Industry Insights Textile Industry Chapter 13 Textile Industry Introduction Textile Industry Categories ITIS Program, TTRI Kai-Fang Cheng; Ying-Kuang Hu; Hsin-Hung Lee; Chi-Chang Wu Taiwan's textile industry has evolved from simply processing imported raw materials for export to a complex structure involving the production of fibers from raw materials provided by the petrochemical industry, along with supplementary imports of natural and synthetic fibers. It comprises a complete up-, mid-, and downstream production chain including fiber and yarn production, weaving, dyeing and finishing, finished product manufacturing and packaging sub-industries. The scope does not, however, include the textile machinery or dyestuff and additive manufacturing industries. Textile industry categories and their up-/downstream relationships are shown in Figure 2-13-1. Textile raw materials Yarn Weaving Dyeing and finishing Apparel textiles Natural fibers (cotton, wool,linen, silk) Artificial fibers (polyester, nylon, rayon, acrylic, and other processed fibers) Cotton yarn Wool yarn Various types of blended yarn Woven textiles Knit textiles Nonwoven textiles Printed textiles Dyed textiles Special textiles Home textiles Industrial textiles Source: ITIS Program, TTRI( 2009/12). Figure 2-13-1 Textile Industry Categories 287
2010 Taiwan Industrial Outlook Overview of Taiwan's Textile Industry Environment Taiwan's textile industry emerged in the 1950's, and grew and developed over the next half century. Spurred by the vast needs of international markets, textile firms have constantly developed new products and new equipment in order to expand. As a result, the textile industry has become the Taiwanese industry with the most complete production system, and Taiwan textiles have become a mainstay of the world's textile consumer markets. According to WTO data, Taiwan was the world's eighth largest textile supplier and 30 th largest apparel supplier in 2008, and it is also one of the world's main suppliers of high-end artificial fiber textiles. Due to growing restrictions on Taiwan's business environment in recent years, and the emergence of intense foreign competition, Taiwan's textile industry has gradually shifted even greater focus to innovation, R&D, and design. The industry has strengthened its ODM autonomous R&D and design capabilities, and many companies have moved to the OBM level and achieved even greater economic performance by introducing their own brand names. Apart from continuing to boost added value and increase differentiation, Taiwan's textile industry has adopted a production strategy of gradually moving away from price competition. Overview of the Textile Industry in 2009 Overview of Trade in the Global Textile Industry Changes in the Value of Global Textiles and Apparel Exports According to WTO data, global textile and apparel exports totaled USD 612.1 billion in 2008 (Figure 2-13-2), which represents an increase of 4.42% compared with 2007. However, this growth rate was less than the rate of 10.71% in 2007. A closer look reveals that textile exports totaled USD 250.2 billion in 2008, which was an increase of 4.09% compared with 2007. This growth rate was less than the rate of 9.07% in 2006. In addition, apparel exports totaled USD 361.9 billion in 2008, and this category's growth rate of 4.64% was higher than the growth rate for textiles, although far lower than the 11.87% apparel export growth rate in 2007. 288
Industry Insights Textile Industry Unit: USD Billion Global textile products (including fibers, yarns, and textiles) Global apparel & accessories 400 350 309.1 300 277.1 260.3 250 233.5 200 197.7 194.3 203.7 186.0 177.6 184.6 166.1 158.4 204.3 196.8 220.4 150 174.7 152.3 152.7 155.7 149.8 146.3 157.3 149.3 155.6 100 345.8 361.9 240.4 250.2 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: WTO; ITIS Program, TTRI( 2009/11). Figure 2-13-2 Value of Global Textile and Apparel Exports, 1995-2008 The World's Ten Largest Textile and Apparel Exporting Areas Changes in the World's Ten Largest Textile Exporting Areas Looking at the world's ten largest textile exporting areas by export value (Table 2-13-1), in 2008, the top three were China, the European Union (EU), and the US. From the point of view of export value as a percentage of total global exports, we can see that, among the emerging nations of Asia, China's textile exports comprised only 10.3% of global textile exports in 2000, but had grown to 26.1% by 2008. India's and Turkey's textile exports grew from 3.5% and 2.3% in 2000 to 4.1% and 3.8% in 2008. In contrast, the developed nations of Europe and the Americas account for a diminishing share of global textile exports. Among the ten largest exporting areas, compared with 2007, China, the EU, the US, India, Turkey, and Japan all maintained export value growth in 2008, while South Korea held steady, and Hong Kong, Taiwan, Pakistan, and the UAE fell. China had the highest growth rate 16.6%--and the value of its textile exports rose from USD 56 billion in 2007 to USD 65.3 billion in 2008. 289
