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The Competitive Status
of the U.S. Fibers, Textiles,
and Apparel Complex
A Study of the Influences
of Technology in Determining
International Industrial
Competitive Advantage
Prepared by the Fibers, Textiles, and
Apparel Industry Panel, Committee on
Technology and International Economic
and Tracle Issues
of the Office of the Foreign Secretary,
National Academy of Engineering
and the Commission on Engineering and
Technical Systems,
National Research Council
W. Denney Freeston, Jr., Chairman
Jeffrey S. Arpan, Rapporteur
NATIONAL ACADEMY PRESS
Washington, D.C. 1983
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N OTICE: The pro ject that is the subject of this report was
approved by the Governing Board of the National Research
Council, whose members are drawn from the Councils of the
National Academy of Sciences, the National Academy of
Engineering, and the Institute of Medicine. The members of the
committee responsible for the report were chosen for 'their special
competences and with regard for appropriate balance.
This report has been reviewed by a group other than th e
a uthors according to procedures approved by a Report Review
Committee consisting- of members of the National Academy of
Sciences, the National Academy of Engineering, and the Institute
of Medicine.
The National Research' Council was established by the
National Academy of Sciences in 1916 to associate the broad
community of science and technology with the Academy's purposes
of furthering knowledge and of advising the federal government.
Th e Council operates in accordance with general policies
determined by the Academy under the authority of it s
congressional charter of 1863, which establishes the Academy as a
private, nonprofit, self-governing membership corporation. The
Council has become the principal operating agency of both the
National Academy of Sciences and the National Academy of
Engineering in the conduct of their services to the government,
the public, and the scientific and engineering communities. It is
administered jointly by both Academies and the Institute of
Medicine. The National Academy of Engineering and the Institute
of Medicine were established in 1964 and 1970, respectively, under
the charter of the National Academy of Sciences.
This project was supported under Master Agreement No. 79-02702
between the National Science Foundation and the National
Academy of Sciences.
Copies available from
National Academy Press
2101 Constitution Avenue, N.~.
Washington, D.C. 20418
Printed in the United States of America
First Printing, December 1983
Second Printing August 1985
Third Printing, March 1987
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Participants at Meetings of the Fibers, Textiles, and
Apparel Panel, Committee on
Technology and International Economic
and Trade Issues
Panel
W. DENNEY FREESTON, JR., (Chairman), Associate Dean,
College of Engineering, Georgia Institute of Technology
JEFFREY S. ARPAN, Professor, International Business Program,
and Director, Center for Industry Policy and Strategy, College
of Business Administration, University of South Carolina
MARY EILEEN BARRY, Assistant Professor, Consumer Affairs
Department, School of Home Economics, Auburn University
JAMES R. BERCAW, Manager, Product Services and Technology,
Textile Fibers Department, E.l. DuPont de Nemours ~ Co.
LAURENCE A. CHRISTIANSEN, JR., Editor-i - Chief, Textile
World, McGraw-Hill Publishing Company
EDWARD F. JOHNSON, Senior Vic - President, Prescott, Ball and
Turben
STIG A. KRY, Chairman of the Board, Kurt Salmon Associates,
Inc.
ROBERT MALPAS, Group Managing Director, British Petroleum
Corporation, U.K.*
RICHARD STEELE, Executive Vic - President, Celanese Fibers
International (retired)
LAZARE TEPER, Director of Special Projects, Office of the
President, International Ladies' Garment Workers' Union
FRANK X. WERBER, Vic - President, Research dc Development,
Technical Center, J. P. Stevens, Inc.
*Formerly, President and Chief Executive Officer, The Halcon SD
Group.
