Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, September 4, 1994 TAG: 9410190002
SECTION: BUSINESS PAGE: F4 EDITION: METRO
SOURCE: MELISSA LEE THE WASHINGTON POST
DATELINE: LENGTH: Medium
That's because big-name retailers and manufacturers of trend-sensitive apparel are shifting some production to the United States from overseas plants to keep up with clothing fads, restock empty racks and maintain greater control over quality.
Esprit de Corps has shifted production of such items as leggings, crop tops and sleeveless shirts from Asia to the San Francisco area in the last 18 months, for example. Liz Claiborne Inc. has moved production of 1 million sweaters a year from Asia to a factory in Brooklyn.
``We needed to be responsive to the consumer, we needed quicker turnaround time and we needed to be close to the fashions,'' said Jack Listanowsky, executive vice president for manufacturing and operations for New York-based Liz Claiborne.
Most of the clothing companies returning to the United States make juniors' and trendy women's clothing. While domestic production of such apparel as women's suits and dresses has plunged in recent years, production of trendier and more casual apparel for women has increased, according to Census Bureau data.
The number of knit T-shirts and tank tops made domestically, for example, climbed 74.8 percent, to 132.9 million units, in 1993 after falling to 76 million units in 1988. Domestically produced women's sweaters climbed 11.5 percent, to 40.7 million units in 1993, after falling to a low of 36.5 million units in 1991.
For the domestic garment industry, which has lost 500,000 jobs in the past decade, this shift back to domestic production for some clothing items is good news.
``I don't think we'll see any increase in employment, but I believe it will slow down the loss of jobs . . . as some of this (domestic sourcing) picks up,'' said Carl Priestland, an economist at the American Apparel Manufacturers' Association.
Clothiers making the shift say their ``turnaround time,'' or the time it takes from placing an order to receiving the manufactured goods, has been cut by as much as five months. The shorter cycle, they say, lets them decide on colors and styles closer to the fashion season.
Priestland said the shift back to domestic production is manufacturers' response to savvy consumers who demand a wider range of merchandise and retailers that must fill orders before a trend fades.
Also, since many retailers were glutted with inventory during the recession, store owners are keeping stocks low and must be able to replenish them quickly, according to industry experts.
``In more recent years, retailers in general have increasingly been pushing the inventory risk back to the vendors,'' said Donald Trott, retail apparel analyst at Dean Witter Reynolds Inc.
Keeping up with teenage fads that change faster than MTV videos has been easier for Esprit de Corps, the San Francisco-based children's and juniors' clothing manufacturer, since it has moved 50 percent of its contract work to the United States, according to company executives.
During the past 18 months, Esprit has shifted production of leggings and novelty knits, which include crop tops and sleeveless shirts, from Asia to the San Francisco area. It also has increased the volume of T-shirts it buys from U.S. manufacturers. Although Esprit won't reveal exact numbers, its juniors' division had a reported $110 million in sales in 1993.
by CNB