Source: The Stitch Times, December 2008

The complete sector of textile processors is once againexperiencing radical changes. Around the world, production locations are beingnewly organized. Energy costs have risen and labor costs in some low-wagecountries have also risen significantly. At the same time the sector iscounting on more flexibility and productivity within the whole productionchain, from suppliers to distribution. The trend toward individualization isaccompanied by an increased awareness of quality. Protection of the environmentand its resources as well as social responsibility, are further importanttopics for the whole sector.

Production closer to sales locations are becoming moreimportant

Manufacturing costs in the textile and clothing industrieshave increased significantly on a global scale. The reasons are increasingenergy and labor costs, which are having an impact on production particularlyin low-wage countries. This is especially evident in the People's Republic ofChina, where in addition to statutory social contributions; a shortage oflabor has raised wages considerably since the beginning of 2008.

Furthermore, the role of logistics throughout the entirevalue chain is currently being rethought. Ever increasing transport andlogistic costs in relation to cheap products are being scrutinized,particularly in regard to environmental protection. Production centers closerto sales locations are becoming more important, especially for high qualityproducts or for small batches that must be made quickly accessible.

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About the Author:

The author is the Managing Director of VDMA, Munich.

The article was originally published in"The Stitch Times", December 2008 edition