A U S T R A L I A
Australia has an enviable Western-style capitalist economy with a per capita GDP on par with the four dominant West European economies. Australia is one of the most open Textiles, Clothing & Footwear (TC&F) markets in the world with a total import size is nearly US$ 469 Million. Apparels & Made-ups under chapter 62,61,& 63 constitutes majority of imports. Australia’s total textile and clothing exports to various world markets was to the extent of US$ 309 million in 2005. A significant share of total Australian yarn usage is imported, in particular polyester/cotton and polyester/viscose types. Bulk of cotton and man-made fibers are imported. Only about 10 percent of cotton and 25 percent of man-made fibers are produced locally.
Australia is one
of the growing markets for MMF Textile imports. MMF textile imports have been growing steadily over the
last few years and reach to US$ 393 million in 2005. Exports of Indian Synthetic & Rayon
textiles to Australia were valued Rs59.96 crores during 2006-07, as against the
performance of Rs.58.56 crores during 2005-06. The main items of export consist of Polyester Filament fabrics,
Polyester Cotton Fabrics, Polyester Filament Yarn, Dress Material, Furnishing
Articles, & Shawls/Scarves.
India is the third largest exporter of Other made-up textile articles to Australia. Australia relies heavily on imports for its textile requirements due to small domestic textile industry. Australia’s import market for Other made-up textile articles stood at US$ 552 mn in 2005, representing a CAGR of 17.3% during 2001-2005. China is the largest exporter of this item to Australia, accounting for a significant share of 58% in 2005. Pakistan is another prominent exporter of this item to Australia, commanding a share of 8.7% in 2005. India follows Pakistan and is the third largest exporter of Other made-ups to Australia.
The household expenditure on TCF goods was running at
close to $15 billion per annum of which clothing and footwear comprised $12
billion. (The total contribution of the TCF sector extends well beyond the
value of retail sales as captured by household expenditure data, with
considerable output being destined for the commercial sector, e.g. interior
textiles for hotels, corporate clothing and automotive). The survey of retail
stores demonstrated that approximately 57% of the sales of TCF goods were
through specialty stores, 35% through department stores and mass merchandisers
and 8% through other retailers. Since these surveys, household expenditure on
clothing and footwear has grown by some 8% in real terms
Textile
Industry
Australia’s
TC&F industries are an integral dynamic of Australia’s industrial and
social infrastructure and important drivers of economic capability and growth. Australia’s TC&F sector remains diverse and complex in its
inter-relationships, with a myriad of activities covered by the traditional
sectoral description of chapters 50-63 of the tariff. Approximately 10% of all manufacturing establishments in
Australia are in the T.C.F. sector, with 60% of these 5,000 establishments
being fashion and clothing firms, predominantly small to medium-sized
businesses. The industry is
characterised by its openness to imports.
Despite considerable rationalization and restructuring, TCF remains one of Australia’s primary manufacturing sectors. TCF manufacturing in Australia covers a diverse range of activities, including early-stage processing of various natural fibers; the production of textiles; and their transformation into clothing and footwear, carpets, home and commercial textiles, and technical textiles.
At least 58,000 Australians are employed in the sector, with some estimates putting this figure at more than 80,000. In addition, outworkers in the sector account for the equivalent of 25,000 full-time employees. The industry is also an indirect generator of jobs, being crucial to employment in sectors such as tooling, early-stage processing of raw materials and is an anchor supplier to the retail sector. It is estimated that for every job directly generated within the industry, a further 2.5 to 3 jobs are created indirectly. This is a particular significance to key regional areas, such as Geelong, Bendigo, Devonport and Wangaratta, which are heavily reliant on the employment opportunities created by the sector.
As well, the TCF&L is a substantial employer of females. The sector employs between 15 per cent and 18 per cent of female employees in the entire manufacturing sector in the two largest States, New South Wales and Victoria. The sector has particular significance for the state of Victoria, where production accounts for six percent of value-added and nine percent of employment in manufacturing. While most manufacturing occurs in metropolitan Melbourne, 15 percent of total Victorian TCF employment is located in the regional centers of Geelong, Ballarat, Bendigo, Warnambool, Wangaratta, Wodonga and others. Regional TCF centers in other states include Devonport (Tasmania), Albury (New South Wales) and the Gold Coast (Queensland). Sydney is also home to a large number of TCF manufacturing firms. A feature of the sector is the preponderance of small to medium-sized privately owned firms, particularly in the clothing industry. Enterprises employing 20 or fewer people account for a quarter of sector-wide production and a third of employment.
