Monday, October 3, 2005
KATRINA RELIEF EFFORTS UPDATE!
On behalf of staff and this organization, I would like to thank you for your outstanding efforts thus far. We understand that our members have offered to send over 5 million pair of socks/underwear and 14 pallets of bandages to help the hurricane victims! This is in addition to the monetary contributions that respective companies have also gathered individually. Addtionally, THA made a special presentation to Red Cross on Thursday, September 29 during its Centennial Golf Tournament. $7500 of those proceeds will be contributed to Red Cross for Katrina Relief efforts at both a national and a local level. We need you to send us any photos you might have taken of your employees gathering product as quickly as possible. You may email them to hosierytha@aol.com or traditional mail to THA 3623 Latrobe Drive, Ste. 130 Charlotte , NC 28211.
 HISTORICAL HOSIERY HAPPENING: September 1952
Meaning of “Buy American” Snags Military Procurement
Practical interpretation by the Defense Department of the “Buy American” clause in the recent 46 billion dollar Military Appropriations Act is standing in the way of the resumption of military textile procurement, which has been largely held up since the fiscal year 1953 began July 1.
The so called “Berry Amendment” to the subject Appropriations Act, which embraced the “Buy American” theme, was the subject of an official interpretation sent to Secretary of Defense Robert A. Lovett, by Comptroller General Lindsay Warren. While the interpretation seemed clear enough on paper when it reached Defense Department officials, they are still wrestling with the problem of putting it into workable language for procurement officers.
In essence, the “Buy American” clause, as far as hosiery procurement is concerned, would affect military purchases of wool socks. The clause also covers cotton, but practically no foreign cotton is used in domestic hosiery production for the military. Basically, Mr. Warren's interpretation ruled that American wool and cotton are to get preference in military purchases, and that domestic articles of these fibers are to be favored, as long as the bid is within the reasonable range of normal U.S. market prices for domestic articles. The stumbling block now holding up preparation of a workable directive by the Munitions Board is the question of how much price spread will be allowed before textiles made of foreign wool are bought in preference to those made of domestic wool.
ARE YOU MISSING OUT on learning about 100 Years of Hosiery?
Buy Your Copy Now! 
To learn more about the exciting events that have transpired in the hosiery industry in the last 100 years, order a copy of The Hosiery Association Centennial: In Step With The Industry For 100 Years . This is the only commemorative publication that captures the Association’s 100-year history of leaders, events, programs and services. Information on how to order is available on our web site. There are a limited number of copies available so they will be sold on a first-come, first-served basis. Act promptly as orders are being filled weekly. These make uniquegifts and are only available through THA. Requests to have the author, Sally Kay, sign your copy are also being taken via the order form. Visit www.hosieryassociation.com or contact THA staff at 704-365-0913 to obtain your history book order form.
 WHAT A CELEBRATION! THA's Centennial Celebration Golf Tournament was a HUGE Success last Thursday and we want to thank those who participated! With over 120 players on the Birkdale course, we are pleased to announce the following winners: 1 st Place Team : Terry Jackson and Lonnie Caulder (both Bossong Hosiery), Karl Sherrill and Charles Poston (both Kluber Lubrication); 2 nd Place Team: Mike Garrison (Shogren), Mike Simmons and Boyce Asbill (both with Kayser-Roth) and Larry Blevins (Chemical Technologies); 3 rd Place Team : Ben Everett (Ben-Mar Hosiery); Robert Dean (Burraq); Carlos Giles and Harold Willis (Zschimmer & Schwarz)
Longest Drive #4 : Robert Dean (Burraq)
Longest Drive #17 : Dan Elmore (Exeltor)
Closest to the Pin #6 : Mike Garrison (Shogren)
Closest to the Pin #12 : Braden Covington (Harris & Covington)
Longest Putt #18 : Dan Elmore (Exeltor)
Straightest Drive#14 : John Luffman (Fine Line Hosiery)
Long Drive Champion (Pre-Event): Will Sheppard (Surry Chemicals)
Putting Champion (Post-Event): Keith Bumgardner (Unifi)
We want to again THANK all of the event sponsors: Groz-Beckert USA along with Chemical Technologies, Exeltor (lunch sponsor), Frontier Spinning, Henderson Machinery, Ken Smith Yarns, McMichael Mills, National Spinning/TNC, O'Mara, PAF Sales, PAM Trading, Parkdale Mills (dinner sponsor), R. L. Stowe, RadiciSpandex Corporation, Regal Manufacturing, Swift Spinning, Unifi, Wellman, and Zschimmer & Schwarz.
THA Credit Group will be holding their Annual Outing on October 6-9 at Asheville’s Hampton Inn. For additional information about this meeting or becoming a member of THA’s Credit Group, please contact Jeanna Sheldon at 704-365-0913 Ext 203.
AL Chapter Hosts Annual Golf Tournament: The Alabama Chapter of THA will host its annual Calcutta and golf tournament on October 12-13 at Terrapin Hills.
Stayed tuned for additional details on this event as they become available.
