Texprocess 2013 to help find new apparel producers

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.”