Trade Concerns Don't Slow Buying Trends at Tech Show

MIAMI BEACH, Fla.—Despite continued concerns about radio frequency identification technology mandates and the impending World Trade Association members quota lift, technology and fabric buyers visiting the May 18–20 run of Material World, Technology Solutions and the SPESA Expo (Sewn Products Equipment & Suppliers of the Americas) appeared to be focusing on solutions that could get their products to market now rather than waiting to see what will happen tomorrow.

Sure, there were buyers—especially from the large contingent of those south of the U.S. border—waiting out the effects of next year’s lifting of quotas before making big investments in technology. But there was also talk that next year’s elimination of quotas on many imports is being over-hyped. Some compared the 2005 preparations to the Y2K bugs that never materialized 41/2 years ago.

“Most of it’s done,” said James Arthurs, president of Tolland, Conn.–based Gerber Technology Inc., speaking of the positioning by manufacturing nations. “People are complaining about China, but China is stealing market share because it’s gotten better and better.”

Trade expert Mary O’Rourke of the New York–based consultant agency Jassin-O’Rourke Group LLC, estimated that Chinese imports should jump to 25 percent from their current 12 percent level in the United States before stabilizing. Prices are not expected to come down much, if at all, but manufacturing nations such as Mexico will feel the result of China’s reach, O’Rourke said. The strength of U.S. brands and fashions is expected to offset some of the trade disparity, as will the Chinese government’s reluctance to give up all quota revenues, she stated.

Others saw opportunities to export.

“China has 51 million millionaires,” said Jose Gonzalez Garcia, president of the Peruvian trade agency Prompex. Garcia said Andean-based manufacturers that specialize in alpaca knits and pima cotton are waiting to capitalize.

The impending radio frequency identification (RFID) mandates that Wal-Mart Stores Inc., the Target Corp. and others will require from leading suppliers next year also took a side step. Experts said the technology, which uses scanners and wireless tags, might take longer than expected to implement. Wal-Mart reportedly has experienced failure rates as high as 30 percent for some of its test runs.

Atlanta-based RFID expert Charles Gilbert of Charles Gilbert Associates agreed that there are many bugs to work out. RFID does not work well around water or certain types of metal and the chips are still too expensive, he said. However, new etching technology might be able to make chips smaller and cheaper, he noted. Other problems include mass readings of tagged items.

The glitches are not stopping many from launching RFID initiatives. The Abercrombie & Fitch Co. announced it would be implementing RFID at some of its new stores later this year.

There was no shortage of RFID vendors at the first SPESA machinery show, which debuted to more than 12,000 visitors. The Westlake Village, Calif.–based Avery Dennison Corp. and the White Plains, N.Y.–based Paxar Corp. highlighted new RFID label printers that featured embedded antennas and chips alongside bar codes.

“Everybody’s complaining about the costs of compliance right now, but they’ll see the efficiencies and return on investment later,” said Sharon Dalton, product marketing manager for Avery Dennison.

“Right now, compliance is your [return on investment],” added SAP America executive Marshall Gordon, explaining that the expense of RFID can be worth it in the long haul with an account such as Wal-Mart.

Outside of the RFID and quota issues, vendors focused on streamlining manufacturers’ and retailers’ global supply chains. Paris-based CAD/CAM supplier Lectra SA showed its new Kaledo Style illustrator and color-testing application for designers and its Mikalis plug-in for product specs.

New North American President Daniel Moreau was on hand to finalize details regarding Lectra’s acquisition of rival CAD company Investronica Sistemas of Spain. Moreau said Investronica will now be marketed as a “Lectra company.” The executive said the acquisition will give Lectra better penetration into the California market because Investronica maintained a strong account base within Los Angeles’ Korean manufacturing community.

Malibu, Calif.–based Shapely Shadow Inc. showed a new collaborative 3-D software tool called 360, which allows manufacturers to conduct online fittings using a 3-D model that users can rotate and zoom in on to view fabric textures.

CAD company PAD System Technologies Inc. showed its enhanced Haute Couture 3D draping software, which now features technology by Hawaii-based Syflex LLC that gives models more lifelike appearances to reduce reiterations during the sample-making process.

Technology investments from apparel manufacturers appeared to be on the rebound, said Arthurs of Gerber. “They slowed down their buying for a couple of years, but now they’re back,” he said.

Even in Los Angeles, where apparel manufacturing has slowed, tech purchases have picked up. “We just sold a cutter the other day,” said Gerber’s Los Angeles Director, Rodney Harrelson. “Our WebPDM [product lifecycle management software] is just flying.”

The show featured the debut of the three shows–in–one concept, featuring the new SPESA show, Material World and the Technology Solutions software show. SPESA will show every three years, and Material World and Technology Solutions will continue on an annual schedule. SPESA was born after the Raleigh, N.C.–based Sewn Products Equipment Suppliers of the Americas and VNU Expositions Inc., producer of the old Bobbin Show, dissolved their partnership.