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International comparison of hourly labor cost in primary textile ind

May '07
Werner International, a management consulting practice specialized exclusively in the fiber, textile and fashion industry globally has released International Comparison of the Hourly Labor Cost in the Primary Textile Industry 2007.

The Werner International 2007 Labor Cost Comparison in the primary textile industry is the first study comparing the hourly labor cost in 44 countries since the phasing out of the MFA agreement.

General observations are that global competitive landscape in textiles and clothing has undergone a major shift with the implementation of WTO agreements on textiles & clothing in 2005 and the introduction, since then, of a large number of regional trade agreements.

The post-MFA era has opened up opportunities for those countries, which have cost leadership. Through effective global sourcing and advantage of considerable wave of new investments in the industry, these countries have achieved cost advantages.

Industry giants like China and India are giving good run for low-cost, developing countries' money.


Switzerland is still in first place with the highest hourly labor cost in the textile industry, a position it has held almost continuously since 1987. Amongst the top ten most expensive labor cost countries, European Union countries take seven positions, with only Spain, Greece and Portugal having a somewhat lower hourly cost. Japan has dropped from the first place in 2000 to the sixth place in 2007. While in 2000 the USA ranked higher than Italy, France and the UK, the actual strong Euro has altered the classification.

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