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International Comparison of Production Costs: Spinning, Texturing, Weaving and Knitting
Textiles Intelligence, June 2009, Pages: 28
The cost of producing yarns and fabrics using most of the main processing technologies increased between 2006 and 2008 in Brazil, China, India, Italy, South Korea, Turkey and the USA, according to the International Textile Manufacturers Federation (ITMF).
Raw material costs increased over the period for all manufacturing processes in all seven countries with one exception. In South Korea the cost of raw materials for producing woven fabric made from textured yarn fell. Meanwhile, manufacturing costs—including labour, power and depreciation costs, among others—increased for all manufacturing processes in all seven countries with three exceptions. One exception was the production of textured yarn, where manufacturing costs fell in the case of all countries surveyed. The other exceptions were the production of knitted fabric from ring yarn and the production of knitted fabric from rotor yarn, where, in a number of cases, costs remained the same.
In yarn manufacture, total costs in ring spinning were highest in Italy—due to high manufacturing costs—and lowest in India, although the USA enjoyed the lowest raw material prices. The USA also recorded the lowest raw material costs in rotor spinning, which resulted in the lowest total costs. Total costs were highest, meanwhile, in Egypt. In texturing, the USA suffered the highest total costs in 2008, ahead of Italy, while South Korea and India had the most competitive costs.
In weaving, total costs for producing fabric made from ring spun yarn were highest in Italy, followed by the USA, while costs in all of the other six countries were significantly lower. Total costs for producing woven fabric made from rotor spun yarn were highest in Italy while costs in all the other countries surveyed were similarly competitive. Meanwhile, total costs for producing woven fabric made from textured yarn were again highest in Italy, while Egypt enjoyed by far the lowest costs.
In knitting, total costs were made up almost entirely of raw material costs as manufacturing costs were negligible. However, in all processes total costs were highest in Italy. At the other end of the scale, India enjoyed the lowest costs in the production of knitted fabric made from ring spun yarn and textured yarn, while the USA enjoyed the lowest costs in the production of knitted fabric made from rotor spun yarn.
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