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Blog Category: Textiles

North Carolina Attracts FDI in Manufacturing and Textiles

Under Secretary Stefan Selig (seond from left) participates in a ribbon cutting ceremony with North Carolina Governor Pat McCrory (left) PEDS Legwear President and CEO Michael Penner and Walmart Vice President of U.S. Manufacturing Cindi Marsiglio

Cross blog post by Stefan M. Selig, Under Secretary of Commerce for International Trade

On Wednesday afternoon, I delivered remarks in Hilderbran, North Carolina at a ribbon-cutting ceremony where we officially opened the new Canadian-based Peds® Legwear (PEDS) production facility. PEDS’ recent $16 million investment in the plant and new machinery has allowed the company to hire North Carolina factory workers who were previously laid off. By 2018, this new facility will bring more than 200 jobs to Hildebran, providing a lift to the local economy.

SelectUSA, our program to attract foreign direct investment (FDI), along with our Commercial Service Canada team, helped facilitate this deal. SelectUSA provided counseling to PEDS on how to navigate the federal regulatory process and also helped identify sources of federal funding. In addition to PEDS’ investment in the Hildebran facility, the company plans an additional $8 million venture, bringing their total investment in the United States to $24 million. In less than two weeks, similar FDI deals will be highlighted at this year’sSelectUSA Investment Summit, which will take place March 23-24.

In addition to ITA’s support, PEDS’ new investment is made possible because of a multi-year purchase order contract from Wal-Mart as part of the retailer’s commitment to buy domestically produced goods.

As I noted in my remarks—before an audience that included Michael Penner, president and CEO of Peds®Legwear; Cindi Marsiglio, Wal-Mart’s vice president of U.S. manufacturing; and North Carolina Governor Pat McCrory—PEDS’ investment in the facility shows our nation’s prowess to attract FDI.

Because the United States offers a transparent, fair, and stable business climate, as well as our second-to-none workforce, many global companies like PEDS are beginning to establish or expand operations here. In fact, in 2013, U.S. FDI inflows totaled $231 billion, of which $51 million was invested in U.S. textile and apparel manufacturing. In 2012, majority-owned U.S. affiliates of foreign firms accounted for $48 billion in R&D expenditures, exported $334 billion worth of U.S. goods exports, and employed nearly 6 million workers.

To keep the momentum, ITA will continue to develop opportunities for U.S. workers and businesses by promoting international trade, encouraging FDI, and working to foster a level playing field for American products and services.

How New Legislation will Support Our Textile Industry

Deputy Assistant Secretary Kim Glas and Under Secretary Francisco Sanchez tour Unifi’s sewing thread manufacturing facility in Yadkinville, North Carolina on October 9, 2012.

Ed. note: Cross-posted from ITA's Tradeology blog. Kim Glas is the Deputy Assistant Secretary for textiles and apparel within the International Trade Administration’s Import Administration division.

I am visiting North Carolina today with the Under Secretary of Commerce for International Trade Francisco Sánchez to see first-hand two state of the art textile companies–Unifi and A&E. Recently, President Obama signed into law an important set of technical fixes to the U.S.-Dominican Republic-Central America (CAFTA-DR) Free Trade Agreement that will have a direct impact on jobs at these two companies and sewing thread manufacturers across this state and country.

When the Agreement with our Central American neighbors was negotiated in 2003, there was a definitional loophole that incentivized the use of non-U.S. sewing thread in the assembly of textile and apparel products. As a result of this loophole, U.S. sewing thread manufacturers have seen their business and employment shrink. The Obama administration immediately set out to address a problem that severely impacted U.S. sewing thread manufacturers.

After years of hard work, President Obama recently signed legislation to close a loophole that has jeopardized businesses and jobs in the U.S. As a result, on Saturday, October 13, these fixes will be implemented and will have a direct impact on many sewing thread manufacturers in North Carolina. We have every expectation that once the legislation is implemented that U.S. sewing thread producers like Unifi and A&Ewill be able to recapture market share in the critical market.

This is a prime example of what can be accomplished when industry, Congress, and the administration work toward a common goal.