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CTC 2022 Review and 2023 Outlook

2023 Business Outlook

Champion Thread Company (CTC), Gastonia, N.C., was “blessed” with solid growth in 2022, which propelled the company to greater-than-anticipated year-over-year performance, said Jim Lee, vice president of Sales.

“We attribute much of this growth to our ability to gain market share across most of our sewn products market segments,” he said. “Following general economic conditions, our growth was more robust in the first half of 2022. Some softening in demand occurred in the second half as inflation, economic policies and other factors negatively impacted some markets, most notably the retail market.”

The significant strides in market share increases came primarily from the multi-year initiatives that have bolstered CTC’s lean, flexible manufacturing operations, according to Lee.

“These investments in our teams, technology and facilities have established CTC as the go-to, on-time supplier of industrial sewing threads and engineered yarns for a broad range of sewn products and textile customers,” he said. “They enabled CTC to improve sales and earnings even as most supply chains were snarled with numerous disruptions and delays.”

CTC expects to drive continued growth in 2023, primarily through market share acquisition and anticipated economic improvements in the year’s second half, he added.

“We will support this growth by continuously investing in developing new products, production and service teams, strengthening customer service levels that continue to be the primary reasons customers choose to partner with CTC,” Lee said. “CTC is also developing new and stronger relationships with raw materials suppliers to expand our capacities and combat the continuing supply chain uncertainties. In some cases, safety stock levels have been adjusted to ensure our ability to deliver even in difficult times.”

He reiterated that Champion’s ability to deliver on customers’ needs and expectations when others cannot give company leaders confidence that it will continue to increase our market share in 2023. “Our focus on serving the broad range of sewn products and textile markets will also support continued growth as market demand varies across the various segments,” he said.

Looking ahead, Lee noted that significant headwinds will likely negatively impact the domestic and global economy well into 2023. Primary concerns include continued high inflation, interest rates and a possible global recession, he said. Supply chain uncertainties will also continue for some time, he added.

“These economic and other geopolitical factors will impact specific markets in different ways,” he said. “While the case for U.S. manufacturing is more relevant than it has been in some time, individual conditions will determine if and how it may grow in the short term. Many labor-intensive industries like apparel are finding nearshoring a viable alternative to global sourcing during these times.”

As such, CTC remains dedicated to domestic production, where possible, Lee noted. “We have expanded our local operations and teams to provide our customers with the service and reliability they need to succeed,” he said.

Innovation and customer focus will continue to make the difference, he pointed out.

“The sewn products and textile industries have faced and overcome many challenges throughout history – perhaps none more complex than those we have encountered in the past three years,” he said. “We know that our industry and the consumers of our products are resilient – but not impervious to all that has and will come. Continued success will require us all to continue to reinvent ourselves and our businesses to focus on customers and overcome whatever is next. While 2023 starts with many challenges, we expect to finish the year strong.”

This content was originally published by on January 12, 2023

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