2010 Taiwan Industrial Outlook Table 2-13-1 Changes in the Relative Share of Global Textile Export Value of the World's Ten Largest Textile Exporters Unit: USD Million Country Share of total global exports Growth compared with the Export value (%) previous year (%) in 2008 2008 2000 2008 2007 China 65,260 26.1 10.3 16.6 15.0 European Union (Note 1) 24,170 9.7 9.9 1.8 10.3 USA 12,500 5.0 7.0 0.6-2.0 Hong Kong (Note 2) 12,260 - - -8.7-3.5 South Korea 10,370 4.1 8.1 0.0 2.6 India 10,270 4.1 3.5 6.2 8.5 Turkey 9,400 3.8 2.3 5.1 17.9 Taiwan 9,220 3.7 7.6-5.3-0.5 Japan 7,340 2.9 4.5 3.3 2.5 Pakistan 7,190 2.9 2.9-2.5-1.3 Source: WTO; ITIS Program, TTRI( 2009/12). Note 1: This amount does not include intra-eu trade; the EU had a total of USD80.21 billion in total textile trade when intra-regional trade is included. Note 2: This amount includes transshipment; the value of Hong Kong's local exports was only USD400 million. Changes in the World's Ten Largest Apparel Exporting Areas Looking at the world's ten largest apparel exporting areas by export value (Table 2-13-2), in 2008, the top three were China, the EU, and Hong Kong. From the point of view of export value as a percentage of total global exports, we can see that China has enjoyed astonishing export growth; the value of China's apparel exports grew from only 18.2% of the world total in 2000 to 33.2% in 2008. In contrast, the relative apparel exports of North American areas including the US and Mexico have fallen. Among the ten largest export areas, China, the EU, Pakistan, India, Vietnam, Indonesia and the US enjoyed growing export value compared with 2007, while Hong Kong, Turkey, and Mexico lost ground. Pakistan and Vietnam had the highest growth rates, at 23.3% and 21.2% respectively. 290
Industry Insights Textile Industry Table 2-13-2 Changes in the Relative Share of Global Apparel Export Value of the World's Ten Largest Apparel Exporters Unit: USD Billion Country Share of total global exports Growth compared with the 2008 export (%) previous year (%) value 2008 2000 2008 2007 China 120.0 33.2 18.2 4.1 20.8 European Union (Note 1) 27.7 7.7 6.6 11.9 18.5 Hong Kong (Note 2) 27.9 - - -3.0 1.3 Turkey 13.6 3.8 3.3-2.1 15.2 Pakistan 10.9 3.0 2.6 23.3 6.5 India 10.9 3.0 3.0 10.9 3.0 Vietnam 9.0 2.5 0.9 21.2 32.6 Indonesia 6.3 1.7 2.4 7.1 1.9 Mexico 4.9 1.4 4.4-4.6-18.6 USA 4.4 1.2 4.4 3.0-11.6 Source: WTO; ITIS Program, TTRI( 2009/12). Note 1: This amount does not include intra-eu trade; the EU had a total of USD 112.37 billion in total apparel trade when intra-regional trade is included. Note 2: This amount includes transshipment; the value of Hong Kong's local exports was only USD 2.87 billion. Overview of Taiwan's Textile Industry Production Value and Value-added Ratio Statistics When the global financial crisis struck in 2008, the ensuing economic downturn caused the production value of the textile industry to fall sharply. In accordance with data from the Department of Statistics of the Ministry of Economic Affairs (MOEA), the total production value of Taiwan's textile industry was USD 13.13 billion in 2008, which represented a drop of 12.94% compared with 2007. It can be seen from Figure 2-13-3 that the textile industry's overall production value gradually fell between 2000 and 2008. 291
2010 Taiwan Industrial Outlook Unit: USD Billion 21 Total Textile Industries Artificial fiber manufacturing Apparel & accessory manufacturing 18 15 12 9 6 3 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: MOEA statistical information web site; ITIS Program, TTRI( 2009/04). Figure 2-13-3 Changes in the Production Value of Taiwan's Textile Industry, 2000-2008 Due to the continuing influence of the financial crisis in 2009, the production value of Taiwan's textile industry bottomed out during the first quarter of the year, but had begun to rebound by the third-quarter. According to Department of Statistics of the MOEA forecasts, the production value of Taiwan's textile industry was USD 7.99 billion from January to September of 2009, and this figure was down by 24% compared with the same period of 2008. The artificial fiber industry's production value of USD 2.18 billion accounted for 27% of the production value of the textile industry as a whole, and was down by 28% compared with the same period of 2008. This was the most severe drop of any sub-sector of the textile industry. The textile sub-sector's production value of USD 5.2 billion in 2008 accounted for the