The Australian TCF Industry
|
Indicator |
Value $A
(2004/05) |
Annual
Growth |
Share of
Australian
total |
|
Manufacturing Turnover |
$7.96
billion |
-15.8% |
3.2% |
|
Employment |
52,600
persons |
-14.5% |
Na |
|
Exports |
$0.77
billion |
-4.9% |
Na |
|
Imports |
$7.33
billion |
9% |
Na |
|
Trade Balance |
-$6.56
billion |
11% |
Na |
|
Investment (New CAPEX) |
$269
million |
35.2% |
2.2% |
|
Household Expenditure |
$20.19
billion |
7.5% |
3.9% |
Australia’s textile fabrics industry is diverse, encompassing an extensive range of products and processes. A non-exhaustive list of end uses includes the apparel, upholstery, furnishing, and industrial materials sub-sectors. Textile fabrics is a significant sub-sector of the textile market and it is expected to grow by four percent annually. Growth in textile fabrics is due, in particular, to the continual growth in the industrial fabrics industry. The industrial textiles industry, which is very strong in Australia, has experienced significant growth in the past ten years. Some of the factors influencing this growth include environmental concerns, which are leading to an increased demand for filtration products; technical textiles are becoming more prevalent in automobile manufacture; and the medical industry increasingly utilizes disposable medical products.
The textile fabric industry encompasses the manufacture and conversion of fibers into yarns and fabrics (spinning, weaving, knitting, tufting, dying, printing and finishing) and the cutting and hemming of fabrics into finished products, other than clothing (i.e., linen, awnings, upholstery, etc). The sector also includes a non-woven textile sub-sector, which consists of a number of niche product lines, each of which entails specific technical expertise. These products include acoustic/flame retardant liners and disposable medical apparel.
Local
production accounts for a market share of approximately 20 percent. Australia produces knitted fabrics and woven
woolen and worsted fabrics, along with some industrial fabric products,
including insulation cloths, industrial apron fabrics, woven polypropylene
fabrics, carpet backing fabrics, geotextiles, and knitted shade cloth.
Prospects are particularly promising for specialized textiles for technical use, which encompass a number of industries like automotive, medical, agricultural, building, sports, and aerospace. The market is continually evolving, as end uses are found for newly developed textile products. Opportunities exist for the importation of niche industrial fabrics.
Major
domestic producers of woven textile fabrics include Bruck Textiles and National
Textiles. Bruck Textiles specializes in
the manufacture of woven fabrics in cotton and man-made fibers; dyed, finished,
printed and coated fabrics. Bruck is
the largest man-made fiber weaver in the Southern Hemisphere, with annual
revenue of US$53 million. National
Textiles is a manufacturer of woven fabrics that distributes to the workwear,
apparel, and home furnishings markets.
The annual revenue of this company is US$70 million.
The
non-woven textile sub-sector is dominated by one major player, Geofabrics
Australasia, and is supported by various smaller players in the market that
specialize in particular fabrics.
Geofabrics, which has annual revenues of US$17 million, manufactures and
distributes a range of synthetic geotextiles for industrial purposes. Bruck Textiles also manufactures industrial
fabrics, in particular, coated fabrics.
The smaller suppliers in the non-woven textile market include Lantor of
Australia, The Speciality Group, and Melba Industries (a division of Austrim
Textiles).
Lantor
Australia produces a wide range of non-woven industrial fabrics. The Speciality Group produces and
distributes non-woven fabrics, including waterproof fabrics, flame retardant
fabrics, and medical barrier fabrics.
Melba Industries is Australia’s leading supplier of high performance
fabrics to the industrial textiles market, including the automotive, defense,
safety and rescue, building, power generation, and transportation industries.
End users of industrial fabrics include the aerospace, marine, transportation, medical, and safety industries. Some examples include automotive manufacturers/assemblers (upholstery, carpets), hospitals (disposable medical garments), air conditioning/heating unit manufacturers, and trucking companies (tarps). The industrial fabrics sector also shares interests with other material industries, including plastics, films, membranes, metals, glass, composites, and paper.
A significant share of total Australian yarn usage is imported, in particular polyester/cotton and polyester/viscose types. Australia continues to supply the lion's share of knitted fabrics and woven woolen and worsted fabrics, but the bulk of cotton and man-made fibers are imported. Only about 10 percent of cotton and 25 percent of man-made fibers are produced locally.
TCF retailing has become more concentrated with the larger department store operators - Coles Myer, David Jones, Woolworths, and Best and Less - accounting for an increasing share of home textile, clothing and footwear sales. These firms now control some of their own supply chains, and organize the manufacture of own brand (or private label) merchandise both here and abroad. They also stock brands controlled by local and overseas suppliers and manufacturers.
Greater
concentration has also altered the relationship between retailers and their
suppliers. Apart from the increased pressure on price, quality and response
time that can be exerted by retailers, greater buying power has provided the
scope for them to transfer some inventory and delivery risk up the supply
chain. The extent of these pressures is highlighted by the fact that clothing
and footwear producers are reported to have largely absorbed the Goods and
Services Tax in 2000-01, the year it was introduced, instead of passing it on
to consumers.
