New Apparel Producers will be found by Texprocess 2013

The buyers of today on the hunt for price competitive production sites must take more than just price and the ability to supply into account:sustainability is needed in all aspects of production including the local working conditions,whilst manufacturers must also be flexible.In the world of today,as the requirements of consumers in terms of price,quality and design have increased,buyers,production managers and quality assurance experts are just as globally active as they were before–in spite of digital networking.Procurement–also called'sourcing'–must take account of disparate needs.

Every company focuses on different aspects.Anyone in search of new manufacturing companies or countries should visit Source it at Texprocess from 10–13 June 2013.In regions with a low level of industrialization,the clothing industry is regarded as a pioneering sector of the national economy.Sewing machines require minimal investment and people can be quickly trained to perform simple sewing tasks.

In what is termed'outward processing'the client provides everything,the materials are cut to size,the appropriate number of sewing threads,buttons,zip fastenings etc.are supplied and prefinanced.The manufacturer's only responsibility is for the sewing work.As a result it is possible to also keep wages low.However,as the ability to carry out complicated sewing jobs increases,material is procured locally,tailoring is done in-house and products are graded according to client specification,the prices increase.Insiders call the procurement of finished clothing'full service';the producer does all the preparation work and takes the risk.

Philosophy of total process control

To have traceability back as far as raw material production–what is called green labelling–involves a lot of work and such control costs money.The budget for this can be allocated to your own employees or alternatively also to external quality control organisations(Öko-Tex;Zürich,is the one of the most well respected institutions in this segment).These costs are reflected in the price of the product.Whether production is carried out in-house or by external suppliers is in the first instance irrelevant.Another option for total process control is the fully integrated businesses that cover all areas from the production of textiles to the manufacture of clothing.

Some of these companies run their own power plants to produce electricity;some have treatment plants to clean their waste water as well as having their own chain stores and fleets of vehicles for sales and distribution.Besides process control the advantage is to avoid the profit margins of upstream suppliers–the prices of the finished products can be kept low.Having your own companies abroad,local joint ventures with foreign companies or equity investments is a third way of achieving in-house process control.One thing is clear:if you want to buy quality–however you wish to define it–you need to exercise control through your own or external staff.

Europe's bottleneck is capacity

Even if we so wished,it is impossible to produce the majority of clothing in Europe,not even in Eastern Europe and not even in the countries bordering the Mediterranean Sea(EMEA).As Wolfgang Weis from Weis Consulting,an expert in this market,explains"Anyone in Western and Eastern Europe who at some point has had to switch to a different market,has been lost for the sewing industry.The companies in Eastern Europe operate at 90 percent capacity and cannot find any new workers."

Experts estimate that there are around one million people working in the clothing sector in the European Union(Source:Eurostat,for 2011)compared to five million workers in the Far East.

Wage costs are not the only deciding factor

Against the background of rising wage costs in China–where capacities of trained workers are also being squeezed due to an increase in production for the home market–buyers continue their journey.Bangladesh,India,Vietnam and Indonesia are not far away,but also the Dominican Republic and Jamaica where capacity is still available.

Besides the wage cost for each minute,other relevant issues include the local availability of an attractive range of fabrics and accessories,the reliable supply of power and communication as well as the transport infrastructure.A buyer from a large European trading house,buying finished products,says:"what is the point of low wages when the country cannot offer a range of fabrics?"

He or she would argue that short-term,current fashions can be produced easily in South East Europe with fabrics from Turkey;however this is only possible to a limited extent with Western European fabrics which are too expensive.The advantage of production in South-East Europe is its proximity to Western Europe.In South-East Europe the range of fabrics is very limited and the same is true for North Africa,South and Central America.

However,if you are happy with a narrow selection of fabrics because this fits your range of products,you will find what you are looking for there.Weis sees good growth prospects in the Dominican Republic and Jamaica where trousers are already being produced for well-known men's fashion retailers.As he explains,"The clothing industry can grow,wherever it is located in proximity to the ports."

It must not be forgotten:trading agreements between the EU and the respective producer countries make their own small contribution to this success.In most cases these are protracted processes,marked by different interests lobbies that occasionally change their position even in the middle of the negotiations,reports the European trade association,Eurotex,Brussels.One tendency persists however:risk aversion on the part of buyers continues to grow,leading increasingly to the purchase of finished goods and so the shifting of risk to the producers.

Source it presents alternative manufacturing companies

Texprocess 2013 is a way for those responsible for sourcing in clothing companies to get information about alternative manufacturing companies and the countries where they are located.At this the leading international trade fair for the processing of textile and flexible materials from 10–13 June 2013,the'Source-it'exhibition space is in hall 5.0.

The last Texprocess in 2011 attracted 65 contract manufacturers from 19 countries.In 2011 there were a total of 326 exhibitors from 40 countries.As the leading international trade fair it attracted around 10,500 professional visitors,of which more than half were from outside Germany.Another 6,500 visitors came from Techtextil,the international trade fair for textiles and non-wovens,which is held at the same time.