largest share--65%--of the production value of the textile industry as a whole, and had fallen by 22% compared with the same period of the previous year. The apparel and accessories industry had a production value of USD 605 million, which accounted for 8% of the production value of the textile industry as a whole, and was down by 18% compared with the same period of 2008. (Table 2-13-3) Looking at changes in the output value of the textile industry as a whole and the individual sub-sectors, we see that there was a significant drop in the magnitude of decline. It is estimated that Taiwan's textile industry achieved a total production value of USD 12.1 billion in 2009, and it is expected that the industry's production value will continue to grow with improved economic conditions in 2010. Projections call for the industry to grow by 292
Industry Insights Textile Industry 5.58% and achieve a production value of USD 12.78 billion in 2010. In terms of added value, among the various sub-sectors of the textile industry, the synthetic fiber industry has suffered the greatest decrease in value-added ratio. In contrast, the textile sub-sector's value-added ratio has slipped by only a small amount, and the apparel industry's value-added ratio even rose. Looking ahead to 2009 and 2010, it is expected that the added value of the textile industries as a whole will decrease slightly, but it will nevertheless be able to maintain a certain value-added ratio. Table 2-13-3 Production Value and Added Value Statistics for Taiwan's Textile Industry Sub-sectors, 2005-2010 Synthetic fiber industry Textile subsector Apparel industry Total Unit: USD Million Sub-sector/year 2005 2006 2007 2008 2009 (e) 2010 (f) Production value 4,587 4,569 4,644 3,679 3,480 3,723 Added value 823 571 737 475 417 418 Value-added ratio 17.96% 11.18% 11.84% 8.03% 7.14% 6.76% Production value 9,109 8,904 9,306 8,480 7,716 8,101 Added value 2,582 2,495 2,436 2,098 1,898 1,864 Value-added ratio 21.41% 20.56% 19.37% 18.88% 18.46% 18.15% Production value 1,399 1,237 1,126 966 908 953 Added value 791 698 738 669 611 614 Value-added ratio 28.66% 26.86% 31.94% 34.19% 35.28% 36.85% Production value 15,095 14,710 15,076 13,125 12,104 12,777 added value 4,196 3,764 3,911 3,242 2,926 2,896 Value-added ratio 20.96% 18.33% 18.15% 16.91% 16.47% 16.28% Source: Directorate General of Budget, Accounting and Statistics; Department of Statistics, MOEA; ITIS Program, TTRI( 2009/12). Import/Export Statistics In accordance with data from the Department of Statistics of the Ministry of Finance (MOF), in 2008, Taiwan's textile industry exported USD 10.9 billion worth of goods and imported USD 2.7 billion worth of goods. The industry thus earned USD 8.2 billion in foreign exchange, which was equivalent to 54.03% of the country's total foreign exchange earnings for the year. The industry's foreign exchange earnings decreased by USD 747 million compared with 2007, however, representing a negative growth of approximately 8.34%. (Table 2-13-4) 293
2010 Taiwan Industrial Outlook Table 2-13-4 Foreign Exchange Earnings Statistics for Taiwan and the Textile Industry, 2004-2008 Year Textile Industry Taiwan Unit: USD Million Exports Imports Exchange earnings Exports Imports Exchange earnings 2004 12,539 2,689 9,851 182,370 168,757 13,613 2005 11,840 2,635 9,205 198,432 182,614 15,817 2006 11,789 2,730 9,059 224,017 202,698 21,319 2007 11,623 2,674 8,949 246,677 219,252 27,425 2008 10,905 2,703 8,202 255,629 240,448 15,181 Source: Department of Statistics, MOF; ITIS Program, TTRI( 2009/04). The textile industry's imports and exports both shrank in 2009. Data from the Department of Statistics of the MOF indicates that Taiwan's textile exports from January to September of 2009 were worth USD 6.8 billion, which was a decrease of 19.65% compared with the same period of 2008. Imports, worth USD 1.5 billion, similarly fell by 25.48% compared with 2008. Total import/export textile trade was worth USD 8.3 billion from January to September of 2009, and the industry earned a total of USD 5.3 billion in foreign exchange; this was a drop of 17.76% compared with the USD 6.4 billion in foreign exchange earned in 2008. However, compared with Taiwan's overall trade situation, it can be seen that the textile industry has suffered relatively little from the recession, and the decline in its trade volume is reducing steadily. It is therefore expected that the textile industry will enjoy much improved prospects in 2010. (Table 2-13-5) Table 2-13-5 Import/Export Statistics for Taiwan's Textile Industry, Jan.-Sept. 2009 Import/Export trade Exports Export Growth rate value Unit: USD Million Imports Import Surplus/Deficit Growth rate Growth rate value All trade 143,818-29.65% 121,778-37.78% 22,040 153.25% Textiles 6,802-19.65% 1,546-25.48% 5,256-17.76% Textiles as a proportion of all trade 4.73% - 1.27% - 23.85% - Source: Department of Statistics, MOF; ITIS Program, TTRI( 2009/11). 294
