Common Threads

Opportunities for Growthin the Newfoundland and Labrador

Apparel Industry

Edited by Alastair AllanChair

Newfoundland and LabradorApparel Industry IAS Committee

Introduction

This volume brings together all the work of the Newfoundland andLabrador Apparel Industry IAS Committee. The Committee was formed inthe Fall of 1998 and concluded its work in the Summer of 2000. Itsmembers were volunteers from the apparel industry, representatives fromboth levels of government, a secretary and an independent chairperson.The Committee acted under the auspices of the Industrial AdjustmentService (IAS) of Human Resources Development Canada and wasprimarily funded through the Labour Market Development Agreement, acombined initiative of both federal and provincial governments.

The mandate of the Committee was to define an identity for the apparelmanufacturing industry in Newfoundland and Labrador, develop its profileand determine a strategy for growth. The Action Plan presented here isthe industry’s own vision, shaped by the work of the industry committee,and founded on the research and advice of experts and friends bothlocally and across Canada.

One of the Committee’s early objectives was to invite the entire provincialapparel industry to a conference in Corner Brook in June, 1999 to explorethe common threads that bind the industry together. The brightest threadof all was the enthusiasm and commitment of the entrepreneurs fromevery corner of Newfoundland and Labrador who are the apparel industry.I am grateful to them all for sharing with me their joy in their creativity, theculture and heritage of their trade and their aspirations for the future.Thank you.

The IAS Committee members were volunteers who committed to this taskon top of running their own businesses. I thank you for being such a greatteam and putting up with the sometimes dreary conference calls. Themembers of the Committee were:

Alastair Allan ChairColin Baird Woof Design

Tamara Biehn Administrative SupportMarilyn Bridle LST Enterprises LTDKelly Bruton Textiles AssociationDonna Clarke Speciality ApparelPaula Cornec WinterhousesPaula Gobi Gobi for GirlsTom Hawco Human Resources Development CanadaRosalind Jardine Stitches from SalmonierNorma Larkin Grenfell HandicraftsRita Malone DDRR Corner BrookKaren Matthews Nortique FashionsDamian Morrissey Queen’s FettleVerna Northcott Humber HandicraftsKaren Pottle Exploits Oilskin OriginalsJean Sheppard Yarn Point KnittersKaren Thistle Department of Development and Rural RenewalJane Williams Pool’s Cove Crafts

I would also like to thank our team of advisors and consultants inNewfoundland who provided the Committee with invaluable guidance:

Marget Davis Management By DesignShirley P Dawe ACOAKathy-Jane Elton KJ EnterprisesIole Farragalli Manufacturing Technology CentreAndy Fisher Manufacturing Technology CentreGail Griffiths Newfoundland WeaveryJohn King College of the North AtlanticAnn Manuel Craft Council of Newfoundland &

LabradorDarek Nakonieczny Craft Council of Newfoundland &

LabradorSean McCarthy AMENAdele McNicholas Baltic ServicesKatie Parnham Anna Templeton CentreRonalda Steele Steele Sweaters

The Corner Brook Conference was organized by Rita Malone and LanaBannister of The Department of Development and Rural Renewal,Corner Brook Office and Daphne Meade Of the Humber EconomicDevelopment Board. The St. John’s Technology Workshop wasorganized by the staff of the Manufacturing Technology Centre atMemorial University, Andy Fisher, Yvonne Raymond, and Tamara Biehn. Iam grateful for all your efforts as well as the Speakers and Presenters,who are acknowledged in the Proceedings.

Financial assistance was provided by the Labour Market DevelopmentAgreement, The Craft Industry Development Program and the IndustrialResearch Assistance Program of the National Research Council. Theproject was supported and administered by the Department ofDevelopment and Rural Renewal and the Department of HumanResources Development Canada.

Finally I thank the administrative team for their good humour, Starbuck’scoffee and 3,000 e-mails - Tom Hawco, Damian Morrisey, Tamara Biehnand Karen Thistle. Way to go Team!

Alastair AllanSt. John’sJune 2000

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Common Threads

Table of Contents

INTRODUCTION

SECTION ONE: STRATEGY

Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Industry Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Industry Listings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

SECTION TWO: BACKGROUND REPORTS

Training Needs Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Apparel Technology Research Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Knitwear Industry Scoping Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Apparel Contracting Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209

SECTION THREE: CONFERENCE PROCEEDINGS

Corner Brook Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

Technology Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

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Action Plan

Opportunities for Growth

in the Newfoundland and Labrador

Apparel Industry

Compiled by:

Kathy Jane Elton

for

The Newfoundland and Labrador

Apparel Industry IAS Committee

7

May 2000

8

ACTION PLAN

Table of Contents

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1.0 Introduction: The Apparel IAS Committee and Its Mandate . . . . . . . . . . . . . . . . 11

2.0 Understanding the Provincial Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.1 Industry Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.2 A Provincial Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.3 The Key Industry Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.3.1 Clothing Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.3.2 Knitted Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.3.3 Leather and Fur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.0 Industry Development Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3.1 New Production Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3.2 Skill Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3.2.1 Technical Skills: Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3.2.2 Technical Skills: Knitwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.2.3 Non Technical Skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.2.4 Apparel Contracting Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.3 Marketing Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.4 Product Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

3.5 Industry Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

3.6 Accessing Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

4.0 Conclusions: and Action Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Appendix I: Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Appendix II: Apparel Industry Job Classifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Appendix III: References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

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Executive SummaryThe manufacture of clothing and related items is a viable industry in

Newfoundland and Labrador based on a strong history and the success of many

individual producers, some with well established identities. The industry contributes

significantly to the provincial economy, particularly in rural areas, and has the potential

to provide an even greater contribution.

The apparel producers of Newfoundland and Labrador, with assistance from

Department of Human Resources and Development Canada and the Provincial

Department of Development and Rural Renewal, have come together under the

auspices of the Industrial Adjustment Service (IAS) to define their industry, establish its

profile, and identify those issues impeding their development. The Committee also

focused on strategies to overcome these impediments and support the industry’s

growth in the international marketplace. In this regard, members of the IAS Apparel

Committee believe that the current environment of global change and restructuring has a

created window of opportunity for the Province to develop an internationally competitive

apparel manufacturing industry and therein provide meaningful employment for

Newfoundlanders and Labradorians.

This report synthesizes the work of the IAS Committee in identifying key issues

impacting their industry and the measures necessary to foster its growth and

development. The following highlights reflect the main issues and findings of the

Committee’s work.

The Industry

< There are about 60 apparel producers distributed throughout the Province with

total employment being dominated by women and numbering approximately

1,000. The three main sub sectors include clothing production, knitted products

and leather / fur clothing products.

< The industry generates about $28 - 30M in sales annually with upwards of 90

percent of production being exported directly or indirectly through tourism sales.

10

< The industry has evolved from the craft industry and reflects a “cottage industry”

approach to production wherein products are made primarily by hand or with

domestic equipment on a piece by piece basis.

< Modern world apparel producers are highly evolved in their operational and

management practices supported by the latest technologies, a highly trained

work force and advanced marketing strategies. The provincial industry is

challenged in understanding and responding to this new environment.

New Production Technologies

< The use of high tech industrial equipment has become fundamental within the

modern apparel industry and the adoption of new technologies and tools by

provincial apparel producers is essential to support growth and ensure

competitiveness in larger markets.

< With the exception of a small number of producers, the majority of producers

have had little exposure to the advantages of new technologies.

< Generally, the Province is deficient in specialized apparel expertise and access

to related new technologies compared with other provinces.

Skills Requirements

< One of the more significant impediments facing the provincial industry is the

critical lack of skilled industrial labor to support apparel production and there is

an immediate requirement within the industry for these skills.

< The lack of skills within the knitwear sector is particularly troubling as the pool of

experienced hand knitters declines with an aging population and hand knitting

skills are not being transferred from one generation to the next therein

threatening the future of this industry.

< There are no formal institutional or informal means within the Province for local

producers or individuals to access appropriate training.

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Marketing

< The provincial apparel industry does not have a strong image and identity based

on the uniqueness and quality of provincial products. The industry is also weak

in developing and implementing effective marketing strategies that exploit all

market opportunities.

< Producers need to explore new marketing venues and alternative trade shows

that focus on other market segments such as winter sports and/or the fashion

industry rather than limit their focus to the craft and gift sector.

< Approaches adopted by other countries, especially Scotland and Ireland, in

promoting their knitwear sectors would provide valuable information in sustaining

the provincial knitwear sector.

< The provincial government, through its industry development programs, should

support the producers to develop specific promotional campaigns to reach

identified target markets. At the same time, the promotion of provincial apparel

products should be integrated into broader-based campaigns which promote the

Province in general, particularly in tourism literature and campaigns.

< The industry could benefit by utilizing e-commerce as a mechanism to promote

apparel producers and increase sales. Links from the Province’s home, tourism

and other related web sites to apparel sites should also be secured.

Product Development

< Developing new products and new designs based on changing consumer

preferences and new trends is fundamental and is another significant challenge

within the provincial industry where access to information is difficult.

< The Province’s heritage and culture provides a strong foundation for developing

new products and designs, which have not been fully exploited.

< Mechanisms to facilitate the creative process and the development of new

designs - training opportunities, networking, etc. - also need to be fostered.

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Industry Representation

< The local apparel industry has no independent voice that represents its interests

as a separate entity from the crafts sector. Neither are there resources within the

relevant government departments dedicated solely to apparel industry

development.

< Distinct independent representation is essential to facilitate consideration and

resolution of the unique development needs of the apparel industry, particularly at

this stage of infancy.

These issues are explored in more depth in the following pages and provide the basis

for the action items proposed in the conclusion. The IAS Apparel Committee notes that

the issues explored herein are critical to the advancement of their industry and pursuit

of these issues immediately is equally critical.

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1.0 Introduction

Clothing, together with music, art and architecture, reflect the essential elements

of a region’s identity, heritage and culture. The apparel producers of Newfoundland and

Labrador have come together to strengthen the identity and credibility of their industry

and to determine strategies that will enable them to succeed and grow in the world

marketplace. To assist these producers in understanding the issues impacting on the

growth of their industry, in October 1998 the Department of Human Resources and

Development Canada and the Provincial Department of Development and Rural

Renewal supported the establishment of an Industrial Adjustment Strategy (IAS)

initiative.

The Apparel Industry IAS Committee is made up of 20 volunteers representing a

cross section of producers within the provincial apparel industry, Human Resources

Development Canada and the Department of Development and Rural Renewal,

coordinated by an independent chair. The Committee’s focus is to synthesize the

industry’s views and requirements, identify issues which impede its development, the

measures necessary to foster its credibility and growth and to present this action plan.

In support of its mandate, the Committee undertook a comprehensive program of

research and other initiatives as follows:

< Develop an appropriate definition for the industry;

< Complete a survey to establish a comprehensive listing of industry participants

and develop an industry profile;

< Compile a database of technologies utilized in the modern apparel industry;

< Sponsor a provincial workshop in Corner Brook, June 11-13, 1999 to explore

industry issues and mechanisms for advancing the industry;

< Sponsor a second workshop in St. John’s, April 14-16, 2000 to provide

producers with information on new industry trends, new technologies and

effective operations management;

14

< Assess human resource needs within the local apparel industry, gaps in that

resource base, and potential opportunities for training;

< Consult with key stakeholders such as Ministers and senior officials within the

provincial government;

< Establish a technology workshop for producers through the Manufacturing

Technology Center (MTC);

< Initiate an industry newsletter - Bobbin;

< Initiate background studies in knitwear and contracting opportunities;

< Conduct advisory visits to all member companies; and

< Negotiate the formation of an industry association, within the Alliance of

Manufacturers and Exporters Newfoundland - AMEN.

Members of the IAS Apparel Committee believe that the environment of global

change and restructuring has created a window of opportunity for this Province to

develop an internationally competitive apparel manufacturing industry. Provincial

producers have developed distinctive apparel products over the years based on the

quality and uniqueness of Newfoundland and Labrador and the allure of its heritage and

culture. The opportunity to develop an industry based on this history has the potential to

provide significant employment and other economic benefits for the people of the

Province.

This report reflects a culmination of this Committee’s work and examines those

issues which are considered to be most critical in developing the local apparel industry,

components which need to be encompassed in a development strategy, and how the

industry can respond to and prosper within the current environment. Response to this

report and its recommendations, however, must be timely if opportunities are to be

realized.

15

Note: Background reports are included in the volume “Common Threads” or are

available in digital format from, CNLBSN or the Department of Development

and Rural Renewal upon request.

16

2.0 Understanding the Provincial Industry

2.1 Industry Definition

For the purposes of its work the IAS Apparel committee defined the apparel

industry as follows:

“Firms engaged in the manufacture of clothing,

headwear, footwear and related accessories for the

consumer, commercial, sports and industrial markets.”

2.2 A Provincial Profile

In Newfoundland and Labrador the apparel industry numbers about 60

companies distributed throughout the Province with a dominance in rural areas. Most

operations have three to five employees and total employment in the industry is

approximately 1,000. Overall, the industry is worth approximately $28 - $30M annually

to the provincial economy. The majority of firms have been in operation for less than 10

years while about 25 per cent have been in operation for more than 15 years. Most

firms are operated by women entrepreneurs and employment is also dominated by

women.

Approximately 45 percent of apparel producers rely exclusively on the provincial

market for their sales. Forty-five percent of firms market their products in other areas of

Canada and about 24 percent of these firms export to the United States and Europe,

generating a small percentage of their total sales in these areas. About nine percent

generate the majority of their sales from markets outside the Province. Overall, it is

estimated that upwards of 90 percent of production is exported either directly, through

out-of-province marketing activities, or indirectly, through tourism sales in the province.

One of the main characteristics of the apparel sector is that, with the exception of

a few firms, most producers have evolved from the craft industry and operations reflect a

“cottage industry” approach to production and management wherein products are made

primarily by hand or with domestic equipment on a piece by piece basis. Provincial

producers, however, as a result of increased international competition must now

operate within the international apparel industry and respond to effective marketing and

new product innovation from more modern and efficient international manufacturers.

17

Some provincial producers are responding to marketplace changes by

diversifying their product lines, focusing on niche markets, forging strategic

partnerships, contracting out some production and pursuing export markets as a means

of growth. Some have adopted new methods of production, employ highly skilled

workers and demonstrate a mind set that focuses on understanding the apparel industry

on an international level and meeting international standards for pricing and quality.

These producers serve as models for the overall development of the provincial industry

and reflect the overall goals of the industry.

2.3 Key Industry Sectors

The provincial apparel industry consists of three main sub sectors:

< Clothing production: dresses, sleepwear industrial clothing, outerwear/coats andassociated outerwear products (hats and handwear);

< Knitted products (sweaters primarily); and

< Leather, footwear and fur clothing products.

Each sector is unique and has specific challenges and opportunities that must

be addressed if they are to survive and grow. All sectors also have a set of common

issues which affect the development of the industry generally. The following section

provides a brief overview of the different sectors and issues particular to each.

2.3.1 Clothing Production:

The manufacture of non knitwear clothing, including outerwear and coats,

skiwear, head and handwear, children’s clothing and women’s clothing accounts for

more than 50 percent of firms within the provincial apparel industry. The majority of

producers are small, home based operations which generally utilize domestic

equipment as the basis for production. Some have been very successful in targeting

niche markets and have developed capabilities to respond to market changes and

consumer preferences. Many of these producers are effective in competing in the

industry and have an interest in expanding their operations to the international

marketplace.

Several provincial clothing producers are models of modern production with a

good knowledge of the industry. Some are expanding their product lines as a part of

18

their growth strategy and are adopting new industry practices as a means to help them

expand. They market their products in Canada, New England, Europe, and other niche

markets.

The modern international apparel industry, however, is dominated by

international firms employing the latest advanced technologies and production practices

that enable them to produce apparel at minimum costs consistent with world standards.

It is very difficult competing with these firms outside of exclusive niche markets and

provincial producers feel the pressure to find their place in the industry. Pursuing growth

based on current capabilities is proving to be very difficult.

2.3.2 Knitted Products:

There are approximately 20 commercial knitwear producers in the Province

manufacturing primarily sweaters, headwear and handwear; together they account for

about 32 percent of provincial apparel producers. Roughly half the firms produce hand

knits only while the remaining half either produce machine knits only or a combination of

both. These firms employ about 35 full-time workers and another 450 on a part-time or

piece work basis. Fifty percent of firms have been in operation for 18 years or more.

Fifty-two per cent of firms export and two firms rely on export markets for about 90 per

cent of total sales. Almost all products are destined for export either directly or indirectly

through tourism sales. More than 70 per cent of knitwear firms undertake marketing

focused primarily on participation in gift and craft trade shows, in retail craft shows and

direct advertising. They identify marketing and financial constraints as the main

challenges facing their industry. Fifty-six percent of firms would like to expand.

The knitwear industry is facing particular and serious challenges, not only

respecting opportunities for expansion but its continued viability. The mass market for

sweaters has changed substantially and there are a variety of reasons identified by

producers:

< New raw materials and products, such as those made of fleece, are replacing

the traditional sweater;

< Low-priced factory produced knitwear from countries with access to cheap labor

has flooded the marketplace generating new competition;

19

< Consumer appeal for the traditional bulky Newfoundland sweater has declined

and new materials and designs are required;

< Traditionally provincial producers utilize 100 per cent wool for their products.

Niche markets do exist for such products but there is also an increasing demand

for products made with newer materials that are durable, fashionable and easy to

care for; and

< There are significant issues relating to production methods and skills

development to support the industry.

Knitwear producers need and want to know why their industry and traditional

markets have changed, what is the full nature of these changes and how they can

respond to these changes. Producers would benefit substantially from continuing

access to up to date market information which would enable them to develop new

strategies, practices, products lines and explore new export markets. The benefits of

new design and production processes also need to be considered.

Members of the IAS Committee very much believe that there are distinct market

opportunities for a wide variety of traditional Newfoundland knitwear that is hand and

machine produced. The IAS committee commissioned a background report to analyze

the current state of knitwear companies, to identify the issues, and to develop a

framework for sector growth. This separate report entitled “Knitwear Industry

Scoping Study” is included in the volume “Common Threads” and referenced in

Appendix III. The study identified fourteen important issues related to business

practices and marketing approaches, as well as external issues including brand

promotion and competition. The study’s author concludes, “As a component of the

apparel industry, knitwear can remain true to its traditional, classic routes, bridging

between time-honoured methods as well as entertaining new technologies.” Action

items and recommendations are reflected in section 4 of this document.

The Committee also recognizes that further research is required in the knitwear

sub-sector to better examine external competition in order to develop appropriate

market approaches in a growth strategy. A greater understanding of the different

markets and specifically niche markets for handknit sweaters, is required, to better

position our knitwear products in a larger competitive environment. It would also be

20

valuable to consider how other countries, especially other “northern knitters” such as

Scotland, Ireland, Iceland, Norway, and Guernsey have developed their knitwear sectors

successfully and how these lessons may be applied to Newfoundland producers.

2.3.3 Leather and Fur Products:

The Province has a small number of well-established firms engaged in leather

and fur production. They have proven to be successful players in the world market, are

well connected to the marketplace and changing consumer trends, utilize the most

modern technologies in the production process, employ a highly skilled and reliable

workforce, and offer a product of high quality. Supplies are sourced from all over the

world based on price and quality and strategic alliances are established when

necessary.

The IAS Committee recognized the success of this sub-sector and their

operations as players within the international apparel industry and with very little

connection to the craft sector; however, resources did not permit it to explore this sector

in detail. They are however included in the statistical profile prepared for this document.

The relative success of the provincial manufacturers in this sub-sector was encouraging

to the Committee and seen as an example of how provincial apparel manufacturers can

compete internationally.

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3.0 Industry Development Issues

Today’s international apparel industry utilizes the most modern technologies,

employs highly skilled labor, engages progressive marketing and production strategies

and utilizes highly evolved operational and management practices. The industry is also

highly competitive and within this environment provincial producers must find the means

to sustain and grow their operations. In this context, industry participants were asked to

identify those issues critical to their development and which, if not addressed, will

impede their development and growth. The following issues were identified

consistently:

< Production methodologies and new technologies

< Skill requirements

< Marketing

< Product development

< Industry representation

< Financial and other management issues

Each of these issues is explored in the following sections. All relate to

fundamental components of the apparel industry and are integral pieces to ensuring a

producer’s ability to compete. These key issues also reflect the principles established

for the Province’s strategy to develop small scale manufacturing generally which

includes such issues as focusing on “core competencies,” contracting out less efficient

production processes, bench marking operations against competitors, adopting

modern technologies; integrating total quality management into all aspects of the

production process; building on the firms’ ability to react quickly to changes in client

preferences; and being export oriented.

3.1 New Production Technologies

Producers need to have absolute control over all factors of production such that

the manufacturing process and all related costs are predictable and consistent. This

requires control over all input components including the speed of production,

consistency in the materials used, consistent sizing and full proof quality control

22

measures at every stage of production. To achieve these goals modern factories utilize

the most modern production technologies as a first step to having effective control in

producing high quality products at a competitive price. Some provincial producers

reflect this modern image and confirm that new technologies are a key factor in their

ability to remain competitive.

The majority of provincial producers are dependant on domestic and hand-

based production methods and have had little exposure to the advantages of modern

technology. Sourcing information, assessing their individual industrial needs relative to

the various options in the market and securing the appropriate training can be a difficult

and intimidating process. The ongoing responsibility of maintaining new equipment and

ensuring steady operations is another challenge. The enormous cost associated with

new technologies is also an impediment to acquisition, particularly for smaller

producers.

The adoption of new technologies is one of the more significant issues within the

knitwear sector. Current production is based primarily on the principles of a cottage

industry wherein work is undertaken on an individual item basis and is worked by hand

or with hand-operated machinery. Many producers have developed their markets

based on the quality and reputation of producing 100 per cent hand knit sweaters and

are reluctant to abandon this quality. Yet the provincial pool of experienced hand knitters

is declining and a new generation of knitters is not readily available.

In exploring the market for hand versus a machine produced knitwear we see that

automated machine knitting did not compromise the success of similar economies

which have successfully developed their knitwear sectors. As well, some producers

maintain that a skilled machine operator can produce a knit garment of equal quality to

one that is handknit. Retailers indicate that their customers do not always distinguish

between handknit and machine knit “hand finished” garments and this is not a factor in

establishing an image for a high end product.

To understand the role of new technologies in the apparel industry and the

availability of equipment and services, the IAS Apparel Committee engaged the

services of the Manufacturing Technology Center (MTC) at Memorial University of

Newfoundland to undertake a review of modern technologies currently available to and

being used by international apparel producers as well as other related information. The

23

report now provides a reference tool to producers who wish to advance the

technologies they employ. Overcoming the reluctance and other challenges producers

may experience in adopting new technologies for apparel production will not be

overcome easily and additional support in this area is required.

The Committee feels that the adoption of new technologies within the clothing

and knitwear sectors is critical to the growth of an internationally competitive industry

and must be supported and fostered. The MTC has limited resources that are not

sufficient to address the full problem; other options must also be explored and gaps in

the support chain addressed. Without full resolution of this issue, the development of

this industry will be fundamentally compromised.

3.2 Skill Requirements

Just as the use of high tech industrial equipment has increased within the

apparel sector, so has the industry’s dependancy for highly skilled and efficient labor as

another component to remaining competitive. Indeed, the technology is of no value

without the skilled labor to operate and maintain it and producers must be able to

access such labor. Without this ability producers will remain stifled in their efforts to

develop their operations, regardless of the adoption of new technologies.

A shortage of skilled labor for the apparel industry is a national challenge and

most provinces have had to introduce mechanisms to address their skills’ shortages

and support their local industries. In Newfoundland and Labrador there is a virtual

absence of advanced skilled labor suited to apparel production and almost no local

opportunities to access related training.

To gain a further understanding of the labor issue within this Province, the IAS

Committee commissioned a background report: Training Assessment Needs for the

Apparel Industry of Newfoundland and Labrador. Based on market information

available and labor assessments that have been undertaken specifically for the

Canadian apparel industry, this report identified the core occupations required to

support a provincial industry, the skill gaps within the Province and strategies for

developing these skills (Appendix II summarizes the job classifications, the required skill

sets and how these skills are currently being addressed in the Province).

24

Skills and training needs within the industry can be classified as technical and

non technical. The technical training requirements relate to sewing and knitwear

production equipment operation, software operation, cutting, designing, etc. Non-

technical skills are applicable to entrepreneurs and small business generally and

include sales, marketing, financial management, etc.

3.2.1 Technical Skills : Clothing

Currently there is no formal institutional or informal means within the Province for

local producers or individuals to access appropriate training within the clothing sector,

particularly training in any production technologies. In the past some level of training has

been available within the Province and in 1993-95 a program in design, basic industrial

sewing, pattern drafting and garment construction was available in St. John’s and

Bonavista. After two years this program was discontinued with only a small percentage

of the participants being employed in the industry and then through limited home-based

operations. The courses and the specific skill sets provided through this program are

now considered to be redundant in view of industry advancements.

The Anna Templeton Center in St. John’s currently offers a modified Fibre Arts

Program which takes in about 18 students per year. Staffs of the Center are also

available to provide design expertise to people in the apparel industry and evening

courses are offered regularly in response to community needs. The Center does not

provide training focused on new technologies and other practices employed by the

modern apparel industry and is not well equipped to take on the function of skills

development for the apparel industry.

Formal industry training for the clothing sector is available in other Canadian

locations, particularly Manitoba, and has proven to be successful in developing the labor

pool for the apparel industry. The training available at the Manitoba Fashion Institute

was considered to be the most appropriate for addressing provincial skill deficiencies.

Strategy options for skills development needs to be explored in partnership with the

industry and must be based on the practical needs of the industry rather than

institutionally focused. Options are further explored in the background report.

3.2.2 Technical Skills: Knitwear

The development of skills within the knitwear sector is also a critical issue. As

noted, the provincial pool of experienced hand knitters is declining with an aging

population and the skills of hand knitting are not being transferred from one generation

25

to the next. Furthermore, as the knitters age, quality and production levels decline.

There is also a reduction in creativity and the introduction of new designs as traditional

knitters focus on established designs.

Again, there are virtually no formal opportunities, particularly outside of the major

urban centers, for a new generation of knitters to acquire the basic skills required by

producers. Even with basic skills, it takes a considerable amount of time before knitters

can produce products to the standards of quality and consistency which local producers

rightfully demand. This absence of skills or opportunity to develop these skills is a

critical problem which could seriously threaten its longer term viability.

The lack of formal industrial training in the Province designed for the apparel

industry, both sewing and knitting, is a significant impediment to the development of the

industry and forces producers who need trained staff to access training from outside the

Province. The need for appropriate training within the Province is now almost an urgent

requirement and must be pursued as a new initiative rather than based on past efforts.

The experience of other provinces in developing similar training programs in response

to similar problems provide valuable lessons.

Another important development / training opportunity that should not be

overlooked is the potential for the apparel industry to provide a source of employment

and career choice in rural and urban areas for today’s youth. Other provinces and cities

have actually targeted youth in their promotion of the apparel sector and have

developed targeted programs and incentives to encourage their entry into various areas

of the sector highlighting the opportunities to specialize in design, vendor relations,

marketing, e-commerce, computer-aided design and other areas.

3.2.3 Non Technical Skills

As producers begin the transition from a craft producer to a larger scale apparel

producer or even grow their business based on current practices, they require more

business expertise. This includes a more thorough understanding of standard business

practices - accounting, taxation, inventory management, and overall financial

management. Producers would benefit as well from a sound appreciation of

operational practices which guide the apparel industry including collections, just in time

production strategies, and other production time factors, cost analysis, and contracting

26

out practices. Currently there is no mechanism established among producers to

cooperatively collect and distribute this information.

The industry also needs to integrate computer applications into their operations

to assist management in their operations. Approximately 65 per cent of Provincial

producers utilize computers, primarily for accounting purposes; 31 per cent use

computers for inventory control, 26 per cent for marketing and Internet services, 21 per

cent for working with suppliers and only 12 per cent for communications. Thirty-five per

cent of producers do not use a computer.

This situation is not unique to the apparel sector and strategies to develop

entrepreneurial skills and facilitate their management capabilities should be applied.

As well, government must ensure that front line counselors throughout the Province have

some familiarity with the sector and certainly knowledge of governments’ development

efforts in the area. They should also understand the unique challenges within the

industry and be prepared to direct producers to appropriate opportunities to enhance

their management skills.

3.2.4 Apparel Contracting Operations

The IAS Committee recognized, through its research into training needs in the

Province’s apparel industry, that contracting out was a preferred option by many

Canadian designers. Rather than take on the training, management and financial

commitment associated with a production plant, designers may prefer to concentrate on

developing seasonal designs and marketing those designs, while working closely with

efficient contract facilities to construct their clothing. The Training Needs study

identified some companies in the province who are interested in contracting out. These

numbers are small at present, but the trend appears to be growing. There is no such

service presently available in this province.

In order to give informed direction concerning investments in contracting

operations, the IAS Committee commissioned a background study on apparel

contracting operations and the potential for enterprises in Newfoundland and Labrador.

The completed report, Apparel Contracting Operations - Potential for

Newfoundland and Labrador, is included in the volume “Common Threads” and

referenced in Appendix III. The information contained in the report identifies an industry

that is in flux and under pressure from external challenges to its way of doing business.

27

The report could not conclusively dismiss contracting operations as an economic

opportunity for this province. However, it recommends a number of broad strategic

considerations be taken into account first.

The need for a trained industrial work force for both contract sewing and knitting

operations is paramount. The contracting industry is extremely cost sensitive. This type

of business is based on high-volume output with low per-piece profits. Costs are the

determining factor, including labour wages, transportation of materials, and overheads.

With small profit margins, the requirements for an efficient work force is even more

important. Facility lay-out and sound business planning are also critical factors in

achieving production efficiency and sustainable profits.

One of the recommendations arising from the research is to tie contract

operations to the apparel production requirements of an in-province designer known

outside of Newfoundland and Labrador. The increased price points obtained by a

special market niche garment at the retail level potentially overcome some of the

increased production costs. Other niche market opportunities may arise from this

combination.

3.3 Marketing Challenges

Effective marketing and the development of a strong image in support of

marketing are the foundations for building a business and provincial producers need to

make advancements in this areas. The limits of the provincial economy and tourism

markets also demand that producers be export oriented and adopt an international

focus in their marketing efforts, as well as focus on identifying new niche markets.

Currently 76 percent of provincial apparel producers engage in some form of marketing.

