Medical Textiles & Apparel

A Dynamic Niche with Long-term U.S. Export Potential?”

Laura V. Rodriguez Chemicals and Textiles Division Office of Industries March 22, 2012

∗ Significance of this niche and factors boosting

global demand ∗ Principal products and applications ∗ Manufacturing processes and factors ∗ Recent innovations ∗ Trade trends-key products and markets, 2007-11 ∗ Case studies of U.S. exporters ∗ Export strategies for long-term success

Today’s Discussion

∗Supports healthcare ∗Growing niche- accounts for 20

percent of technical textiles ∗Domestic production ∗Recession resistant ∗U.S. competitive advantages

Significance of this sector

∗ Population growth and aging populations ∗ Rising living standards ∗ Construction of new medical facilities ∗ Medical tourism ∗ High hospital infection rates ∗ Medical devices requiring textiles components

Growing Global Demand for Medical Textiles & Apparel

∗Limited and unreliable export data ∗Confidentiality -privately held firms ∗ Intellectual property concerns

Research Challenges

Nonwovens Comprise 75% of Medical Textiles

∗ Wipes, wadding, gauze, wound dressings ∗ Surgical drapes & towels ∗ Hospital surgical scrubs, masks, and lab coats ∗ Antimicrobial yarns & medical fabrics ∗ Stump socks, prosthetic socks, diabetic socks ∗ Compression hosiery (for varicose veins, etc.)

Low to High Tech Products

∗ Smart apparel –embedded devices/sensors to monitor heartbeat and other vital signs

∗ Implantable textiles -sterile surgical catgut for sutures; vascular grafts, artificial veins

∗ Textiles with elastomeric yarn used in maternity belts, neck wraps, surgical bras worn outside the body

∗ Textiles used in heart valves, kidneys, artificial joints/bones/ligaments/implants (some are X rated!)

Low to High Tech Products-cont’d

∗ Research and development ∗ Raw materials ∗ Fabrics ∗ Equipment ∗ Chemicals and their application ∗ Testing ∗ Waste disposal

Cost Factors

Production Process

Polymers

Fibers

Yarns

∗ Woven ∗ Knitted ∗ Braided ∗ Non-Woven

∗ Fabrics

∗ Medical Textiles & Apparel

Medical properties embedded or sprayed onto product

Impregnating, coating, laminating, finishing

∗ Lightness –Strength –Elasticity –Softness ∗ Fluid resistant –or absorbent ∗ Biodegradable –Biocompatible – Bioreceptive ∗ High barrier of protection & permeability ∗ Anti-microbial and anti-bacterial ∗ Electrical or thermal conductivity ∗ Non-allergenic, non-toxic, non- carcinogenic,

non-irritant; durable (medical apparel) ∗ Comfortable and drapable

Essential Properties

∗ New uses for old, natural fibers like silk ∗ New fiber technology – ex: “Qmilch” - new sustainable

textile fiber that when made into fabric – soothing to people with skin allergies (German)

∗ Self-cleaning cotton fabric kills bacteria and breaks down toxic chemicals when exposed to light– developed by UC Davis

∗ Antimicrobial technology added to apparel physically ruptures cells without poison

∗ Pillowcases that eliminate wrinkles!

Innovations

∗ 3005.90 – wadding, gauze, bandages ∗ 3006.10 – sterile surgical catgut ∗ 6115.10 – compression hosiery ∗ 6307.90 – surgical drapes and towels ∗ 9021.90 – appliances worn or carried on

the body

Medical Textiles & Apparel Exports

∗ Intellectual property protection concerns – pending patent issues

∗High foreign tariffs ∗Non-tariff barriers ∗ Lower-cost competition

Export Challenges

∗ Initial capital investment ∗ Economies of scale ∗ Delays/Licensing-patent requirements ∗ Exchange rates – strong dollar ∗ Mindset of U.S. manufacturers ∗ FTAs

Export Challenges cont’d

∗ FTAs ∗ Growing middle class in foreign markets ∗ DOC assistance ∗ EXIM bank export credit terms ∗ Case Studies

Export Opportunities

U.S. Imports, Exports, and Trade Balance of Medical Textiles & Apparel

2007-2011

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

2007 2008 2009 2010 2011

Bill

ions

Exports Imports Trade balance

Source: Import data based on USITC DataWeb/UDOC. Export data estimated by Commission staff based on USITC/DataWeb/UDOC.

U.S. Exports, of Medical Textiles By Commodity Group - 2011

Source: Source: USITC DataWeb/USDOC.

APPLIANCES WORN/CARRIED ON BODY. NESOI

51% STERILE

SURGICAL CATGUT

32%

WADDING, GAUZE ETC

12%

COMPRESSION HOSIERY

3%

SURGICAL TOWELS

1%

SURGICAL DRAPES

1%

Top U.S. Export Markets for Medical Textiles - 2011

Source: USITC DataWeb/USDOC.

Netherlands20%

Japan9%

Belgium9%

Germany8%

Sweden7%

Ireland6%

Canada6%

Mexico6% Other

29%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2007 2008 2009 2010 2011

Thou

sand

s of

Dol

lars

Exports Imports Trade balance

U.S. Imports, Exports, and Trade Balance of Sterile Surgical Catgut for 2007-2011

∗ Take advantage of existing export help ∗ Engage in ongoing investment in R & D ∗ Emphasize branding ∗ Diversify export markets and target markets

with expanding medical infrastructure ∗ Continually develop innovative products

Essential for Long-Term Export Success