Industry Insights Textile Industry Changes in the Market Structure of Taiwan's Textile Industry According to TTRI's "2008 Textile Industries Structural Survey," which was published in 2009, the structure of Taiwan's textile industry in 2008 consisted of segments specializing in textiles for clothing, textiles for home décor, and industrial textiles. These segments accounted for 59%, 11%, and 30% of the industry, respectively. Compared with their 61%, 10%, and 29% relative shares in 2006, textiles for clothing fell by 2%, while textiles for home décor and industrial textiles each rose by 1%. The most important use of textiles was in clothing, followed by industrial purposes, and finally in home décor. Changes in Textile Industry Employment According to data from the Department of Statistics of the MOEA, the number of factories and level of employment in the textile industry have both fallen over the past decade. The number of factories fell by 1,342 between 1997 and 2007, representing a negative growth of 22%. The number of persons employed by the industry similarly fell from 285,730 in 1997 to 186,557 in 2007, a drop of 35%. (Table 2-13-6) Table 2-13-6 Number of Operating Textile Industry Factories and Employment Industry /Year 1997 2002 2007 1997 2002 2007 Number of operating factories Number of employees Textile sub-sector 4,151 3,732 3,508 209,335 155,020 131,668 Apparel industry 1,897 1,325 1,198 76,395 79,000 54,889 Total 6,048 5,057 4,706 285,730 234,020 186,557 Source: Department of Statistics, MOEA; ITIS Program, TTRI( 2009/06). Important Issues in the Textile Industry Environmental Protection and Energy Conservation have become Focal Issues for the Industry In a time of contracting global consumption, environmental protection and energy conservation have become key issues for major corporations, and Taiwan's textile industry must naturally consider these issues if it wishes to thrive in the competitive international environment. The major weaving firm Hoyu Textile, for example, is one of the few large companies to possess its own integrated mid-stream weaving and downstream dyeing and finishing 295
2010 Taiwan Industrial Outlook operations. Hoyu has recently taken strides toward green production by developing yarn made from recycled PET plastic bottles, and it has also developed special functional PET fabrics. The company is a Bluesign partner, and is using its all-round production technology to reduce concentrations of hazardous substances, conserve resources, establish a safe manufacturing environment, and comply with the Bluesign ecological textile standard. Effect of ECFA on the Textile Industries If China and Taiwan are able to sign an economic cooperation framework agreement (ECFA) removing tariff barriers, the value of Taiwan's textile exports to China are expected to grow by 25.1% to USD 530 million. However, Taiwanese firms exporting to China may still face non-tariff trade barriers, such as strict original place of production verification requirements. In addition, the possible negative impacts of an ECFA should not be neglected. It is projected that the value of Chinese textile exports to Taiwan will increase by 20.8% to roughly USD 160 million. But although there will be pressure to allow the import of 486 textile items whose importation from China is currently prohibited, there will be a 5-15 year transition period before these import restrictions are fully lifted. The MOEA is planning a "Trade Deregulation Industry Structure Adjustment Fund" containing more than USD 908 million to provide financing to firms impacted by trade deregulation and thereby help industries upgrade themselves. The government is also currently implementing a sensitive industry needs survey and assistance project. We believe that if government and the industry work as a team, we can maximize benefits and minimize unfavorable impacts. Global Deployment Trends The textile industry's global deployment involves both marketing and production units. As far as marketing is concerned, firms must establish global sales networks able to receive orders, arrange production at a location with low labor costs, and coordinate shipments. Most of Taiwan's textile firms that are currently establishing an international presence have completed the development of sales networks. With regard to production, however, apart from the need to possess production experience, firms must consider whether they have sufficient financial strength, and must also assess whether they have adequate sales ability. In the end, a sufficient volume of orders will be needed to maintain production operations. A firm must also consider whether its target markets have been selected correctly, and whether 296