· . —
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Rapporteur
JEFFREY S. AKPAN, Professor, International Business Program,
and Director, Center for Industry Policy and Strategy, College
of Business Administration, University of South Carolina
Consultants
JOSEPH PELZMAN, Associate Professor of Economics, The
George Washington University
BENGT-ARNE VEDIN, Research Program Director, Business and
Social Research Institute, Stockholm, Sweden
Additional Participants
WILLIAM ]. DULICA, Assistant Director, Industry Assessment
Division, Office of Textiles and Apparel, International Trade
Administration, U.S. Department of Commerce
DAVID EDGELL, Director, Office of Policy and Research, U.S.
Department of Commerce
JOSEPH MINTZES, Consultant/Economist, Washington, D.C.
PAUL T. O'DAY, Deputy Assistant Secretary for Textiles and
Apparel, International Trade Administration, U.S. Department
of Commerce
SUNAIYE OKUBO, Policy Analyst, Division of Policy Research and
Analysis, Scientific, Technological, and International Affairs,
National Science Foundation
ROLF PIEKARZ, Senior Policy Analyst, Division of Policy
Research and Analysis, Scientific, Technological, and Inte
national Affairs National Science Foundation
ALAN RAPOPORT, Policy Analyst, Division of Policy Research
and Analysis, Scientific, Technological, and International
Affairs, National Science Foundation
Stat f
HUGH H. MILLER, Executive Director, Committee on Technology
and International Economic and Trade Issues
MARLENE R. B. BEAUDIN, Study Director, Committee on
Technology and International Economic and Trade Issues
ELSIE IHNAT, Secretary, Committee on Technology and
International Economic and Trade Issues
STEPHANIE ZIERVOGEL, Secretary, Committee on Technology
and International Economic and Trade Issues
1V
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Committee on Technology and
International Economic and Trade Issues (CTlETI)
Chairman
N. BRUCE HANNAY, National Academy of Engineering Foreign
Secretary and Vice-President, Research and Patents, Bell
Laboratories (retired)
Members
WILLIAM J. ABERNATHY, Professor, Harvard University
Graduate School of Business Administration and Chairman,
CTIETI Automobile Panel
JACK N. BEHRMAN, Luther Hodges Distinguished Professor,
Graduate School of International Business, University of North
Carolina
CHARLES C. EDWARDS, President, Scripps Clinic and Research
Foundation and Chairman, CTIETI Pharmaceutical Panel
W. DEINNEY FREESTON, JR., Associate Dean, College of
Engineering, Georgia Institute of Technology and Chairman,
CTIETI Fibers, Textiles, and Apparel Panel
JERRIER A. HADDAD, Vice-President, Technical Personnel
L)evelopment, IBM Corporation (retired)
MILTON KATZ, Henry L. Stimson Professor of Law Emeritus,
Harvard Law School
RALPH LANDAU, Chairman, Listowel Incorporated* and
Vic - President, National Academy of Engineering
JOHN G. LINVILL, Professor, Department of Electrical
Engineering, Stanford University and Chairman, CTIETI
Electronics Panel
*Formerly, Chairman of the Board, Halcon SD.
v
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E. RAY McCLURE, Program Leader, Precision Engineering
Program, Lawrence Livermore Laboratory and Chairman
CTIETI Machine Tools Panel
BRUCE S. OLD, President, Bruce S. Old Associates, Inc. and
Chairman, CTIETI Ferrous Metals Panel
MARKLEY ROBERTS, Economist, AFL-CIO
LOWELL W. STEELE, Consultant--Technology Planning and
Management*
MONTE S. THRODAHL, Vice-President, Technology, Monsanto
Company
*Formerly, Staff Executive,
General Electric Company
.
V1
Corporate Technology Planning,
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Preface
In August 1976 the Committee on Technology and International
Economic and Trade Issues examined a number of technological
issues and their relationship to the potential entrepreneurial
vitality of the U.S. economy. The committee was concerned with
· Technology and its ef feet on trade between the United
States and the other countries of the Organization for Economic
Cooperation and Development (OECV).
· Relationships between technological innovation and U.S.
productivity and competitiveness in world trade; impacts of
technology and trade on U.S. levels of employment.