The most common marketing effort entails participation at retail craft shows or

wholesale gift shows; 36 percent of producers undertake some form of advertizing, 12

per cent utilize the Internet as a marketing tool and nine percent employ an agent to

assist in marketing.

In developing and implementing a successful marketing strategy, the following

issues are fundamental:

< Producers need a comprehensive knowledge of the industry, the marketplace,

their specific target groups, changing consumers’ preferences and an

28

understanding of their competitors in terms of how they are structured, how sales

representatives work, inventory control practices, and other competitive

practices. Producers also need a good understanding of marketing principles,

specifically product positioning, pricing, market niches and promotion. Not

surprisingly, producers who understand their markets, continuously track

changes in consumer trends and can respond to marketplace changes are

consistently more successful;

< Producers should consider strategic alliances in collectively securing an agent to

enhance their individual capabilities. The experience of other economies

demonstrates that advantages and advancements can be gained within the

industry when participants strategically work together in their marketing efforts. In

such cases the synergy of such efforts can have an impact much greater than

what can be achieved by a single producer and can promote the industry in

general;

< Producers would profit from exploring new marketing venues and alternative

trade shows that focus on other market segments such as winter sports or the

fashion industry generally. Limited resources may impede their ability to pursue

all marketing venues and this has been identified by producers as a continuing

obstacle. Again, cooperative efforts to facilitate such participation and jointly

develop the image of the provincial apparel sector would benefit overall

promotion of the industry;

< The industry, in partnership with the provincial Government, should exploit all

opportunities to promote the apparel industry through its broader-based

campaigns to create a provincial identity/image based on the history,

uniqueness and quality of the Province. In particular marketing of the provincial

apparel industry should be integrated with the Province’s tourism strategy and

associated promotion and marketing initiatives to reflect and reinforce the very

uniqueness and allure of provincial products. Producers also should be invited

and encouraged to “piggyback” on these efforts wherever possible;

< The growth in e-commerce also should be considered by the industry.

Establishing and maintaining a web site will be a challenge for producers in

terms or responding to new demands and maintaining a good image but it is

29

also important to connect with this medium while the opportunity remains fresh.

Consideration could also be given to providing a link from the Province’s home,

tourism and other web sites to apparel producers with a web site. This should

be explored through continued industry representation and possibly as a pilot

project with individual firms.

3.4 Product Development

Developing new products and new designs based on changing consumer

preferences, fashion trends, new shapes and sizing, color variations and the evolution of

new fabrics and fibers is a fundamental issue within the industry. Ensuring all products

meet the quality standards demanded by the marketplace, both by wholesalers, retailers

and consumers continues to be of paramount importance as products evolve and

consumer demand for quality increases. Product development must reflect market

environments and therefore producers have to be in tune with these changes as they

occur and have the wherewithal to adapt their product and production processes

accordingly. There are a number of issues respecting the development of provincial

apparel products:

< New product design and development is an ongoing challenge in the provincial

industry. For those producers who understand their markets and have control

over their production process, they can integrate changes into their designs and

can effectively transfer these into production. For smaller and home based

producers, this is not accomplished easily and traditional designs tend to

dominate production;

< Developing new designs among individual producers is not a process that

comes easily to many people. The process is based, in part, on innate creative

abilities, an intuitive understanding of what the market will accept and the ability

to transfer concepts to the production floor. Not all individuals have this

combination of skills and filling the void is difficult in a small industry with so few

mechanisms and opportunities for networking. Many producers simply do not

know who is out there and where they can find the expertise they need. The fact

30

that there is no formal training mechanism also hampers the transfer of skills and

sharing of expertise;

< The need for new designs can be addressed, to some extent, through other

mechanisms and their potential cumulative effect, particularly efforts to

encourage networking, partnering, skill’s development and training, etc.;

< Producers need to adopt other industry strategies to assist them in becoming

more competitive and this includes adopting new industry “best practices” and

contracting out that will enable them to focus on their core competencies. The

development of strategic partnerships to secure long term relationships to

support the overall production phase can be very effective as a competitive

strategy. Contracting out opportunities within the Province are very restricted

and firms seeking to develop strategic partnerships have to look outside the

Province. At least two firms in the Province have contacted work to out-of-

Province producers and have successfully integrated this practice into their

longer term growth strategy; and

< Individual producers would benefit from cooperative purchasing and selling

practices to maximize transportation savings and shipping expenses.

3.5 Industry Representation

The apparel industry within the Province has no official spokesperson or industry

association that represents its interests. Only with the work of the IAS Apparel

Committee have apparel producers been recognized as forming a distinct and relatively

new industry with the potential to generate new economic growth.

Traditionally, the apparel industry has been seen as a subset within the craft

sector and so their interests and need for representation were seen as taken care of by

craft and community associations. The apparel industry is fundamentally different from

the craft industry in terms of the marketplace, technologies required and labor

requirements. As well, it is governed by a completely different mind set and language

that reflects the operating principles of an advanced international industry.

There are few opportunities for people engaged in the apparel sector to network,

communicate and share issues. The June 1999 conference in Corner Brook organized

31

by the IAS Committee provided an ideal opportunity for apparel producers to meet

independently as an industry in order to explore common issues, meet with people

involved with the international industry and better understand their environment and

industry. The opportunity was invaluable, not only from the perspective of developing

new knowledge but also for the opportunity to bring industry people together. There

was strong interest in forming an independent industry association to strengthen the

credibility of the industry, ensure producers are aware of industry trends and provide

ongoing support for the industry’s development.

If the provincial apparel industry is to be successfully developed, there must be a

concentrated focus on its specific and unique development needs. This will require

independent representation that will allow members of the industry to concentrate on the

issues particular to their industry. Other provinces have seen considerable value in the

establishment of industry organizations as a strategy to advance their industries. The

IAS Committee has negotiated with the Alliance of Manufacturers, Newfoundland and

Labrador (AMEN) to represent apparel producers and to establish a dedicated

“Apparel Committee” to focus on the specific development needs of the industry and

provide associated supports. This Committee will continue with the work of the IAS

Committee and implement the initiatives outlined in the Action Plan presented below.

The resources of the Alliance are limited, however, and implementation of this

strategy will require concentrated development assistance for a period of more than one

year. Without the dedication of appropriate resources the IAS Committee is concerned

that the work it has initiated will be stifled.

3.6 Accessing Capital

Financial challenges are also impeding the ability of producers to grow their

operations. Without access to capital producers are unable to purchase the new

technologies needed, train their staff and develop new products and markets. For many

producers the costs of new technologies and training staff in the use of these

technologies is prohibitive.

Small businesses typically must deal with financial problems and the issues

within the apparel industry are not unique. For this reason the Committee did not

explore this matter in detail save to uncover any financial issues that were particular to

the industry. In this regard, it found that the lack of a profile for apparel manufacturers in

32

the Province and the lack of awareness regarding associated opportunities could be

impacting on the ability of producers to secure financing. This issue could be

addressed with raising the profile of the industry and with a concentrated effort on the

part of governments to promote its development.

33

4.0 Conclusions and Action Items

The manufacture of clothing and related items is a viable industry in

Newfoundland and Labrador. It has an established history in this province and is

profitably carried out in both rural and urban areas. The IAS Apparel Committee sought

to define the industry, establish its profile and identify actions to overcome impediments

and assist its growth. The following key items were identified by the IAS Apparel

Committee as necessary actions to provide a basis for structure, growth and support for

the industry in the immediate future. These action items are directed to the industry

through its newly formed industry association and to relevant government agencies

interested in promoting economic growth in Newfoundland and Labrador.

4.1 Continuing Industry Development

The Committee felt there was plenty of new growth opportunities especially in

export and expanding tourism markets but the industry required a unity and strength

to ensure identity and competitiveness in the world market. It recommends:

< Provide continuing industry representation through a dedicated apparel industry

association, which could be a committee within The Alliance of Manufacturers

and Exporters of Newfoundland (AMEN);

< Sponsor an annual conference and regular workshops focused on the continuing

development needs of the industry;

< Continue distributing a regular apparel newsletter to industry participants;

< Establish a personal and regular liaison with provincial ministers responsible for

policies and programs impacting the industry;

< Establish a consultative process with relevant government agencies /

departments to facilitate input into policies and funding mechanisms affecting the

industry;

< Encourage government to focus support initiatives on strengthening the existing

industry;

34

< Request the Department of Development and Rural Renewal to assign a full time

development officer to focus exclusively on the development needs of the

industry;

< Provide opportunities for producers to visit other Canadian apparel production

operations;

4.2 Adopting New Technologies

The Committee felt that in order to be competitive in the larger markets it must

avail of modern production methods and advanced tools and technologies. It noted

that Newfoundland and Labrador was deficient in expertise and access to new

technology compared with other Canadian provinces. The Committee advises:

< Promote the competitiveness of the industry by exposing producers to new

technologies and encouraging their adoption;

< Ensure that apparel producers have ready access to apparel engineering

expertise through the Manufacturing Technology Centre (MTC) in St. John’s and

other centres in the central, west and Labrador areas;

< Ensure there is sufficient financial support available to producers investigating

and / or acquiring new technologies.

4.3 Skills Development

The Committee determined that the greatest impediment facing the industry

was a lack of skilled, industrial labor. There is an immediate requirement to train

existing as well as new sewers in modern industrial methods. As well, knitters are

aging, leaving considerable uncertainty over the future availability of machine and

hand knitters. The Committee recommends:

< Work with the industry to define more precisely the skill sets required by

producers;

< Offer an opportunity to a group of sewers and trainers to attend the industrial

sewing training provided by the Manitoba Fashion Institute;

35

< Ensure there are provincial training facilities and opportunities that address the

training needs of all three sub-sectors of the industry; these needs must be based

on the practical needs of the industry rather than institutionally focused.

< Identity appropriate mechanisms, such as “train the trainer,” that will ensure

training is available throughout the Province;

< Build sound enterprises by establishing training related to best business

practices, such as customer feedback mechanisms, performance analysis tools

and future forecasting.

< Access funding to support the training / skills development required by the

industry;

< Explore opportunities to utilize wage subsidy programs as a mechanism for skills

development;

4.4 Marketing

Marketing and sales are major topics which the Committee felt required

additional investigation. Our industry is particularly weak in this area and would benefit

by greater government support directed at expanding further into US markets. The

Committee recommends priority action as follows:

< Investigate the benefits of developing a distinct profile / identity for the provincial

apparel industry;

< Analyze the knitwear sectors in other countries to determine the potential for local

knitwear in the world market;

< Secure the province’s commitment to integrate promotion of provincial apparel

products in all provincial marketing and promotion venues, including the

Province’s tourism lure initiatives;

< Assist individual producers in developing effective marketing strategies;

36

< Support new marketing venues, including participation at alternative trade shows

focused on the apparel, ski and fashion industry;

< Encourage and support producers in developing export markets;

< Explore opportunities for e-commerce and the development of a cooperative on-

line marketing venue for producers.

4.5 Product Development

The Committee recognizes the importance of innovation and new design in

both fashion and traditional garments. We must use our heritage and culture as a

foundation for new design as well as exploring new trends in recreational, industrial,

children’s and fashion markets. The Committee encourages the following actions:

< Establish mechanisms to help producers remain up to date with changing

consumer preferences and market trends;

< Identify initiatives to assist producers with new product development;

< Partner with universities and colleges to develop training and other mechanisms

which focus on developing design theory and skills within the industry.

37

Appendix I: Committee Members

Alastair Allan Chair

Colin Baird Woof Design

Tamara Biehn Administrative Support

Marilyn Bridle LST Enterprises LTD

Kelly Bruton Textiles Association

Paula Cornec Winterhouses

Paula Gobi Gobi for Girls

Tom Hawco Human Resources Development Canada

Rosalind Jardine Stitches from Salmonier

Norma Larkin Grenfell Handicrafts

Rita Malone DDRR Corner Brook

Karen Matthews Nortique Fashions

Damian Morrissey Queen’s Fettle

Karen Pottle Exploits Oilskin Originals

Jean Sheppard Yarn Point Knitters

Ranalda Steele Steele Sweaters

Karen Thistle Department of Development and Rural Renewal

Jane Williams Pool’s Cove Crafts

Other Resources:

Marget Davis Management By Design

Kathy-Jane Elton KJ Enterprises

Andy Fisher Manufacturing Technology Centre

38

Appendix II: Apparel Industry Job Classifications and Skill Sets

Job Profile / Job Skills Application of Skill in Province

Design -Conceptualize and produce design for different mediums

-Create master patterns for production

-Translate designs into master products

-Provide specifications for production of garment

-Generally the responsibility of the owner

-A limited number of firms contract out design work

-Majority of producers have limited or no design capabilities

*-Lack of design capabilities cited by the industry as a majorimpediment to growth

Production

Management

-Supervise, co-ordinate and schedule prodn’t activities

-Recommend measure to improve prodn’t and quality

-Organize and balance worker work flows

-Manage efficiencies / performance; improve standards

-A limited number of firms have staff dedicated to this function but

generally carried out by the owner

Garment

Assembly and

Production

-Operate machines to product woven, non-woven, and knitted

products

-Reproduce patterns, drawing-in, tying warps, setting up looms

-Operate / maintain at basic levels looms, knitting and a variety

of sewing machines (single, double and multi-needle)

-Operate pressing machines;

Construct garment modules for final assembly

-Complete garment from beginning to end, if necessary

-For home based business this is done by the craftsperson who

constructed the garment.

-In some cases the owner will take over final construction

-The limited number of larger producers have dedicated staff

*Identified by the Industry as one of the more significantimpediments to growth and advancement

Equipment

Maintenance

-Install, maintain and repair machinery and equipment

-Inspect, examine and adjust parts for smooth operation

-Preventative maintenance.

-Generally falls to the operator of the machine

-Some producers access family members

-for new technologies, the supplier will provide service but in most

cases suppliers are out of Province and have to be brought in

Industrial

Engineering

-Work independently or provide technical support and services

in the development of production methods, facilities and

systems and scheduling or work

-This skill is not available in the majority of companies and must

be assumed by the owner

*-Lack of knowledge in this area and access to expertise wasidentified by the Industry as a major impediment to growth

39

Merchandising,

Marketing and

Retailing

-Plan, organize, direct and control activities involved in sales

-Develop and implement marketing strategies, including

advertizing and promotion

-Predominantly undertaken by the owner through trade shows and

other industry venues as well as networking

-A limited number of firms active outside the Province have agents

-Some Internet marketing used

*-Identified by the Industry as one of the more significant

impediments to growth

Quality Control -Inspect and grade garments

-Verify size and fit and check overall quality

-Guarantee the standards of finished products before shipment

to customers

-All producers identify quality control as of utmost importance

-All staff / producers are responsible for quality in their work

-Larger firms have dedicated staff for quality checks

-Owners generally monitor on an ongoing basis

Transportation

and

Distribution

Logics

-Verify and pack customer orders

-Keep all shipment records and other documentation

-Ship orders

-Load / unload shipments of materials and finished products

-Smaller operators undertake this work or utilize family members

at peak times

-Larger firms have dedicated staff

Financial

Management

-Plan, organize, direct and control the financial operations -Generally the responsibility of the owner; only the larger firms

have dedicated staff; -Skills in this area are limited

*-Identified as a continuing impediment to stability

Business

Management

-Plan, organize, direct and control the overall business

strategy, direction and performance of the enterprise

-Generally the responsibility of the owner or family member

-Some producers have very limited skills in this area

40

Appendix III: References

Advancing the Apparel Industry: Workshop Proceedings. Prepared by the Humber Economic Development

Board. June 1999

Apparel Contracting Operations: Potential for Newfoundland and Labrador. Marget Davis, Management By

Design, May, 2000

Case Studies on Implementing Technology in the Clothing and Textile Industry. Union of Needletrades, Industrial

and Textile Employees.

Human Resources Needs Analysis of the Canadian Apparel Industry: Issues and Recommendations Apparel

Human Resource Council.

Newfoundland and Labrador Knitwear Industry Scoping Study. Marget Davis, Management By Design, April,

2000

Meeting Minutes. IAS Apparel Committee, January 1999 - February 2000.

Modern Technology for the Design and Fabrication of Textile Products. Manufacturing Technology Centre,

1999.

The Apparel Sector, Newfoundland and Labrador: An Industry Profile. Kathy-Jane Elton, March 1999

Training Needs Assessment for the Apparel Industry in Newfoundland and Labrador. Management by Design,

December 1999.

Training Needs Curriculum Outline. Apparel & Textile Association of Saskatchewan.

41

THE APPAREL SECTOR

NEWFOUNDLAND AND LABRADOR

AN INDUSTRY PROFILE

Submitted to:

The Apparel Sector Industrial

Adjustment Services Committee

By

Kathy-Jane Elton

March 1999

(Editor’s note. This study was conducted in March 1999, based on an estimated

number of industry members. During the course of the work it became clear that we

had underestimated this number. The industry listing included at the end of this

section, the Profile Report in the Action Plan and the figures quoted in the background

reports reflect a second, more complete survey conducted later in 1999. Despite the

42

resultant discrepancies this Profile report is included because it provides a valuable

insight into the structure of the apparel industry of Newfoundland and Labrador.)

43

INDUSTRY PROFILE

TABLE OF CONTENTS

1.0 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

2.0 Data Collection

The Development of an Industry Listing . . . . . . . . . . . . . . . . . . . . 39

The Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

3.0 Industry Profile

Employment Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Years in Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Products Manufactured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Markets Served . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Sources of Raw Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Marketing Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Interest in Expanding and the Barriers . . . . . . . . . . . . . . . . . . . . . 42

Use of Computers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Geography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Appendix 1: Survey Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Appendix II: Survey Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Appendix III: Up to Date Listing of Industry Participants . . . . . . . . . . . . . . . . . . 52

44

1.0 Background

KJ Enterprises was engaged by the Industrial Services Adjustment Committee for the

Apparel Industry to undertake the development of a profile of the provincial apparel industry.

This profile would be based on the results of quantitative data collection and an analysis of

the resulting data. The results of this work were intended to assist the Committee in

understanding this sector, the level of activity within the sector and to some extent, its

relevance within the provincial economy. The information would also assist the Committee

in developing recommendations regarding the merits and potential priorities for a strategic

development plan for this sector.

2.0 Data Collection

The Development of an Industry Listing

To undertake the collection of data, it was essential to develop a complete and

comprehensive listing of the industry participants. In developing this list the industry definition

provided in the February 2, 1999 Terms of Reference was used as a basis. This was

established by the Committee as follows:

The Apparel industry is defined as those firms in Newfoundland and

Labrador engaged in the manufacture of clothing, headwear, handwear,

footwear and related accessories for the consumer, commercial, sports

and industrial markets.

A listing was developed based on a number of lists provided by the Newfoundland and

Labrador Crafts Development Association and the crafts section of the Provincial Department

of Development and Rural Renewal. The draft listing was then circulated among key

committee members and additions and other adjustments were made accordingly.

It had been projected that there were approximately 50 to 60 industry participants.

Once complied, however, the final listing of all participants numbered 104. To keep the

project within its original scope, the listing was narrowed to 60 participants for interviewing

purposes. This listing was based on those organizations / individuals believed to be most

active in the industry.

45

Editor’s Note: The complete listing of all people and firms believed to be active in the

industry at the time of publication is outlined in Appendix III. For information

purposes, Appendix III also includes organizations supporting the apparel industry

as well as the resource people and consultants involved in presentations and

research for the Apparel Industry IAS Committee.

The Survey

To facilitate the collection of relevant data, a survey was developed which focused on

key areas for information collection. The survey was designed to take no longer than 5-7

minutes to complete and not to be invasive in terms of the information being requested. The

survey was developed in cooperation with the Committee Chair and several members of the

Committee. Key information requirements were to confirm basic data regarding the operator,

addresses, etc. that would form the basis of an industry directory. Other information that was

required was a comprehensive database of products developed, years in operation, sources

of raw materials, the level of marketing undertaken and their perceived need for their

continued development within the industry. Other issues included an estimation on

employment levels.

Information that would have been desirable includes, gross revenues, average industry

markups and profit margins, net revenues and personal annual incomes for operators. There

was concern that asking this information could be perceived as invasive and could jeopardize

the level of participation in the survey. It was agreed that this information would not be

included.

All surveys were conducted by telephone by an independent and highly experienced

interviewer. There were no site visits undertaken. Quality control was ensured by a random

check of survey results with the original interviewees and a through review of all data.

46

3.0 Survey Results: An Industry Profile:

The following provides a brief overview of the survey results. For a full outline of all

response rates and relevant averages, the reader is referred to Appendix I.

Employment Levels:

Employment levels are difficult to estimate by the respondents. Operators could

confirm the level of full time or permanent staff; however levels of temporary or contractual

staff were difficult as it typically varies with the seasons and among operators. Based on the

data available, there are approximately 1000 people working part-time or on a contractual

basis within the industry working seasonally or on a regular basis. Approximately 225 people

are employed full time with an average work week of 39 hours. These figures would no doubt

increase with a broader survey of all participants.

Years in Business:

The apparel industry is not new to the Province with the majority of firms interviewed

(64 per cent) having been in operation for more than five years. However, this information

could be prejudiced in so far that it is based on survey respondents that were selected. It is

quite possible that the survey omits firms which have started operations within the last one to

two years and are not known to the industry or the industry supports organizations. To fully

explore this issues, a more in-depth effort would be required.

Products Manufactured:

The products which are more prominent among manufacturers include

outerwear/coats. Typically, firms manufacturing outerwear are also producing headwear,

handwear and, to a lessor degree, footwear. The next largest category of product

manufactured was knitwear at 31 per cent.

The Committee may find it useful if the data provided information on participants’ intent

to develop new product lines and in what areas this development might occur.

Markets:

The majority of products are sold in the province with 21 percent of firms relying on the

47

local marketplace for 100 per cent of their business. Approximately 45 percent are exporting

products to other provinces and, to a lessor degree, the United States and Europe. In future

data collection it may be useful to probe the industry on their export readiness including:

< interest in exporting

< any experience with exports

< knowledge of exporting

< the availability of counseling in the area

< supports required

Sources of Raw Materials:

Respondents were most reluctant to provide information on their suppliers and some

did refuse; other respondents were only prepared to identify province where they purchased

materials. This was particularly true for firms which noted that their raw materials and sources

of supply are part of their efforts to produce unique product.

Sources for products varied. Newfoundland was the main source for suppliers in all

categories followed by Quebec. Other suppliers are located in New Brunswick and Ontario.

Few firms obtained raw materials from the United States or Europe.

Marketing Efforts:

The majority of interviewees (76%) are engaged in some form of marketing. The most

common approach to marketing entailed participation at trade shows and for many firms, this

represented their only marketing efforts. Some firms are beginning to use more direct

advertizing through flyers or other means and a limited number utilize the Internet or an agent.

There were also a limited number of firms utilizing more than one marketing tool.

Interest in Expanding and the Barriers:

The majority of firms are interested in expanding their operations (67%). Some

respondents (19%) stated that they were happy with the status quo and that their business

provided them with the rewards and income they required. Other firms indicated they would

like to expand but were challenged by a variety of issues they would not be able to resolve in

the short term. Interviewees which indicated they were not interested in expanding also noted

48

reasons why they would not pursue growth.

There were a variety of reasons that were raised as barriers to expansion. The

majority of respondents noted the need for more marketing and this included a number of

avenues, including more trade shows and more industry directories. Other issues raised

were the need for qualified staff both with design capabilities, sewing skills and basic job

skills. Concerns with quality were very much related to the inability to recruit qualified and

reliable staff. Some respondents noted the challenges of rural locations, the cost of

transportation and the need for better communications within the industry.

Financial assistance was raised by more than 50 percent of respondents as a reason

for their inability to expand and as an area which required government support. Typically, it

was noted that such assistance was required to finance marketing efforts and trade shows,

training, acquisition of new production equipment and to subsidize labor and transportation

costs.

Use of Computers

Computers are being used in their business by about 65 percent of respondents. The

majority use the computer for accounting primarily (55%) but some are using computers for

inventory management (31%), communications (12%), Internet services (26%), marketing

(26%) and working with suppliers (21.4%). Some respondents indicated no interest in the

use of a computer while others indicated that they were in the process of making the purchase

for their business. Presently, 35 per cent of respondents do not use a computer at all.

Geography

Based on the mailing addresses of respondents, the geographic disbursements of

industry participants surveyed is as follows:

Number Percentage

St. John’s Metro 18 38.3%

Avalon 2 4.3%

Eastern Nfld (excluding above): 4 8.5%

Central Nfld.: 8 17.0%

49

Western Nfld (including Northern Pen.): 10 21.3%

Labrador: 5 10.6%

50

APPENDIX I: SURVEY INSTRUMENT

Company:

Owner / Operator:

Phone Number:

To help with this work I am asking for about 7 minutes of your time to complete the

following survey. Will you participate?

CONFIRM:

Company Name

Operator/Owner

Address

Tel: Fax:

1. Approximately how many employees do you employ on a: (READ LIST)

Part-time basis Hours Per Week: 1

Contract basis Hours Per Week: 2

Full Time basis Hours Per Week: 3

2. What year did your company begin operations?

(# of years operating: FILL-IN.)

3. What are the main products you manufacture.(DO NOT READ OPTIONS)

Clothing (Specify)

-Outerwear/Coats 9 1

-Ski / Sports Wear 9 2

-Dresses/skirts/blouses 9 3

-Sleepwear 9 4

-Kids Clothing 9 5

-Knit Wear / Sweaters 9 6

-Other

51

Headwear 9 7

Handwear 9 8

Footwear 9 9

Refused / Don’t Know 9 10

Other (Specify) 9 11

4. What markets do you presently serve and what percentage of product is sold in

these markets? (READ LIST)

Markets Percentage

of Business

Provincial wholesale 9 % 1

Other Canadian 9 % 2

US wholesale 9 % 3

Asia 9 % 4

Europe 9 % 5

Refused 9 % 6

5. What are your main raw materials and where - what province or country - do they

come from? (DO NOT READ LIST)

Materials Source

Fabric 9 1

Wool yarn 9 2

Fur 9 3

Fleece 9 4

Leather/skins 9 5

Other 9 6

Refused 9 7

6. Do you currently undertake any marketing?

Yes 9 (GOTO # 7) 1

No 9 (GOTO # 8) 2

Refused / Don’t Know 9 (GOTO # 8) 3

52

7. What types of marketing activities do you undertake? (READ LIST ONLY IF

NECESSARY)

Trade/Gift shows 9 1

Through an Independent agent 9 2

Advertising 9 3

Personal contact 9 4

Internet 9 5

Refused / Don’t Know 9 6

Other 9 7

8. Are you currently interested in expanding your operations?

Yes 9 1

No 9 2

Not sure 9 3

Refused / Don’t Know 9 4

9. Are there current issues that prevent or discourage you from expanding?

Yes 9 1

No 9 2

Refused / Don’t Know 9 3

Why/ Why Not:

10. What type of support or assistance do you believe is most important for the industry

at present?

11. Do you currently utilize computers in operating your business for. (READ LIST)

Nothing 9 1

Accounting 9 2

Inventory Management 9 3

Internet search 9 4

53

Communications 9 5

Marketing 9 6

Working with suppliers 9 7

Other 9 8

APPENDIX II: SURVEY RESULTS

Summary of Responses

Number of Completes: 42

Number Refused: 2

Number “Out of Business”: 6

Number of Wrong Number 2

or Not in Service:

Not in Industry: 5

Could Not be Reached 2

TOTAL 59

Individual Questions Results

1. Approximately how many employees do you employ?

Part-time basis 172 Avg. Hrs/ Week: 17.5

Contract basis: 435 Avg Hrs/ Week: Could not estimate

Full Time basis 223.5 Avg Hrs/ Week: 39.0

2. Number of years in operation

Number Percentage

0 - 5 15 35.7%

6 - 10 12 28.6%

11 - 15 5 11.9%

16 - 20 2 4.7%

21 - 25 5 11.9%

54

0ver 25 2 4.7%

Don’t Know 1 2.3%

3. What are the main products you manufacture?

Number Percentage

Outerwear/Coats 18 42.9%

Headwear 17 40.5%

Handwear 16 38.1%

Knit Wear / Sweaters 13 31.0%

Footwear 10 23.8%

Kids Clothing 6 14.3%

Dresses/skirts/blouses 4 9.5%

Ski / Sports Wear 3 7.1%

Tee Shirts 3 7.1%

Sleepwear 1 2.4%

Other 6 14.3 %

Note: Percentages do not total 100 for this question because some firms are

involved in manufacturing multiple products.

4. What markets do you presently serve and what percentage of product is

sold in these markets?

Number Percentage

Markets

Provincial 41 97.6%

Other Canadian 19 45.2%

US 10 23.8%

Europe 1 2.3%

Asia 0

55

Refused 1

Note: Percentages do not total 100 for this question because some firms are

marketing in more than one marketplace.

56

Percent of Business:

Provincial Other

Canadian: US Europe

100% 21 0 0

901% - 70% 5 2 0

69% - 50% 8 4 0

49% - 20% 2 7 1 2

Less than 20% 1 2 3 4

Refused 4

5. What are your main raw materials and where do they come from?

NF. NB. PQ. Ont US Other

Materials: Fabric 12 2 12 9 3 3

Materials: Wool yarn 4 7 4 3 2

Materials: Fur 6 3

Materials: Fleece 3 4 1 3

Materials: Leather/skins 1 1

Refused 4

6. Do you currently undertake any marketing?

Number Percentage

Yes 32 76.0%

No 10 24.0%

7. What types of marketing activities do you undertake?

Number Percentage

Trade/Gift shows 27 64.3%

Advertising 16 38.1%

Internet 6 14.3%

Personal contact 5 11.9%

Independent agent 3 7.1%

Other 3 7.1%

Note: Percentages do not total 100 for this question because some firms utilize

more than one marketing approach.

57

8. Are you currently interested in expanding your operations?

Number Percentage

Yes 28 67.0%

No 10 24.0%

Not sure 4 9.0%

9. Are there current issues that prevent or discourage you from expanding?

Number Percentage

Yes 21 50.0%

No 17 40.0%

Not sure 4 9.0%

Content with Status 8 19.0%

Why/ Why Not: Number Percentage

Marketing 24 57.1%

Financial Constraints 23 54.8%

Time 8 19.0%

Staffing Issues 7 16.7%

Training 5 11.9%

Production Challenges 3 7.1%

Lack of design 3 7.1%

Transportation 3 7.1%

Isolation 2 4.8%

Bureaucracy 1 3.3%

Other 4 13.3%

Note: Percentages do not total 100 for this question because firms often

expressed more than one issue.

10. What type of support or assistance do you believe is most important for the

industry at present?

Refer to Question # 9.

