Wednesday, November 9, 2016

Stitch World Editorial Issue November 2016

Around half the population is of women in the US who earn less than US $ 15 an hour, and it has been said in an article in Apparel Online India that it is very much possible to produce fashion garments at that price… Yes, I am talking about the US! Local designers, small boutique owners, and chain stores specializing in such categories or in athleisure using technical textiles, are all either working with local manufacturers, or are exploring the potential to manufacture in the US.


Manufacturing of designer wear and athleisure wear are two very different categories, yet having common potential of manufacturing in the US. While designer wear has high margin and shorter lead time to qualify for re-shoring, athleisure has longer lead time, yet it qualifies for re-shoring based on high margin and availability of speciality raw material locally. Not to forget that the local manufacturing industry in America is presently worth US $ 13 billion.

Taking advantage, a Chinese manufacturer of casual apparel and sportswear and a big supplier to Adidas, has recently signed an MoU with the state of Arkansas to invest US $ 20 million in Little Rock and create 400 jobs paying an average of US $ 14 an hour plus benefits. This is the first time ever that a Chinese garment manufacturer has invested in the United States. The way the Government has incentivized the Chinese company clearly indicates the interest of the administration to encourage job creating enterprises. And if the statement of the Governor of Arkansas is anything to go by, then more such deals are ‘down the road’.

Made in USA and re-shoring of manufacturing has also re-kindled the automation research. Every technology player is geared up for technology laden offering. At the upcoming ‘Advancements in Manufacturing Technologies’ conference organised by SPESA, world’s leading technology solution providers will jostle for their space with new offerings. It will be interesting to see whether the offerings are aimed towards large commodity manufacturers of Asia or small and medium niche players trying their luck in re-shoring for the local designers, small boutiques, and chain stores specializing in such categories or in athleisure using technical textiles…

What’s left is the need to explore just how to use expertise to best advantage! Are there any takers…, do let me know.

Efficiency and productivity improvement remains one of the key mottos of StitchWorld and we encourage practising managers and academicians to share their experiences and logic. In this issue, Dr. Prabir Jana discusses the simple mathematical technique to improve line productivity during manpower shortage, while Jayapal Nair discusses the efficiency traps to look for.

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