Stitch World Editorial Issue December 2017

'The industry is on a ventilator' – that's the general sentiment in the industry today… Many factors have influenced the way the industry is today, which started with demonetization that reduced the money in hand, then GST which led to money being blocked and thereafter came the final hammer, the withdrawal of duty drawback...

Not to forget the ongoing struggle of continuous squeeze on prices by the buyers, higher inflation and dwindling order quantities.

‘What to do?’ is a common question which is the starting point of any discussion that one has today, irrespective of whether one is attending a marriage or any other function (this being the auspicious time of the year when social gatherings are aplenty!). The discussion invariably drifts towards the topic of ‘survival’.

Only recently I was with a Bangladeshi delegation of 22 sweater exporters in Japan, Osaka and they also have the same issue of sustenance. Since the country is majorly doing basic products in volume, the problem of plummeting prices is impacting them even more.

I was cornered to tell them what's happening in India, and to know how the companies there are addressing the 'survival' issue. Though I shared my understanding about India to them, what I observed is that they all have a plan in place to counter the problem…that is to increase the capacity using automation and to build operational efficiencies.

I would say that this is the best strategy to mitigate slowdown by becoming the indispensable and thus the preferred suppliers. I believe that collectively the industry has enough depth, but unlike China, they need to learn to say NO.

In these difficult times, when saving every cent counts, automation is supporting the industry in its goal to save on cost. This issue carries an exploration of the journey of automation and discusses how it has become ‘important’ and ‘affordable’, from being considered ‘unviable’ and ‘expensive’.

Moving beyond the traditional mindset, the Indian Government has recently taken away the responsibility of the procurement of 48 items for the Indian Army from the Ordnance Factory Board (OFB) and given it to the private sector. Seen as a major opportunity for the sewn industry, inside is the complete picture of the expectations of the Indian Army from the local Indian manufacturers.

Celebrating success is important and IMA s.p.a., a pioneer in cutting solutions, recently completed its 40 years’ of establishment with a stupendous event in Bergamo, Italy. This issue carries a snapshot of the event and the launch of ‘TYPHOON 70’ cutter during the occasion.

Stitch World Editorial Issue November 2017

CISMA – the technology fair that takes place in Shanghai, China – is not what it used to be. In the last two editions, it has changed its character from being a technology fair for basic machines to matching international standards of automation and moving towards industry 4.0 and showing signs of integrating robotics..., probably reflecting the signs of maturity in the Chinese garment manufacturing industry that is now demanding automation and moving towards robotics all because of the increase in wages and infrastructure cost...

Observing the shift, I also found that while some of the technology is being developed recently, some are decade old technologies making reappearance. All this is becoming possible today due to the increasing affordability of those technologies to cater to the demand for high productive machines.

Auto Bobbin Changer (ABC) – developed in 1995, but phased out from commercial machines due to exorbitant cost, is now making a reappearance; 3mm thread by UBT – developed in 1993, but phased out from commercial machines (probably cost of labour was cheaper to trim after sewing) is making a come back due to wage increase; Real time data from sewing machine – developed in 2003 by Efka has reappeared as cost of networking and data flow is becoming negligible. The CAM (computerized cutter), which came to India in 1997 (installed by Sewa International) with Rs. one crore investment, is still costing the same, but after two decades, the CAM now has multiple and better features… making it affordable.

In this editorial, I am just giving a glimpse of ‘affordable’ technology. Watch out for the next issue, wherein I will give my readers an ‘affordable article’ as food for thought!

In this issue, we have covered technologies displayed at CISMA and have also highlighted the ten top sewing features added to the machines in the recent past. Further, two garment exporters from Tirupur have been interviewed and their manufacturing best practices are highlighted. The common thread between the two is that both have imbibed the lean solution as the core driver for their growth.

Stitch World Editorial Issue October 2017

Two diverse developments in the garment arena are fascinating me today. The first being the talk about Industry 4.0 and the speed of the industry to adopt machines to impress the garment manufacturers.

However, many have an ambiguous understanding of the concept and are already positioning their technologies as Industry 4.0, ready to impress their customers. Their limit to get admiration can extend up to just putting a sensor to mark the machine temperature,which is communicated to the user via an app and qualifies for a company as an Industry 4.0 ready technology!

It is obvious that the garment manufacturers currently are unware about this emerging innovation since they accept every bit of computer-aided technology presented to them as Industry 4.0 ready, without question. But then, every concept takes time to develop and shape up to a level when both sides of the industry become well-versed and equipped to understand the thought in its totality and use it optimally.