58

11. For what purpose do you currently utilize computers in operating your

business ?

Number Percentage

Accounting 23 55.0%

Inventory 13 31.0%

Communications 12 28.6%

Internet search 11 26.0%

Marketing 11 26.1%

Suppliers 9 21.4%

Other 2 4.7%

Nothing 15 35.7%

59

APPENDIX III

APPAREL INDUSTRY PARTICIPANTS - JUNE 2000

Company Owner/Operator Address 1 Town/City Prov Postal Code Telephone Fax Email AddressAJH Crafts Tulk, Susie Box 49, Site 4 Appleton NF A0G 2K0 679-2360

Anna Templeton Centre Furneaux, Susan 278 Duckworth Street St. john's NF A1C 1H3 739-7623 739-7624

Anne Marie Knight Anne Marie Knight PO Box 412 Kelligrews NF A0A 2T0 744-2212

Atlantex Imaged Wear Yates, Denis PO Box 70 Bishop Falls NF A0H 1C0 258-2000 258-2001

Aunt Maggie's Homespun King, Margaret PO Box 89 Woody Point NF A0K 1P0 453-7282

Barashel Creations Chafe, Barbara 24 Colonial Street St. John's NF A1C 3M8 726-6877

Barbara Wood Wood, Barbara PO Box 251, Stn B Happy Valley NF A0P 1E0 896-5449

Baynoddy Lewis, Linda Box 149 Holyrood NF A0A 2R0 229-6296 229-6296

Bayview Crafts Bussey, Louise PO Box 1 St. Lunaire NF A0K 2X0 623-2806

Blueberry Designs Burry, Renee Site C, Box 95 Portugal Cove NF A0A 3K0 895-2090

Borealis Crafts Way, Olive PO Box 100 Shoal Cove East NF A0K 5C0 456-2123 456-2506 catmoores@hotmail.com

Brishney Crafts Barlett, Alma PO Box 730 Springdale NF A0J 1T0 673-3110 673-3959

C & M Sewing Boutique Rumbolt, Cecelia/Matilda Main Road Mary's Harbour NF A0K 3P0 921-6998

Circle Crafts Simmonds, Ruby General Delivery St. David's NF A0N 1X0 645-2909

Creative Crafts Sooley, Matilda 43 Brosan Street Corner Brook NF A2H 6B1 785-2230

Daisy's CustomDressmaking Linthorn, Daisy PO Box 906 Bonavista NF A0C 1B0 468-2341

Designs by Judy Taylor Taylor, Judy

96 Waterford Bridge

Road St. John's NF A1E 1C6 739-9174 778-1473

Distinctive Knitting March, Patricia

13 "K" St., PO Box 24,

Stn B Happy Valley NF A0P 1E0 896-5906

Ewe Designs Kane, Joan Trinity NF 464-3679

Exploits Oilskin Originals Pottle, Karen 1A McFarlane St St. John's NF A1C 4T5 579-1234 579-1224 kpottle@firstcity.net

Fashioncraft Shepherd, Eileen PO Box 311 Gander NF A1V 1W7 256-3191 256-7044

Fashions to Fit Shea, Marie 89 Main Street Grand Falls NF A2B 1H9 489-2934 489-0326

Frostwear By Foss Foss, Angela PO Box 2084 Northern Arm NF A0H 1E0 257-3801 257-2345

Frosty Fashions Foley, Carol Main Street, PO Box 159 Whitbourne NF A0B 3K0 759-2280

Gobi for Girls Gobi, Paula 70 Lind Ave Grand Falls-Windsor NF A2A 1W2 489-6342 489-9585 paulagobi@roadrunner.nf.net

Grenfell Handicrafts Larkin, Norma PO Box 280 St. Anthony NF A0K 4S0 454-4010 454-4047 info@grenfell-properties.com

Hanna Banana Wear Harding, Carolann 11 Millbank Street St. John's NF A1B 1P2 754-9349 753-7216

Harpur's Knitting Harpur, Barbara 284 Duckworth Street St. John's NF A1C 1H3 738-0013 738-0013

Jas Silks Sasonow-White, Jane PO Box 84 Norris Arm North NF A0G 3N0 653-2418 653-2417 info@jassilks.com

Jubilee Crafts Canning, Doreen PO Box 664 Springdale NF A0J 1T0 673-3886 673-4336

Company Owner/Operator Address 1 Town/City Prov Postal Code Telephone Fax Email Address

60

Labrador Craft Marketing Garland, Jim PO Box 1715, Stn A Goose Bay NF A0P 1E0 896-2121 896-2720 labcraft@cancom.net

McHill Wool Processing Hillier, Wendy General Delivery Green's Harbour NF A0B 1X0 582-2770

Micmac Crafts Joe, Mardina PO Box 10 Conne River Reserve NF A0H 1J0 882-2470 882-2292

Moores Handicrafts Nath Moores, Barbara 8 Country Road L'anse au Clair NF A0K 3K0 931-2022 931-2054

Mostly Moccasins Briffett Waye, Debbie 54 MacDonald Drive Gander NF A1V 1E7 256-2080

NONIA Anderson, Judy 286 Water Street St. John's NF A1C 1B7 753-8062 753-1577

Northwest River Industrial

Goodfellow-Baikie,

Robin PO Box 95 Northwest River NF A0P 1M0 497-8820

Nortique Fashions Matthews, Karen PO Box 3257, RR#2 Corner Brook NF A2H 6B9 634-8344 783-3344

Polar Crafts Pilgrim, Ruth PO Box 578 St. Anthony NF A0K 4S0 454-8908 454-8348

Pool's Cove Crafts Williams, Jane PO Box 61 Pool's Cove NF A0H 2B0 665-4151 665-4122

Puff Baby Howard, Holly PO Box 8495 Manuels NF A1X 1B5 834-8887 834-8887 puffbaby@nf.sympatico.ca

Soiree Design Holloway, Peg20 Holloway Pl. PO Box10219 Manuels NF A1X 1E3 744-2282

Southwest Arm Knitters Whelan, Alma General Delivery Little Heart's Ease NF A0E 2K0 548-2395

Specialty Apparel Clarke, Donna Site 12, Box 32 Mount Pearl NF A1N 2M3 364-3004 364-3793

Steele Sweaters Steele, Ronalda PO Box 13433, Stn. A St. John's NF A1B 4B7 576-7673 576-7673 rmsteele@nfld.com

Stitches from Salmonier Kelly, Cheryl 181 Water Street St. John's NF A1C 1B1 722-7555 739-9951 woof.baird@nf.sympatico.ca

Superior Gloves Stuckless, Frazier 214 Main Street Point Lemington NF A0H 1Z0 484-3596 484-3557

Terra Nova Shoes Butt, William Water Street Harbour Grace NF A0A 2M0 596-5051 596-7254

The Berry Patch Hynes, Leslie PO Box 561 Clarke's Beach NF A0A 1W0 786-3050 786-3050

The Hobby Shop Christine Jane Exploits Valley Mall Grand Falls NF A2A 1X3 489-2120 489-2120

The Merchant House Inc. Mackey, Patrick POBox 13968, Stn A St. John's NF A1B 4 722-2326 722-0563

The Sea Urchin Janet Brake PO Box 513 Gander NF A1V 2E1 651-3241

Timbercove Lambs Wear Kielly, Marjorie Box 8, Site 2 St. Mary's NF A0B 3B0 525-2015

Trinity Knitwear Brown, Emma General Delivery Cavendish NF A0B 1J0 588-2051 588-2355 t.knit@nf.sympatico.ca

Victoria Bridel Clarke, Linda 333 Freshwater Rd St. John's NF A1B 1C3 753-4937

Weaving from the Centre O'Handley, Sheila Box 145, RR #1 Doyles NF A0N 1J0 955-2150 955-3316

Whaler's Gifts and Designs Bridle, Marilyn General Delivery Red Bay NF A0K 4K0 920-2156 920-2156

Winterhouses Cornec, Paula 108 Main Street Stephenville NF A2N 1J3 643-4844 643-4558 beavercraft@nf.sympatico.ca

Woof Design Baird, Colin 181 Water Street St. John's NF A1C 1B1 722-7555 739-9951 woof.baird@nf.sympatico.ca

Woolen Wonders Lovell, Gertrude PO Box 4511, RR #2 Corner Brook NF A2H 6B9 688-2303 688-2303

Yarn Point Knitters Sheppard, Jean PO Box 75 English Harbor W NF A0H 1M0 888-6441 888-2125

Resource People and Consultants Involved in Presentations and Research during the Apparel Industry IAS

61

Organization Name Address Phone Fax emailKnitwear Specialist Asha Ruperelia 16 Summerdale Dr. Thornhill, Ont. L3T 6X2 905-886-1666 asha_ruparelia@hotmail.ca

Designer Brian Bailey 327 Richmond St.West Toronto, ON M5V 1X6 416-506-1444 416-506-9279

ACOA Karen Daley P.O.Box 1060, Station "C" St.John's, NF A1C 5M5 772-2867 772-2712 kdaley@acoa.ca

ACOA Shirley P. Dawe P.O.Box 1060, Station "C" St.John's, NF A1C 5M5 772-0248 772-2712 sdawe@acoa.ca

Accountant Paul Snow 9 Main St.Corner Brook,NF A2H 1C2 709-634-2199 709-634-1550

Apparel HumanResources Council Chris Charette 1050-130 Slater St. Ottawa, ON K1P 6E2 613-567-7495 613-567-1766

Apparel & TextileAssociation, Sk Marilyn J. Pollack 1102, 8th Avenue Regina, Sask. S4R 1C9

Association of TextileArtists Kelly Bruton 12 Tessier Place St.John's, NF A1C 1X9 754-4197 753-4110 kjbruton@nf.sympatico.ca

Halford BarbeeConsulting Gene Barbee 100 Disraeli Freeway Winnipeg, MN R3B 2Z4 204-943-6232 910-215-0995

KJE Kathy Jane Elton 77 Beacon Hill Crescent St. John's. NF A1E 4S6 364-1762 364-2405 kje@nfld.com

M.U.N. School ofBusiness Tom Clift Memorial University St. John's, NF A1C 5S7 737-8526 737-7680

Management By Design Marget Davis 49 Park AvenueMount Pearl,NF A1N 1J2

7472065marget.davis@thezone.net

Manitoba FashionInstitute Lori Smith 3rd Floor, 365 Bannatyne Ave. Winnipeg, MN R3A 0E5 204-942-7314 204-943-2228

ManufacturingTechnology Center John O'Leary CONA PO Box 1150 St. John's, NF A1C 6L8 758-7147 758-7126

john_oleary@northatlantic.nf.ca

ManufacturingTechnology Center Andy Fisher Faculty of Eng, MUN St. John's, NF A1B 3X5 737-2601 737-3056 afisher@engr.mun.ca

O'Farrell Houde Inc(Consultant) James O'Farrell 3539 Bl.St.Charles, Suite 201 Kirkland, PQ H9H 5B9 514-990-1802 ofarl@total.net

Operation Online Jack BotsfordSuite 1220, Cabot Pl., N GowerSt. St. John's, NF A1C 6K3 729-6000 729-6075

Ryerson PolytechnicUniversity Kathy Cleaver 350 Victoria St. Toronto, ON M5B 2K3 416-466-4850 416-979-5227

Ryerson PolytechnicUniversity Bernie Murray

School of Ind.Eng.,350 VictoriaSt. Toronto, Ont. M5B 2K3 416-979-5000 EXT-6530 b2murray@ryerson.ca

Ryerson PolytechnicUniversity Donald Tham

School of Ind.Eng.,350 VictoriaSt. Toronto, Ont. M5B 2K3 416-979-5000 EXT-7209 dtham@acs.ryerson.ca

Sectoral Labour ForceCommittee Lynn Bissonnette

9310 St. Laurent Blvd., Suite1011 Montreal, PQ H2N 1N4

62

Style CommunicationsInc. Doris Montenara

Suite302, 1448 Lawrence Ave.E. Toronto, ON M4A 2V6 416-755-5199 416-755-9123

U.N.I.T.E. (Union ofNeedletrades...) Deborah DeAngelis 15 Gervais Dr., Suite 700 Don Mills, ON M3C 1Y8

Industry Stakeholders and individuals attending apparel conferences during the IAS Committee’s work - 99/00

Organization Name Address Phone Fax email

ACOA Karen Daley P.O.Box 1060, Station St.John's, NF A1C 5M5 772-2867 772-2712 kdaley@acoa.ca

Alliance of Man. Sean McCarthy Parsons Bld., 90 O'Leary St. John's, NF A1B 2C7 772-3682 772-3213 mccarthy.sean@cbsc.ic.gc.ca

Anna Templeton Centre Katie Parnham 278 Duckworth St. St. John's, NF A1C 1H3 739-7623 739-7624

Anna Templeton Centre Barry Buckle 278 Duckworth St. St. John's, NF A1C 1H3 739-7623 739-7624

Anna Templeton Centre Susan Furneax 278 Duckworth St. St. John's, NF A1C 1H3 739-7623 739-7624

Apparel Industry IAS Tamara Biehn POBox 8224 Manuels, NF A1X 1A6 834-5130 834-1281 cfarms@avint.net

Apparel Industry IAS Damian Morrissey P.O.Box 13433, Stn 'A' St. John's, NF A1B 4B7 576-7676 576-7673 damianm@nfld.com

Association of Textile Kelly Bruton 12 Tessier Place St.John's, NF A1C 1X9 754-4197 753-4110 kjbruton@nf.sympatico.ca

Aviex (Chairperson) Alastair Allan P.O.Box 443 RR1 Paradise, NF A1L 1C1 895-2560 895-2560 aviex@nfld.com

College of the North Derek Hicks P.O.Box 395 Gander, NF A0G 1N0 651-4804 651-3376 dhickscona@nf.aibn.com

Craft Council of NF.and Anne Manuel 59 Duckworth St. St. John's. NF A1C 1E6 amanuel@craftcouncil.nf.ca

DDRR, Econ. Dev. Mark Felix 35 Carolina Ave. Stephenville, NF A2N 3P8 643-2600 643-4926 mfelix@mail.gov.nf.ca

DDRR, Econ. Dev. Ernie Pynn P.O.Box 370 Carbonear, NF A1Y 1B7 596-4109 596-4116 epynn@mail.gov.nf.ca

DDRR, Craft Dev. Pete Barrett P.O.Box 997 Lewisporte, NF A0G 3A0 653-2244 653-2298 pbarret@nf.sympatico.ca

DDRR, Econ. Dev. Pat O'Keefe P.O.Box 232 Placentia, NF A0B 2Y0

DDRR, Minister Beaton Tulk 2nd Fl.WBlock, Conf. St. John's, NF 729-4728 729-0654

DDRR, Craft Mkt. Heather Stone 2nd Fl.WBlock, Conf.Bld. St. John's, NF 729-6853 hstone@mail.gov.nf.ca

DDRR, ADM, Small Ent. Bill Stirling 2nd Fl.WBlock, Conf.Bld St. John's, NF 729-7101 729-7234 bstirling@mail.gov.nf.ca

63

RR, Craft Dev. Specialist Jim Spearing PO Box 3014, Stn"B" Goose Bay, Lab. A0P 1E0 896-2400 896-0234 jspearing@mail.gov.nf.ca

Organization Name Address Phone Fax email

DDRR, Director, Rita Malone P.O.Box 2006 Corner Brook, NF A2H 6J8 637-2983 639-7713 rmalone@mail.gov.nf.ca

DDRR, Western Region Lana Bannister P.O.Box 2006 Corner Brook, NF A2H 6J8 637-2983 639-7713 lbannist@mail.gov.nf.ca

DDRR, Craft Market Karen Thistle 2ndFl,W Block, Conf. St. John's, NF 729-7053 729-6853 kthistle@mail.gov.nf.ca

Dept. Industry Trade and Wayne Borden POBox 2006, 63 Corner Brook, NF A2H 6J8

Discovery Fred Mason POBox 3300 Clarenville, NF A0E 1J0 466-1429

Discovery Jane Tobin P.O.Box 3300, Clarenville, NF A0E1J0

Emerald Zone Sandra Downey POB1427, 13 Industrial Springdale, NF A0J 1T0 673-3300 673-4730 smdowney@nf.sympatico

HRDC Regional Hdqters Tom Hawco 689 Topsail Rd. St. John's, NF 772-6223 772-2104 tom.hawco@hrdc-drhc.gc.ca

Humber RED Board Daphne Meade P.O.Box 2006 Corner Brook, NF A2H 6J8 639-3323 639-2927 daphnem@thezone.net

Manufacturing Tech. John O'leary CONA, POBox 1150 St. John's, NF A1C 6L8 758-7147 758-7126 john_oleary@northatlantic.nf.ca

Manufacturing Tech. Andy Fisher Fac.of Engineering, MUN St. John's, NF A1B 3X5 737-2601 737-3056 afisher@engr.mun.ca

Ramea Econ. Dev. Corp Jim Marsden Box 69, Ramea, NF A0M 1N0

Town of Change Islands John Peckford POBox 98, Change Islands, NF A0G 1R0 621-3391 621-6361 jpeckford@calvin.stemnet.nf.ca

Town of Change Islands Joan Ledrew POBox 98, Change Islands, NF A0G 1R0 621-3391 621-6361 jledrew@stemnet.nf.ca

64

Training Needs Assessment

for the Apparel Industry

in Newfoundland and Labrador

Report Prepared for the Industrial Adjustment Strategy Committee

Management by Design

In association with

Davis ConsultingDecember 1999

65

Training Needs Assessment for the

Apparel Industry in Newfoundland and Labrador

Table of Contents

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

1.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

1.1 BACKGROUND OF THE APPAREL INDUSTRIAL ADJUSTMENT STRATEGY INITIATIVE 65

1.2 OBJECTIVES OF THE APPAREL INDUSTRY TRAINING NEEDS ASSESSMENT . . . . . . 66

2.0 Trends in the Apparel Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

3.0 Human Resource Development in the Apparel Industry . . . . . . . . . . . . . . . . . . . . . 69

3.1 APPAREL INDUSTRY HUMAN RESOURCE REQUIREMENTS . . . . . . . . . . . . . . . . . . . . 69

3.2 CAF APPAREL INDUSTRY OCCUPATIONAL PROFILES . . . . . . . . . . . . . . . . . . . . . . . 70

4.0 Skill Set Investments and Acquisitions - Case Studies in the Apparel Industry . . 72

5.0 Training Needs of the Apparel Industry in Newfoundland and Labrador . . . . . . . . 75

5.1 CURRENT APPAREL INDUSTRY SKILL SETS – ROLES AND RESPONSIBILITIES . . . . . 75

5.2 CURRENT APPAREL INDUSTRY SKILL/KNOWLEDGE GAPS . . . . . . . . . . . . . . . . . . . . 80

5.3 PREFERRED METHODS FOR KNOWLEDGE/SKILL ACQUISITION . . . . . . . . . . . . . . . . . 86

6.0 Training Mechanism Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

6.1 INDUSTRY BASED TRAINING INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

7.0 Conclusions and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

7.1 CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

7.2 RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Annex A - Interview Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Annex B - Study Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Annex C - Anna Templeton Centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Annex D - Inventory of Apparel Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

66

Annex E - Supplementary Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

67

Acknowledgments

The Canadian Apparel Federation (CAF) and the Union of Needletrades, Industrial and

Textile Employees (UNITE) requested assistance from HRDC to carry out an analysis of

the human resource needs of the Canadian apparel industry. Human Resources Needs

Analysis of the Canadian Apparel Industry: Issues and Recommendations was conducted

by Price Waterhouse and completed in November 1997. In conjunction with other

interviews, this document has provided perspectives for the current study, particularly in

understanding the larger national trends and human resource development forces which

will shape the apparel industry in Newfoundland and Labrador.

Apparel industry entrepreneurs in Newfoundland and Labrador and elsewhere in Canada

are very busy people. Those who participated in the interviews were generous with their

time and their comments and the study team would like to thank them for their

contributions. The team would like to give special thanks to all those in the Canadian

apparel industry who in their willingness to assist our initiative sent reports, studies, videos

and T-shirts.

The team would also like to thank the IAS Training Needs Assessment Sub-committee and

the IAS Facilitator for their excellent support and assistance.

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Executive Summary

The apparel industry is an important generator of jobs and export dollars. There are over

2,000 apparel manufacturers in Canada who directly employ more than 100,000 workers.

Apparel manufacturers tallied up $6.2 billion in sales in 1995. Most enterprises producing

apparel are small and medium sized businesses. 50% of apparel enterprises employ less

than 20 employees, with fewer than 10% employing over 100 employees.

Apparel producers in Newfoundland and Labrador are represented by approximately 50

companies that cover the spectrum between craft producers and manufacturers. Most

companies are very small, with 3 – 5 employees including the owner operator. Apparel

manufacturing for those who define themselves in this way is distinguished by a mind set

which focuses on industrial methods, technologies and marketing practices. The size of

the company is less important in determining whether it is a craft concern or a

manufacturer than is its approach to products and its vision of the future.

The objective of the Training Needs Assessment for the Apparel Industry in Newfoundland

and Labrador was to:

Review the skill requirements, both business and technical, to determine the skills

necessary for apparel producers to be successful in this industry. These requirements

are to be compared with the skills currently existing in the local sector as well as training

programs locally available. Any apparent gaps are to be identified and strategies

developed for ways in which to close these gaps.

Trends in the apparel industry

Trends in the apparel sector which will have an impact on provincial industry participants

include issues such as changing consumer demand, retail restructuring, demand for

increasing quality, demand for increased response time, changing vendor relationships,

emerging technologies, free trade and intensifying competition and difficulty in accessing

fabric and other inputs.

To further understand the dynamics of the industry, particularly related to training and skill

acquisition, a series of short case studies dealing with growth issues, models for training

69

delivery, technology and training, design sourcing, in-house production versus contracting

out, and trends in the industry present perspectives from others in the Canadian apparel

industry.

Skill and Knowledge Needs

The Canadian Apparel Federation has developed a series of occupational profiles which

outline the jobs and required skills that make up the apparel industry. These occupational

profiles form the basis for human resource development efforts in the apparel industry and

provided the starting point from which to identify the current skills possessed by apparel

industry participants in the province, as well as to identify the gaps in those skills.

The training needs of apparel industry participants in the province fell into four categories:

1) Operational practices in the apparel industry

2) Production methods for apparel and required investment

3) Workforce technical expertise

4) Technology improvements

These categories represent a wide range of knowledge and skill gaps that constrict the

growth and development of both individual entrepreneurs as well as the larger provincial

apparel sector. Apparel industry entrepreneurs know very little about the industry they are

in on a broader scale. This lack of knowledge is a constraint to entrepreneurial

development and confidence, and creates difficulties for small business owners.

Apparel manufacturers in the province also are not entirely familiar with standard

component parts of the industry, such as contracting out operations. New production

methods, workstation designs and worker cross training are part of a modern and growing

apparel industry. Gaps in knowledge concerning these initiatives are present.

The most vocal demand from industry participants was the requirement for an industrially

trained workforce, specifically those with industrial sewing machine operators training.

This skill is basic to the fast, efficient production of quality apparel items but is entirely

lacking in the province. In-house training is practiced by apparel manufacturers to fill this

gap, but that is an expensive and time consuming proposition.

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Technology improvements are of interest especially for small entrepreneurs who do not

have the research resources to keep on top of new technologies and workplace changes.

Interest in technologies is particularly focused on improvements which may have been

made to existing technologies which will streamline production as well as new

technologies on the market that will increase efficiency and productivity.

Training for Industry

Past and present training programs which relate to apparel production were assessed in

terms of their contribution to the industrial production requirements of those in the business

of apparel manufacturing. At the present time there are no institutionally based garment

construction/sewing programs available in Newfoundland and Labrador for industrial

training. It is clear that programs of this nature delivered in the past were not adequate in

terms of meeting industry needs. The Anna Templeton Centre does offer some

customized design services to meet client demand and is interested in increasingly

working with industry.

From experience gained by those who offer training to the apparel industry, the need to

involve industry in the design and delivery of programs is essential. Institutionally based

training and program development is not recommended as the route which will ensure

industry growth and success. Elsewhere institutional partners have played important roles

in providing training venues and administrative support to industry programs, but program

delivery must be from an industry supported group or association. The apparel program

as delivered at the Manitoba Fashion Institute, the membership driven industrial training

arm of the Manitoba apparel industry, is the recommended model for future development.

The imperative to provide human resource development support to the industry across

Canada resulted in the formation of the Apparel Human Resources Council. Other

approaches to training for the apparel industry include those offered by the Manitoba

Fashion Institute and the Apparel and Textile Association of Saskatchewan. These

membership associations have developed initiatives and programs which offer training to

Canadian apparel manufacturers. The MFI Sewing Machine Operators program is

currently defining the Canadian standard for production training. The Sectorial Labour

Force Committee in Apparel in Quebec serves the human resource development interests

of large manufacturers in that province.

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Recommendations

The recommendations arising from the study deal with the necessity to give the apparel

industry direction and cohesion, as well as initiating basic training and professional

development initiatives. Recommendations cover the secondment of an “industry

prospector”, the delivery of distance education and Internet based courses focused on

bridging the gap in knowledge of the apparel sector, the structuring of workshops and

conferences to acquaint industry participants with both new technologies and work

practices, the need to train an apparel industry workforce starting with sewing machine

operators, and the requirement to value existing expertise in the province through

showcases and strategic partnerships.

•• Recommendation 1: Training Development and Facilitation

An Apparel Industry Association/Steering Committee/Interest Group seek

government support for a one year secondment of a full time “industry prospector”.

This individual would be responsible to network with other industry associations to

gather pertinent training material and to carry out the recommendations of this

Training Needs Assessment.

•• Recommendation 2: Apparel Industry Operational Practices

Distance Education courses and Internet delivery of Apparel Industry Operational

Practices should be designed and developed, relying on already existing material

gathered from industry associations and agencies outside of the province.

Familiarization tours to enterprises in other provinces are also recommended.

These will allow industry participants not only to see other methods of production, but

will also encourage development of alliances and potential mentoring relationships.

•• Recommendation 3: Production Methods for Apparel and Technology

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The upcoming Apparel Manufacturing Technology Workshop to be held in April

should include presentations on contract sewing operations from both a technology

and a business investment perspective. Sessions on workplace design and modular

construction are also recommended in addition to presentations on the specific

production technologies.

•• Recommendation 4: Worker Technical Skill Development

A group of 10 interested individuals should be sponsored by the Apparel Industry

group to attend the Train the Trainers course at the Manitoba Fashion Institute.

These trainers would then be sponsored to work with local industry to train existing

staff as well as to train new entrants. This will begin to address the gap in worker

technical skills.

•• Recommendation 5: Job Opportunity Development for Trained Workers

The “industry prospector” will approach apparel companies outside of the province to

offer workforce training assistance should they be interested in locating a

manufacturing facility in Newfoundland and Labrador. Provincial companies with an

interest in contract sewing facilities will be assisted to put proposals in place.

•• Recommendation 6: Support to Existing In-province Knowledge and Skills

Workshop venues should be used to showcase local production/industry expertise, to

begin to develop potential alliancing opportunities and to plant seeds for networking.

As the industry prospers, and companies grow in size and scope, there will be

increasing opportunities for owner operators to share some of their experiences and

to mentor others. These first initiatives will be important in the long run.

•• Recommendation 7: In-province partnership development

Ensure that all stakeholders are kept informed of the work of the Apparel Industry

group. Involve economic development departments, training institutions and other

interested community members.

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To build an apparel industry that is a significant contributor to the provincial economy is

possible. It will require industry/government partnerships and support as well as the ability

to network effectively with outside agencies/associations which have a wealth of

experience and material which they appear to be willing to share to benefit a

Newfoundland and Labrador apparel industry initiative.

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1.0 Introduction

The apparel industry plays a key role in the Canadian economy. More than 100,000

people are directly employed. In 1995 Canadian apparel shipments valued at $6.2 billion

represented 1.6 percent of the country’s manufacturing total output. Exports in 1995 were

reported at $1.3 billion, representing 21 percent of shipments. In 1996 exports grew by

almost 1%. Over 95 % of apparel enterprises are Canadian owned.

1.1 Background of the Apparel Industrial Adjustment Strategy Initiative

The craft industry has traditionally played a role in the provincial economy, especially in

rural areas. The industry now reports sales of over $25 million, with growth rates at 7% per

annum since 1992. Over 2500 people earn income from this industry on a part or full-time

basis. Growth is projected to continue at an annual rate of 5-7% which will translate into an

additional 200 full-time equivalent jobs.

One aspect of the craft industry presenting good growth potential is the apparel sector

which accounts for approximately 40% of the craft industry. While there are sub-sectors

within the craft apparel sector, such as knitwear and outerwear, and each sub-sector

presents specific opportunities and challenges, there are common issues facing the

players across the sector which can be addressed to promote development.

In this context, support was requested from the Industrial Adjustment Service to set up an

Industrial Adjustment Strategy Committee to define the requirements of the apparel

industry in Newfoundland and Labrador. The Industrial Adjustment Service works with

sectors that are growing or shifting in response to industrial demands which reconfigure

their human resource development needs.

The IAS process, based upon industry participation, is designed to create rapid and

effective knowledge transfer among government agency representatives, industry players

and private sector consultants. The purpose of initiating an IAS process for the apparel

industry would be to identify and validate provincial as well as industry issues and develop

strategies to aid the local sector in taking advantage of the opportunities presented.

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1.2 Objectives of the Apparel Industry Training Needs Assessment

The objective of the Training Needs Assessment of the Apparel Industry in Newfoundland

and Labrador is to:

Review the skill requirements, both business and technical, to determine the skills

necessary for apparel producers to be successful in this industry. These requirements

are to be compared with the skills currently existing in the local sector as well as training

programs locally available. Any apparent gaps are to be identified and strategies

developed for ways in which to close these gaps.

To achieve this objective, the following elements comprised the study:

• The identification of ideal skill sets for both management and employees

• Comparison with other jurisdictions similar to Newfoundland and Labrador to

determine mechanisms and processes which have been developed for skill set

acquisition

• The analysis of existing skill sets within the provincial apparel industry and the

identification of skills which require additional training

• A review of current industry trends in areas such as product development, technology,

design to identify industry directions

• A review of past and current local and external training mechanisms to assess

adequacy to address the needs of the industry

• A review of current and desired apparel industry technologies for collaboration with the

Manufacturing Technology Centre

• A presentation of conclusions and recommendations to address the identified training

needs within the provincial apparel industry

The interview guide used during the course of the study can be found in Annex A. A list of

study participants is found in Annex B.