· Effects of technology transfer on the development of the
less-developed countries (LDCs) and the impact of this transfer on
U.S. trade with these nations.
· Tr ade and technology exports in relation to U.S. national
security.
In its 1978 report, Technology, Trade, and the U.S. Economy,*
the committee concluded that the state of the nation's competi-
tive position in world trade is a reflection of the health of the
domestic economy. The committee stated that, as a consequence,
the improvement of our position in international trade depends
primarily upon improvement of the domestic economy. The
committee further concluded that one of the major factors
affecting the health of our domestic economy is the state of
industrial innovation. Considerable evidence was presented during
the study to indicate that the innovation process in the United
* National Research Council, 1978. Technology, Trade, and the
U.S. Economy. Report of a workshop held at Woods Hole,
Massachusetts, August 22-31, 1976. National Academy of
Sciences, Washington, D.C.
. ~
V11
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States is not as vigorous as it once was. The committee recorn-
rn ended that f urther work be undertaken to provide a more
detailed examination of the U.S. government policies and
practices that may bear on technological innovation.
The f irst phase of the study based on the original reco m-
m endations resulted in a series of published monographs that
addressed government policies in the following areas:
· The International Technology Transfer Process.*
· The Impact of Regulation on Industrial Innovation.*
· The I mpact of Tax and Financial Regulatory Policies o n
In dustrial Innovation.*
· Antitrust, Uncertainty, and Technological Innovation.*
This report on the fibers, textile, and apparel complex is one of
six industry-specific studies that were conducted as the second
phase of work by this committee. Panels were also set up to
address automobiles, electronics, ferrous metals, machine tools,
and pharmaceuticals. The objective of these studies was to (1)
identif y global shifts of industrial technological capacity on a
sector-by-sector basis, (2) relate those shifts in international
competitive industrial advantage to technological and other
factors, and (3) assess future prospects for further technological
change and industrial development.
As a part of the formal studies, each panel developed (1) a
brief historical description of the industry, (2) an assessment of
the dynamic changes that have been occurring and are anticipated
as occurring in the next decade, and (3) a series of policy options
and scenarios to describe alternative futures for the industry. The
primary charge to the panel was to develop a series of policy
options to be considered by both public and private policymakers.
The methodology of the studies included a series of panel
meetings involving discussions between (1) experts named to the
panel, (2) invited experts from outside the panel who attended as
resource persons, and (3) government a~encv and congressional
representatives presenting current
. . ... ..
~7 ~ ~
governmental views and
summaries ot current oelloerallons and oversight efforts.
The drafting work on this report was done by Dr. Jeffre y
Ar pan, University of South Carolina. Professor Arpan was
responsible for providing research and resource assistance as well
as producing a series of drafts, based on the panel deliberations,
which were reviewed and critiqued by the panel members at each
of their three meetings.
*Available from the Office of the Foreign Secretary, National
Academy of Engineering, 2 10 1 Constitution Avenue, N.W.,
Washington, 1).C. 20418.
. . .
vail
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Contents
SUMMARY
THE TEXTILE COMPLEX
The U.S. Textile Complex, 3
Description and Comparisons of Major Segments in a
Textile Complex, 8
In ternational L) if f erences in T extile Co m plexes, 1 7
2 TH E CHA NGI NG E NVI RON ME N T
Economic Changes, 27
Changes in Technology, 41
Changes in Government Policies, 49
C ORP ORATE RE SP ON SE S A N D ST RATEGIE S
U.S. Firms, 56
Japanese Firms, 59
European Firms, 61
Retailers and Designers, 6 3
4 FUTURE SCENARIOS, P OLICY OPTION S. A N D
THEIR IMPLICATIONS
The Basic Scenario, 67
Government Policy Areas and their Potential
Impact, 68
General Policy Considerations, 83
Summary and Conclusions, 83
BI OGRAPHICAL SKETCHES
3
27
56
66
87
1X
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The Competitive Status
of the U.S. Fibers, Textiles,
and Apparel Complex
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