Industry Insights Textile Industry specific countries are politically stable, etc. Because of the abundance of labor and regional economic advantages, Taiwan's textile industry is still mostly investing in Vietnam, Cambodia, and China. Effect of the EU-South Korea FTA on Taiwan's Textile Industries South Korea and the EU initialed a free trade agreement (FTA) on October 15, 2009. Both parties expect the agreement to gradually eliminate customs duties within three years. The signing of this agreement is anticipated to boost bilateral trade by close to EUR 32 billion, which is equivalent to an increase of 20%. The EU is the second largest importer of South Korean goods (after China), and is one of the largest sources of South Korea's export earnings. The FTA is expected to take effect during the second half of 2010. When that time comes, nearly 99% of EU goods exported to South Korea will no longer be subject to customs duties. Similarly, within three years, 95% of South Korean goods exported to the EU will no longer be subject to duties. All customs duties on industrial goods are to be eliminated within seven years. The EU plans to eliminate its 7.9% duty on imported South Korean textiles within three to five years. It can be foreseen that this action will have an impact on firms in Taiwan and China, which have also been major sources of the EU's textile imports. Effect of Chinese Investment in Taiwan on the Textile Industries The MOEA has drafted the "Regulations Governing Permission for People from the Mainland Area to Invest in Taiwan" and "Regulations Governing Permission for Profit-Seeking Enterprises from the Mainland Area to Establish Subsidiaries or Offices in Taiwan" in accordance with the Cross-Strait Relations Act. These regulations were implemented on June 30, 2009, and applications from Mainland Chinese investors to invest or establish offices in Taiwan have been accepted since that date. The textile industry maintains an optimistic attitude toward Chinese investment in Taiwan. In the future, if Chinese investors and Taiwanese firms jointly invest in experimental factories making functional synthetic fibers and the necessary R&D equipment, etc., this will transform Taiwan into a global center of functional synthetic fiber innovation, and boost R&D, joint training of technical manpower, and employment opportunities. Main Development Bottlenecks faced by the Textile Industry R&D: Lack of Suitable R&D Manpower 297
2010 Taiwan Industrial Outlook Taiwan's textile industry currently faces a widespread lack of R&D manpower. In particular, interdisciplinary manpower skilled in other areas of industry will be needed to help with the development of even more diversified products. Production: Soaring Cost of Raw Materials Taiwan's textile industry faces various development bottlenecks affecting production. Apart from existing labor cost pressure, over the past few years surging oil prices have ensured that textile raw materials and production energy costs have remained consistently high. In the face of international competition, the prices of mainstay bulk textile products cannot be adjusted upwards. As a consequence, firms must shift to the production of products with greater added value in order to maintain reasonable profits. Sales: Excessively Narrow Marketing Channels Although Taiwan's textile industry has gradually shifted to an ODM model over the last few years, the vast majority of firms are still OEMs, and lack sales expansion and marketing experience. Orders still remain in the hands of channel firms, and these OEM companies cannot effectively achieve growth by expanding their downstream consumer markets. Development Trends for the Textile Industry in 2010 Industrial Textiles will Continue to Dominate Development Trends The main exporters of industrial textiles are Germany, the US, and China. After enduring the recession of 2009, many countries are optimistic that conditions will take a turn for the better in 2010. Future major industrial textile development trends will include: Driving Influence of Cost Pressures Taking Germany as an example, industrial textiles account for 40-50% of the textile industry's overall production value. Germany is also the world's largest exporter of industrial textiles; the main areas driving textile growth in Germany include sports textiles and industrial textiles. Due to cost pressures and the need to constantly introduce new products, manufacturers must look for opportunities to upgrade their technology and achieve product innovation. Increased Functionality of Fiber Materials Apart from the development of general applications, firms are developing textiles 298