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2.0 Trends in the Apparel Sector National apparel industry manufacturers are facing tremendous challenges due to changes

in client demands and evolution of the industry. Suppliers are changing their business

practices. Retailers are requiring flexibility and improved responsiveness. Consumers

follow unpredictable purchasing patterns with increasing demands. The following table

identifies these national trends and the manner in which industry has responded.

Pressure/Trend Industry ResponseChanging Consumer

Demands

Diversifying product lines

Manufacturing new products for niche markets

Seeking out new markets for existing product lines through exportingRetail Restructuring Developing strategic partnerships with other apparel companies in order to

become a larger player

Developing strategic partnerships with retail establishmentsDemand for

increasing quality

Integrating quality assurance functions throughout production process

Setting and posting targets for qualityDemand for

increased response

time

Implementing concurrent production and increasing flexibility by

contracting out work

Developing strategic partnerships with other apparel companies

Re-engineering to reduce bottlenecks and throughput time

Implementing technologies to speed up the manufacturing process

Implementing modular production processesChanging vendor

relationships

Developing strategic partnerships with retailers

Quick response implementationEmerging

technologies

Developing strategic partnerships with other apparel companies

Developing strategic partnerships with suppliersFree trade and

intensifying

competition

Manufacturing new products for niche markets (e.g. Technical sportswear)

Seeking out new markets for existing product lines through exporting

Implementing concurrent production and increasing flexibility by

contracting out workDifficulty in

accessing fabric and

other inputs

Developing strategic partnerships with other apparel companies

Finding alternative sources of supply (diversifying)

Backward integration

Source: Human Resources Needs Analysis of the Canadian Apparel Industry: Issues

and Recommendations 1997

Discussions with industry participants determined that these national trends are reflected

in the experience of provincial apparel producers, creating both opportunities and

difficulties. On the positive side, Canadian designers are making waves, creating an

interest in and a demand for Canadian produced apparel. Canadian designers are not

77

looking at Canada as the market – they are targeting Europe and the States. The apparel

consumer is more educated and demands quality. Our own provincial operations are

growing because of superior design and quality.

Newfoundland industry participants have felt the impact of the Free Trade Agreements.

They have access to more European fabrics, as well as the opportunity for international

recognition. The opening up of borders has brought a wealth of interesting designs into the

Canadian apparel market place. This creates increased competition with the introduction

of more European designs, but it also means that European flavour can be added to local

products because of an increasingly sensitized client base.

For some of the longer established enterprises, there is a new and younger market now

that wants new materials, new designs. People are still buying traditional sweaters, but

they want material that they can wash and dry in the dryer. The market is looking for

wearability and durability in its knitted products. The knitwear industry took a slump with

the new materials on stream. Some saw a dip in demand for 100% wool product – others

say that the market for 100% wool is better than ever.

On the less positive side, producers note a “nasty trend” to pass financial responsibility for

product sales to the lowest rung on the ladder – more risk is being passed from the retailer

to the producer. Orders are increasingly similar to consignment buying – the producer will

be paid if the garment is sold. The supplier might also be financially assessed for the time

the product is in the store. Fabric suppliers are passing problems to the manufacturers as

well. Many suppliers now require up-front payments before material is cut and shipped

and are unwilling to extend credit. The result of these two trends in concert is that the

producer is being squeezed from both ends.

For some producers in the province, the local setting is their factory location, but their

business is truly international. Footwear is a global industry - there is no longer domestic

Canadian production. To be competitive, you must be on the cutting edge and constantly

assessing markets and new technologies. Technical design has to be done in Europe.

For a provincial manufacturer of footwear, the market is in the value added high end

product – offering clients next day delivery with a focus on customer service – to compete

effectively against cheap labour product manufacturers. Manufacturing from Canada is

assumed to have a transportation barrier – but for this company its location provides

exactly the mode desired: ocean transport. From this manufacturer’s perspective, it

becomes a habit to see yourself in the big picture.

78

As the industry evolves, and the above trends gain strength, Newfoundland and Labrador

apparel manufacturers will be required to respond with increasing speed and focus on the

challenges confronting them.

3.0 Human Resource Development in the Apparel Industry

The apparel industry workforce in Canada has historically reflected the following

characteristics:

• It is a workforce composed largely of immigrants.

• Skills have traditionally been acquired through informal methods, such as on-the-job

training.

• Those in the labour force are predominantly women.

• Work in the apparel industry has often provided a secondary income, limiting worker

mobility.

• Perceptions of society at large that apparel industry workers labour in "sweat shop"

conditions with low levels of skill required.

The characteristics of this workforce on the national level are changing due to changes in

immigration policies and increasing technological developments in the methods of apparel

construction. Shortage of skilled labour is one of the critical limiting factors for industry

growth across Canada. The necessity to attract a well educated, technically proficient

workforce lends an imperative to change the public perception of the industry as a low end

occupation.

3.1 Apparel Industry Human Resource Requirements

The apparel industry in responding to consumer pressures has undergone major changes

in its ways of doing business and producing its products, evolving into a modern sector

with sophisticated business and market strategies. The adoption of technology and

resultant impacts on production processes have had significant implications for the

industry and its workforce.

As an advanced manufacturing, market-driven, export oriented industry which is

increasingly adapting to sophisticated information and production technologies, the

apparel industry continues to demand highly skilled people in a broad array of technical,

trades and management positions. The ideal skill sets required depend on the

characteristics of the manufacturing enterprise. For purposes of this study, the Apparel

Industry Occupational Profiles developed by the Canadian Apparel Federation (CAF)

79

formed the basis for training needs assessment within the Newfoundland and Labrador

context.

3.2 CAF Apparel Industry Occupational Profiles

The Canadian Apparel Federation is the national industry association for Canadian

apparel manufacturers, designers, and suppliers of goods and

services to the apparel industry. As a national organization, its members include provincial

associations such as BC Apparel, The Apparel and Textile Association of Saskatchewan,

The Manitoba Fashion Institute, Apparel Ontario, and the Apparel Manufacturers Institute of

Quebec. The following modified list of occupations and their defining skill set

requirements are based on CAF Apparel Industry Occupational Profiles supplemented

with skill set indicators from the Apparel Human Resource Development Study. The jobs

and skills required by workers in the Apparel Industry are:

• Merchandising, Marketing and Retailing

Plan, organize, direct and control activities involved in sales.

Develop and implement marketing strategies, including advertising and promotion.

• Design

Conceptualize and produce designs for different mediums.

Create master patterns for the production of apparel.

Translate design ideas into sample products.

Provide necessary specifications for production of the garment or accessory.

• Production Management

Supervise, co-ordinate and schedule activities of workers who produce products in

the manufacturing process.

Recommend measures to improve productivity and product quality.

Organize and balance work flow for workers; check daily efficiency performance;

improve standards.

• Garment Assembly and Production

Operate machines to produce woven, non-woven and knitted products.

Reproduce patterns, drawing-in, tying warps, setting up looms.

Operate and maintain at basic levels looms, knitting and a variety of sewing

machines (single needle, double needle, multi-needle machines sergers).

Operate with speed and accuracy.

80

Exhibit manual dexterity; good hand-eye coordination; produce neat and consistently

high quality work.

Operate pressing machines.

Construct garment modules for final assembly.

Complete garment from beginning to end if required.

• Equipment Maintenance

Install, maintain and repair machinery and equipment.

Inspect, examine and adjust parts for smooth operation.

Preventative maintenance.

• Industrial Engineering

May work independently or provide technical support and services in the

development of production methods, facilities and systems, and scheduling of work.

• Quality Control

Inspect and grade garments and other manufactured apparel products.

Verify fit or size; check overall quality of garments.

Repair minor defects.

Guarantee the standard of finished goods before shipment to customers.

• Transportation, Distribution and Logistics

Verify and pack customer orders.

Keep records of shipment contents as well as bills of lading and other required

documentation.

Ship orders.

Unload and load shipments of materials and finished products.

• Financial Management

Plan, organize, direct and control the financial operations of the enterprise.

• Business Management

Plan, organize, direct and control the overall business strategy, direction and

performance of the enterprise.

These jobs and requisite skill sets formed the basis for the Training Needs Assessment

study. Interviews were held with industry participants to determine first of all whether their

current enterprise profile included the above skill sets and secondly to determine what

skills were missing and the type of training or professional development that was needed

to bridge this gap.

81

4.0 Skill Set Investments and Acquisitions - Case Studies in the

Apparel Industry

To further the understanding of training and its place within the Newfoundland and

Labrador apparel industry, a series of six topics for case study presentation were

identified.

• Growth Issues

• Models for Training Delivery

• Technology and Training

• Design Sourcing

• In-house Production versus Contracting Out

• Trends in the Industry

The selection of these topics was based on their usefulness as illustrations pertinent to

Newfoundland and Labrador apparel industry training issues. Interviews were held with

eight selected enterprises in Manitoba, Saskatchewan and Quebec.

The following composite analysis of the case study interviews highlights lessons of

importance for the apparel industry in Newfoundland and Labrador while providing links to

national industry issues and trends in the area of human resource development. These

case studies are brief, intended primarily to distill important perspectives.

Growth Issues

Growth issues are defined differently and are dependent on where an enterprise is in its

growth towards a full fledged production facility. New companies for the most part

experience problems of small size, under staffing and low capitalization. Growth for larger

firms depends on flexibility and seizing the opportunities, whether these are in contracting

out products to maintain customer supply or in importing products to supplement a product

line.

In western Canada there is a chronic shortage of experienced sewing machine operators.

Governments have responded with support to the industry to address this need. Hiring

people with a background in the industry is one entrepreneur’s response to the need for

experienced production personnel. With time and attention to production and business

details, basement operations can grow into large enterprises.

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Models for Training Delivery

With a trained workforce to draw on, very little training is required. Starting with personnel

experienced in operations, machines and tasks associated with industry production is a

major benefit to a new company. New companies can also benefit from industry training

programs offered in-province through provincial apparel associations geared towards

industry. Specialized trainers with expertise in supervision, time and motion, industrial

engineering, etc. can be hired individually. Onsite trainers can be developed through in-

house courses or specialized training offered in some cases outside of Canada. In-house

training requires patience and persistence to pay off.

Technology and Training

Training is required with the adoption of new technology, and often this training is provided

by the technology manufacturer. Training in the manufacturer’s location is considered best

because the necessary people and machinery are all available to learn how to use the new

technology properly. Working entirely from a do-it-yourself base requires a lot of learning

on the part of the entrepreneur, and the time to work through the learning curve to begin

production on a new machine.

The Price Waterhouse study noted that Canadian apparel industry companies have not

invested in new technology to the same extent as their competitors in other countries. This

is being addressed at the current time, with large investments in state of the art equipment

and facilities by Canadian firms.

Design Sourcing

The integration and use of design in the apparel industry is varied. Some companies use

CAD systems to design the product, with the production being contracted out. Others

carry out international research in design which they budget for as an R&D expense, in the

belief that only through design information can an enterprise keep on top of the market.

Some of the entrepreneurs do the design work themselves for their own products, while

others hired designers but developed the basic product ideas themselves.

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The benefits of experienced individuals within companies was highlighted in the design

area as well – a manufacturing background combined with retail experience contributed to

the development of marketable designs. Another highlight was the necessity to get

feedback from the customers – this is essential to ensure that the market is getting what it

wants.

In-house Production Versus Contracting Out

One manufacturer felt that product manufacture can be contracted out – but not the design

work. Contracting out of design work in this view leads to lost control of the concept.

Others take an opposite view, and contract out design work in addition to the

manufacturing. In the view of this manufacturer, when it comes to a choice between buying

equipment in-house to complete a project, or contracting it out, they prefer the contracting

out route because their costs are controlled. The price given by the contractor has to be

met. Costs on projects completed in-house can get out of hand. At the same time, it is a

requirement to ensure that quality standards are met by the contractor.

Some enterprises have a bias against contracting out, feeling that they lose control of their

production and the ability to respond to their customers. Companies that operate on the

Just in Time system must have the ability to produce in-house to fill their orders. Quality is

always an issue. Small businesses are the preferred contractors for some because they

deliver a good quality product and input/control is possible.

Trends in the Industry

The manufacturing industry in Canada is being hurt by the consumer switch to imported

goods. There are fewer and fewer apparel producers here in Canada. Retailers are

getting larger and are designing and manufacturing their own products rather than

purchasing from an outside designer/manufacturer. GAP is a good example of this. It is

imperative to continuously review and rethink your corporate strategy. Trends must be

identified and tracked in order to stay on top of where the industry is heading.

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5.0 Training Needs of the Apparel Industry in Newfoundland and

Labrador

As outlined in Section 3.0 above, the Occupational Profiles developed by the Canadian

Apparel Federation present the range of occupations and groupings of skill sets

necessary for successful apparel industry entrepreneurs and their workforce. Through

interviews and discussions about these profiles, skill set gaps and training requirements

within the Newfoundland industry were identified. The following section presents the

findings of this research.

5.1 Current apparel industry skill sets – roles and responsibilities

Interviews with selected industry participants indicate that all apparel industry skill sets

identified in the CAF profiles are practiced by apparel industry participants in the province

in one form or another. The exact nature of the practice of each occupational skill set is

determined by the size of the enterprise, the interests/skills of the entrepreneur and the

financial ability to access outside occupational specialists.

As might be expected, owner operators of small enterprises take on a large number of

roles and responsibilities, with transfer to other staff occurring as the enterprise increases

in size and complexity. Training interests and skill set acquisition are to a large extent

determined by this multiplicity of roles.

The analysis below identifies each occupation within the CAF Occupational Profiles and

an assessment of the manner in which the required skill set for this occupation is currently

applied by apparel producers within the province.

•• Merchandising, marketing and retailing

This activity was predominantly the responsibility of the owner operator, and was pursued

through a number of industry venues: wholesale shows, showroom presentations, customer

networking, retail shows, as well as custom orders. Included in this skill set are enterprises

that also operate retail shops, as well as those which have contracts with industry sales

representatives outside of the province. Two of the enterprises interviewed had no

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dedicated marketing person while the marketing for the largest operation was handled

through their Ontario office. Internet marketing is increasingly being used.

•• Design

The skill set and activities around product design are the most variable of all the skill sets.

Product design is generally carried out by the owner operator. Many producers began

their enterprises because of their apparel design interests and technical backgrounds.

Some have continued to pursue training in this area, while others feel that their design

interests have been submerged by the day to day running of their business. Others

recognize that they are not suitably trained to provide appropriate design expertise, and

have either contracted outside expertise from time to time or have formed an alliance with

someone who is perceived to have design skills. Outside design expertise has included

artists who teach colour, design and perspective. A number of companies encourage

workers – both full time and piecework – to contribute to design ideas. The largest

company in the study is guided by European designers. Two enterprises had no design

expertise at hand.

•• Production Management

Production management in the case of small to medium enterprises was handled primarily

by the owner operator. These operations ranged from one-of-a-kind products to special

order items to larger productions. Enterprises with a higher number of full time or seasonal

employees employed full time staff to undertake this function. The largest enterprise is

acutely diversified in its management structure, with a variety of full time staff responsible

for aspects of production.

•• Garment Production and Assembly

For those enterprises whose workforce is primarily home based, garment production and

assembly is primarily the responsibility of those constructing the garments from their

homes. In some cases piece work is assembled at a central location by full time staff or by

the owner operator. The companies with central manufacturing premises on the other

hand rely on full time staff to oversee this activity.

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•• Equipment Maintenance

The responsibility for equipment maintenance with the smaller firms lies in the first instance

with the machine operator, particularly as applied to knitting machines, unless the operator

is not considered to be sufficiently experienced. Many of the enterprise operators rely on

family assistance (husbands, sons) to keep equipment operating smoothly. Family

expertise has generally developed through trial and error, except in the case of one

enterprise whose owners are trained sewing machine technicians, operating an equipment

sales enterprise in addition to their apparel enterprise. Suppliers of the equipment are

also resources for equipment repair and maintenance, but in some cases are distant from

the apparel entrepreneurs location and therefore are only called upon in dire emergencies.

The larger companies have full time staff for this function.

•• Industrial Engineering

This skill set, while recognized as being important, was not present in over half of those

enterprises who participated in the study. Responsibility for this activity was being

assumed by the owner operators on a very limited level: most felt they had neither the skills

nor the contacts within the industry to be able to assess new equipment requirements

which would contribute to their production efficiency and cost effectiveness. Some took

opportunities offered through marketing trips out-of-province to try to acquaint themselves

with new technologies while others had conducted extensive Internet research to identify

appropriate technologies such as CAD systems. In the past some had hired industrial

engineering consultants from outside the province to assess their equipment requirements

and had acted upon those recommendations they considered most practical for their

needs. The largest company has full time staff dedicated to this function.

• Quality Control

Quality control was considered of utmost importance, particularly in light of “zero tolerance”

regimes currently practiced by retailers. Most indicated that a quality perspective was

imparted to each worker, with recognition that all contributed to the overall quality

reputation of the company. A quality check was performed on each item at the end of the

production process by either the owner operator, or dedicated quality control staff. The

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largest enterprise is CSA approved and ISO certified, with support from special training

staff to ensure the ISO process is rigidly followed.

• Transportation, Distribution and Logistics

This area is generally handled by either full time or part time staff, often as a component of

their other responsibilities. Peak period seasonal staff is also hired on an as-needed

basis to pack and ship goods. Family members assist when required and available,

depending on volume. Owner operators of enterprises which handle small volume orders

generally undertake this set of responsibilities themselves.

• Financial Management

Responsibility for financial management runs the entire gamut of possibilities. Many owner

operators undertake the financial management of their enterprise in concert with an

accountant. Three of the companies operating from a central manufacturing facility have

dedicated staff for this activity. Some indicate that family members are responsible for this

activity, while others feel that even though it falls within their role as owner operator, it is

essentially non-existent within their current corporate profile.

• Business Management

Business management for the most part was directly the responsibility of the owner

operator, at times augmented by family members such as a husband. Two enterprises run

by Boards indicated a total dearth of business management expertise, while the largest

enterprise has a dedicated business manager.

• Other skill sets required in present operations

Computers are playing an increasingly large role for apparel producers in the province. At

the present time, most use computer based business programs for bookkeeping and other

records. Some companies use computer based programs for inventory control, also

generating packing slips.

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Internet access plays an important role for some. It is used to access suppliers, research

technology and in some cases to broaden market reach. E-mail capability is recognized

as a future requirement by most and will be used by them in the not too distant future.

A few use CAD systems, with the larger enterprises relying on computerized machinery for

production in addition to the requirement for highly technical skills in all aspects of their

manufacturing process.

• Current technology

The current technologies used by the provincial industry are fairly standard for both small

and large scale production. Technologies identified are:

• Four and five thread sergers, industrial straight sewers, domestic embroiderers,

domestic straight sewers, home knitting machines - some punch card, some

computerized, blind hemmer, walking foot, electric cutter, kick press machine for

grommets, industrial iron, cutting knives, CAD.

• This list does not encompass the range of technologies employed by Terra Nova

Shoes, which operates a highly automated technologically advanced plant with

injection molding, computerized CAD/CAM systems, etc.

• Previous Training of Workers or Others in the Enterprise Related to Apparel

Industry

Some of the owner operators had acquired apparel related skills such as costume design

and fashion merchandising through university programs in other provinces. Others had

taken Dept. of Development and Rural Renewal workshops in subjects such as pattern

drafting, quilting, etc. Many of the owner operators had at some time taught apparel

related subjects or were currently involved in providing training programs to their workers

as well as to other interested parties and enterprises.

Others had no formal training, and had acquired skills through trial, error and independent

study. In-house training of workers by owner operators was the primary vehicle for skill

development. Feed back was encouraged and improvements suggested were

implemented.

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A few hired specialized trainers for in-house training with a particular focus on work

productivity and efficiency. Some owner operators lack production skills in their product

area and therefore hired trainers to get their business started.

Knitting machine based operations expect to do their own training or hire a trainer. One

has set up a buddy system with workers who live close to each other offering assistance

when needed.

Companies with sufficient employees had full time trainers on staff as well as dedicated

staff for technical upgrading. The largest company offers Dale Carnegie Courses to some

supervisors in the province - communication ability is important. They also hire Human

Resource specialists in teamwork building from outside the province to offer courses to

their employees which are tailored to their needs. In this company, technical training for

specific employees is conducted in Europe for a one year period. Production training is

provided in-house.

Another substantial source of expertise for a small enterprise is that obtained through

assistance from family members. Many of the enterprises interviewed have acquired

capacity through the skills of other family members: one craft oriented producer’s husband

handles her design work through the Internet, as well as mounting an excellent web page

for her products. Family members were found to contribute significantly in the areas of

equipment maintenance and business management, generally on a pro-bono basis.

The most important finding of the study in terms of previous training obtained by industry

participants is that almost without exception training had not been acquired or sought from

provincial training institutions. One operator reported that her workers must have basic

sewing courses, preferably through the Anna Templeton Centre, but the overwhelming

majority had not accessed provincial institutional offerings either for themselves or their

employees.

5.2 Current apparel industry skill/knowledge gaps

After discussing the occupational profiles and indicating how this work was currently being

accomplished, industry participants were asked to identify those areas in which training

was required for their enterprise to move forward successfully. The pattern of gaps in

knowledge and skills which emerged from the interviews centred around four broad

categories critical for success. These

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categories of skill/knowledge gaps are:

$ Operational practices in the apparel industry

$ Production methods for apparel and necessary investments

$ Workforce technical expertise

$ Technology improvements

GG Operational practices in the apparel industry

The majority of companies which make up the Newfoundland and Labrador provincial

apparel industry are micro-enterprises, in that they are generally very small. This is not

greatly divergent from the Canadian industry as a whole, but the dearth of larger

enterprises in the province as well as the distance from other developed industry players

elsewhere has limited entrepreneurs’ exposure to many aspects of what comprises the

apparel industry. Many of those interviewed indicated that they knew very little about the

apparel industry, an industry to which they feel they belong. This is a distinct disadvantage

in terms of competitiveness, anticipation of trends, product positioning, customer

satisfaction and enterprise development. Knowledge about the apparel industry – its

basic components, business rules, competition, and opportunities – is fundamental to

growth.

This knowledge gap was described in a variety of ways. Areas of specific concern

included:

• The Big Picture - how does the industry work: seasons, collections, packaging. How

are people structuring their businesses?

• Marketing/merchandising within the apparel industry – how is it done, how are

appropriate sales representatives identified, how should a product be presented, in

what venue, etc.

• Cost analysis – product pricing. What formulas out there apply to apparel producers,

both wholesale and retail?

• What is industrial engineering – how do you plan the use of different machines, how do

you efficiently make apparel? Without basic understandings, small enterprises feel that

they are at the mercy of salespeople with specific products to promote.

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• Fabric sourcing – what options exist for finding required fabrics/materials? What

resources are available?

• Design expertise – what questions should a designer be asked? What should a

designer be expected to provide? Would like access to creative, innovative workers

who are able to adapt her ideas patterns and products.

• Production time factors, inventory control – how much stock is generally expected to be

on hand?

• Industry standards – what are they and how does a small enterprise meet them?

• Financial management: what sources of financing are available for industry

participants?

• What are the industry trends and the implications for provincial enterprises? .

Bridging this knowledge gap is of interest primarily to owner operators. Computer based

program delivery of this overview information is acceptable, with most enterprises

recognizing the need to become computer literate and connected. Structured courses of

study are less acceptable, primarily because of personal time and energy limitations.

GG Production methods for apparel and levels of investment

Companies involved in apparel production, similar to companies in other sectors, are

constantly analyzing tried and true methods as well as new production practices in order to

achieve the highest level of efficiency and return on investment.

Contracting out

Tried and true methods include the contracting out of certain functions or products.

Contractors in some regions play a significant role in the apparel industry, often providing

specialized skills that manufacturers do not possess or cannot afford to acquire.

Outsourcing either parts of or entire productions is used to varying degrees by many of the

industry participants in the province. Embroidery embellishments on garments, hat

production, pattern grading and drafting, product design, label production are currently

contracted out to local and out-of-province companies. At the same time the provincial

apparel sector lacks basic industry components associated with a more mature apparel

industry. There is no cutting house or apparel production contracting out service.

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That said, the interviews identified a surprising amount of interest in operating

sewing/design/cutting contract enterprises from those currently involved in their own

production. This stems from the creative nature of many owner operators – because of

their product production imperatives, they no longer have time for the creative expression

which got them involved in the first place. Some stated that they would contract out their

entire production – for them the engaging part is the design work. Some are trainers

themselves, and would like to train workers for contract sewing.

When contracting out, the manufacturer relinquishes aspects of direct control over the final

product. The biggest stumbling block is lack of clear communication about the expected

levels of quality and production, leading to disagreement and dissatisfaction. Knowledge

of appropriate terminology, expectations and assumptions is required.

Areas of specific concern re contracting out identified by interview participants include:

• What is the role of contract operations within the industry: where are they located, what

do they do?

• How does a provincial entrepreneur use contractors: what are the expectations, what is

the language, what are the contractual arrangements, how is quality ensured?

• With contracting out, is it possible to lose control of your product, can others copy it?

• What investments – both human resource and financial are required to establish

contracting operations?

New production practices

New concepts of workplace design and garment construction are an important part of the

present day apparel industry. With increasing awareness of repetitive strain injuries, and

as the apparel industry has adapted to modern technologies, workstations have been

substantially redesigned to accommodate physical safety and comfort.

• Operators for some equipment stand rather than sit, and movement of component parts

is facilitated by mechanical means.

• Workers are also being cross-trained on various machines to avoid boredom and

increase job satisfaction as well as efficiency.

• Modular construction of garments/products with workers completing sections of the

entire product is increasing.

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Workforce training and industrial engineering are two aspects of workplace design and

modular construction. Changes in the nature of work and the redesign of the workplace

require investments of both time and resources. Areas of specific concern in the area of

workplace design and modular construction are:

• What current workplace designs are in use within the Canadian apparel industry?

What is the rationale for, and the result of these designs?

• How is modular construction related to workplace design? What are the most effective

ways to construct garments using the modular method?

• What are the implications of modular construction for small or home-based

enterprises?

Initiatives to bridge this knowledge gap would include the delivery of contracting out

information sessions at workshops and conferences. This might include presentations by

contracting enterprise owners, or industrial engineers familiar with various forms and

methods of contracting. Workplace design and re-engineering constitute other

opportunities to provide specialized workshops with qualified specialists. Required

financial resources and capital costs of these establishments are an important component,

particularly in the event that interest in starting such an enterprise arises.

qq Workforce technical expertise

By far the overwhelming response to the question of gaps in critical technical skills was the

absence of industrially trained sewing machine operators in the province. This gap mirrors

the findings from the national human resources needs analysis undertaken in 1997: 66.8%

of the industry who participated in the national study indicated that they had difficulty finding

qualified sewing machine operators. This was also a key finding in the Saskatchewan

apparel industry training needs assessment. Industrially trained sewing machine operators

are fundamental to industry growth. These operators are trained for an industrial setting

where time, quality and efficiency are paramount.

The number of trained operators required by companies in Newfoundland and Labrador is

difficult to quantify because of the present condition of the industry. Interviews determined

that a number of apparel producers have turned down large orders because they have not

had trained sewing machine operators available, but they might not necessarily be in the

position to hire at the present time. Some apparel producers indicated that they would hire

trained operators immediately, while others feel that their staff is adequately trained.

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The current estimated uptake of industrially trained sewing machine operators would run

between 10 and 30+. While it is difficult to concretely indicate job opportunities, it is also

difficult to quantify the number of potential apparel manufacturers who have been deterred

from setting up operations in the province due to the absence of an appropriately trained

workforce. Trained operators must also be available where there is demand, unless they

are willing to relocate.

In the absence of an industrially trained workforce, entrepreneurs in the province have

undertaken in-house training to fill in this gap. In-house training, while ensuring that the

desired skills are transferred, is very costly for small establishments. It is estimated by

those in the industry that to train a sewing machine operator to the basic level of

competency for industrial production (approximately 40% efficiency) requires three to four

months. To train the same person to the point that they are generating economic returns

requires one full year. Small production operators have to virtually shut down for three

months while training takes place. At the end of the initial training, there is no guarantee of

worker retention.

It is important to note that there is a distinction between the knitted product operations and

the sewn product operations and worker technical expertise gaps. Those with knitted

products had training systems in place for the most part. These operations were faced

generally with design and marketing issues which would be addressed through increased

knowledge of apparel industry operational practices.

qq Technology improvements

Most participants in the study had an enterprise specific technology that they were

interested in investigating in terms of:

• Improvements/advances that might have been made to their current technology which

would allow them to increase their production of certain items or

• new technology that might substantially add to their ability to be more effective in what

they do.

Technology presents a real conundrum for industry participants for the most part. They

recognize the need to remain current and cost-effective, but their ability to investigate

technology is tied to the multi-tasking of the owner operator – they lack the time to

investigate technology to any depth. There is a requirement for assistance in identifying

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what certain machines do and how they can improve apparel production. Even though the

technology may appear to be fairly basic, it is a far reach for many. A list of specific

equipment technology related gaps gathered from the study includes:

− A cutter to make the enterprise more competitive.

− A button hole machine. There is currently no servicing available.

− A computerized system to assist with colour choices.

− Industrial automated machines to produce woolen accessories for a medium sized

enterprise.

− Learning to use a knitting machine – there are none in the area. It is difficult to get

information on commercial knitting machinery.

CAD was of general interest – one company has investigated systems and is buying

software in the US and going to Philadelphia for training. One now contracts pattern

grading and drafting out to companies in Montreal and Toronto. The volume is not there to

support the expense of an in-house CAD system. Others would like training in CAD to get

the most efficient layout for cutting material with less wastage.

For the most part, technology in and of itself is a major problem: owner operators don’t

know what new equipment is out there and have no way to find out within the present

context of their business.

qq Other comments on training requirements

Two of the more established manufacturing enterprises expressed no training

requirements - training was done entirely in-house by specialized trainers, and other

technical staff were hired according to their qualifications. For the shoe industry, there is

no training available in Canada. All training is either Italian or UK based. At the same

time, the point was made that the days of obtaining a Grade 8 education and going into

factory work are long gone. The workforce of today must have a strong basic education in

math and must be literate in order to work in a high tech computerized environment.

5.3 Preferred methods for knowledge/skill acquisition

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Time and money are limiting factors in trying to acquire the skill sets to generate a

successful apparel business. Entrepreneurs have limited time to invest in professional

development/training and want to make the most of every opportunity.

