Framework 7 Framework 7 Joint cross-EU bids, utilising traditional textile manufacturing knowledge Joint cross-EU bids, utilising traditional textile manufacturing knowledge

18. Copyright NWtexnet 2007 Joint collaboration Tendering Tendering ( TENDERTEX) ( TENDERTEX) Virtual Factory Networks (VFN) Virtual Factory Networks (VFN)

19. Copyright NWtexnet 2007 Not just here…… Turkey Turkey Experienced huge growth in apparel and interior textile markets 1980s onward Experienced huge growth in apparel and interior textile markets 1980s onward Now beginning to feel pressure from Asian manufacture Now beginning to feel pressure from Asian manufacture TT centre recently established TT centre recently established Increased regulation (EU) Increased regulation (EU)

20. Copyright NWtexnet 2007 Conclusions Collaboration at many levels is one of the major themes which will enable the sector to grow and prosper Collaboration at many levels is one of the major themes which will enable the sector to grow and prosper

21. Copyright NWtexnet 2007 cont Learn from each other Learn from each other

22. Copyright NWtexnet 2007 cont Been here before…………….. Been here before……………..

23. Copyright NWtexnet 2007 cont Making the most of supply chain consolidation is key Making the most of supply chain consolidation is key