Industry Insights Textile Industry needed by various industries, and much attention is being paid to the functions of fiber materials. In the case of construction textiles, in order to strengthen buildings, carbon fiber has begun to be used as an alternative to steel rebar. Other industrial textiles being developed have such properties as adapting to climate and temperature changes, blocking noise, and resisting sunlight and rain, etc. Innovative Product Applications The development of industrial textiles cannot escape environmental issues. In particular, forward-looking materials, natural fibers, and environmental image issues are influencing raw materials, products, processes, and packaging, etc. Development of High Added Value Products and a Complete Industry Value Chain During the 2009 global financial crisis, the textile industry was significantly affected by the "bullwhip effect," which states that small changes in downstream demand will cause large fluctuations in upstream orders and inventory. Moreover, the further upstream, the stronger the effect. One reason for the harsh blow dealt to industry in Taiwan by the economic downturn is that, apart from export-oriented industries, Taiwan's industrial structure is top-heavy with upstream and mid-stream firms. In the case of the textile industry, when international markets are uncertain about demand, the industry's upstream and mid-stream producers are the first to suffer, and have to deal with harsh consequences. In view of the impacts and opportunities of the global recession and the structure of Taiwan's textile industry, we recommend that Taiwan's textile industry develops in the following directions: Continued Development of High Added Value Products Firms should continue to develop high added value industrial textiles and functional textiles, which is consistent with current government policies and firms' own development efforts. The Industrial Development Bureau is promoting the development strategies of "enhancing production value of industrial textiles" and "maintaining the production value of textiles used in clothing and home décor." Based on their existing R&D capabilities, firms should vigorously strive to develop high added value products, such as bamboo charcoal and environmental textiles, or should form alliances in other industries. Government guidance and assistance programs, technology acquisition, and market expansion campaigns can boost firms' international competitiveness and facilitate their product development, production 299
2010 Taiwan Industrial Outlook investment, and marketing efforts. Establishment of a Complete Industry Value Chain Taiwan's textile industry should develop a complete industry value chain focusing on niche markets. Taiwan's upstream production advantages can stimulate mid- and downstream product development, strengthen brand marketing, and enable the establishment of a systematic value chain. Assuming that economic development conditions gradually recover in 2010, we recommend that the textile industry takes advantage of the government's stimulus program to find new business opportunities in such areas as high-tech textiles for energy, transportation, and geotechnical engineering. Firms can also think about the future of textiles from the angle of people's changing living habits, such as the emergence of working at home, and how this will change customer habits and products. New Products and Technologies in the Textile Industry Of the many different types of textile products, medical and healthcare textiles will be particularly important for the textile industry in the future. In the developed nations, medical and healthcare textiles already constitute a mature, steadily growing market segment. This is due to the ageing population structure in these countries; as people live longer, and become wealthier, they begin to attach more importance to healthcare. According to the World Health Organization (WHO), the medical and healthcare services industry is already the largest service industry in the world, with annual global expenditure of USD 3.8 trillion (just over NTD 120 trillion) in 2005. This figure is forecast to grow at a rate of around 9 11% (roughly the same as the global GDP growth rate) until at least 2015. The textile industry will be able to take advantage of this steady increase in healthcare spending; it is anticipated that the global market for medical and healthcare textiles will be worth around USD 147.4 billion a year. One of the chief characteristics of the medical and healthcare textiles sub-sector is the extremely wide variety of products that it covers; this ensures that there is plenty of room for the development of new products. The following are some of the medical and healthcare textile products, technologies and materials that are attracting a high level of interest at the moment: Medical Treatment Nonwoven Fabric Operating gowns and operating towels made from medical treatment nonwoven fabric 300