A variety of training options to bridge the identified skill/knowledge gaps were presented

during the interviews. These training delivery mechanisms included:

• Institutional training,

• On the job training,

• apprenticeships,

• workshops/conferences

• distance education short courses and

• mentoring

The preferred method of knowledge/skill acquisition for owner operators is to attend

workshops. People indicated they would make great efforts to be present at these events.

Industry participants in the province feel a sense of isolation not only from the national

industry, but also from their peer group within the province. Opportunities to network and

share ideas/methods/perceptions are welcomed.

The Apparel Conference organized by the IAS committee held in Corner Brook June 1999

was referenced often throughout the study as a wonderful opportunity to make contacts

within the province as well as to obtain some perspectives on the industry from the

specialist presentations. These events serve as motivational occasions and generate a

sense of larger opportunities. In these venues, industry participants want an opportunity to

meet one-on-one with workshop presenters in order to ask specific questions relevant to

their business.

The second preferred method for knowledge acquisition was through computer based

training. With busy agendas which generally include out of province marketing trips,

structured institutionally based courses were not favoured. Distance education methods

for short course delivery and web based program delivery are considered to be a suitable

method for a significant number. The course content would have to be high quality and

sufficiently important to warrant the time commitment. There was little interest in business

management/financial management type programs, and most owner operators hire an

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accountant if they hire any staff at all. The difficulty for most is ensuring they will be

available for scheduled course delivery.

On-site training (on-the-job training) is seen as the only current option for labour force

development (See section 5.2 Worker Technical Expertise). From experience gained

elsewhere (See Section 6.1) institutionally based training for apparel industry labour force

development is not recommended. Industry must drive the program content and delivery

and take interest in training students in leading edge applications. Institutions can act as

locations for training to take place, but not as the prime training provider.

Aapprenticeships are not familiar to most and were not considered appropriate for the

small entrepreneur.

Mentoring was referenced as desirable but difficult to find. The general lack of knowledge

about the nature of the apparel industry is creating difficulties for those entrepreneurs who

desire support and direction as they attempt to build an apparel business. They lack

mentoring opportunities within the industry and cannot afford to hire high-priced help to

give them the perspectives and guidance they require.

The Manufacturing Technology Centre at Memorial University is currently under contract to

the IAS Committee for the presentation of an apparel industry technology workshop in April

2000. The consultant met with Centre staff re this initiative, and the list of technology

related issues will comprise a portion of their preparatory research. The Centre will in this

way become familiar with the needs of apparel industry participants, and be able to offer

additional services as the industry progresses.

An important aspect of technology development for small enterprises is information and

experience gained by others in the industry who have used the same technologies. This

need can be addressed through the development of strategic alliances and mentoring

relationships. Proficiency with new technology is part of an industrially driven pre-

employment program, and comprises an important aspect of on-the-job training.

These training mechanisms are further referenced in Section 7.0 Recommendations.

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6.0 Training Mechanism Assessment

History of Craft Training

Newfoundland and Labrador has a long history of craft related institutional training. Craft

training was offered through the Dept. of Education as long as 35 years ago through its

Craft Training Centre at the Arts and Culture Centre. Trainers traveled the province

working with groups and individuals interested in acquiring handwork and basic sewing

machine skills. This history continued through the Dept. of Education with part time

courses offered through various campuses of the trade schools, which over the years and

with a number of changes became the present day College of the North Atlantic. The

Dept. of Development and Rural Renewal offered specialized workshops in colour and

design, pattern drafting, rug hooking etc. to cottage industry participants. With the advent

of private schools throughout the province, additional craft options were available.

Public and Private Institution Apparel Industry Courses

Of primary interest for this study are those past and current program offerings which relate

to the apparel industry. In the past, courses in dress-making were offered through the Craft

Training arm of the Dept. of Education, and later through Cabot College Continuing

Education Programs. The name of the course and the curriculum content of this program

was altered to offer a garment construction and design course in 1993 – 95. Two sites

were selected for this offering – one in St. John’s, the other in Bonavista. Training took

place on industrial sewing machines, and included business skills development.

Course content included work on slacks and blouses/shirts to attract both male and female

students. The curriculum was aligned to industrial production through the use of industrial

machines and instructors with some industrial knowledge.

The Bonavista program trained 12 people over the course of the two years, based on

indications that an apparel manufacturing company was interested in investing in the area

and building a facility. This did not happen, but some of the program graduates are

continuing small scale operations in their own homes while others have left the area.

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The St. John’s program had a similar history, except that participants in the program were

generally students interested in fashion design. After the first two years, HRDC ceased

funding support based on its evaluation of graduate employability and labour market

demand. Student enrollment in the program dropped, and the program was not offered

again.

The Bonavista campus has a fully equipped and operational garment construction

laboratory, with 8 industrial machines, 3 industrial sergers and pressers. The room is used

by local high school students as a lab for a textile and clothing program. The St. John’s

equipment was primarily domestic machinery, with 1 or 2 industrial machines, sergers and

pressers. There is still a demand for evening classes for hobbyists.

At the present time, there are no garment construction, sewing machine operator or

apparel industry related courses offered at any public or private institution in the province

except for design and fibre arts courses offered at the Anna Templeton Centre.

The Anna Templeton Centre

The Anna Templeton Centre originally was intended to house the two year Textile Studies

program in addition to interest in building a Fine Arts School within one of the previous St.

John’s college programs. With funding support from federal agencies, a downtown

building was renovated and the textile program was located there. With the changes in the

college system in the early 90s, and with the amalgamation of the college system into one

entity – the College of the North Atlantic – in 1996, a modified Fibre Arts Program was

maintained at the Centre. The Centre, as an arm of CAN, is currently managed by a

cooperative group with a volunteer advisory board which assists with fund-raising to keep

the building and programs active.

The Centre is changing quickly in response to individual and industry demands. Evening

classes, art courses, drawing courses designed to meet community needs are offered.

Studios and meeting rooms are available for rent. The Textile program has a student

intake every year, with approximately 18 students beginning studies.

The Centre is taking a flexible and client centered approach to its operations. Staff and

faculty are available to act as design consultants, and are willing to travel to work with

industry in various parts of the province. As a separate entity, it is able to offer rapid

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response and tailored approaches. The Executive Director of the Centre is very interested

in working with apparel and craft industry partners to deliver professional services which

meet the needs of industry. This approach is typified by initiatives such as the Sally

Johnson Print and Dye Studio (See Annex C).

The ‘Textech’ Centre Proposal

In 1992/93 a proposal to establish a strategic training centre for appropriate textile

technology for the craft industry within the Faculty of Community Education and Applied

Arts of Cabot College was prepared. This centre was intended to substantially improve

the quality, flexibility and accessibility of training and retraining in the textiles sector of the

craft industry in Newfoundland and Labrador. The three main objectives of the Centre

were:

1) to act as a pilot in providing the textile sector of the (craft) industry with the knowledge

and capability of more efficient and automated production, taking optimal advantage of

technological advances.

2) To serve the existing craft community in that it will perform a variety of preparatory,

production and finishing functions.

3) As a training facility, to allow present and future textile students to experience facets of

the industry previously unavailable to them within this Province.

A feasibility study on this proposal was conducted by Atlantecon. From interviews

conducted with former staff of Cabot College and present staff of the Anna Templeton

Centre, it appears that the ‘Textech’ Centre was a victim of poor timing and changing

institutional priorities. It was not supported by the Board of Governors after the transition of

the college system to the present day College of the North Atlantic.

It may be desirable to revisit this project at some future point to determine its applicability

to current needs.

Private Courses for the Apparel Industry

Many current industry participants became involved as instructors prior to setting up

commercial operations. As individuals they offered a wide range of training at all levels of

skill development. These courses were generally offered on an “as-needed” basis, and in

some cases were components of federally funded industrial adjustment programs. Some

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of the courses offered by individuals - such as design - built upon the professional

background of the instructor and were used by those in the industry.

Most of these courses were craft oriented towards individuals who would open small

community based operations part time income. Skills included sewing, knitting,

needlepoint, production of other craft items and entrepreneurship training such as basic

accounting and personal development.

Assessment

In general, industrial training mechanisms as defined by a modern apparel industry seem

to be non-existent in the province at the present time, except for those in-house training

operations within the industry itself. Graduates of current and past dressmaking/garment

production programs offered by provincial training institutions do not appear to possess

the technical skills required by those interested in apparel production.

From the interview series conducted for this study, there appears to have been a

disconnect between graduates from the two courses offered in Bonavista and St. John's -

no one with garment production skills acquired from provincial programs was referenced

by the industry. It is difficult to say whether this was a result of worker mobility limitations or

limitations of the program. Because of the time elapsed since the courses were run, and

the lack of current courses being offered at the present time, it is sufficient to say that

should course offerings be considered in the future, the curriculum for these courses should

be developed in concert with industry and endorsed by potential employers.

The design capacity of the Anna Templeton Centre and its willingness to work with industry

is an important point to communicate to industry participants searching for design

expertise. Information about the Centre should be made available to IAS Committee

members.

6.1 Industry Based Training Initiatives

Due to the focus of this study on training for industry, it is important to broadly outline some

aspects of the training provider-industry linkage. As defined by experts in the area of

technical/vocational education, the ideal characteristics of an industry linked curriculum

are:

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• Competency based

• Employer defined competencies

• Includes the development of employability skills such as numeracy, literacy, analytical

skills, team work skills, etc.

The ideal program framework characteristics of an industry linked training institution are:

• Reflective of sectoral labour markets

• Work experience based

• Incorporates industry participation through active program advisory committees

• Driven by employer defined competencies

• Incorporates mechanisms for continuous adaptation

• Provides broadly based access through flexible learning opportunities.

There are a wide range of associations and institutions that offer courses and programs

related to the apparel industry. For its 1997 study, Price Waterhouse inventoried those

offering one or more courses in apparel management, fashion design, fashion

merchandising, pre-production and production techniques. This inventory is included in

Annex D.

As the current study progressed, it became apparent that course and program titles offer

little in the way of understanding the exact nature of the training offered and its relevance

and utility to industry. Of more importance are program graduates trained in the practical

skills sought by apparel industry employers.

To gain industry perspectives on critical skill sets, as well as to identify potential

mechanisms and processes for skill set acquisition, four provincial apparel industry

associations were contacted. These were chosen because of apparent similarities with

the apparel industry context in Newfoundland and Labrador, primarily:

− Rural/small town apparel industry enterprises

− Restricted local markets

− Access to training resources impacted by distance

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The associations contacted were the Manitoba Fashion Institute (MFI), the Textile and

Apparel Association of Saskatchewan, the Sectorial Labour Force Committee in Apparel

in Quebec and the Apparel Human Resources Council (AHRC). Information about

potential case study contacts were obtained from each, as well as information about

training approaches and methods. BC Apparel was also contacted, but a new executive

director had only recently been appointed. Annex E lists documents, videos and reports

solicited by the consultant team for the Training Needs Sub-committee in association with

this study.

Manitoba Fashion Institute

The Manitoba Fashion Institute operates as a non-profit association funded by members

dues. Its mandate is to undertake all activities which improve the economic climate and

viability of the apparel industry in Manitoba. As well as manufacturing members, MFI

members also include Associate and Affiliate members (suppliers and others) who have

an interest and stake in a healthy apparel industry.

The Manitoba Fashion Institute has gained a reputation for providing apparel industry

specific training through its licensed Modular Sewing Machine Training System which

includes Sewing Machine Operator (SMO), Train the Trainer, Production Trainer and

Supervisory Training. The Sewing Machine Operator training program is a ten week

hands-on program in which students are trained to work on one needle, two needle, felling,

hemming and serging machines.

The first round of this program in 1996 trained 16 sewers at a time. This has been

increased to 40 sewers per course. Since 1996 MFI has placed 100% (around 400 ) of its

students in 16 apparel manufacturing firms in Winnipeg with a retention rate of 91%. The

critical aspect and value of these training programs is the focus on speed, accuracy, hand

motion, fabric positioning and quality in an industrial context.

In early June 1999 funding was provided by the three levels of government for an

International Fashion Technology Centre in Winnipeg. This centre will consist of distance

and multi-media training facilities, a manufacturing pilot plant, research laboratories,

demonstration and evaluation platforms for manufacturing equipment and systems, an on-

line library and resource centre and leading edge computer and technology systems.

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Program Costs

MFI will send trainers to provide in-house training programs, as well as offering training in

the MFI facility. Train the Trainer courses are offered to a maximum of ten students at a

cost of $500/day/course for a ten day course. Sewing Machine Operators curriculum is

provided as part of the Train the Trainers course at no-charge to associations/groups.

At the present time Manitoba companies are contracting out hundreds of thousands of

dollars of apparel manufacturing, going as far afield as Quebec to find contract sewing.

50% of the contract sewing is done in Ontario. This represents an opportunity for other

provinces who are interested in building an industry.

Lessons Learned

MFI is currently working with ATAS in Saskatchewan and the City of Toronto to support

apparel workforce development initiatives. Recommendations arising from MFI’s

experience are:

1) The training must be industry and not institutionally based. The two have very different

agendas - without direct industry involvement the program is not successful. Industry

must determine the course content, the delivery schedules and the methods.

2) The most valuable aspect of the program are the trained trainers. MFI will go into a

facility and train the workforce, but it is much more important to ensure that training

support through trained trainers is available to assist a company to grow. MFI

encourages companies to undertake their own training with trained staff, and provides

professional support when required.

3) Trained trainers are useful to companies who already consider their staff trained. True

training does not take place on the job – there is a gap but it is not apparent in a work

environment. The elements of the MFI program add value for firms who currently

consider that they have met their training needs. Trained trainers can upgrade the

skills of existing in-house trainers.

4) Trained employees are highly sought and difficult to replace. To ensure employee

retention and increasing workplace opportunities within a company, current MFI

courses for trainers are concentrating on supervisory and interpersonal skills, on

employee upgrading and retention. The industry has a high turnover rate which costs in

dollars and time.

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5) Begin training programs with small numbers of students while soliciting industry buy-in

and work placement support. Larger programs as initial offerings are difficult to

manage and require prior industry experience with graduates.

The value of the MFI program to industry was independently verified in subsequent

interviews with the Apparel and Textile Association of Saskatchewan, the Apparel Human

Resource Council, and apparel enterprises in Manitoba.

Apparel and Textile Association of Saskatchewan

The Saskatchewan apparel and textile sector has sales which exceed $45 million and

employs an estimated 1700 people. There are approximately 400 manufacturing

companies in Saskatchewan that fall into the apparel and textile sector. Of these, only 26

companies have more than 10 employees. These 26 companies employ a total workforce

of 800 people – half of the provincial apparel labour force.

The Apparel and Textile Association of Saskatchewan (ATAS) is a membership

organization which began in 1995 as a volunteer steering committee with industry,

economic development and research agency representatives. In 1996 they hired a full

time part time executive director through a federal/provincial program. ATAS received

funding to conduct a Training Needs Assessment and from this developed a 5 year Human

Resource Strategy. The training needs assessment highlighted a large shortage of skilled

resources, particularly sewing machine operators.

To address this need, the Association examined all potential courses offered in Canada

and identified the MFI courses as most closely setting the national standard. With MFI as

a partner, the Association acquired the Sewing Machine Operators course material and

began a provincial Sewing Machine Operators training program.

Trainers were trained at MFI, returning to Saskatchewan to teach the course in various

rural locations in partnership with SIAST, the Saskatchewan Institute of Applied Science

and Technology. SIAST purchased 6 industrial machines and provided an administrative

function, registering students and providing space. The machines were moved to various

locations with the trainer.

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Courses are 8 - 10 weeks in duration and are structured like production plant projects with

classrooms set up in simulated production environment. Graduates at the completion of

the program are approximately 40% competent to work in a production environment - the

employer is expected to continue with the training.

Lessons Learned

Three iterations of the program have been run, with varying results. The initial pilot project

(8 students) was not successful because those trained were not seeking jobs within the

industry. The screening process was tightened, and a life skills component added to the

training program. The apparel project undertaken by previous groups was replaced with

on-the-job work placements. The results have improved and the third group of trainees (12)

are soon to complete their course. Support is being built within the industry to hire

graduates from the program.

Based on this experience, ATAS recommends to begin small – six students for the first

training initiative is sufficient in order to get logistics and industry support in place.

Program Costs

Students are not charged per se for the course, because generally there are training

allowances/subsidies available. The cost of running the program is approximately

$1500/student. The provincial government supports the cost of the instructor and the use

of institutional space.

ATAS opened its new Training Technology Centre in September with $428,000 support

from the federal and provincial governments. The Centre houses the offices of the

Association, provides a seminar room, CAD, contract manufacturing facilities, cutting

rooms and equipment for contract training. Manufacturers can rent the facility as required.

The Centre must be self-sustaining in the next three years.

The Sectorial Labour Force Committee in Apparel

The apparel industry in Quebec provides the largest number of manufacturing jobs in the

province. Workforce development has become the major necessary element for

competitive success and growth in this industry. The mission of the Sectorial Labour

Force Committee in Apparel (SLC Apparel) is to help develop the ability of businesses

and workers to adapt to ongoing changes and challenges occurring in the apparel industry

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in order to avoid shortages of skilled labour as well as surpluses of over-qualified workers

lacking in versatility.

Bill 90 requires all manufacturers whose total payroll in a calendar year exceeds $250,000

to expend at least 1 percent of payroll costs on employee training. To ensure effective

expenditure of these funds, the Committee focuses on the development of workforce

training and human resource management. Because of its mandate, the Committee deals

exclusively with larger companies. Samples were supplied for the Newfoundland and

Labrador Training Needs Assessment. (See Annex E).

Lessons Learned

Because SLC Apparel deals with larger firms, most of their members were not

appropriate for case study interviews.

Apparel Human Resource Council

There is another player on the scene of some importance vis-a-vis human resource

development and industry specific training. In 1998 the Apparel Human Resource Council

(AHRC), a pan-Canadian, industry-led, independent, non-profit organization was created

in Ottawa. This Council encompasses employers and unions within the apparel industry,

with a view to assisting both management and labour in achieving their human resource

development objectives. The mandate of the AHRC is "to plan, develop and implement a

human resources strategy that supports the long-term competitiveness of Canada's

apparel manufacturing industry and meets the developmental needs of its workforce."

The AHRC operates from a premise of two major objectives:

• Work in partnership with stakeholders to develop and deliver cost-effective solutions to

key issues in several areas including: training and development needs; educational

requirements; and effective communications.

• Encourage the transfer of best HR management practices and training programs

across the apparel manufacturing industry, encompassing positions from the plant floor

through all levels of management and embracing the full range of a firm's functions (e.g.

production, marketing, sales, information technology management and senior

management).

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The role of the council to fulfill its mandate within the context of the above objectives is to

act as an agent and facilitator to enhance the access of employees, in all provinces active

in apparel manufacturing, to training and development programs, and to avoid duplication

of effort.

The AHRC through its website is currently offering for purchase by license agreement the

Sewing Machine Operator Training course as developed by the Manitoba Fashion Institute

as a component of its Modular Sewing Machine Training System. The AHRC has an

exclusive license to this system.

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7.0 Conclusions and Recommendations

7.1 Conclusions

The craft/cottage industry - apparel manufacturer dilemma in which the apparel industry in

the province currently finds itself was apparent throughout the research. Markets based on

craft/cottage industry have been developed over a great many years through government

programs and support, leading apparel producers down craft related roads. At the same

time, interview participants expressed a desire to address manufacturing issues head on

and to find ways to understand both the apparel industry as a whole as well as the location

of their products within it.

At the present time, the apparel industry sector in Newfoundland and Labrador is a micro

industry. For the most part: there are designers without sewers and sewers without

designers, teachers without classes and demands for trained employees. The distinction

between a craft industry and apparel manufacturing is not clear in the provincial context.

The study participants made it clear that this has less to do with corporate size than with

corporate mindset, less to do with industrial machines that with industrial orientation. A

long term developmental view is required to build the apparel sector in the province into a

mature, well-founded, economic generator.

7.2 Recommendations

Newfoundland doesn’t have to reinvent the wheel to undertake training for the apparel

industry – there is a great deal of willing assistance out there within provincial associations

and national agencies. At the same time, it is necessary to ensure responsibility for

putting energy behind moves in this direction.

Recommendation 1: Training Development and Facilitation

An Apparel Industry Association/Steering Committee/Interest Group seek

government support for a one year secondment of a full time “industry

prospector”. This individual would be responsible to network with other industry

associations to gather pertinent training material and to carry out the

recommendations of this Training Needs Assessment.

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The apparel industry in the province at the current time is small and vulnerable. The Trend

Analysis leaves little doubt that it will be increasingly difficult to meet the challenges of this

modern industry without proactive efforts and focused initiatives. Having a person

dedicated to this activity will determine the energy and willingness of provincial industry

participants to move towards an invigorated climate of entrepreneurial growth, and will

build industry participation in the design and delivery of future training programs.

Recommendation 2: Apparel Industry Operational Practices

Distance Education courses and Internet delivery of Apparel Industry Operational

Practices should be designed and developed, relying on already existing material

gathered from industry associations and agencies outside of the province.

Familiarization tours to enterprises in other provinces are also recommended.

These will allow industry participants not only to see other methods of

production, but will also encourage development of alliances and potential

mentoring relationships.

Knowledge of Apparel Industry Operational Practices as identified earlier in this report are

foundational to the development and growth of a provincial apparel industry. They lend

themselves to both Internet based presentations as well as specific workshop

components. Provincial industry participants should contribute to the structure and

scheduling of programming as well as the design of familiarization tours.

Recommendation 3: Production Methods for Apparel and Technology

The upcoming Apparel Manufacturing Technology Workshop to be held in April

should include presentations on contract sewing operations from both a

technology and a business investment perspective. Sessions on workplace

design and modular construction are also recommended in addition to

presentations on the specific production technologies.

The Union of Needletrades, Industrial and Textile Employees defines technological change

as not only related to new machinery and equipment, but also as it refers to new methods

of production, changes to the way that work is organized, new products and new

management systems.

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The Manufacturing Technology Centre through the Technology Workshop can acquaint

provincial apparel industry producers and others with work methods and processes as well

as technologies. The Centre in this way could build a resident capacity towards the

development of a modern apparel industry. Other means might include: study tours for

those industry participants with particular interest in setting up contracting operations in the

province; identifying potential mentors/industry contacts for conference workshop

facilitation; considering distance delivery mechanisms for aspects of modular production

or workspace design.

Recommendation 4: Worker Technical Skill Development

A group of 10 interested individuals should be sponsored by the Apparel Industry

group to attend the Train the Trainers course at the Manitoba Fashion Institute.

These trainers would then be sponsored to work with local industry to train

existing staff as well as to train new entrants. This will begin to address the gap in

worker technical skills.

The gap between the opportunities that exist in the apparel industry and the ability of

provincial players to access these opportunities is vast. It is the old chicken or egg

dilemma: without an industrially trained workforce the apparel industry will not grow beyond

its present size but because of its present size there may not be job opportunities for those

trained in industrial techniques. A two pronged attack is required to both grow the industry

and increase job opportunities.

The Saskatchewan process using the MFI approach should be tracked to learn from their

experience, should a similar approach be tried in Newfoundland and Labrador. The critical

issue of retention of trained staff can also be tracked – established shops which have

learned how to manage employee/employer issues generally have a small turnover.

Through the IAS, companies can be assisted to develop in-house training plans and

possible internships for designers and other apparel industry related expertise. Youth

employment programs offer potential support. On the job training support can be

accessed through HRDC.

Recommendation 5: Job Opportunity Development for Trained Workers

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The “industry prospector” will approach apparel companies outside of the

province to offer workforce training assistance should they be interested in

locating a manufacturing facility in Newfoundland and Labrador. Provincial

companies with an interest in contract sewing facilities will be assisted to put

proposals in place.

It is important to remember that a worker is considered to be only 40% efficient at the

completion of a technical training course. Efficiency increases with time and experience,

but industrial work opportunities are required to balance supply and demand. The

relocation of larger operations or the development of contracting out opportunities will

assist in growing an industry to a viable, competitive size.

Recommendation 6: Support to Existing In-province Knowledge and Skills

Workshop venues should be used to showcase local production/industry

expertise, to begin to develop potential alliancing opportunities and to plant seeds

for networking. As the industry prospers, and companies grow in size and scope,

there will be increasing opportunities for owner operators to share some of their

experiences and to mentor others. These first initiatives will be important in the

long run.

Even though the industry may be considered incipient in the province, it is important to

recognize the wealth of resources that currently exist at home. Professionals within the

industry bring with them an array of expertise: some have researched CAD systems in

detail preparing research papers, others have well developed design skills, while more

still have years of teaching and production experience. The province is the original site of

one of the most technologically advanced plants in the country – an enterprise which is

interested in assisting in the development of others within the industry. Provincial

capacities and skills should not be underestimated or overlooked.

Recommendation 7: In-province partnership development

Ensure that all stakeholders are kept informed of the work of the Apparel Industry

group. Involve economic development departments, training institutions and

other interested community members.

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As demonstrated by the Manitoba, Saskatchewan and Quebec experiences, industry

government partnerships are important for apparel industry development and success.

The provincial stakeholders should be kept in the information loop as industry initiatives

take place, with the intent of future support and additional collaboration in the

implementation of training programs and workforce development efforts.

The complexity of this undertaking is apparent. That this is possible has been

demonstrated by a few companies in the province as well as by other provincial initiatives

in sectors such as high tech. Vision and tenacity will be required to build an apparel

industry which generates both economic returns and job opportunities.

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Annex AInterview Guide

August 20, 1999

Apparel Industry Training Needs Assessment

(N.B. This is not the form that will be used to record interview information)

1) Introduction of Interviewer and purpose of call

I have been contracted by the Industrial Adjustment Strategy Committee for the ApparelIndustry to assess training needs of those participating in the apparel industry in

Newfoundland and Labrador. The intent of the assessment is to review the skill

requirements, both business and technical, to determine the skills necessary for apparel

producers to be successful in this industry.

In order to assess these training requirements, we need to know something about the

current skills of those like yourself and your workers who are currently part of the industry.

We also need to know those skills you feel need to be improved or will be required in the

future within your area of business. The information you provide will be incorporated into a

report which will be presented to the IAS Committee.

This interview will take approximately 20 minutes. Is this a convenient time for me to talk

with you, or would you prefer to reschedule and I will call you back?

2) Background

Training requirements may depend on specific characteristics of a company. As

background to your company and as context to the information provided during the

interview:

2.a How many employees not including yourself do you have?

Full time_ Part time _ Contract _

2.b What apparel products do you produce?

2.c What methods/machines/technologies/services do you currently use?

2.d Have you or your employees participated in training activities associated withapparel? What were these activities and how useful were they to you?

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3) Occupational profiles

The Canadian Apparel Federation is a national body involved in all aspects of the apparel

industry. It has developed a series of occupational profiles related to the apparel industry. These profiles cover a wide range of occupations and skill sets. I will read a list of skill

sets, and then ask you to indicate which ones your company currently utilizes and how this

work is done. We will then discuss your training needs currently associated with each skill

set and any difficulties that you feel may be associated with acquiring the necessary skills.

I will also ask you to suggest possible solutions.

List of Skill Sets

1. Merchandising, Marketing and Retailing

2. Design

3. Production Management4. Garment Production and Assembly

5. Equipment Maintenance

6. Industrial Engineering

7. Quality Control

8. Transportation, Distribution and Logistics9. Financial Management

10.Business Management

11.Other (industry terminology, partnering, financing, etc.)

3.a Those skill sets currently utilized within the company3.b Current training needs

3.c Difficulties associated with acquiring necessary training

3.d Suggested solutions

4) Future requirements

Those of you who are currently producing goods to supply the apparel market are involved

with the development of your company on a day-to-day basis. From this perspective, I

would like to ask you some questions concerning your future requirements.

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4.a Are there skills of which you are aware, but are not yet using, for which you would like

training assistance? What are these?4.b Are there technologies/machines/services of which you are aware, but are not yet

using, about which you would like additional information? For which you would like training

assistance?

5) Industry Trends

The study will be analysing apparel industry trends through interviews with people inside

the province as well as with specialists outside of the province. I would appreciate your

thoughts on provincial trends in the apparel industry. These trends might include businesspractices, product development, technology applications or markets.

6) Completion of interview

This completes the formal interview. Are there other points you would like to raise

associated with training initiatives for the apparel industry in the province ? I thank you for your time.

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Annex B

Study Contributors

Karen Pottle Exploits Oilskins Originals

Jane Sasonow-White JAS Silks

Paula Gobi Gobi for Girls

Marie and Paul Shea Fashions to Fit

Norma Larkin Grenfell Handicrafts

Wendy Hillier McHill Wool Processing

Carolann Harding Hanna Banana Wear

Jim Spearing Dept. of Development and Rural Renewal

Wendy Diltz Atlantic Tradewinds Agency. Boston

Diana Meservey Stephenville

Mardina Joe MicMac Crafts

Karen Matthews Nortique Fashions

Lori Smith Manitoba Fashion Institute

Holly Howard Puff Baby

Donna Clarke Specialty Apparel

Rosaline Jardine Stitches from Salmonier

Jackie Aleven Terra Nova Shoes

Leslie Hynes The Berry Patch

Chris Charette Apparel Human Resources Council

Emma Brown Trinity Knitwear

Marilyn Bridle Whaler’s Gifts and Designs

Cheryl Kelly Woof Design

Olivia Lewis OLO

Deborah DeAnglis UNITE

Marilyn Pollack Apparel and Textile Association of Saskatchewan

Beverley Weiers BC Apparel

Lynn Bisonette Sectorial Labour Force Committee in Apparel

Marilyn Coles Hayley College of the North Atlantic Bonavista Campus

Gail Gosse College of the North Atlantic Ridge Road Campus

Kelly Bruton Independent consultant

Alastair Allan IAS Apparel Industry Committee Facilitator

Karen Thistle Dept. of Development and Rural Renewal

Katie Parnham Anna Templeton Centre

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Don Beaubier Axis Consulting

Annex CAnna Templeton Centre

The Anna Templeton Centre is linked to the College of the North Atlantic through its Textile

Studies program. The Centre is run by a community board and is responsible for the

operating expenses of the building. The Sally Johnson Print and Dye Studio is an initiative

of the Centre to maximize its resources for the benefit of students, the community and

craft/manufacturing clients. Other similar initiatives in various mediums are planned for the

future.

Sally Johnson Print and Dye Studio

History and Purpose

The building at 278 Duckworth Street was built in 1849 by architect Davis Sterling and

became Newfoundland and Labrador’s first commercial bank – the British Bank of North

America. After the Great Fire of 1892, William Howe-Green designed a new interior for

the building. In its lifetime, the building has been home to the Commercial Bank,

Newfoundland Savings bank and the bank of Montreal. On September 4, 1985 the Bank

of Montreal donated the building to the city of St. John’s.