The
interplay of global and local forces has profoundly affected the structure of
the Australian TCF sector. In clothing and footwear, many firms have
reorganized their supply systems by relocating part, if not all, of their
manufacturing processes offshore to reduce labor costs. Other firms have
focused domestically on low-volume "quick-response" supply systems
which provide flexibility in responding to demand shifts. Some have concentrated on quality, design,
service and brand development strategies with production sub-contracted to
local or overseas manufacturers; while others have sought to cut production
costs by rationalizing product lines.
Pacific
Brands and Gazal Corporation for example, two of the biggest players in
Australia’s clothing industry managing a wide range of established Australian
brand names, have shifted the bulk of their manufacturing operations to China.
Up-market fashion labels such as Carla Zampatti have prospered by focusing on
brand development. It uses local and imported fabrics, modify international
designs and sub-contract production to outworkers. DPK Australia makes and
imports fabric, sub-contracts clothing manufacture for its larger customers and
provides a stock service to smaller garment makers.
Exports
Australia has always been a major exporter of natural textile fibres, i.e. ginned cotton and wool (whether greasy, carbonised or scoured). However, as the raw material gets further processed, the level of export tends to decline. Nonetheless, exports of certain downstream products have increased significantly over the past 10 years. While the bulk of Australia’s exports are still destined for New Zealand, this is really little more than an extension of the domestic Australian market. However, other significant markets targeted for Australia’s TCF exports are:
More
importantly, China, Indonesia, Thailand, Korea, etc are all becoming
increasingly important export destinations for Australian TCF product.
Some
exported textile fabrics are not entirely produced in Australia, i.e., exported
woven fabrics which include fibers that are imported and then dyed and/or
printed and finished domestically, before being re-exported.
Imports of
Textiles & Clothing
Companies in the textile sector are likely to be larger, more concentrated, and more capital intensive than those in the clothing and footwear sectors. Over the past decade, Australia's Textile, Clothing and Footwear (TCF) industries have experienced a major contraction although they remain a significant part of the economy. As a result of the contraction, imports have risen dramatically.
Value
in US$ million
|
Chapter / Products |
Import |
Major Players |
India’s
Share in % |
|
62 (Woven Apparels) |
1527.43 |
China, Fiji & Italy |
2.78 |
|
61 (Knitted
Apparels) |
1313.00 |
China, Hong Kong & Italy |
1.02 |
|
63 (Made-ups) |
551.83 |
China, Pakistan & India |
7.06 |
|
54(Filament) |
225.74 |
Area
nes, China & Other Asia |
1.47 |
|
57 (Carpet) |
209.05 |
New Zealand, India & China |
12.86 |
|
55 (Fibre) |
167.59 |
Other Asia, China & Rep. Of Korea |
2.33 |
|
56 (Special Yarns
/Nonwovens) |
154.21 |
China, USA & Rep. Of Korea |
1.71 |
|
52 (Cotton) |
143.68 |
China, India & Pakistan |
10.81 |
|
51 (Wool) |
123.43 |
New Zealand, China & Italy |
1.80 |
|
59 (Industrial
Fabrics) |
99.24 |
USA, China & Rep. Of Korea |
1.89 |
|
60 (Knitted
Fabrics) |
77.47 |
Rep. Of Korea, China & New Zealand |
1.50 |
|
58 (Special Woven
Fabrics/Lace) |
59.74 |
China, Other Asia & UK |
5.91 |
|
50 (Silk) |
19.23 |
China, India
& Italy |
30.58 |
|
53 (Other) |
15.84 |
Bangladesh, India & China |
15.91 |
|
Total Textiles
& Clothing |
4.69 Bn |
|
|
Source: UN COMTRADE
Value in US $ Mn.
|
Chapter / Products |
Export |
Import |
Balance of Trade |
|
0 (Silk) |
1.47 |
19.23 |
-17.76 |
|
51 (Wool) |
1781.73 |
123.43 |
1658.30 |
|
52 (Cotton) |
806.07 |
143.68 |
662.39 |
|
53 (Other) |
0.41 |
15.84 |
-15.43 |
|
54(Filament) |
28.93 |
225.74 |
-196.81 |
|
55 (Fibre) |
25.20 |
167.59 |
-142.39 |
|
56 (Special Yarns /Nonwovens) |
24.07 |
154.21 |
-130.14 |
|
57 (Carpet) |
57.32 |
209.05 |
-151.73 |
|
58 (Special Woven
Fabrics/Lace) |
7.22 |
59.74 |
-52.52 |
|
59 (Industrial Fabrics) |
63.13 |
99.24 |
-36.11 |
|
60 (Knitted Fabrics) |
33.13 |
77.47 |
-44.34 |
|
61 (Knitted Apparels) |
90.71 |
1313.00 |
-1222.29 |
|
62 (Woven Apparels) |
85.75 |
1527.43 |
-1441.68 |
|
63 (Made-ups) |
63.66 |
551.83 |
-488.17 |
|
Total Textiles
& Clothing |
3.09 Bn |
4.69 Bn |
-1.60
Bn |