The second development that I am watching very carefully is the upward movement of manufacturing in the USA, which is now US $ 13.6 billion of shipments annually, and which is growing further. Though most manufacturers in the US have small units with 25-60 machines, the growth is coming through big Chinese investments that are happening in garmenting, of late.

The latest is a Chinese company setting up a robotic plant in the US to take advantage of the ‘Trump Trust’ for local manufacturing. I am sure these kinds of initiatives would put a greater emphasis on the need to expedite Industry 4.0 equipped technology.

I will be visiting CISMA this month and it will be interesting to see how Chinese technology companies are geared up to imbibe Industry 4.0 in their technological processes. Earlier this year, the 4.0 revolution was the buzzword at Texprocess, Germany.

StitchWorld has always stayed ahead, bringing you all the newer perspectives and latest technologies, without losing touch with reality, because the major chunk of manufacturing still happens in the Third World (developing) economies, which require basic machines and few automats to make complete use of lower labour wages.

Our special issue covers a comprehensive preview of the technology variants that one can look forward to witness at CISMA from various technology manufacturers from around the globe.

Stitch World Editorial Issue September 2017

The Indian lion is now starting to roar!
Having attended two technology fairs, almost back to back – Gartex and GTE Ahmedabad – one fact that emerged loud and clear from these shows was that Indian-made technology is finally finding its footing.

I have never seen Indian companies that manufacture technologies so proudly displaying their products. Even the industry is looking at them with a fresh perspective.

The ‘Make in India’ lion was displayed prominently at all booths presenting some Indian technologies and even accessories. I could actually feel the difference in the attitude of the company’s owners and their teams.

It was obvious that the PM’s thrust on manufacturing has finally brought these companies out of the shadow of their foreign counterparts…No longer are they ‘poor cousins’ in technology, being popular with those who cannot afford European/Japanese technologies, but they are rather finding an admirable place among the best.

The range of technologies being made in India covers a wide spectrum now from testing equipment of Delhi based Paramount to eco-friendly washing solutions from Xcel Stiro and Ramsons to fusing machines and sublimation printers from Cheran Machines to paper solution for cutting rooms from Krishna Lamicoat, besides many flat and circular knitting machines being produced in Ludhiana, not to forget a host of IT solutions available from Indian companies…, the list goes on.

It was indeed a treat to see indigenously made sewing machines available with few of our technology providers being proudly placed along with other ‘foreign’ brands on display at the events.

These manufacturers have for time immemorial been convincing customers that they are second to none and the fact that they are cheaper is only because of local manufacturing and ‘not’ because of any defect or inadequacy in technology.

It seems that finally the moment has come for them to become bigger players and I can very well anticipate that many of the technology providers who have been itching to get into local manufacturing, are finally going to take the plunge.

Stitch World Editorial Issue August 2017

Participating in exhibitions is always a learning experience and being at Gartex 2017 was really an exciting experience after a long time. Though these are tough times for the industry, still they all came in large numbers to the fair with the hope for finding something new and different.

I met many owners, CEOs and senior management from export houses from across the country. Gartex 2017 saw participation of companies like Orient Craft, Eastman Export, Blackberry, KK Overseas (Jaipur) and companies from as far as Kolkata, Dehradun and Mohali. This was inspiring considering the fact that the market for both the segments is not at its best. The exporters and domestic manufacturers are all struggling to come to terms with the effect of demonetisation and GST. Both these policies have reduced money flow in the market and increased the need for working capital, affecting business at various other levels too.

Through candid interactions with all these companies, I found that though no one was really complaining that the policies are bad or not good for the country/industry, the main grouse was that many grey areas still exist and there is no clarity on many critical areas – mostly related to 18% GST on job work in the apparel segment. While those exporters who have all value adding capabilities in-house will be at an advantage, the middle level and smaller exporters who are dependent on contractual job workers for their value-added processes will have to bear the increased cost...

The other concern being reduction in duty drawback..., most exporters have come forward to discuss how the drawback was their only saviour amongst the several impediments and had helped to keep their balance sheet in black. But now with the reduction in the duty drawback to 3 to 4%, even this last expectation is gone.

With Surat being practically closed from the beginning of July and growing fear of another round of strikes, the supply chain has been hit badly. Deadlines are going for a toss and hectic lobbying is going on to break the deadlock.

For domestic manufacturers, since many markets are closed, demand is slow since June. And it is no secret that both the US and EU are facing difficult times…, yet the positive part is that the industry is keen to explore new technologies which will help them to become more competitive on value, and the quality visitation at Gartex is proof of the same!

Stitch World Editorial Issue July 2017

A change is inevitable now. All because of the few incidents that have happened or are going to happen…

Last year was the most uneventful year for exports in a long time…, maybe it was a year in brooding. The export growth figures were down and the domestic market was depressed due to demonetization and fear of GST (some are comparing it to the Y2K virus, which created such a hype at the turn of the century but fizzled out to nothing).