In 1988 the Avalon Community College (now College of the North Atlantic) asked Textile

Studies faculty to evaluate the building at 278 Duckworth Street as a possible location.

The faculty saw the enormous potential of the building and joined the college

administration in a project to renovate the building. When the building was reopened in

1994 it was named after Anna Catherine Templeton (1916-1995), a pioneer of craft

training in Newfoundland and Labrador.

Two years after the opening of the Centre, government cut funding to the public college

system. Faced with financial shortfalls, the college administration was unsure of its

commitment to maintain the building at 278 Duckworth Street. In addition, the faculty of the

Textile Studies program was reduced to one and a half instructors and enrollment into the

program was limited to every second year.

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In response to the announced cuts support for the continued downtown presence of the

Anna Templeton Centre erupted from many directions and The Friends of Textile Studies

was formed. After meeting with the provincial government, city hall, and college

administration, it was agreed that Textile Studies would remain in the Anna Templeton

Centre and the building itself would be managed and maintained by a community-based

volunteer board.

In 1997 part-time public arts education and professional development programming were

introduced at the Centre. The main floor studio has become a valued setting for cultural

events. The Anna Templeton Centre is developing into a financially viable arts centre.

Objectives of the Anna Templeton Centre

The purpose and objectives for the Anna Templeton Centre are as follows:

• to build a reputation for excellence in education and training in craft, art and design

• to be one of the proactive players in the development of the craft industry

• to be a community centre to support crafts and other cultural activities.

History of the Sally Johnson Print and Dye Studio

With its growing financial stability, the Anna Templeton Centre began to look at ways in

which to diversify its services to the community. To get the ball rolling, the Board decided

to focus on one studio area: the print and dye studio was the obvious choice. The studio is

well equipped with state of the art equipment, materials and safety features. A minimal

investment would make this studio fully operational. With a salary subsidy from HRDC and

a substantial donation from a patron, a print and dye technician was hired on April 1, 1999.

The Sally Johnson Print and Dye Studio was officially opened on June 1, 1999 to provide a

community and industry service that is in keeping with the integrity of the Anna Templeton

Centre’s mandate.

Objectives of the Sally Johnson Print and Dye Studio

The purpose and objectives for the Sally Johnson Print and Dye Studio are as follows:

• to identify and fulfill the print and dye needs of professional craftspeople, artists and

manufacturers (custom dyeing, professional development, one-of-a-kind fabrics,

technical assistance, equipment/studio rentals, apprenticeships)

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• to identify and fulfill the print and dye needs of the public, schools and community

organizations (custom/promotional dyeing and printing, workshops, one-of-a-kind

products, signage, larger projects i.e. set and prop design)

• to design and create a unique line of Anna Templeton Centre products that will reflect

the Centre’s high standards of quality, while providing income to support the Centre

• to keep abreast of current trends in print and dye techniques, technologies and

equipment

• to provide employment to students and graduates of the Textile Studies program

• to contribute to the overall viability of the Anna Templeton Centre

The studio employs a full time print and dye technician plus part time staff when needed.

Two students were hired for 6 weeks in the summer to handle peak production times.

Services presently offered are custom dyeing using natural fibre reactive and acid dyes,

three colour screen and block printing, technician assisted studio rentals and workshops.

Current product line of the Studio includes hand screened and printed T-shirts, hand dyed

silk scarves, natural dyed wool, block printed tablecloths, block printed T-shirts, copper

mobiles, recycled paper mache bowls, handmade books. The product line has been

approved by the Craft Council of Newfoundland and Labrador Standards Committee.

Product sales are done through the Centre (walk in traffic and promotional events), Craft

Fairs, wholesale to St. John’s boutiques and targeted sales events (NewTel,

Confederation Building). Promotion of school workshops are done through direct mail

outs to school and community organizations. Promotion of custom dyeing and screen

printing is done through notices in trade publications and newspapers.

A Print and Dye Studio Committee which includes the print and dye technician, a member

of the retail sector and staff members of the Anna Templeton Centre and The Craft Council

of Newfoundland and Labrador meet once per month to discuss the progress of the Dye

Studio.

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Annex D

Inventory of Apparel Programs

The following tables were compiled during the 1997 study of Human Resource

Development Needs for the Canadian Apparel Industry. Some of the information may be

slightly dated (e.g. Cabot College is the current College of the North Atlantic St. John’s

campus plus the Anna Templeton Centre)

Definitions for each program:

Apparel Management: Curriculum including a combination of business, marketing and

design courses specifically for the management of apparel

production

Fashion Merchandising: Curriculum with a focus on the pricing and retailing of apparel

Fashion Design: Curriculum focussing on the design aspects of creating apparel. Some

programs may also include business skills for retailing as well as

production preparation of patterns and materials.

Pre-production: Curriculum with an emphasis on drafting, pattern making, sample

making, grading, marker making and CAD/CAM systems.

Production: Curriculum concentrating on mass production planning, cutting, sewing and

finishing

General: These programs include several elements of various curriculum mentioned

above.

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Program Focus

School

Apparel

Management

Fashion

Design

Fashion

Merchandisin

g

Pre-

production Production General

BRITISH COLUMBIA

Capilano College #

Kwantlen

University

College

# (marketing) # #

Fraser Valley # #

Vancouver

College

# #

University of

British Columbia

# #

Blanche

Macdonald

Institute

# #

Helen Lefeaux

School

# #

John

Casablancas

Modelling &

Fashion

#

Vancouver

School Board

# #

ALBERTA

Grant MacEwan #

Lethbridge

College

# #

Medicine Hat #

Olds College # #

University of

Alberta

# # #

Edmonton Public

School

# # #

Marvel College # #

MANITOBA

Murdoch

Mackay

#

University of

Manitoba

# #

Manitoba

Fashion Institute

#

SASKATCHEWAN

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Yvonne Yuen

Design School

#

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Program Focus

School

Apparel

Management

Fashion

Design

Fashion

Merchandising

Pre-

production Production General

ONTARIO

Algonquin College #

Centennial College #

Fanshawe College # #

George Brown College # # # #

Humber College #

Mohawk College # # #

Niagara College #

Ontario College of Art #

Seneca College # # #

Brescia College

(University of Western

Ontario)

#

Ryerson Polytechnical # # # # #

University of Guelph #

Granton Institute of

Technology

# # # #

International Academy of

Merchandising and Design

# #

Native Skills Centre #

Richard Robinson Fashion

School

#

Toronto Fashion Incubator #

QUEBEC

Campus Notre-Dame de-Foy # #

CEGEP St-Hyacinthe #(Craft/

weaving)Centre de formation textile de

l’est

du Quebec

#

LaSalle College # # # # #

Collège Marie-Victorin # #

Concordia University #

125

Program Focus

School

Apparel

Managemen

t

Fashion

Design

Fashion

Merchandisin

g

Pre-

production Production General

QUEBEC (continued)

Université Laval # #

Université de Sherbrooke #

Académie internationale de

mode

et design

# #

Académie Julien # #

Polyvalente Pierre Dupuy # # #

École atelier construction

textile

#

École supérieure de Made

de Montréal

# #

École Wilbrod Bherer #

International Correspondence

School

# #

Centre d’Entreprise et

d’Innovation de Montréal #

NEW BRUNSWICK

N.B. College of Craft and

Design

#

University of New Brunswick #

NOVA SCOTIA

N.S. College of Art and Design # #

Dalhousie University #

Mount Saint Vincent University #

Cape Breton School of Crafts #

PRINCE EDWARD ISLAND

University of Prince Edward

Island

#

NEWFOUNDLAND

Cabot College # #

126

127

Annex E

Supplementary Material

Apparel & Textile Association of Saskatchewan. The Apparel and Textile Centre

Feasibility Concept. 1997

Apparel & Textile Association of Saskatchewan. Training Needs Curriculum Outline.

Union of Needletrades, Industrial and Textile Employees. Case Studies on Implementing

Technology in the Clothing and Textile Industry.

Union of Needletrades, Industrial and Textile Employees. Tech Change: A best practices

guide for the clothing and textile industries.

Sectorial Labour Force Committee in Apparel. Modular Presentation and Annual Report.

Sectorial Labour Force Committee in Apparel. Company Self Diagnosis Kit. Apparel

industry.

Sectorial Labour Force Committee in Apparel. Training Kit for Industrial Sewing Machine

Operators; The Sewing Machine Operator’s Workstation: A Handbook for the Prevention

of Work Related Injuries.

SLC Apparel: A Career Fashioned for You. Video. 11 min.14 sec.

Apparel Human Resource Council. Human Resources Needs Analysis of the Canadian

Apparel Industry: Issues and Recommendations

128

APPAREL TECHNOLOGY RESEARCH REPORT

by

Manufacturing Technology Centre

Faculty of Engineering and Applied Science

Memorial University of Newfoundland

Telephone: 709-737-2601

Fax: 709-737-3056

e-mail: afisher@engr.mun.ca

Fall, 1999

129

Introduction

This report is a database of knowledge on certain aspects of modern technology for the

design and fabrication of textile products. Included is information on CAD systems,

hardware applications, and contractors.

Research of CAD software is limited to ten companies: assyst, CAD CAM Solutions,

Cadtex, Gerber, Karat, Lectra, Nedgraphics, PAD, Scanvec, and Tukatech. The selection

of these companies is based on analysis of their web pages and brochures. Capabilities

of the software include combinations of textile print design, knit and jacquard design,

pattern making, grading, marking, and 3D draping. Some packages, such as Primavision

by Cadtex, are capable of only print and knit design. Others, such as OptiTex by Scanvec,

can do only pattern making, grading and marking. Still others, such as Gerber, Lectra,

and assyst, are capable of both textile design and pattern making.

Knitting software available is also summarized in this report. Some of the CAD software

packages used in the sewing domain can also be used for knitted products and

manufacture.

The list of hardware manufacturers and distributors is based on companies listed in the

Canadian Apparel Directory, as well as an Internet search. The hardware researched

consists of cutters, plotters, digitizers, and knitting, jacquard and sewing machines.

Also included is a list of contractors, produced from the Canadian Apparel Directory and

from an Internet search. These contracting companies are available to do one of, or some

combination of, the following: pattern design, grading, marking, cutting, sewing, and

knitting.

It should be noted that all the prices in this report are approximations and are subject to

change. It is best to contact the company for the exact prices.

130

Technology Research Report

Table of Contents

Section 1: Terminology

Definitions of Apparel Industry and CAD Related Terms . . . . . . . . . . . . . . . . . . . . . . . . 120

Section 2: Software

Summary of Ten Available Apparel CAD Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

CAD Software Summary Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Section 3: Hardware

Definitions of Hardware Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

List of Hardware Manufacturers and Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

Section 4: Knitting

Summary of Available Knitting Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

Definitions of Hardware Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

List of Hardware Manufactured and Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

Section 5: Contractors

List of Contracting Companies for Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Appendix:

Apparel Industry Web Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

Table of Definitions of Graphics File Format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

131

Section 1: TerminologyDefinitions of Apparel Industry and CAD Related Terms

AAMA (American Apparel Manufacturers Association): An organization that developsstandards to facilitate manufacturing communication in apparel operations.

ANSI (American National Standards Institute): A voluntary organization, composed ofover 1,300 members (including all the large computer companies), that creates standardsfor the computer industry. For example, ANSI C is a version of the C language that hasbeen approved by the ANSI committee. To a large degree, all ANSI C compilers,regardless of which company produces them, should behave similarly.

Cut File: computer file format read by the cutter.

Cutter: a device that cuts out pattern pieces from the fabric; includes manual andautomated, water-jet, laser, etc. Digitize: to translate into digital form. The operator places a drawing or pattern piece onthe surface of the digitizing tablet, and then traces over it with a puck (cursor) or pen(stylus). This converts positions (Cartesian x- and y-coordinates) into digital values thatcan be stored and modified on a computer. Graphic data collected in this manner can beaccurately displayed on the screen. Digitizing is different from scanning in that a scannedimage is input as a raster based image, while a digitized image is vector based.

Grading: the process of converting a pattern into a range of patterns in different sizes.The computerized systems take a vector-based pattern and mark certain node points asgrowth points. The scaling (grade rule) is applied only to these points.

Marker Making/Marking/Nesting: the process of tightly nesting or clustering patternpieces to maximize fabric utilization for cutting. Computer marking programs may havealgorithms for orienting pieces according to the pattern and/or weave of the fabric, and forminimizing fabric wastage. Computer marking can be either manual or automatic.

Marker: the area on which pattern pieces are nested.

Metafile: a list of commands that can be played back to draw a graphic. Typically, ametafile is made up of commands to draw objects such as lines, polygons and text andcommands to control the style of these objects. A metafile can contain any mix of vectorand/or raster graphics.

Pantone: leading developer and marketer of products for the accurate communication ofcolor in the textile, plastics, graphic arts, and digital technology industries. Each Pantonecolor has an accompanying identification number.

132

Plot File: computer file format read by the plotter. i.e. HPGL

Plotter: a device that draws pictures on paper based on commands from a computer.Plotters differ from printers in that they draw lines using a pen. As a result, they canproduce continuous lines, whereas printers can only simulate lines by printing a closelyspaced series of dots. Plotters can be up to about 1.8 meters wide (72"), and can printvery long markers since paper is roll-fed.

Raster File: contains images that are made up of pixels. They are essentially a twodimensional matrix (or grid) of colored squares. Raster images are used for digitizingimages (scanning). They are also used by painting and manipulation programs likePhotoshop.

Textile Colorway: color combinations or colorings on a fabric. A colorway is a smallsample of a design that is large enough to contain all the colors of the design. Usuallyaccompanying a colorway is an array of color tabs that are small, individual swatches ofeach color that are included in the colorway.

Textile Print: the print or pattern on a fabric.

Texture Simulation: the process of simulating the look of a weave, knit or other texture ona fabric.

3D Draping/Photo Draping: the process of mapping a fabric image onto a 3D object, topreview how the fabric would look.

Vector File: contains mathematical information that describes graphic elements. Theprimary graphic elements will at least consist of lines and arcs. More advanced formatscan contain curves such as bezier and b-spline. Other elements include ellipsoids,parabolas - anything that can be plotted on a graph with a mathematical equation.

133

Section 2: SoftwareSummary of Ten Available Apparel CAD Systems

Gerber Technology makes a complete line of computer-aided design andmanufacturing tools for the apparel industry. Modular packages are available forsketching, pattern design, product development, grading, marking, and production. Thesepackages allow textile print and texture design, pattern design with grading and marking,texture simulation, and 3D draping.

Features:• scan in images• create vector-based patterns• create complex prints with repeat patterns• design knits, weaves, and jacquards• make storyboards

Libraries:• garment clip art• woven patterns• stitch types

Modules/Packages:• Artworks Studio (by NedGraphics) for sketches, line drawings, colorways, fashion

illustrations, draping, and textile and knitting design• AccuMark 800: pattern-making, grading, marker-making, and plotting• AccuMark 100 and 200: pattern-making, grading, marker-making, automatic marking,

and plotting• Accumark Silhouette 2000: pattern design by draping or full-scale drafting, grading,

and marking• Pattern Design 2000: Gerber’s latest pattern design package, incorporating tools

from the AccuMark, MicroMark, and Silhouette packages• Product Data Management (PDM) system for tracking information on styles, costing,

fabrics, sketches

Hardware:• Runs on Windows• Silhouette workstation

File Formats: Gerber, HPGL

Demo: None available.Price:Contact:Gerber Technology, Inc.

134

North American Headquarters P.O. Box 76924 Industrial Park Road WestTolland, Connecticut 06084 USATel: (860) 871-8082Fax: (860) 871-6007

Gerber Technology, Inc.International DivisionP.O. Box 76924 Industrial Park Road WestTolland, Connecticut 06084 USATel: (860) 871-8082Fax: (860) 872-6742

Email: webadministrator@gerbertechnology.comWeb: www.gerbertechnology.com

Lectra Systèmes makes products to enable the automation of all operations fromdesign, product development, and manufacturing. Computer Design Inc (a subsidiary ofLectra) makes the package U4ia, which is capable of fabric, knit, and woven texturedesign and visualization. Other modular packages are available for pattern design,grading, marking, and 3D simulation.

Features:• scan in images• create vector-based patterns• create complex repeat prints• design knits, weaves, and jacquards• direct interface with Stoll Sirix knit systems for digital output to Stoll knitting

equipment• unwrap three dimensional surfaces into 2D flat patterns

Libraries:• garment components• Pantone colors• stitch types• swatches

Modules/Packages: • U4ia Graphic: painting, image-enhancement, recoloring, building custom Pantone

palettes. Contains the core tools for the U4ia system, and is required to run thePremier, Prints, Production, Knits, and Wovens modules.

135

• U4ia Prints: create textile prints from original artwork by drop and repeat patterns• U4ia Premier: apply fabrics and textures to photographs and line art, for visualization

purposes• U4ia Sketch: create technical drawings and design elements, using fabrics created in

other • 4ia modules• U4ia Production: prepare print designs for color separation• U4ia Knits: create and visualize knitted fabrics• U4ia Wovens: create and visualize woven yard-dyed fabrics and custom dobbies• U4ia 3D: 3D texture mapping, 3D sample visualization, pattern flattening, and pattern-

development• Modaris BasicMod: core module of the Modaris line. Pattern digitizing, design, and

modification• Modaris Styler: allows work on the entire garment simultaneously• Modaris Expert: automates pattern modifications to increase consistency between

garments• Modaris Grader: creation and application of grade rules• Modaris Prograder: complex grading• Modaris Freeline: pattern design on digitizing table• Modaris Manager: create custom display menus• Diamino BasicMark: create markers, calculate fabric consumption, match prints• Diamino ActiMark: maximize production of markers for production cutting• Diamino FlashMark: automatic placement of all or part of the marker• Diamino Repeat: automatically place marker pieces with matched print• Diamino LogiCut: control start points and direction of the cut, and define shape of

notches, for most efficient marker cutting• APM (Advanced Pattern Modeling) - 3D/2D simulation

Hardware:• runs on Unix or Windows 95/98/NT • Silicon Graphics, Inc workstation

File Formats: DXF, IGESDemo: None available.Price:Contact:LECTRA SYSTEMES (Canada) IncHead Office 50 Bd Cremazie Ouest, Bur. 200 MONTREAL QUEBEC H2P1A2 Tel: +1 (514) 383 4613 Fax: +1 (514) 383 5270 LECTRA SYSTEMES (Canada) IncBranch Office

136

Humbold Business 1120, Finch Avenue West TORONTO ON M3J 3H7 Tel: +1 (416) 789 1030 Fax: +1 (416) 789 1029Email: lectra-ca@lectra.comWeb: www.lectra.com

Assyst sells a line of computer-aided design and manufacturing tools for the apparelindustry. Modular packages are available for textile design, pattern design, grading, andmarking. These modules allow pattern design with marking and grading, textile printcreation (no knits/weaves), texture simulation, and 3D draping.

Features:• digitize existing patterns• sketch silhouettes • fabric design with repeat patterns• drape fabric over drawings or photos• darts, notches, pleats, seams, mirroring• undo function• made-to-measure: modify standard patterns to custom measurements• automatic re-grading of modified pattern pieces• marking process can be executed manually or automatically• compatible with: Summit, WILD, JP, and all HPGL plotters, and any available cutters• scan in fabrics

Libraries:• standard patterns library

Modules/Packages:• assyCAD: pattern design, digitizing, grading, manual marker making• assyGRAPH: textile print design, texture simulation, 3D draping• Nester: automatic marking

Hardware:• runs on Unix or Windows 95/98/NT• HP Unix workstation

File Formats: • import/export: converts data to AAMA standard to read and output to other CAD

systems• DXF, HPGL, Gerber, foreign cut files, EPS

137

Demo: Acrobat download.

Price: $39 750 for workstation with assyCAD software, digitizer, plotter, furniture, training,and installation.

Contact:assyst, Inc.Automation Software and Systems5000 Aerial Center, Suite 200Morrisville, NC 27560Tel: +1 919 4672211Fax: +1 919 4672297

Email: info@assyst-intl.comWeb: www.assyst-intl.com

PAD System by Infomax makes CAD software and distributes hardware for the apparelindustry. Modules are available for digitizing, pattern making, grading, marking, draping,and plotting. These modules allow pattern design, grading, marking, texture simulation,and 3D draping but no textile print or texture (knits, etc.) design.

Features:• switch easily from a 2D pattern to a 3D model• 3D draping simulates gravity and fabric tension• change the model's measurements• create vector-based patterns• digitize existing patterns • garment simulation includes cut, dart, pleat, shirring, collar, lapel, raglan sleeve,

appliqué, pocket, button, screen print and embroidery• recalculates seam allowances instantly• automatically grades pleats and darts• undo/redo options• compatible with plotters Ioline, Zeta, Roland, Wild, Lectra, Gerber, Mimaki, Numonics,

Graphtec, Drastem, HPGL, Mutoh, Cybrid, Plotter Technology, CalComp, Algotex,Investronica

• compatible with digitizers Numonics, Bidmate, Summagraphics (MicroGrid),Numonics (Gerber), Lectra, GTCO, CalComp

Libraries:• garment components and bodies• grading rules• textile prints

138

Modules:• Digit: digitizing• Pattern: pattern-making, grading• Automark: marking• 3D Sample: draping• Plot: plotting

Hardware:• runs on Windows• sold as modular system

File Formats:• import DXF, AAMA, Lectra, HPGL, STD, ANSI, Gerber, NuMode, Cybrid,

MDynamics, Investronica• export files to any other CAD system with DXF - AAMA

Demo: Actual software demo download. Fairly easy to use.

Price: $4000Cdn for pattern-making and grading software module

Contact:Michel ZampaInternational Sales, PAD2100, rue Ste-Catharine ouestMontreal, QuebecH2T 2W5Tel: 1-514-939-4430Fax: 1-514-937-0517

Email: padinfo@padsystem.comWeb: www.padsystem.com

Scanvec sells the software package OptiTex. Modules are available for patterns,grading, and marking. These modules allow pattern design, grading, and marking, but notextile print design or 3D draping. No knits or other textures.

Features:• scan in fabric images and sketches or import them as bitmap files• create vector patterns• tools include: dart, pleat, cut, notch, draft, flip, seam allowance• made-to-measure grading• manual or automatic marker-making• match stripes and plaids when marking

Libraries:

139

• measurements and accompanying pictures, i.e. leg length, waist circumference

Modules:• Digitize: digitizing• PDS: pattern making by digitizing or drafting• Grade: grading• Custom Fit: make custom fit garments by entering body measurements for individual

customers• Mark: automatic or manual marking, match printed fabric marker pieces• Nest++: automatically generates an extremely tight marker, and reworks markers for

different material widths and proposes the best results• Match++: optimizes pattern layout for matching striped or plaid fabric on marker

pieces

Hardware:• runs on Windows• sold as modular system

File Formats: HPGL, DXF, DFT, IGES, CADL, GGT (Gerber), ANSI/AAMA file formats.

Demo: ScreenCam downloads show how to make pleats, seams, grades, etc. Can alsocall their office for a free demo CD.

Price: $6500US for pattern making, grading, and marking software

Contact:Anne MelansonSGS General ManagerInternational Plaza Two, Suite 625Philadelphia, PATel: 19113610-521-6300Fax: 188610-521-0111Email: annem@optitex.comWeb: www.optitex.com

Tukatech makes plotters and cutters for the apparel industry, and also sells Scanvec’sOptiTex PDS, Custom Fit, Grade and Mark modules under the name TUKAcad. Thesoftware allows pattern design, grading, and marking, but no textile print, knit design, or3D draping.

Features:• TUKAcad’s software is by Scanvec, so its pattern design, grading, and marking are

the same as OptiTex • create vector-based patterns

140

• scan in fabric images or import them as bitmap files• tools include: dart, pleat, cut, notch, draft, flip, seam allowance• made-to-measure grading• match stripes and plaids when marking• compatible with Gerber, Lectra, Micro, Polygon, Investronica, Assyst, Pad Systems

and more• supports TUKAjet, HPGL, DMPL, IOLINE, NUMONICS, GERBER, SUMMO

GRAPHICS, CALCOMP, WILD plotters• supports TUKATECH, FK Systema, Gerber, Cutting Edge cutters

Modules:• TUKAdesign: draft patterns from scratch or modify existing blocks with grading

information to create new patterns• TUKApattern: made-to-measure pattern based on a given pattern• TUKAmark: grading and marking

Libraries:• Pantone textiles• measurements and accompanying pictures, i.e. leg length, waist circumference• grading rules

Hardware:• runs on Windows

File Formats: • Merger 2000 software for import/export of DXF, HPGL, CADL, IGES, ANSI/AAMA,

DFT, GGT (Gerber)

Demo: Actual software demo download fairly easy to use. Tutorial instructions onWordPad. ScreenCam demo same as OptiTex.

Price: $7500US for software (all modules); $29 500US for workstation, plotter, digitizer,furniture, installation, warranty, and training

Contact:Ashraf AllyTUKAtech, Inc4210 Side Rd. 20 S.Puslinch, ONT, CanadaN0B 2J0Tel: (519) 763-5561Fax: (519) 763-8772

Email: tukatech@earthlink.comWeb: www.tukatech.com

141

CAD CAM Solutions makes a CAD software package, Fashion CAD, for small ormedium garment manufacturers. The software is capable of vector pattern design,grading, and marking, but no textile print or texture design or draping.

Features:• scan or digitize old patterns or create new ones• scan patterns from an original source and use the scanned image as an underlay to

insert real lines and curves• automatically scale and grade to any size• set up personalized measurements files• create any symbols (logos, buttons, zips, diagrams, etc.) and insert them onto pattern

piece• create any surface design to insert onto the pattern piece - "grain" indication to assist

with pattern piece matching• manual marking• export to any Windows-based plotter

Modules:• Pattern Design: pattern creation/import• Pattern Grading: grading• Pattern Detailing: insert seams, symbols, text• Marker Layout: manual marker making

Libraries:• standard ladies/men/kids pattern blocks• garment componentsHardware:• runs on Windows

File Formats: HPGL, DXF

Demo: ScreenCam download shows how to alter a pattern from the library

Price: $650US for download (no taxes); $750US + tax for CD-ROM (includes delivery).

Contact: Cad Cam Solutions Australia Pty. Ltd.P.O. Box 1042SUBIACO, Western Australia 6008

Email: Info@cadcam.solutionsaustralia.com.auWeb: www.cadcam.solutionsaustralia.com.au

142

Karat makes software for basic pattern design and product data management.KaratCAD is capable of vector pattern design, but no marking or grading of patterns, notextile print or texture design, and no 3D draping.

Features:• sketch silhouettes• create storyboards• draw vector shapes to create a pattern• Autodesk technology• scan in or import CAD-designed prints and textures to fill your pattern• Karat Product Development compatible with Gerber PDM (Product Data

Management)

Libraries:• stitches• trim details• garment bodies• snap-together components

Modules/Packages:• Designer: patterns, silhouettes, storyboards• Product Development: spec sheets, costing, product management

Hardware:• runs on Windows

File Formats: DWG, DXF, DRW

Demo: Acrobat download showing basic system capabilities - product data managementand product design.Price: $1500US for Design softwareContact:Tel: 1-514-931-2616, ext. 238Fax: 1-514-931-1106Email: info@karat.comWeb: www.karat.com

Vision is a line of software products for the textile industry, created by Info Design,which is owned by NedGraphics. Modules are available for textile design, knits, andweaves. These modules allow print and texture design, but can not do patterns, markingor grading.

Features:• scan in images• sketch silhouette

143

• make storyboards• create complex repeat prints, as well as knits, weaves, and jacquards• automatically puts knits in a graph• adjust knit gauge and tension• weave card generation for most looms• texture simulation and 3D draping• print design on fabric with any textile printer

Libraries:• Pantone colors• Pantone textiles• Mona textiles• weaves• jacquard weaves• textural threads

Modules/Packages:• Fashion Studio: sketching, textile print design, storyboards, knits, weaves, jacquards,

3D draping• Printing Studio: sketching, textile print design• Knitting Studio: knits, lace, jacquards• Weaving Studio: weaves, dobby weaves, jacquards, carpets

Hardware: • runs on Windows• sold as a modular system

File Formats: TIF, TGA, BMP, DIB

Demo: PowerPoint download showing basic functions of each module.

Price: $5000 for knit and print design module

Contact:Cor J. van StemDirector Professional ServicesTextile CAD/CAM DivisionTel: 31 30 248-8000Fax: 31 30 248-8088

Email: cvs@nedgraphics.comWeb: www.nedgraphics.com

144

Prima by CADTEX is a line of software products for fabric design and simulation, as wellas product management. Modules are available for textile prints, knits, wovens, and colormatching. These modules allow textile print and texture design, but no vector patterndesign, and no grading or marking.

Features:• scan in images• convert scanned images into knitting graphs• create complex repeat prints• supports layers of vector and bitmapped print images• simulate knits and weaves• automatic production graph output for knit designs• adjust knit gauge and tension• sketch silhouettes• apply any texture to the designed fabric• 3D draping

Libraries:• Pantone colors• weaves• knits• textures• silhouettes• accessories

Modules/Packages:• PrimaVision: textile print design, sketching, coloring• PrimaVision-TCX: storyboards, 3D photo draping• PrimaNova: less advanced Prima CAD package for smaller businesses• Prima MPS: product information management• Knit Expert: design and visualization of knit textures• Weave Expert: design and visualization of woven yarn-dyed fabrics, dobbies, and

jacquards• MaskFilm: design and color separation of textile prints• Super Spectrum: color matching with a hand-held spectrometer

Hardware: • runs on Windows• sold as modular system

File Formats: BMP, CAL, DCX, GIF, JPG, IFF, PCX, PSD, PCT, RAS, TGA, TIF, WMF,WPG, XBM, EMF

145

Demo: ScreenCam demo CD - shows how to use MPS module to store data on sizes,price, season, etc.

Price: $8500US for knit or weave software module; $20 000US for entire, stand-alonesystem.

