The UK textile industry is one of the areas of the economy most vulnerable to the ravages of the pound. Scotland's only significant publicly quoted textile group, the world leader in cashmere Dawson International, warned through its chairman Derek Finlay last month that the rise of sterling had made its UK manufacturing base uncompetitive. The lay-off of one-third of its 250 workforce at the Laidlaw & Fairgrieve yarn spinning mill at Dalkeith was the latest in a string of redundancy announcements in its knitwear companies notably Pringle, and Finlay warned that worse was to come.
He blamed the Government for abdicating responsibility, and the Monetary Policy Committee for failing at least to indicate that interest rates had peaked.
But many of Scotland's private textile companies, while not enjoying the rise of the pound, are showing the resilience to continue growing.
None more so than Traditional Weatherwear at Cumbernauld. Remarkably, though most of its product is for export, this month TW is hiring nine new youth apprentices, more than doubling its apprentice total to 16. Managing director Robin Veitch says: ''I hate to say it but we are on a high.''
TW is Scotland's only manufacturer of the traditional rubberised mackintosh, and its business barometer is set fair.
''We have been exporting mackintoshes for 20 years,'' says Veitch. ''We have always seen more than 65% of turnover being exported, but last year we were up to 80%. We have just finished our year and we are up to 88%. We don't know how to sell them in the UK.''
The mac is taking Paris by storm. ''The raincoat, originated by Charles Mackintosh, has become one of the most fashionable garments in many collections. Hermes has always been a big customer. Now we are selling similar garments to Louis Vuitton, Dior, Gucci, Ralph Lauren - we can't see how we can keep up with the demand for the product at the moment.''
The factory produces around 15,000 macs a year and sells them wholesale and direct at #150 each. They are snapped up at #450 retail, and Veitch says: ''I have seen a Hermes mackintosh in Japan at #1500.''
Turnover has leapt from #930,000 in 1994 to #2,131,000 in 1998. Exports to Japan have rocketed from #55,000 to #786,000.
But how is it withstanding the onslaught of the pound?
''You can't buy a mackintosh from anywhere else in the world, they have to come to Britain. The only danger is they will stop buying the product at all, they are always very worried at the prices we are charging, and I suppose if we were 20% cheaper they would sell more.
''Sterling has been high and has restricted sales, but at least in our main markets they have been able to
sell on without the same disadvantage.''
But he warns: ''With the single currency coming, it is terribly important that we are not making ourselves a speculative currency. The high pound is a real problem. We have to convince customers that the pound will fall again. We are always telling them that by the time they get the goods in November or December we would expect sterling not to be strong.''
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