Industry Insights Textile Industry are able to provide effective protection against infection. They are self-adhesive, absorbent, with good flow-retention capability, and are also relatively soft. According to data published in Japan Nonwovens Report, disposable medical nonwoven fabric now holds a market share of 90% in the U.S., 65% in Western Europe, and 30% in Japan (compared to only around 10% in Taiwan). Medical Protective Clothing Medical protection textile products include the various items that medical personnel wear while performing their duties, including hoods, masks, operating gowns, patients gowns, surgical drapes, etc. Increasingly, woven polyester fabric is replacing woven cotton fabric, because the adoption of new fabric composition, new finishing processes and finer fibers has made woven polyester more comfortable to wear, and has reduced the amount of fluff created; woven polyester fabric also provides superior protection against infection. Textiles for Use in Wound Dressings Wound dressings have a wide range of surgical and other medical applications. They are usually made from absorbent, flexible materials using a sandwich-style layer construction; these products are designed both to protect wounds and to prevent them from becoming infected. The global wound dressing market is currently worth over USD 2 billion a year; this is one of the most important market segments for hi-tech biomedical textile products. The new types of wound dressing products that have been developed recently include natural macromolecular wound dressings and synthetic macromolecular wound dressings. Natural macromolecular wound dressings make use of the bio-activity of natural materials to provide hemostatic, anti-adhesive or anti-bacterial capabilities; examples of this type of natural material include chitin, chitosan, alginate, and collagen. Polyurethane Film Wound Dressings An examination of R&D achievements in the field of bio-artificial skin products shows that the adoption of synthetic biomedical materials and synthetic wound dressings has transformed techniques of wound treatment that had been in use for nearly a century. Polyurethane (PU) film dressings possess superior mechanical properties and breathability; hyaluronic acid or collagen protein is often added to PU film to produce wound dressing material. 301
2010 Taiwan Industrial Outlook Hydrogel Wound Dressings Smart hydrogel-based materials are used in a wide variety of applications in the healthcare sector. One of these applications is trans-dermal patch drug delivery; manufacturers have already succeeded in developing smart hydrogel-based materials that can be used to deliver high-molecular-weight biologically active molecules through the skin; this is useful for high-molecular-weight materials such as peptides, proteins, hormones and enzymes, etc. Conclusions 2009 was a challenging year for the Taiwan textile industry, which experienced rising raw materials prices, the fallout from the global financial crisis, and the impact of regional economic integration (including the free trade agreement between China and ASEAN), from which Taiwan has largely been excluded. Faced with this crisis situation, the textile industry has been working to achieve better integration of its resources, while also seeking improvements in the level of textile technology, and working to develop new, high-value-added products. According to the Council for Economic Planning and Development s economic monitoring indicator system, the Taiwanese economy had a blue light (indicating recession) for nine months in a row from the third quarter of 2008 through to May 2009, followed by four months with a yellow-blue light (indicating that the economy is starting to recover from a recession) from June to September 2009. By October 2009, there was a green light, representing steady growth. The Directorate General of Accounting, Budget and Statistics (DGBAS) has revised its economic growth forecasts for 2010 upwards; DGBAS now anticipates a positive growth rate of 4.39% in 2010. It therefore appears that the outlook for the Taiwanese economy as a whole in 2010 is a bright one. However, with unemployment still high in the U.S., Japan and many other countries, and no sign of a pick-up in consumer confidence, Taiwan s export-oriented industries will need to adopt a cautious attitude towards this apparent recovery. Year 2005 2006 2007 2008 2009 NTD/USD 32.17 32.53 32.84 31.52 33.05 Note: Exchange rate of USD to NTD 302