Contact:Cadtex Corporation121 West 27th Street, Suite 204New York, NY10001Tel: 212-255-4700Fax: 212-463-7983

Email: Cadtex@Cadtex.comWeb: www.cadtex.com

CAD Software Summary Table

146

KaratCAD Vision byInfo Design,NedGraphics

assyst TUKAcad byTUKATECH

LectraSystemes

Prima byCADTEX

PAD Systemby Infomax

GerberTechnology,Inc

OptiTex byScanvec

Fashion

CAD by CADCAMSolutions

website www.karat.com

www.idvision.com

www.assyst-intl.com

www.tukatech.com

www.lectra.com

www.cadtex.com

www.padsystem.com

www.gerbertechnology.com

www.optitex.com

www.cadcam.solutionsaustralia.com.au

demo Acrobatdownload on C:\archive;free CDordered overInternet

PowerPointdownload onC:\archive

Acrobatdownload onC:\archive

software demodownload onC:\archive

ScreenCamslideshow onCD sent bycompany

softwaredownload anduser manuals on C:\archive;free CDordered overInternet

ScreenCamdownload onC:\archive

ScreenCam download onC:\archive

computer Pentium PCminimum 200MHz

Pentium PCminimum 400MHz(recommend500)

HP Unix 100 MHzIntel-basedPentiumcomputer

SiliconGraphics, Inc.hardware

Pentium Pentium IIProcessor

PentiumProcessor

PentiumProcessor

PC PentiumSystem

operates on Win 95/NT4.0

Win 95/98/NT Unixworkstation,Win 95/98/NT

Win 95/NT SiliconGraphics UnixOS

Win 95/98/NT Win 95/98/NT Win 95/NT Win 95/98/NT Win 95/98/NT3.5 or later

RAM 32 Mb 128 Mb 16 Mb 32 Mb 64 Mb 16 Mb 32 Mb

hard diskspace

30 Mb 9 - 14 Gb 1.0 Gb 32 Mb 150 Mb 35 Mb

CAD Software Summary Table

147

KaratCAD Vision byInfo Design,NedGraphics

assyst TUKAcad byTUKATECH

LectraSystemes

Prima byCADTEX

PAD Systemby Infomax

GerberTechnology,Inc

OptiTex byScanvec

Fashion CADby CADCAMSolutions

otherrequirements

SVGA videocard, 17"monitor; 1.44Mb floppydisk drive

1 graphicscard(recommend2), Wacomtablet withpressuresensitive pen,17" monitor

digitizing table 15" monitor Wacom tabletfor sketching;cordless penor 4-buttonmouse

15" monitor, 1parallel and 1serial port

sound card,speakers, 3-button mouse,2 Mb graphicscard, minimum15" monitor

availablelibraries

Stitches; trimdetails;garmentbodies; components

PantoneColors;weaves;jacquardweaves;texturalthreads

standardpatterns

PantoneTextiles;grading rules

Components;swatches;stitch types;PantoneColors

PantoneColors;weaves;accessories;textures;silhouettes;knits

garmentcomponentsand bodies;grading rules

garment clipart; wovenpatterns;stitch types

standardmeasurements

standardpattern blocksfor ladies/men/ kidswear; garmentcomponents

file formats DWG, DXF,DRW

TIF, TGA,BMP, DIB

AAMA,DXF, Gerber,HPGL, foreigncut files, EPS

DXF, DFT,GERBER, ANSI/AAMA,IGES, HPGL,CADL

Gerber, DXF,IGES

BMP, CAL,DCX, GIF,JPG, IFF,PCX, PSD,PCT, RAS,TGA, TIF,WMF, WPG,XBM, EMF

DXF, Lectra,AAMA,foreignpattern, cut &plot files

HPGL, Gerber DXF, IGES,HPGL,Gerber, ANSI/AAMA

HPGL, DXF

CAD Software Summary Table

148

CAD Software Summary Table

149

KaratCAD Vision byInfo Design,NedGraphics

assyst TUKAcad byTUKATECH

LectraSystemes

Prima byCADTEX

PAD Systemby Infomax

GerberTechnology,Inc

OptiTex byScanvec

Fashion CADby CAD CAMSolutions

sketchsilhouettes

T T T T

draw vectorpattern

T T T T T T T T

stitch/knittexturesimulation

T T T T T T

3D draping T T T T T T

complextextile prints

T T T T T

knits T T T T

weaves T T T T

jacquards T T T

marking T T T T T T T

grading T T T T T T T

scan intextiles

T T T T T T T T T

CAD Software Summary Table

150

KaratCAD Vision by InfoDesign,NedGraphics

assyst TUKAcad byTUKATECH

LectraSystemes

Prima byCADTEX

PAD Systemby Infomax

GerberTechnology,Inc

OptiTex byScanvec

Fashion CADby CADCAMSolutions

sold as singularsoftwaresystem

modularsystem(jacquard,weave, knit,textile printdesign, sketch, coloring, andstoryboardmodules)

workstation with modules(textiles,draping inassyGRAPH;pattern-making,grading, andmarking inassyCAD)

modularsoftwaresystem orworkstations

Workstationwith modules (textile designin U4ia;pattern designand grading inModaris;marking inDiamino; 3Dsimulation inAPM)

modularsystem (knit,weave, textileprint design,draping, andcolor matchingmodules) orcompletesystem

modularsystem(digitizing,pattern-making,grading,marking,draping, andplottingmodules)

workstationwith modules(pattern-making,grading,marking,sketching,storyboard,textile and knitdesign,draping)

modularsoftwaresystem(pattern-making,grading, andmarkingmodules)

softwaredownload orCD ROM

price $1500US(software),trainingseparate

$5000US (knit,design &repeat module)

$39 750(workstationwithassyCADsoftware,digitizer,plotter,furniture,training,installation)

$7500US (allmodules);$29500US(workstationw/patterndesign/mark/grade,installation,plotter,digitizer,training)

$8500US (knitor weavemodule);$20000US(stand-aloneworkstation)

$4000Cdn(pattern-making,gradingmodules)

$6500US(pattern-making,grading,markingmodules)

$650US(download) or$750US + tax(CD ROMdelivery)

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Section 3: HardwareDefinitions of Hardware Devices

Automated Cutter: a device that can cut one or more layers of fabric using a computer-generated cut file, without intervention by an operator. They generally work in the samemanner as a plotter, except instead of moving a pen across paper, they move a cuttingimplement across fabric. The cutting can be on a flat bed or conveyor. Depending on thevolume and speed the machine is designed for, and the type of fabric being cut, thecutting action may be performed by a straight knife, a wheel block, a laser, or a water jet.Some machines also use special tools for boring or notching. The cost of an automatedcutter will vary with its size, the rate at which it processes fabric, and extra features fortasks such as material handling.

Automated Sewing Machine: a wide variety of programmable, electronic sewingmachines are available. Specialized machines are available for stitching pants pockets,attaching collars and waistbands, hemming pants and cuffs, sewing buttons andbuttonholes, attaching belt loops, bar tacking, overlock stitching, etc. More sophisticatedmodels may have a touch pad interface, pre-programmed stitch libraries, automaticthread cutters, and automated back stitching.

Knitting System: an electronic machine with a computer for reading needle patterns inputfrom a floppy disk or cartridge.Contains electronic selection units, having two selecting points for knit, tuck, three-waytechnique, transfer, and receive. The selection made at this point passes through a camtrack. Cams are machined metal plates attached to a cam plate. An electronic stepmotor controls the presser cams and stitch cams, which alternate in the direction of thecarriage. These are for drawing the needle down to pull more or less yarn into the needlehook to form a different size of knitted loop.

Laser Cutter: an automated cutter that uses a laser beam to cut fabric. Retractable bed, orpallet, laser cutting systems spread the fabric on a pallet and move it to the cutting zone tobe cut. After cutting, the pallet is moved to the other side of the cutting zone, where the cutparts are removed while the next parts are cut. Patterns longer that the cutting zone areautomatically divided by software into frames ("slices") that are fit into cutting zone area.Conveyorized laser cutting systems cut the material while the material is moving. Thesoftware automatically divides long patterns into "slices" (frames) that are cut continuously.For example: RD Corp. Laser Specifications: Typical required floor space for eitherPallet or Conveyor system is about 240 square feet. Typical pallet size is 6 feet (1.8 m)wide x 12 feet (3.6 m) long. Cutting speed is up to 90 in/s (2.3 m/s), with Rapid speed upto 120 in/s (3 m/s).

Manual Cutter: hand held rotary or straight knife cutter.

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Plotter: a device that draws pictures on paper based on commands from a computer.Plotters differ from printers in that they draw lines using a pen. As a result, they canproduce continuous lines, whereas printers can only simulate lines by printing a closelyspaced series of dots.

Plotter/Cutter: a plotter with which a knife can be used in place of a pen. Cuts samplesfrom pattern paper or cardboard, or cuts fabric for prototypes.

Spreader: a device for taking fabric off a roll and setting it down on a cutting table. Oftenused in conjunction with an automatic cutter.

Water-jet Cutter: uses high-pressure water mixed with an abrasive to cut through all typesof material. Can use Computer Numerical Control (CNC). The motion systems are thesame as for laser cutting systems. example: Lasermade laser cutting systems use garnet as an abrasive in the water

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List of Hardware Manufacturers and Distributors

Cutters:• Apparatex (see Canadian Apparel Directory, www.apparatex.com) – distributor of

cloth cutting machines, cutting room supplies, fabrics, and notions. Edmonton,Alberta.

• assyst (www.assyst-intl.com) – paper plotter/cutters• Autometrix (www.autometrix.com) - single layer fabric cutting on plotter/cutter • B & W Sewing Machine Co. (see Canadian Apparel Directory) – suppliers of Juki

machinery and equipment• Bruck (see Canadian Apparel Directory) – suppliers of new and rebuilt industrial

sewing machines, cutters, and spreaders; sells Singer, Yamato, Juki, Cansew, Wolf• Cybrid • Eastman (www.eastmanww.com) – Eastman automated cutters • Gerber (www.ggt.com) – Gerber automated cutters, laser cutters• Gordon Sewing Machine Co. (see Canadian Apparel Directory) – distributors of J.B.

Gury cloth cutting equipment, Beka needles, and new and used industrial sewingmachines

• Investronica Sistemas – Investronica automated cutters• IOLINE (www.ioline.com) – plotter/cutters• Lectra (www.lectra.com)– Lectra automated knife cutters, laser cutters, water jet

cutters, automatic spreaders, maintenance, training, and support• M.S.M. Ltd. (see Canadian Apparel Directory) – supplier of used and new sewing

machines, cutting machines, and eyelet and rivet machines; sells Fipi, Cima, Fimma,TRC, Eastman, Brother

• Machine à Coudre Delisle (see Canadian Apparel Directory) – importer anddistributor of cutting, fusing, and sewing parts and supplies; sells Kingtex, Sunstart,J.B. Gury, Orange Needles, Reliant Fusing Press, Kansai Special

• Machines à Coudre Supreme Inc. (see Canadian Apparel Directory) – sales, service,rentals of sewing machines, industrial equipment, cutting, pressing, model forms,parts, and needles; sells Pfaff, Juki, CanSew, Brother, Union Special, Scruba,KingTex, Kansai Special, Pegasus, Superior, Sheldon, Sussman, VaporPress, Wolf,Eastman

• Michel Simard Ltd. (see Canadian Apparel Directory) – supplier of sewing machines,die cutting presses, and other industrial equipment

• PAD System Technologies (www.padsystem.com) – distributes AlgoTex and Iolineplotters, Numonics digitizers, and Kuris roboticized cutters

• Pfaff (see Canadian Apparel Directory) – retail and wholesale of domestic andindustrial sewing machines, cutting machines

• RD Corp. (www.planet.eon.net/~rdcorp/index.html) – CAD/CAM Systems, clothcutting machines, laser cutters, cutting tables, factory equipment. For laser cutter,computer imports files as Gerber Cut File, DXF, HPGL and others, optimizes cuttingpath and generates the laser-cutting file.

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• R.D. Goldsworthy & Co. Ltd. (see Canadian Apparel Directory) – sales and service ofindustrial and commercial sewing machines, spreaders, cutters, embroiderymachines, ergo workstations; sells Pfaff, Pegasus, GGT(Gerber)/Niebuhr, Schmrtz,EFKA, Quick, WISS, Singer, Kessler, Maimin

• Reliable Sewing Machine Co. Ltd. (see Canadian Apparel Directory and 1995Reliable catalogue) – supplier of industrial equipment, parts and service; sellsYamato, Juki, Mitsubishi, Singer, Relsew, SMF/Reece, Eastman, Sussman, Consew,Siruba, Rotondi, Hoffman, Oshima, Ace Hi, Groz Beckert, Clinton, Trimmaster,Silverman, AC, PSR, Beisler, Galkin, Albatross, Racing

• Rubenstein Bros. Co. Inc. (see Canadian Apparel Directory, www.rubco.com) –sales, parts, service, and financing of new and used machines for cutting, sewing,finishing, embroidery, and warehousing; sells Brother, Tajima, Eastman, Merrow

• Rubenstein Bros. Ont. Ltd. (see Canadian Apparel Directory, www.rubco.com) –agent for Brother industrial embroidery machines, Happy embroidery machines,Eastman cutters, CRA spreaders, Merrow, UTICA, Whirly machines

• SMART Flat Bed Laser Cutting Range(http://web.singnet.com.sg/~smcpl/product/lasercut/laser.htm)

• Tukatech (www.tukatech.com) – TUKAcut cutters. The on-board computer canindependently memorize the cutting graphics. It can be directly connected to the CADsystem, networked or the cut data/marker may be transferred via floppies. Thecomputer regulates and displays the management of cutting parameters, cuttingspeed, vertical blade speed, blade sharpening frequency, vacuum intensity regulationetc.

• USM Canada (see Canadian Apparel Directory) – supply and service machines forcutting, transfer printing, and heat sealing; sells PCI, PMF, BSB, Allen, Bima, Unifast,Samco, Texon, Chaignauld

• Unequip Machinery Corp. (see Canadian Apparel Directory) – used specialtymachinery and equipment for cutting rooms

Plotters:• Algotex- used by PAD• assyst (www.assyst-intl.com) • Cybrid • Drastem• ENCAD (www.encad.com) – used by Lectra; digital color printers/plotters for textiles,

also deals with inks and fabrics for color accuracy • Gerber (www.ggt.com) – GGT AccuPlot• Graphtec • HPGL • IOLINE (www.ioline.com) – used by OptiTex, PAD • Investronica • Lectra (www.lectra.com) • Mimaki • Mutoh • Numonics –used by PAD and by assyst

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• PAD System Technologies (www.padsystem.com) – distributes Algotex and Iolineplotters, Numonics digitizers, and Kuris roboticized cutters

• Roland • Signature• Stylist 2000• TUKAjet (www.tukatech.com) – Hi-Speed Ink Jet Plotters• WILD• Zeta

Digitizers:• Bidmate• Calcomp• GTCO• Kurta• Lectra (www.lectra.com)• Numonics – used by Gerber, Optitex, PAD• PAD System Technologies (www.padsystem.com) – distributes AlgoTex and Ioline

plotters, Numonics digitizers, and Kuris roboticized cutters• Polygon• Summa MicroGrid• Wacom

Knitting Machines and Jacquard Machines:• Barney Knitting Machinery Co., Inc. (www.barneyknitting.com) – new Wildman

Jacquard circular knitting machines; used Wildman Jacquard and Jumberca circularknitting machines; used Stoll, Lamb, Shima Seiki, Schaffhousen, Dubied, andUniversal flat knitting machines

• ITM Ltd., South (see Canadian Apparel Directory, www.industryweb.net/itmsouth) –used Shima, Universal, Protti, Dubied, Stoll flat knitting machines; used Jumberca,Phillips, Wildman, Mecmor, Mayer, Lebocey circular knitting machines

• Jumberca (www.jumberca.com) – circular single and double knit jacquard/knitmachines; design pattern on Jumberca Scorpio software

• Protti (www.prottiusa.com) – flat knitting machines; Protti software • Shima Seiki (www.shimaseiki.co.jp) – Shima Seiki computerized flat knitting

machines; knit patterns designed on company’s hardware, or converted fromJumberca files; company makes pattern software systems for other knitting machinebrands

• Stoll (www.stolluk.co.uk, www.stoll.de) – new and used flat knitting machines,jacquard machines; knit patterns must be designed on Stoll software as TIFF files

• United Texmac Pte Ltd (UNITEX) (www.unitex.com) - Graphical pattern can becreated either using a patterning CAD/CAM software equipped with the machine orvia image scanner.

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Sewing Machines:• Atlanta Attachment Canada (see Canadian Apparel Directory) – Atlanta Attachment

automated sewing machines and attachments• B & W Sewing Machine Co. (see Canadian Apparel Directory) – suppliers of Juki

machinery and equipment• Brother (http://www.brother.com/us-ism/e-ism-info-ca.html) – Brother sewing

machines• Bruck (see Canadian Apparel Directory) – suppliers of new and rebuilt industrial

sewing machines, cutters, and spreaders; sells Singer, Yamato, Juki, Cansew, Wolf• Ex-Rees Specialty Sewing Machinery Canada Inc. (see Canadian Apparel Directory)

– distributor for new and used AMF and Reece equipment, parts and service• Gordon Sewing Machine Co. (see Canadian Apparel Directory) – distributors of J.B.

Gury cloth cutting equipment, Beka needles, and new and used industrial sewingmachines

• H.H. Industrial Sewing Machine Co. (see Canadian Apparel Directory) – supply andservice industrial sewing machines; sells Brother, Pfaff, Anker-Tex, Janssen, AMF,Juki

• John Garde & Co. Ltd. (see Canadian Apparel Directory) – sales and service ofindustrial sewing machines, parts, and supplies; sells Singer, Eastman, Juki Brother,Consew, Bonis, Wolf

• Jomida Industries Inc. (see Canadian Apparel Directory) – distribute Consew, GoldenWheel, Siruba, Mitsubishi

• Juki Union Special, Inc. (www.juki.com) – Juki sewing machines• M.S.M. Ltd. (see Canadian Apparel Directory) – supplier of used and new sewing

machines, cutting machines, and eyelet and rivet machines; sells Fipi, Cima, Fimma,TRC, Eastman, Brother

• Machine à Coudre Delisle (see Canadian Apparel Directory) – importer anddistributor of cutting, fusing, and sewing parts and supplies; sells Kingtex, Sunstart,J.B. Gury. Orange Needles, Reliant Fusing Press, Kansai Special

• Machines à Coudre Supreme Inc. (see Canadian Apparel Directory) – sales, service,rentals of sewing machines, industrial equipment, cutting, pressing, model forms,parts, and needles; sells Pfaff, Juki, CanSew, Brother, Union Special, Scruba,KingTex, Kansai Special, Pegasus, Superior, Sheldon, Sussman, VaporPress, Wolf,Eastman

• Mason Sewing Machine Co. Ltd. (see Canadian Apparel Directory) – supplier ofindustrial sewing machines and attachments, sales, service, and rentals

• Michel Simard Ltd. (see Canadian Apparel Directory) – supplier of sewing machines,die cutting presses, and other industrial equipment

• Pfaff (see Canadian Apparel Directory) – retail and wholesale of domestic andindustrial sewing machines, cutting machines

• Pimac Inc. (see Canadian Apparel Directory) – exclusive distributor of Rimoldiproducts

• R.D. Goldsworthy & Co. Ltd. (see Canadian Apparel Directory) – sales and service ofindustrial and commercial sewing machines, spreaders, cutters, embroidery

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machines, ergo workstations; sells Pfaff, Pegasus, GGT(Gerber)/Niebuhr, Schmrtz,EFKA, Quick, WISS, Singer, Kessler, Maimin

• Reliable Sewing Machine Co. Ltd. (see Canadian Apparel Directory and 1995Reliable catalogue) – supplier of industrial equipment, parts and service; sellsYamato, Juki, Mitsubishi, Singer, Relsew, SMF/Reece, Eastman, Sussman, Consew,Siruba, Rotondi, Hoffman, Oshima, Ace Hi, Groz Beckert, Clinton, Trimmaster,Silverman, AC, PSR, Beisler, Galkin, Albatross, Racing

• Rubenstein Bros. Co. Inc. (see Canadian Apparel Directory, www.rubco.com) –sales, parts, service, and financing of new and used machines for cutting, sewing,finishing, embroidery, and warehousing; sells Brother, Tajima, Eastman, Merrow

• Rubenstein Bros. (Ont.) Ltd. (see Canadian Apparel Directory, www.rubco.com) –agent for Brother industrial embroidery machines, Happy embroidery machines,Eastman cutters, CRA spreaders, Merrow, UTICA, Whirly machines

• Union Special Canada (see Canadian Apparel Directory) – sales and service ofUnion Special industrial sewing machines and parts

• Vancouver Sewing Machines (see Canadian Apparel Directory) – supplier of sewingmachines

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Section 4: KnittingSummary of Available Knitting Software

AranPaint: allows the user to design a piece of aran knitting. It does not designsweaters but rather aran patterns.

Features:• Point and click interface• Selection of 2,3,4,5 & 6 stitch cable patterns, bobbles, plain old knit and purl stitches• 50 row by 50 stitch canvas• Tiling option to that will repeat pattern in several ways (vertically, horizontally)• Printing options include written instruction, chart which includes both the number of

stitches and rows in pattern, print picture of the design or design can be convertedinto bitmap files

Libraries:• Aran patterns• Knit types

Hardware:• Runs on Windows

Demo: Available to download from the following site: http://opera.iinet.net.au/~coolhoun/index.html

Price: $40.00 Australian (or ~$36.00 Can) Note: All payments must be made inAustralian dollars.

Contact: Lisa HounshellP.O. Box 1002Willagee Central LPOWilllagee WA Australia6156

Email: coolhoun@iinet.net.au

Cochenille Design Studio: Designs sweaters in a multitude of shapes and sizes.Garment Styler offers various choices for creating different necklines, sleeves, armholes,and styles.

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Features:• Uses a sloper, or an image of body measurements to assist in designing sweaters

that are entered by the user.• View the ease in your pattern and how it drapes• Uses asterisks to indicate which sleeves match which armholes• Allows some “tweaking” in the final design • Measurements available in inches and centimeters• Displays rows instead of inches/centimeters to make program compatible to knitting

machines• Schematic drawings can be displayed in various sizes including actual• Styler Set #1 is an added feature with various new styles available

Libraries: Garment Styler• Standard sizes for men, women and children sweaters• 12 Style selections: 5 types of pullovers, 2 cardigans, 2 dresses, 2 vests, and a jacket• 6 armhole types, 23 sleeve designs• 17 neckline options• straight or sloped shoulders

Library: Styler Set #1• 28 styles: boleros, dresses, notched vests, camisole and a peplum• 12 armhole types, 36 different sleeves• 36 different necklines: Wide scoops, deep scoops, angled square, deep square

Hardware:• Runs on Windows

Demo: Garment Styler is available to download from the following site:http://www.cochenille.com. Styler Set #1 demo not available

Price: $85 US Garment Styler$25 US Styler Set #1

Contact:Cochenille Design Studio P.O. Box 234276Encinitas, CA92023-4276Phone: (858) 259-1698 Fax: (858) 259-3746Email: info@cochenille.com

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Knitware Software Design: This program allows the user to design sweaters such aspullovers, vests and cardigans. This program does not include any fancy choices ofsweater design.

Features (Sweater 2.0):• Pattern created can be used for both hand and machine knitting and/or ribbing• Can custom sizes for body, sleeves, neckline, ribbing• Variety of choices for sweater styles• Ability to change the finished measurements• View schematic of sweater with horizontal and vertical measurements• Program will produce an error if selected measurements or options are inappropriate• Calculates estimated or precise amount of yarn needed for design

Library (Sweater 2.0):• Standard sizes for children 20-32 (chest measurements), women 30-48, and men 32-

52• Style components including amount of ease, neckline, collar style, etc.• Neckline choices include: crew, V, square, scoop, butter boat or overlapped boat• Collar options available are: single band, double band, rolled edge, cowl, turtleneck,

shawl, simple hood and shaped hood

Hardware:• Windows 95/98/NT

Demo: Knitware Sweater Design is available to download from the following site:http://www.islandnet.com/knitware/kwdesc.htm

Price: $50 US/$60 Can Sweater 2.0 (for Windows 95/98/NT)$50 US/$60 Can Sweater 1.5 (for DOS & Win 3.1)$45 US/$50 Can Doll & Bear Clothes 1.5 (for DOS & Win 3.1)

Contact:

Morningdew Consulting Services7604 Morningdew Rd.Victoria, B.C.V9E 2A1

Phone: (250) 652-4097Fax: (250) 652-5285

Knitware Retailers: DoodlesOakville, ONEmail: doodles@bserv.com

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DesignAKnit: This program allows the user to design a variety of different sweaters withdifferent patterns.

Features:• Compatible for both hand and machine knitting• Displays sweater assembled, in separate parts, sweater design• Can display pattern row by row, while each row is numbered with appropriate needles

needed• Can give verbal instructions, and audible warnings while designing and fabricating• Can design different patterns to be applied onto sweaters

Library:• Standard sizes for women, men and children• Choice of types of sweaters and necklines• Shape pattern and stitch patterns

Hardware:• Runs on Windows• For verbal instructions, need a Window’s compatible sound card and speakers

Demo: Available to download from following site:http://www.knitcraft.com/designaknit.html

Price: $360 + & 10 S&H (Professional version)$280 + $10 S&H (Standard version – cannot create own shape files for garments,can only use templates)

Contact:Retail Shop215 North MainIndependence, Missouri64050

Phone: (819) 461-1248Email: knitcraft@knitcraft.com

Design-A-Pattern: Allows the user to design a variety of different knitted products. Canalso convert a color pattern created in the ‘paint’ option to knitting surface.

Features:• Choose sweater style, neckline, sleeves• Tweaking to measurements, can customize sizes• Convert to a grid, to give knitting measurements• Also can obtain the written pattern

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• Can create a pattern on the knitting surfaces in Paint that convert to Design-A-Pattern• Can classify patterns according to style and order

Library:• Standard women, men, and children sizes• Different sweater, neckline, armhole styles

Hardware:• Windows 95/98/NT

Demo: Design-A-Pattern is available to download from the following site: http://www.nwnet.co.uk/bramwell/despat.htm or http://www.ileen.com

Price: 1st program: $752nd program: $653rd program: $554th program: $455th program: $35

Contact:

Ileen LevyIleen’s Needle NookHannibal, MO

Phone: 1-800-221-NOOKEmail: ileen@nemonet.comWebsite: http://www.ileen.com

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Definition of Hardware Devices Used for Knitting

• Standard: Needles are spaced at 4.5 mm apart. Knit lightweight yarns. Will knitfairisle, stockinet, tuck, slip and lace. Knits fingering wt or lighter yarn but also sport wtyarn. Option of either punchcard or electronic options.

Manufacturers: Passap, Brother, Studio

• Mid-Gauge: Needles space at 6,7,8 mm. Works best with 5 stitches per yarn buthave Tension Control Dials to be used with heavier and lighter wt yarns. Do not haveoption of electronic or punchcard methods and do not have ribber options. Needlesfor tuck, slip, and fairisle must be hand selected (exception Studio 860) & some mayrequire a special carriage for fairisle knitting.

Manufacturers: Bond, Studio, Brother 350

• Bulky: Needle spacing at 9 mm. Can be either completely manual punchcard (noelectronic) or completely electronic. It is designed for heavy worsted (4 ½ stitches perinch) and heavier. Has option of ribbing but can be just as fast to do it manually.Punchcard and electronic machines have automatic needle selection for tuck, slipand fairisle.

Manufacturers: Passap, Brother, Studio

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List of Hardware Manufacturers and Distributors

Brother Knitting Machines: Manufacturer of large variety of knitting machines bothelectronic and punch card.

Features:• Punch card technology which allows user to select tuck stitch, skip stitch, fairisle, and

weaving to produce garment• Electronic Knitting machine has a memory of 665 different stitch patterns. • Software can be used to create own patterns and produced on the electronic knitter.

Hardware Available:• KH868/864 Punch card• KH970 Electronic• KR850/838 Ribbing Attachments• KG95 Automatic Garter Carriage• KL116 Knit Leader• Color Changer• KE100 Motor Drive Unit• KA8210 Intarsia Carriage• KA8300 Transfer Carriage• KA8310 Linker• KA436 Blank Card/KA451 Card Punch• PPD120 Pattern Programming DeviceCost:Contact:BROTHER INTERNATIONAL CORP. (CANADA) LTD.1 rue Hôtel de Ville, Dollard-des-Ormeaux, Québec, H9B 3H6Phone: (514) 685-0600Fax: (514) 685-0700http://www.brother.com/E-product/e-prodca.html

Studio Knitting Machines: Manufacturer of large variety of knitting machines, manual,electronic and punch card.

Features:• Can produce a fine, standard or bulky weave• Punch card machine can produce a pattern up to 24 stitches wide (all other patterns

must be divided evenly into 24)• Electronic machine can produce a pattern from one stitch up to the number of needles

available on the machine.• Electronic machine is compatible with a variety of knitting machine software.

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Hardware Available:• Manual (Hobby machine, Ultra fine Gauge)• Punch card (Fine, Standard, & Bulky Gauge)• Electronic (Fine, Standard, & Bulky Gauge)• Ribbers• Electronic Controller/Pattern Extender• Intarsia Carriage• Lace Carriage• Fairisle Carriage• Ribber Birdseye Jacquard Carriage• Weaving Arm• 4-color Yarn Changer• Garter Bar• Transfer Carriage• Linker

Cost: Manual Hobby Machine $340Manual Ultra-fine Gauge $1,625Punch Card Fine Gauge $1,695Punch Card Standard Gauge $1,695Punch Card Bulky Gauge $1,695Electronic Fine Gauge $1,995Electronic Standard Gauge $1,995Electronic Bulky Gauge $1,995

Contact:Passap: Manufacturer of large variety of knitting machines both electronic and punch card.

Features:• Passap E8000, E6000 are electronic knitting machines• Passap Duomatic 80 is a punch card knitting machine• Passap Vario has the ability to deal with a variety of different yarns and produce fine,

standard and bulky garments.

