The year 2020 keeps on giving, and the cotton textiles sector is not immune to multiple pressures.

This year started with lingering trade tensions between China and the United States – two leading producers of cotton. Tensions between the countries still continue at a bigger level, enhanced by the current pandemic. Factors as varied as political, trade and the economy have caught up and have implications for the cotton and textile sectors in general.

 

The old adage “Consumers are King” holds true – and more importantly in these present times. With over 30 million people on some form of unemployment benefits in the United States, consumer confidence and spending will determine the near term fate of the global textile industry. With the U.S. presidential election nearing, COVID-19 and the economy are the top primary factors among other ideological issues. These factors clearly influence the global textile and manufacturing sectors.

 

Cost competitiveness, good quality and value-added products are the way forward for the industry. The U.S. and Europe are still leading consumers, and the economy in these regions will determine the speedy recovery of the global textile industry.

 

Interestingly, the current global crisis is reshaping the global textile sector’s space with more eyes on East Africa, Vietnam and Bangladesh. While China is a big textile country, continuing trade tensions, COVID-19 impacts are being watched carefully by competing countries like India that want to capture market share.

 

Cotton exporting countries like the U.S. and Australia value China as a major player because of its buying power and need. However, attention needs to be paid to recent geopolitical conditions.

 

COVID-19 has clearly highlighted the need for technical textiles that go into making Personal Protective Equipment (PPE). More importantly, lack of continued investing in this sector, even in the U.S., has exposed its vulnerability in critical lifesaving products. It is clear that the technical textiles sector has gained momentum, which has to branch out into R&D investments and new products development using cost-effective sustainable materials and processes. It also highlights the fact that developments do not come overnight and need years of efforts in terms of both intellectual and capital investments.

 

Market diversification and product enhancements have to be paid serious attention - a take home message from COVID-19 for the textile sector.