Textiles market becoming increasingly difficult

The trading conditions in the UK used clothing industry are becoming increasingly difficult, according to Alan Wheeler, national liaison manager for the Textile Recycling Association (TRA).

Speaking at the Bureau of International Recyclings Roundtable in Barcelona last week (October 29) Mr Wheeler said textile recyclers are struggling as a result of the high price demanded for charity grade material as well as increased competition in the market.

He said the competition was coming from new players who are keen to make a quick profit as well as an increase in Cash for Clothes shops, which he said are particularly rife in the north of England where property rental values tend to be lower.

The high prices being demanded for material has squeezed the profits made by textile recyclers and caused them problems when trying to sell on the material for sorting and exporting, he added.

While Mr Wheeler noted that the prices paid for material have started to tail off, following a steady increase over the past seven years, he said that given how much businesses are struggling he would have expected the price of the material to drop more substantially.

Speaking at the event, he said: The trading conditions in the UK used clothing industry are becoming increasingly difficult.

Mr Wheeler added: This year alone, three members of the Textile Recycling Association have stopped collections. In a trade association where the membership totals 55 businesses, to lose three members in this way is of notable significance.

He noted that the TRA – the UKs trade body for used clothing and textile collectors, sorters and reprocessors has also had an increasing number of calls from charity shops who say they are struggling to find an outlet for the material as many collectors are not willing to pay the high prices they have come to expect.

Profit

Commenting on those businesses keen to make a quick profit he said: With businesses struggling, one would expect prices to drop more substantially. Part of the reason why this has not happened yet though is that people are continuing to enter into the industry because they think they will make a quick profit. They are attracted by the high value of the clothing.

Only after they have been trading for six months or a year do they sometimes realise they are not making any money and move on to something else.

Europe

Also at the event, textile recyclers from across Europe raised concerns about the current state of the market, with a number of sorting facilities expected to take an extended holiday over Christmas due to high prices and a lack of material.

Olaf Rintsch, president of the BIRs textile division, said the market had become a tough struggle for textiles recyclers due to the high prices. He said the end result could be shorter working periods for some organisations with the onset of winter weather making it more difficult to trade.

The differing legal status of textiles as waste within Europe was also highlighted at the Roundtable. For example, some countries consider clothes deposited in collection banks as waste whereas others do not. Mr Rintsch said this proliferation of different rules and regulations means it is difficult to make the system work.

Meanwhile Mehdi Zerroug of Framimex, the BIR textiles divisions vice president, said the collection volumes in France were 12-15% lower during the second half of this year than in the corresponding period of 2011. And, the number of incidents of thefts of containers or their contents has continued to rise.