 College Students Share Thoughts on Shopping/ Fashion:
The next CHA Suppliers Luncheon will be held on Thursday, October 27 at the Peppertree Inn in Greensboro, NC . A panel of college students (ages 18-30) will speak candidly on their thoughts behind the latest trends in fashion and what makes the shopping experience work for them. This interactive forum will provide the students and its participants with the opportunity to openly exchange ideas to enable the hosiery industry to become more effective in marketing to and retaining customers in this age group. Registration information will soon be issued and posted on THA's website, www.hosieryassocation.com .
CHA Luncheon Sponsorships: If your company is interested in sponsoring any of the 2006 CHA luncheons, please contact Mike Austell at 704-365-0913 Ext 204. Call early before all dates are taken. All luncheons are held on the 4 th Thursday of the month and alternate between Hickory (Jan, Mar, May & Sept) and Greensboro (Feb, Apr, Aug & Oct).
MARK YOUR CALENDAR : 2006 THA Annual Convention will be held April 27 -30, 2006 at the
Hilton Savannah DeSoto
in Savannah , GA. Stayed tuned for details as they become available.
September Comps Forecast : Merrill Lynch estimates that Department store comps in September will increase between 2% and 4% (vs. up 1.0% last year) while Dollar stores sales should be flat (down 1% to up 1% vs. up 3.3% last year). Weather favorability, now much warmer than originally anticipated (down 4%), should detract from consumer demand for fall merchandise. Dollar stores should be negatively impacted by continued pressure on low income discretionary spending from high gas prices, heavy debt burdens and an especially promotional environment in the "hard discounter" space.
Cooler Weather In October Should Boost Sales : The cold weather that retailers have been praying for since July, should finally materialize in October (favorability up 9%). Cold weather and pent up demand should act as a catalyst to driving October sales. Longer term, concerns that consumer spending will be pressured by continued high energy prices, a deceleration in real house price gains, and an increasing tax burden, should continue to pressure retail stocks. As retail stocks continue to face the above headwinds, combined with the historical underperformance in the second half and the high correlation between a flattening yield curve and retail stock underperformance, we continue to recommend that investors stay selective. Lynch recommends investing only in those retailers with a high probability of both driving comps and margin expansion over the next twelve months and find JC Penney, Kohl's and Nordstrom particularly attractive in this environment.
Wal-Mart Gives Up on Supercenter: (The Arizona Republic ) Relentless resident opposition pushed the developers of a proposed Avondale Wal-Mart to pull out. Early this week, Kitchell Development Co. withdrew its request to rezone the land at the northwestern corner of Avondale Boulevard and Van Buren Street . It's not uncommon for some developers to scrap plans for Wal-Mart stores when facing overwhelming public opposition, said Keith Morris, a spokesman for Bentonville, Ark.-based Wal-Mart Stores Inc., the world's largest retailer.
Legislator Leads Effort to Soften Wal-Mart Image: (St. Louis Post-Dispatch) Anticipating attacks on Wal-Mart Stores Inc. during the breakaway labor movement's convention in St. Louis on September 27, State Rep. Allen Icet, R-Wildwood, called a news conference Monday to soften the corporation's image. He praised the world's largest retailer for contributing to communities and saving shoppers $100 billion a year. He said 100 million Americans shop at Wal-Mart stores each week.
Low-Cost Resources to Enhance Your International Trade, A Panel Discussion Brought to You by NC World Trade Association - Charlotte. The U.S. Commercial Service office is proud to announce an opportunity to hear from and meet with Charlotte area export service providers on October 13 from 6:00 pm – 8:00 pm at the NC World Trade Association-Charlotte's monthly meeting at Marriott Executive park Hotel (Tyvola Road and I-77).Don't miss this opportunity to hear from and speak to the best Charlotte sources of low cost international trade finance advice, export process counseling, global distributor searches and matchmaking, global trade shows and missions, market research, and international trade education. Panelists will include Greg Sizemore, of the U.S. Commercial Service, Dan Holt of the Small Business Administration, Bob van Brederode of the NC Department of Commerce - International Trade Division, Mona Rabon of CPCC, and Alan Shao of UNC Charlotte, Belk College of Business. This one-stop opportunity to gain valuable information for your business is in direct response to recent feedback from NCWTA-Charlotte members and economic trends that are conducive to increasing your exports. The goal of this program is to provide information to enhance your company's operations and bottom line. To register or for more information please click on: www.cwta.org , or call Norie Sanchez at 704-319-2288, fax 704-319-2289, or email admin_mgmt@bellsouth.net.
 Actress Angelina Jolie will become the highest paid celebrity model ever when she signs a $12 million contract with California based luxury fashion label St John . The 30-year-old is set to replace Gisele Bundchen as the face of the retail brand. The deal throws open other celebrity endorsements for a new round of bidding wars. Gwyneth Paltrow and Elizabeth Hurley were paid $5.4 million to represent Estee Lauder, while Nicole Kidman received $5 million by Chanel.