I believe that fear is bigger than reality…, yet there are genuine concerns, mainly because of the lack of clarity and implementation hurdles. In the meanwhile, the textile industry is divided on how the reforms would impact businesses along the supply chain, though there is a conviction that it would have a positive influence on the competitiveness in the long run.

The recently concluded Textiles India 2017 extravaganza was a breeding spot for discussions and the four major concerns with regard to GST that emerged are: Accumulation of credit at every level of the chain; Imported fabric to be cheaper than domestic fabric; 18 per cent service tax on apparel job work to make outsourcing unviable; and 18 per cent GST on MMF and Yarn serving as a severe blow to the synthetic sector.

Though the Government has assured a review and revision after three months, the industry is on the back foot. While demonetization brought in lack of funds to source raw materials and pay wages, GST has brought uncertainty, thereby further crippling the system.

As if this was not enough, the Delhi Government has increased minimum wages by 50%... I am not even sure if the industry can survive after such a huge blow… Where are the margins to absorb this increase?

Though the honourable court has reserved the decision till 11th September, I doubt if the court will eventually ‘stay’ the move.

With all this happening, the only way to survive is to move to places like Jharkhand, Odisha, Telangana and other states where the Government is pro-active in building infrastructure and is offering incentives to the industry to come in, including a rebate on wages. Jharkhand already has three bigwigs setting up units there – Orient Craft, Shahi Exports and Matrix Clothing…, and I am sure others will follow suit soon.

I sincerely believe that this is the best and the only way for the industry to grow now!

In the meanwhile, things are getting tough on the retail front also with stores closure and frequently changing consumer demands putting pressure on retailers to be faster than their competitors in placing their products on the shelves. Ram Sareen, Founder, Tukatech shares with our readers how the long sheets of tech packs cannot keep pace with the evolving fashion industry. It is the digital platform that should be the new communication language between designers and technical team. Longer the retailers rely on outdated means, sooner they will be out of business.

Another trend which is taking fashion to a next level is ‘athleisure’. Driven by millennials’ fitness-conscious behaviour, athleisure is the new take of the town. Fad or classic, athleisure is not going to lose its charm in the coming years. Two of Indian sportswear manufacturers, Paragon Apparels and Creative Clothex, have launched their own athleisure brands in the market to tap the potential market in India

Stitch World Editorial Issue June 2017

At Texprocess, Frankfurt, Germany, besides meeting a lot of old friends and colleagues from the industry, all that I heard there was ‘Industry 4.0’… Every technology provider was talking about concepts like Internet of Things, additive manufacturing, manto- machine communication, machine-to-machine communication, SaaS, smart manufacturing, and artificial intelligence – each concept an integral part of the term Industry 4.0.

Many of the technologies I saw were tailor-made for western countries where labour is a scarce and expensive resource. The idea behind many of the machines was to eliminate human intervention and fully automate processes from design to production and in some cases even include retail and logistics.

So, does that mean Industry 4.0 is actually about taking production back to the West…? I have my reservations on how relevant Industry 4.0 is for the manufacturing world today. Even before automation has properly been adopted in Asia and other developing nations where production is happening, the focus of technology providers is already shifting to the next phase without fully perfecting the automation stage and making it suitable to the needs of the countries that are leading production today…

Can the technology providers afford to ignore the requirements of these manufacturing destinations, which are their biggest selling markets…? I don’t think so! In reality, the Texprocess platform is about the future, though in manufacturing countries the push is still on selling automation.

Most industry experts agree that the future is still a mystery and difficult to predict, what’s sure is that it would be very different from today and if companies do not start preparing now, they would be wiped out of business…

Our analysis of Texprocess is an attempt to decode Industry 4.0 as the debate gets louder… The same will continue in the next issue where many more technologies including IT solutions will be featured.

Even as technology providers move into the future, in a wave of retail bankruptcies, over 8,600 retail stores closure is being projected. Consumers are shifting a greater percentage of their disposable income to ‘experiences’ rather than ‘shopping’, creating an ‘adapt or die’ situation for retailers. Ed Gribbin, President, Alvanon Inc. suggests some of the ways through which retailers can sustain in a competitive environment.

Another interesting read in this issue is WFX Cloud ERP that has integrated new features into the solution such as ‘Analytics’ tool, which enables control over complete supply chain, and ‘Alert System’ that notifies the user before the deadline. Also, the second part of Kaizen Korner series addresses Lean Manufacturing, where David Permenter, Educational Director, DCC Print Vision LLC, tells how to identify waste and eliminate it.