IMPRESSIONS from a Cross-section

While Buhler has been until the late 1980’s a predominant player in the European markets, it has become a global market participant in the 1990’s and focuses more on specialty yarns then in its earlier days. The global strategy has also included setting up a new production facility in the USA in 1996 to balance currency risks and serve the global market place better and take advantage of US bilateral trade agreements (such as NAFTA, CAFTA etc.)

The focus on the high-end markets; development of innovative types in yarns; and paying close attention of consistency and quality in raw material sourcing. Besides, we have well educated and prepared staff, which has the flexible thinking and attitude required in today’s challenging, ever changing and competitive market place. This prevails in the sales/marketing as well as in the production arena.

No question that the recent run up on prices in the cotton markets around the world is very challenging fact, we remain focused on our role as a niche player and with our relationship over many years with sourcing executives of main brands and retailers, we feel confident that we are able to bring the message to the right target audience. In addition, we have the possibility to switch our product mix in such a way that the impact is manageable and will allow Buhler to keep prospering among a very competitive global market place.

I can’t disclose specifics about our fiber sourcing strategy, but can elaborate that our focus is global and not in any way confined to specific regions.

In the past 5 years we have come onto the market with several new and innovative products, not only related to new or improved fiber qualities and fiber processing, but also by using certain treatments of yarns to allow for unique downstream processing.

Sure, as mentioned above, the US production facility has been set up amongst other reasons for Buhler to benefit from the various bilateral US FTA’s, which usually require US or regional spun yarns in order for bringing garments made of those yarns duty free in the US market place. On higher end yarns, reps higher end garments, those duty free benefits outweigh the higher manufacturing costs, especially, if the shorter lead times are taken into account as well.

We will certainly be challenged by the REACH initiative of the European Union, if not directly then indirectly by our customers products. The steep increase in energy and freight costs poses a threat to our global presence but also at the same time a chance. Fiber price developments will be one of the most to be watched issue in the future, as they are as much a result of increased worldwide consumption as of reduced production in cotton (the consumption factor has not been taken enough into consideration for price hikes!). Environmental aspects will also require adequate responses from manufacturing and this will include in the future transportation, challenging supply chain management.