What Works for Small Apparel Manufacturing: Issues Affecting Reshoring (original) (raw)
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Evaluating offshore and domestic production in the apparel industry: The small firm’s perspective
Journal of International Entrepreneurship, 2007
This paper extends the existing literature on the potential advantages and drawbacks of domestic and offshore manufacturing strategies to a small firm perspective. The advantages of offshore production to the large corporation have received much attention in recent years, particularly with regards to the apparel industry. The key advantages of offshore production are obvious for the large firm: cost reductions and increased productivity through labour market differentials. Little is known however about the viability and attractiveness of this strategy for the small apparel firm. The high number of small apparel firms who continue to produce in their domestic market, despite labour market differentials, suggests that the cost advantages of producing offshore may not be as critical for the competitive advantage of many of these small firms. Four case studies of small New Zealand apparel firms are used to substantiate and expand on themes developed from the literature.
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This study analyzed factors affecting production choices and resulting benefits and challenges associated with apparel production sourcing. The research focused on sourcing strategies' effect on competitive advantage. Data were gathered through interviews with production sourcing professionals in Canadian and U.S. apparel firms that use offshore, domestic, or combined offshore/domestic production methods. Findings indicate offshore production may result in lost time and profit due to lack of control, wasted materials, rising production and shipping costs, and decreased quality and consumer-perceived brand value. Localized manufacturing may increase firms' competitive advantage through improved control of production processes; enhanced customization, adaptation, and response to consumer desire; increased perceived brand value; and reduced waste level, number of failed products, and markdowns. Strategic sourcing and smaller-scale, localized production also supports the local economy, thus creating apparel firms that are strategic, responsible, and profitable. Thank you to my advisor Dr. Lu Ann Lafrenz for your enthusiasm, guidance, and support through this entire process. A special thank you my family for your love, patience, and many means of support. I would not have survived these last two years without each of you and your contribution to this project. Especially to my little man for being so understanding when mommy was busy. v
A retrospect on the US apparel industry: expert predictions and reality data
Research Journal of Textile and Apparel, 2021
Purpose-In 1978, the once powerful US apparel industry was on the cusp of change, and the consulting firm KSA conducted a Delphi survey of apparel executives' predictions into the 2000s. The purpose of this paper is to compare actual changes over the subsequent decades with these 1978 expert predictions and explore the accuracy/inaccuracy of these "educated guesses" (KSA, 1978, p. 1). Design/methodology/approach-The chorographic method was used to analyze the report and document historical data. Chorography is "concerned with significance of place, regional characterization, [and] local history [.. .]" (Rohl, 2012, p.1) and includes contextual settings and researcher input. Primary data were examined during each decade and included: industry literature, government documents and labor data. The researchers used content analysis to reduce and organize data. Findings-Findings cover three decades of Southeast US apparel industry data including imports, employment, number of plants, size of plants and productivity. Predictions were inaccurate about imports, predicted to be minor in comparison with domestic production, which they actually surpassed. Predicted decrease in employment was similar to actual decrease but reasons were inaccurate. Change in number and size of plants were over-predicted and under-predicted. Reasons given by experts were automation and government intervention; in actuality, limited automation occurred with insignificant impact in contrast to outsourcing, which decimated employment in US plants. Steady increase in productivity was predicted when productivity often decreased. Originality/value-Previous studies focus on the textile sector; studies of the apparel sector tend to be regional or topical. This study is more expansive and provides insight into predictions and changes made in the US apparel industry at a critical time in its near demise. With the current climate of global change and increased market uncertainty, insights from this study may provide direction for rethinking of the domestic apparel industry for the USA and other developed countries.
The U.S. Textile and Apparel Industry in the Age of Globalization
Global Economy Journal, 2004
The contemporary U.S. textile and apparel industry has faced significant challenges as the volume of imported goods entering the domestic market has continually increased. In attempts to both foster development in select world regions and maintain viability of the domestic industry, the U.S. government has negotiated a variety of trade agreements extending preferential treatment, including duty- and quota-free access to the U.S. market for apparel and other textile products manufactured in developing countries in the Caribbean Basin, sub-Saharan Africa, and the Andean region. In addition, provisions included in the agreement granting China, the world's largest producer of textiles and apparel, admission to the World Trade Organization have allowed this country to become an immediate beneficiary of the MFA quota phase-out. This article examines the current state of the domestic textile and apparel industry and provides an overview of trade agreements enacted during the past decad...