Wednesday, February 25, 2009

Is ‘Prophecy’ Coming to Pass?

In response to Eric Frederick’s column, Signs Point to Textile Supply Issues, Price Increases, it wasn’t too long ago he addressed the lack of domestic production to satisfy the needs of the healthcare market. In so doing, he astutely emphasized the importance of purchasing items from a quality-conscious dealer that guarantees deliveries.

At that time, I commented on the practice, based on the eruptive environment in the Asian market that could radically affect availability. It now seems my “prophecy” may be upon us.

But there are three things that Eric fails to discuss:

1. The reasons that forced the mills, including the long-standing Cannon Mills, to shut their doors.
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2. The effect that the purchase of offshore products has had on our healthcare delivery system.
3. The political rhetoric of bringing jobs back to our shores.

Whatever caused the first mill to move its manufacturing capability to Asia to take advantage of the lower production costs, it obviously did so to increase its share of the market. Because of their being able to lower their prices, and the competitive nature of the market, others had no choice other than to follow suit.

In the interim, the large suppliers and dealers with the financial ability to underwrite an investment negotiated contracts with the producers on a direct basis. The net result? Despite its noble “Made in America” campaign, its demise was inevitable.

The costs of our healthcare system have been escalating dramatically and rapidly. Of course, this increased cost of a hospital stay is reflected in the increase in health insurance premiums. What has yet to be addressed is the fact that whatever monies are paid to offshore suppliers, there is no way that that money will ever be redeposited in the system. In effect, not only are the employed in those facilities a drain on the monies available to run the system, the possibility of their replenishing that drain is nil.

Assuming for the moment that the “rhetorical” plans to bring jobs back to our shores becomes a reality, how long will it take for the domestic weavers to get back into full production? Not any different than offshore drilling being a short-term answer to our being subjected to whims of offshore sources.

On a personal basis, suffice it to say that every time I’ve been hospitalized, I've been given a patient gown carrying a label that reads, “Made in the Philippines,” or patient “linen” that indicates it has come from one of a number of offshore sources.

If the money saved by purchasing those items comes from their being made offshore, you wouldn’t know it from the charges on my bill for “bed and board.”

Nathan L. Belkin, Ph.D.
Founder, American Reusable Textile Association
Clearwater, Fla.

more about The kissell amendment.!!

With just a month under his belt in the U.S. Congress, Rep. Larry Kissell (NC-08) has spearheaded an important piece of legislation that’s going to help keep jobs in North Carolina. This is why people worked so hard to defeat the encumbrance that was Robin Hayes.

The stimulus package, the American Recovery and Reinvestment Act (H.R. 1), included legislation offered by Congressman Larry Kissell (D-NC) mandating that any textile and apparel products contracted by the U.S. Department of Homeland Security’s (DHS) be manufactured in the United States with 100 percent U.S. inputs.

This mandate, commonly known as the Berry Amendment, first was applied to the U.S. Department of Defense (DoD) beginning in 1941. Because of existing U.S. international obligations, the new Kissell legislation only would cover prospective U.S. government procurement of uniforms and other textile products for the Transportation Security Administration and U.S. Coast Guard within DHS.

“I’m so proud to have my name on the Kissell Amendment. It is estimated upwards of 20,000 people will have jobs due to this measure. So many people in the textile industry worked so hard to make this expansion of the Berry Amendment a reality and as a former textile worker myself, I want to thank them from the bottom of my heart.”

For years I’ve been hearing NC Congressmen talk about keeping jobs here, but this is the first time we’ve seen a Buy American bill that really affects our textile industry. Go Larry!