Worldwide retailer H & M dropped Kate Moss from its ads for the Stella McCartney collection after photos of her and trouble-maker boyfriend Pete Doherty using cocaine appeared in British tabloids. The campaign and a TV commercial had already been shot. Insiders say Moss is totally hooked on the drug and spends at least 300 dollars a day feeding her urge. Moss's other lucrative endorsements which include deals with Burberry, Dior and Chanel are now in doubt. The London Police have now decided to investigate the supermodel. While some friends are rallying their support for the beleaguered 31-year-old fashion icon others are feeling stressed and betrayed.
Heather Mills McCartney's anti-fur campaign continues to gallop along even if it is sometimes on one leg. The former-Beatle's wife lost her prosthetic leg in a violent scuffle with security guards when she joined an anti-fur protest outside of Jennifer Lopez's New York offices. Mills later vowed not to let up on the pressure until Lopez stops wearing fur.
CITA Again Delays Safeguard Decision on Four China Categories: The Committee for the Implementation of Textile Agreements (CITA) has extended until November 30 the deadline for deciding whether to impose safeguard quotas on four Chinese products: cotton and manmade fiber sweaters; cotton and manmade fiber dressing gowns and robes; men's and boys' wool trousers; and knit fabric. CITA Chairman Jim Leonard said this delay, like the two before it, is linked to the effort to negotiate a comprehensive bilateral textile trade agreement. “The U.S. has not hesitated to use the textile safeguard mechanism as permitted under China's WTO accession agreement; however, we are seeking a longer-term solution that will permit the orderly development of textile and apparel trade,” Leonard said in a press statement. “We have made progress in our consultations with the Chinese government and will meet again soon to continue those consultations. Today's action demonstrates our intent to consult in good faith, but we will not accept a bad deal for U.S. industry.”
US, China Report Progress in Textile Negotiations: Delegations from the US and China held a third round of negotiations on a comprehensive textile trade agreement on September 26-28 in Washington. The Office of the US Trade Representative (USTR) reported that the talks made good progress, particularly in the areas of product coverage and quota levels, but a final deal could not be reached. The next round of negotiations will likely take place in China sometime in October, possibly during the week of October 17. Although no consensus was reached in this area, there is a possibility that China and the US may agree on quotas through the end of 2007, with a “restraint clause” similar to the one included in the textile agreement between China and the European Union (EU). This clause would purportedly oblige the US to exercise restraint in applying any safeguard quotas on: (a) products outside the scope of the agreement for the duration of the deal; and (b) should the agreement expire on January 1, 2008, all products through the end of that year. The scope of the agreement is expected to be broad, possibly covering most, if not all, of the products already subject to safeguard quotas, as well as products currently under consideration for safeguard action. It is possible that wool socks and fine knitted cotton sweaters will be entirely excluded from the agreement . According to various reports, the two sides agreed on an overall formula to determine quota limits for all categories ( except socks ) for 2006 and 2007, although specific details on this formula are not available.
Brazil Asks China to Restrain Exports of Shoes, Toys, Textiles. According to Bloomberg News, Brazilian Trade Minister Luiz Fernando Furlan was in China last week to urge officials there to voluntarily restrain exports of toys, textiles, and footwear to Brazil . Brasilia wants Beijing to “limit annual sales of these goods to the 2002-2004 average, allowing for 5 percent growth each year,” the article said. Bilateral trade ties have boomed in recent years as China has ramped up purchases of natural resources and agricultural commodities, and Furlan's request is seen as an effort to avoid unduly straining this relationship. Nevertheless, Brazilian officials say they will unilaterally restrict imports from China if necessary to preserve domestic industries.
Treasury Envoy for China to Leave After Four Months
International Trade Daily reported last week that Olin Wethington, who was named as the Treasury Department's Special Envoy on China in May, will leave that post at the end of this week. Wethington is responsible for direct engagement with China on issues related to exchange rate and financial market reform, and his appointment came at a time when the US was pushing China hard on currency valuation. Beijing subsequently moved to re-value the yuan and liberalize its exchange rate regime. Although critics say the adjustments have had little practical effect, the article noted that pressure on the issue from the White House has declined in recent months. As a result, it is unknown whether or not a replacement for Wethington will be named.
CBP Commissioner Bonner to Step Down: US Customs and Border Protection (CBP) Commissioner Robert Bonner informed President Bush last week that he is retiring. Bonner is expected to stay on until the end of November while a search for his replacement is conducted.
US Hopes to Conclude Andean FTA Talks Within Two Months. According to the State Department's Washington File , Assistant US Trade Representative (USTR) for the Americas Regina Vargo said last week that the US held “a very good round” of talks last week on a free trade agreement (FTA) with the Andean countries of Colombia , Ecuador , and Peru . Vargo said the two sides wrapped up discussions on issues such as financial services, transparency, and technical barriers to trade and pledged to intensify negotiations in hopes of finalizing a deal within the next two months. After that, she said, attentions will turn toward the December WTO ministerial meeting in Hong Kong and then elections in Colombia and Peru next spring. Vargo added that she will meet with Andean officials in Washington on October 19-21 “to assess progress and move the talks forward,” the article said, but gave no indication when the next formal round of talks will be held.
The contents printed in this document are informational in nature. They are gathered from various industry sources and do not necessarily reflect the views and/or actions of THA.
# # # |