Hardware Available:• Passap E8000• Passap E6000• Passap Duomatic 80• Passap Vario• Accessories for

PASSAP E6000: PASSAP DUOMATIC 80:Autocolor 600 DecoU70 / U100E Autocolor 80

Tricofit U70 / U100E Picto Picto W600 W600 GT900/4, T601/4 T601/4 Cost:Contact:

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Mac Jean Doyon #662318 Lakeshore Sew & Knit Circle2348 Herron Road, Dorval 46 Westleigh Cres., Toronto(514) 422-8232 (416) 251-6858

vwscanada@earthlink.net

Section 5: Contractors

List of Contracting Companies for Outsourcing

CANADA

Quebec & Ontario

• G.F. Grading and Marking (www.sourcingweb.com)Pattern marking, grading, marking services. Can also arrange for cutting services.Specializing in: Women’s Sportswear & Dresses, Men’s Sportswear

Contact: Gabriel Fouque9310, St. Laurent Blvd.Montreal, PQH2N 1N4Tel: (514) 389-8588, Fax: (514) 389-9392

• Incredible ClothingGrading, Marking, cutting and sewing services. Can also embroiderSpecializing in: Knit, cotton clothing

387 Limestone Cres.Downsview, ONM3J 2R1Tel: (416) 665-8802, Fax: (416) 665-8861Website: www.incredibleclothing.com

• Keystone Industries Ltd.Grading, Marking, Cutting and Sewing servicesSpecializing in: woven bottoms, jeans

Contact: Mary Maraj (ext. 232)5440 Boul. ThimensSt. Laurent, PQH4R 2K9Tel: 1-800-297-7111, (514) 333-7171, Fax: (514) 333-6336Email: marym@keystone-jeans.com

• Lammoda Confection Inc.Cutting and Sewing servicesSpecializing in: Women’s Fashions

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KVL Inc. (sub division of Lammoda)Specializing in: Women Coats

Contact: Kin SetoP.O. Box 374Westmount, PQH3Z 2T5Tel/Fax: (514) 366-4660

• Les Modes Carl Fashions Inc.Sewing servicesSpecializing in: Women’s Pants

296 Victoria StreetEdmunston, NBE3V 2H9Tel: (506) 735-1902, Fax: (506) 735-1917

• Jalon Mode (see Canadian Apparel Directory)Pattern-making, computerized grading, and cutting services789 Mercier, Iberville, QC

• Moja Knit Canada, Inc. (see Canadian Apparel Directory)Vertically integrated knitting mill1550 Chabanal West, Montreal QC, H4N 1H4Tel: (514) 381-8657, Fax: (514) 381-8650

• Service de Coupe (see Canadian Apparel Directory) Cutting contractor

8595 Boul. Langelier, Montreal QC, H1P 2Z4Tel: (514) 324-3693, Fax: (514) 324-6583

Western Canada

• ADA Designs (see Canadian Apparel Directory)Design services, sample sewing, specializing in women’s and children’s patterns3125 Royal Ave, North Vancouver, BC, V7K 1Y7Tel: (604) 984-0990

• Fashionmark Solutions Inc (see Canadian Apparel Directory,www.fashionmark.com)Pattern making, grading, and markers 301-343 Railway, Vancouver, BC V6A 1A4Tel: (604) 683-9279, Fax: (604) 683-9201Email: info@fashionmark.com

• Freelance Pattern Design (see Canadian Apparel Directory)

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Freelance pattern drafting, grading, and spec drawingLadler, BCTel: (604) 946-8095, Fax: (604) 946-0532

• Precision Patterns, Inc. (see Canadian Apparel Directory)Computerized pattern-making, grading, and marking2559 Palmerston Ave, Vancouver BC, V7V 2W5Tel: (604) 925-6381, Fax: (604) 925-6381

• Studio Maija, Clothing Design Services (see Canadian Apparel Directory)Clothing design, specializing in women’s and children’s wear, pattern-making, grading,marker making, and design.335 East 5 th St, North Vancouver, BC, V7L 1M1Tel: (604) 983-3675, Fax: (604) 983-3675

• RD Corp. (www.planet.eon.net/~rdcorp) Laser cutting services. Computer imports files as Gerber Cut File, DXF, HPGL

and others, optimizes cutting path and generates the laser-cutting file.4220-86 Street, Edmonton, Alberta, Canada T6K 1E5 Tel: 780-450-0941, Fax: 780-438-9088Email: rdcorp@planet.eon.net

USA • London Computer Cutting (see Fashion Mannuscript Magazine)

Computerized cutting.489 Getty Ave, Clifton NJ 07011Tel: (973) 340-3131, Fax: (943) 340-7164

• Metrix Computer Cutting, Inc. (see Fashion Mannuscript Magazine)Computerized cutting.489 Getty Ave, Clifton NJ 07011Tel: (973) 340-3131, Fax: (943) 340-7164

• ApparelMark (www.apparelmark.com)Pattern making, grading, and marking. Gerber Technology AM5, and AccuMark Cad CamComputer System.7307 Remcon, Suite 104, El Paso Texas 79912Tel: (915) 581- 7571, Fax (915) 581- 7151Email: elizabeth@apparelmark.com

• Marker Express (www.markerexpress.com)Computerized pattern making, grading, marker making, plotting, data management andRemote Data Support (RDS) services to companies with or without their own CADsystem. Uses Investronica and Lectra CAD systems.2170 NW 82 Ave, Miami, Fl. 33126

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Tel: 305-717-5010 Fax: 305-717-5009 Email: info@MarkerExpress.com

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APPENDIXApparel Industry Web Links

CAD Info LinksApparel Industry Magazine: http://www.aimagazine.com/FabriCAD apparel links: http://www.fabricad.com/hot.htmlTechexchange apparel info: http://www.techexchange.com/thelibrary.htmlSoucingWeb: http://www.sourcingweb.com/Bobbin Group: http://www.bobbin.com/BOBBINGROUP/

CAD Systemsassyst: http://www.assyst-intl.com/Fashion CAD (CAD CAM Solutions): http://www.cadcam.solutionsaustralia.com.au/Cadtex Corporation: http://www.cadtex.com/Gerber Technology: http://www.gerbertechnology.com/KaratCAD: http://www.karat.com/Lectra Systemes: http://www.lectra.com/Info Design (NedGraphics): http://www.idvision.com/OptiTex (SGS): http://www.optitex.com/PAD System: http://www.padsystem.com/TUKAcad (Tukatech): http://www.tukatech.com/

Sewing EquipmentAtlanta Attachment: http://www.atlatt.com/Rubenstein Bros.: http://www.rubco.com/Singapore Machinery Co.: http://web.singnet.com.sg/~smcpl/

Cutting EquipmentAutometrix automated cutters: http://www.autometrix.com/Default.htmBobbin Show Cutters Pages:http://apparel.indiamart.com/nift/gmt/oct1998/from10021998.html,http://www.bobbin.com/media/97sept/prcut.htmEastman automated cutters: http://www.eastmanww.com/EdgeWise laser cutters: http://www.edgewisetools.com/Emery hand cutters: http://www.emery.com.tw/Ioline cutters/plotters: http://www.ioline.com/Lasermade: http://www.lasermade.com.au/Metrix/Gerber: http://www.fashiondex.com/metrix/RD Corp laser cutters: http://www.planet.eon.net/~rdcorp/Rubenstein Bros.: http://www.rubco.com/Wolf: http://www.wolfmachine.com/

Knitting/Jacquard EquipmentDMB knitting links: http://www.dmbsolutions.net/textile/texlink/texlink.htmITM: http://www.industryweb.net/itmsouth/index.htmlJumberca: http://www.jumberca.com/Shima Seiki: http://www.shimaseiki.co.jp/homee.html

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Stoll: http://www.stolluk.co.uk/, http://www.stoll.deYamata Dobby looms: http://www.yamadadobby.com/Barney Knitting Machinery Co.: http://www.barneyknitting.com/index.html

PlottersENCAD: http://www.encad.com/Ioline: http://www.ioline.com/

Outsourcing ContractorsApparelMark, Inc.: http://www.apparelmark.com/FashionMark Solutions, Inc.: http://www.fashionmark.com/services/Precision Pattern Production: http://www.grade-mark.com/index.htmlRD Corp cutting: http://www.planet.eon.net/~rdcorp/Graphics File Formats InfoFile Format FAQ: http://www.landfield.com/faqs/by-category.htmlTailorMade Software: http://www.tailormade.com/Webopedia: http://pcwebopedia.com/

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Table of Definitions of Graphics File Formats

Extension Abbreviation of Owned by Vector or Raster Description

HPGL Hewlett-PackardGraphicsLanguage

HewlettPackard

vector Set of commands for controllingpen plotters and cutters - pick upthe pen/knife, put it down, movehere, move there. Very fewcomplex commands are part ofHPGL since the original plottersdid not include powerful CPUs.

DXF DrawingExchangeFormat

Autodesk vector Created by Autodesk for AutoCAD- AutoCAD's generic file format.Almost all PC-based CADsystems support DXF.

DWG AutoCADDrawing

Autodesk vector The internal binary databaseformat for and native file format ofAutoCAD.

IGES Initial GraphicsExchangeSpecification

U.S. ProductDataAssociation(USPRO), andIGES/PDESOrganization(IPO)

vector An ANSI standard. Neutral dataformat for digital exchange ofinformation among most CADsystems. Data models are in theform of 3D wire frame surfaces orsolid representations.

DRW Draw Micrografx vector File format used by MicrografxDesigner/Draw.

CADL /CDL

CadkeyLanguage

Cadkey vector Cadkey's development language.

GGT Gerber GarmentTechnology

GerberTechnology, Inc

vector Graphic data format usedextensively in the electronicfabrication industry.

WPG WordPerfectGraphic

WordPerfect vector Graphic file format used in CorelWordPerfect drawings.

PICT / PCT MacintoshPicture

AppleComputer

vector Supported by all graphicsprograms that run on a Macintosh.

EPS EncapsulatedPostScript

Adobe vector, supportsraster

The term EPS usually implies thatthe file contains a bit-mappedrepresentation of the graphics fordisplay purposes. EPS uses acombination of PostScriptcommands and TIFF or PICTformats.

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Extension Abbreviation of Owned by Vector or Raster Description

CGM ComputerGraphicsMetafile

ANSI, ISO,IEC, DOD, andNISTstandardsorganizations

vector, supportsraster

Formally ratified by ANSI. It is aneutral, standard, platform-independent format and is supportedby a wide variety of software andhardware products. It is usedprimarily in transferring betweenapplications. This format is notgenerally supported in Windows- theWMF is preferred.

WMF WindowsMetafile Format

Microsoft vector, supportsraster

File format used to exchangegraphics information betweenMicrosoft Windows applications.WMF files can hold both vector andraster images.

EMF EnhancedMetafile

Microsoft vector, supportsraster

32-bit metafile that can be used byWindows 95, 98 and NT to display apicture. An enhanced metafile cancontain a much broader variety ofcommands than a "regular"Windows metafile.

BMP Bitmap Microsoft raster A representation, consisting of rowsand columns of dots, of a graphicsimage. To display or print the image,the computer translates the bit mapinto pixels (for display screens) orink dots (for printers).

BMP (DIB) Device-IndependentBitmap

Microsoft raster Graphics stored in DIB formatgenerally end with a BMPextension. Called device-independent because colors arerepresented in a format independentof the final output device. DIBprovides images that are scalableindependent of the device.

TIF Tagged ImageFile Format

Adobe raster One of the most widely supportedfile formats for storing bit-mappedimages on personal computers (bothPCs and Macintosh computers).Used mainly in scanning andphotographic applications.

TGA Targa Truevision Inc. raster Compressed bitmap used mainly inphotographic applications.

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Extension Abbreviationof

Owned by Vector or Raster Description

GIF GraphicsInterchangeFormat

CompuServeCorporation

raster Format used by CompuServe.Supports color and variousresolutions. It also includes datacompression, making it especiallyeffective for scanned photos.

JPEG JointPhotographicExperts Group

JPEGcommittee,ISO

raster Standardized image compressionmechanism. Works well onphotographs, naturalistic artwork,and similar material, but not so wellon lettering, simple cartoons, or linedrawings. Although it can reducefiles sizes to about 5% of theirnormal size, some detail is lost inthe compression.

PCX PC Paintbrushbitmap

ZSoft raster A compressed format commonlyused for Windows paint applicationssupported by many graphicsprograms, as well as most opticalscanners and fax modems.

DCX WindowsImages

Microsoft raster A format for multiple page PCX files(Windows only)

RAS Sun Raster file SunMicrosystems

raster Native format of Sun MicrosystemUnix systems.

CALS ContinuousAcquisition andLife-cycleSupport

United StatesDepartment ofDefense

raster Black and white output byapplications used by industries thatcontract with the U.S. governmentand military. It was originallydesigned to simplify the storage andsharing of graphics files.

XBM X windowsBitmap

raster A simple, uncompressed graphicsformat used primarily in the XWindow System. XBM files are 1-bit(i.e. black-and-white) images.

IFF Interchange FileFormat

Amiga raster For storage and exchange of databetween different programs. AllAmiga applications support thisstandard. IFF stores graphics,sound data, text, and configurationdata.

PSD AdobePhotoshop

Adobe raster Photoshop's internal image format.

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Newfoundland and Labrador

Knitwear Industry Scoping Study

Final Report

By

Management by Design

May 2000

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Acknowledgments

The Management by Design study team would like to thank all those who contributed timeand thought to the contents of this study. The private sector knitwear producers as wellas retail outlet owners comprised the major information base for the study, and we wouldlike to thank those who generously took the time to give the team perspectives based onindustry experience. The team would particularly like to thank Karen Thistle, DDRR Marketing Specialist, forher support in terms of conceptual approach, industry contacts, useful documents andgeneral overview based on her many years of experience in the sector. The time andeffort contributed by other members of the IAS Committee is also appreciated. At thesame time it should be noted that the study team takes full responsibility for the reportwhich follows. The funding for this study was provided by the Department of Development and RuralRenewal and the Labour Market Development Agreement, a joint initiative betweenHuman Resources Development Canada and the Province of Newfoundland and Labrador.

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Knitware Scoping StudyTABLE OF CONTENTS

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

1.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

1.1 Background of the Apparel Industrial Adjustment Strategy Initiative . . . . . . . . 169

1.2 Objectives of the Knitwear Scoping Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

2.0 Knitwear and the World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

2.1 International Trends in Wool Apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

2.2 Woolmart 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

2.3 American Demographic Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

2.4 The Echo-Boom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

2.5 Canada’s Textile and Sweater Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

2.6 Knitters in Northern Scotland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

2.7 Profile of the Textile Industry in Shetland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

3.0 Profile of Knitwear Producers in Newfoundland and Labrador . . . . . . . . . . . 181

3.1 History of Knitwear in Newfoundland and Labrador . . . . . . . . . . . . . . . . . . . . . . . . . 181

3.2 Newfoundland and Labrador Knitwear Producers . . . . . . . . . . . . . . . . . . . . . . . . . . 184

4.0 Retailer Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

5.0 Issue Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

6.0 Conclusions and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205

Appendix A Interview List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

Appendix B Heriot-Watt University School of Textiles . . . . . . . . . . . . . . . . . . . . . . . . . 208

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Executive Summary

Background

Knitwear has been an integral part of Newfoundland culture and heritage for manycenturies. In current times, knitwear is produced not only for personal use and creativeenjoyment, but also as a market commodity, by both independent entrepreneurs andcooperative groups of knitters. Presently, sales of Newfoundland and Labrador knitwearat the wholesale and retail levels are estimated to fall between $1.5 million -$2million/annually.

Over the past year an Industrial Adjustment Strategy (IAS) process has been in placefocusing on apparel production in Newfoundland and Labrador. As part of this initiative,a Training Needs Assessment for the Newfoundland and Labrador Apparel Industry wasconducted. This study identified specific training requirements needed to move theindustry forward in the province. Knitwear was referenced in this study from theperspective of professional development, but the IAS committee felt that the knitwearsector required additional concentrated focus in order to better understand the issuesfaced by knitwear producers.

Because of the importance of knitwear culturally and economically, the IAS committeecontracted Management by Design to undertake a Scoping Study of the KnitwearIndustry which would shed some light on perspectives from past, current and futureactivities within the knitwear sector. The objectives of the study were to outline importantdimensions of the provincial knitwear industry and develop an issue identificationframework upon which future initiatives for knitwear sub-sector growth can be built.

Knitwear Trends

The Knitwear Scoping Study examined trends in wool apparel, in terms of fashion andconsumer groups preferences. Technology has changed the composition of wool,creating blends which meet the growing consumer demands for Total Easy Caregarments which can be machine washed and dried at home. A demographic analysis ofthe buying public indicates two major age groups as target markets: the 65+ group andthe “echo boom”(also known as Generation Y) - those between the ages of 5 and 22years of age. Another target group are women between the ages of 45 to 54, the biggestspenders on women’s clothes.

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Knitwear in Scotland and Shetland

Knitwear production in Northern Scotland and the Shetlands is a subsector of the textileindustry, an important economic sector in these regions. Total sales for Northern Scottishknitwear were estimated at approximately $15million Cdn (1994 figures). The strengthsand weaknesses of this subsector are substantial, with issues such as the agingdomestic knitwear workforce, the competition from better paying jobs at the local leveland the lack of direct contact between knitters and their customers facing the knitwearindustry.

Shetland knits are known the world over for their distinctive colours and patterns. Theindustry is valued at approximately $10million Cdn. 78% of the garments manufacturedin Shetland are exported, with the largest proportion going to the European and theJapanese markets. The knitwear industry here is also facing competition from otherhigher paying jobs, although with the decrease in petroleum related activity, the area willhave to rely on its traditional industries for future growth. Investments in people and state-of-the-art production techniques are required to build a modern industry which at thesame time will not lead to the demise of traditional knitwear.

Newfoundland and Labrador Knitwear Sector Profile

There is a long history of knitting in the province, going back as far as the 17th century. This tradition is still alive and well, although the number of handknitters appears to begradually decreasing. The knitwear sector employs at least 35 full time and 10 part timeemployees, including the enterprise owner/operators. The industry supports 450pieceworkers who knit from their homes. These figures are probably low in that they donot include all knitwear production enterprises, those shops that operate only on aseasonal basis, or other retail operations that sell but do not produce knitwear. 40% ofthe operations produce hand knits only, 40% produce machine knits only, and theremaining 20% produce both. The targeted market segment for most producers is verybroad, focused primarily on the 35 - 55 age group and has remained constant. Over50% of the producers reported that retail sales make up 50% or more of their totalrevenues. Wholesale sales have declined over the past few years, pushing manyproducers into additional retail venues to keep their sales levels up.

Knitwear producers find that the bulk of their market is in Ontario and Eastern Canada,with a few buyers in the West. Marketing is done through retail and wholesale shows,with very little focus on other marketing methods, such as sales representatives. Productlines and prices have changed little over the past twenty years, essentially due to a

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perceived resistance on the part of consumers to pay more for the product. Competitorsare seen as the other knitwear producers in the province, primarily because theseproducers compete in the same marketplaces.

Retailer Perspectives

Retailers who handle Newfoundland knitwear were interviewed to gain perspectives onin-store competition for the products and suggested improvements in business practicesand presentation. As might be expected, “Made in Canada” and “Made inNewfoundland” are important selling points depending on the target market. At the sametime, there was no clear distinction for most retailers between Newfoundland knits andother knitwear. In the tourist market, knitwear is in competition with all other products, notjust other knits. Consumers generally spend according to a personal “expendable dollaramount” and decide on products that fit into this range. Traditional styles are sought after,but there is not necessarily a buying preference for hand knits versus machine knits.

Retailers feel that the onus for meeting changing consumer demands is on the knitwearproducers. Retailers do not see their role being that of providing product feedback anddirection to their suppliers. They expect to be able to offer their clients products thatshow well in their shops and carry all necessary product information such as productdescriptions, care methods, etc.

Issue Framework

The main objective of the Knitwear Scoping Study was to identify and define the issuesinhibiting economic growth of the knitwear industry in the province. The issues facing theknitwear industry are:

! Product brand identification through a place of origin symbol

! Diversity of existing knitwear products

! Marketing practices of knitwear enterprises

! Definitions of competition

! The current information base available to the industry

! Organization development and decision making processes

! Policy issues

! Promotional materials utilized by industry participants

! Business skills and market planning capability

! Access to appropriate technology

! Methods of obtaining feedback from clients

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! Performance analysis tools with which to manage knitwear business

! Trend tracking and forecasting consumer demand

These issues are linked to economic growth and development in the knitwear sector. Some of them are not specific to knitwear, but apply as well to the larger apparel industry. The issues are described in detail in the report, and presented in a framework whichincludes the issue, the objective of addressing the issue, initial actions required and thestakeholder assigned lead responsibility for initiating these actions.

The primary stakeholders for action in the knitwear sector are the Department ofDevelopment and Rural Renewal through its Marketing Specialists and EconomicDevelopment Officers, the newly forming Apparel Sub-committee of the Association ofManufacturers and Exporters of Newfoundland and Labrador, and the knitwear producersthemselves.

In order to broaden the knitwear producers access to new markets, distance deliverymodules about the apparel industry - industry definitions, players, technical requirements,opportunities and risks - should be initiated. This was one of the recommendations of theApparel Industry Training Needs Assessment.

Conclusions and Recommendations

The knitwear segment of the provincial craft industry at the present time does notrecognize its economic significance. As a component of an apparel industry it canremain true to its traditional, classic roots, bridging between time honoured methods aswell as utilizing new technologies. The IAS process has provided the opportunity forknitwear producers to reflect on past achievements as well as to explore futureorientations. As many of the established knitwear producers consider lifestyle changes,now is the time to revitalize the vision to maintain enterprise productivity to ensure futureinvestment attractiveness, and to encourage young entrepreneurs to become players inthe development of the sector.

The Knitwear Scoping Study recommends that:

!! The major and primary recommendation is that the DDRR marketingspecialist who has been working with the Apparel IAS Committee be“seconded” to the Apparel Industry sub-committee of the Association ofManufacturers and Exporters to bring some focus on the issuesframework.

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The knitwear producers have recognized the value of remaining with the apparelmanufacturers as the group sets out to organize a sub-committee within theNewfoundland Association of Manufacturers and Exporters. The knitwear producers cancontinue to work towards a stronger network among themselves within the apparelindustry context, while at the same time exploring potential future products andtechnologies. In order to begin to address those items identified in the foregoing issueframework, it is essential to have a dedicated resource to begin to put the pieces inplace to increase investments to and raise returns from the apparel industry.

• An ongoing series of targeted workshops such as the technologyworkshop be scheduled for apparel industry participants/knitwearproducers.

Workshops would include market specialist presentations, business planning and trendanalysis, as well as technical workshops with industrial engineers, knitting specialists,hardware and software specialists. At the present time, the apparel subcommitteethrough its DDRR specialist will be required to develop knowledge about industryattributes and bring in specialists to work with established knitwear producers on productimprovements such as labeling, potential new materials which have the same attributesas their current ones as well as working with new entrants on quality issues and producttesting.

Specific workshops should include a 4 day technical workshop with Asha Ruperelia forknitwear producers. Paula Cornec of Winterhouses should be invited to present aseminar on Tips of the Trade, lessons learned during her 20+ years as a knitwearproducer, retailer and craft shop owner. Other workshops should be identified duringconsultations with industry participants.

• A series of consultations with apparel industry/knitwear producers bescheduled to discuss policy issues and the other issues described in thisreport.

The knitwear producers at the present time do not see themselves as a potentialmarketing network or collaborative industry sub-sector. Meetings which bring knitwearproducers together to discuss issues of common concern will continue to consolidatetheir position within the apparel industry and contribute to sectoral thinking.

• Address the issues of industry support. Review the present supportmechanisms and other existing programs which may in fact be available toand suitable for apparel manufacturers/knitwear producers. Revisepolicies as required and inform sector participants of appropriateprograms.

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The current policies and programs available to craft producers may not be entirelysuitable for apparel manufacturers. An entire review of existing support programs shouldbe undertaken with a view to addressing specific needs and interests of the apparelindustry group in the province. This will require consulting with other craft and industrialstakeholders, and identifying already existing programs which are most suitable to smallscale manufacturers.

1.0 Introduction

Knitwear has been an integral part of Newfoundland culture and heritage for manycenturies. In current times, knitwear is produced not only for personal use and creativeenjoyment, but also as a market commodity, by both independent entrepreneurs andcooperative groups of knitters. Knitwear in Newfoundland is both a hand knitted specialtyitem as well as a home knitting machine made hand crafted garment. At the present timethere are no industrial factory knitwear manufacturers in the province. Sales ofNewfoundland and Labrador knitwear at the wholesale and retail levels are estimated tofall between $1.5 million - $2million/annually.

1.1 Background of the Apparel Industrial Adjustment Strategy Initiative

The craft industry has traditionally played a role in the provincial economy, especially inrural areas. The industry now reports sales of over $25 million, with growth rates at 7%per annum since 1992. Over 2500 people earn income from this industry on a part or full-time basis. Growth is projected to continue at an annual rate of 5-7% which will translateinto an additional 200 full-time equivalent jobs.

One aspect of the craft industry presenting good growth potential is the apparel sector. At the present time the sales level of the 50+ companies in the province which representthe apparel sector is estimated at $27million per annum. This includes large companiesas well as the numerous smaller companies. While there are sub-sectors within the craftapparel sector, such as knitwear and outerwear, and each sub-sector presents specificopportunities and challenges, there are common issues facing the players across thesector which can be addressed to promote development.

In this context, support was requested from the Industrial Adjustment Service to set up anIndustrial Adjustment Strategy Committee to define the requirements of the apparelindustry in Newfoundland and Labrador. The Industrial Adjustment Service works withsectors that are growing or shifting in response to industrial market demands whichreconfigure their human resource development needs.

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The IAS process, based upon industry participation, is designed to create rapid andeffective knowledge transfer among government agency representatives, industry playersand private sector consultants. The purpose of initiating an IAS process for the apparelindustry is to identify and validate provincial as well as industry issues and developstrategies to aid the local sector in taking advantage of the opportunities presented.

1.2 Objectives of the Knitwear Scoping Study

Because of the important place economically and culturally, that knitwear plays in theprovince, the IAS committee felt that it would be important to conduct a study sheddinglight on perspectives from past, current and future activities within the knitwear sector.The objective is a brief scoping study which outlines some dimensions of the provincialknitwear industry. The study will include an issue identification framework upon whichfuture initiatives for knitwear sub-sector growth can be built.

The scoping study should identify:

• Current sales levels of knitwear products produced in Newfoundland and Labrador

• Comparison of current and past sales performance to national knitwear industrysales trends, including future projections

• Historical approaches, results and future marketing focus of local companies -target market, distribution channels, pricing, promotion, etc.

• Analysis of market trends and impact on local companies - includes changingconsumer demands, changing industry requirements and buying practices,competition, etc.

• Current barriers and constraints faced by knitwear companies and rural producers

• Suggestions for ways in which to address these constraints and barriers

The issue identification framework will provide an overview of the issues raised duringthe study and the impact of these issues on economic growth for knitwear producers inNewfoundland and Labrador.

The Knitwear Industry Scoping Study was undertaken by a Management by Design teamcomprised of Marget Davis of Management by Design, Don Beaubier of Axis Consultingand Ronalda Steele.

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Section 2.0 of the report tracks global trends in wool apparel and buyer preferences witha view to targeting specific market segments. Aspects of the Canadian textile industryare presented, followed by analysis of the knitwear sub-sectors of the Northern ScotlandTextile Industry and the Shetland Textile Industry.

Section 3.0 profiles the Newfoundland and Labrador knitwear production sector,beginning with its history and analyzing sector specific perspectives gained duringinterviews conducted for the study.

Section 4.0 presents retailer perspectives on consumer trends, product identificationand marketing approaches.

Section 5.0 sets out an issues framework, defining the issues, the objectives, suggestedactions, and potential time frames.

Section 6.0 draws the report to a close with Conclusions and Recommendations.

Appendix A contains a list of knitwear producers who contributed to the study and

Appendix B contains information about Heriot-Watt University Scottish Borders CampusSchool of Textiles.

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2.0 Knitwear and the World

It is commonplace thinking today to recognize that we all live in a global village. The trendperspectives that follow are selected from Web sites related to wool products, marketsegments and demographic analysis. While these may seem a bit esoteric on thesurface, they are useful to consider in the context of our provincial knitwear industry andthe issues that surround it. Market segments, changing consumer tastes and demandsand their impacts on traditional products which will increasingly prosper throughenlightened and creative marketing approaches gives the following material its place inthis report.

2.1 International Trends in Wool Apparel

A market survey of January 2000 states that the growth in wool consumption in apparel inthe US appears to be stabilizing following several years of large increases. Although fullfigures are not yet available, 1999 is expected to have declined slightly on 1998 despitethe positive environment for apparel retailing and expected strong growth in total fibreconsumption.

Womenswear is the most challenging sector for wool consumption in apparel as it hasnot been able to keep up with changes in manufacturers’ and consumers’ requirements.In contrast, wool consumption in menswear has continued to grow as the emphasis onquality fabrics over the past few years has highlighted wool as a material of choice. At thesame time, the market for apparel knitted from wool appears to be saturated, aftergrowing by 39% in 1997 and 25% in 1998.

There are a number of reasons why wool is struggling in womenswear: in the rapidlychanging womenswear market, synthetic blends have allowed manufacturers to offerconsumers something new and interesting without increasing price. Wool’s biggestsegment in womenswear - structured career apparel such as suits - has been hit hard bycasual trends in the workplace. Heavy, structured apparel is now viewed as out of dateand uninteresting. As a result, many brands are cutting back on their offerings ofstructured career apparel, with blazers being the worst affected.

While current fashion trends suggest that there may be a return to career apparel in fall2000, wool in womenswear is still unlikely to benefit as growth is expected mainly in theprice sensitive mid-market.

Wool consumption in menswear is expected to have risen further in 1999 as the focus inthis market is still on quality fabrics, together with softness and a less constructed/tailored

1Total Easy Care Wool garments can be machine washed and tumble dried at home on the low heatsetting. More information on this and other features of wool products can be found athttp://www.wool.com.au/global/woolmark.

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look. While there has been some interest in synthetic blends that feature softness, thisinterest is mainly confined to consumers under 30 years of age.

It now appears that recent growth rates in wool consumption in mass produced knitwearhave been too strong to sustain into 1999, with the market now saturated following backto back trends in ‘merino’ sweaters and twinsets. To sustain recent record volumes ofwool consumption in knitwear, new stylings and new technologies such as TEC1 (TotalEasy Care) must generate interest.

2.2 Woolmark 2005

The Woolmark 2005 Survey was commissioned by The Woolmark Company to surveytrends in demography, lifestyle, buying habits, retail structure, apparel fashion and fibretechnology. Woolmark 2005 provides a picture of how consumer demands are changingin major regions of the world.

The world can be broadly divided into: (1) the West (Europe, North America andAustralia); and (2) Developed and Developing Asia.

The West

• Aging populations, changing gender roles and busy dual-income familieswith less spare time are looking for more comfortable quality apparel that iseasy to care for and doesn’t consume exorbitant financial resources.

• Apparel for business wear is becoming less formal: a flexible "thirdwardrobe" of smart casual separates is becoming the norm, with itemswearable for multiple occasions.

• Sporting icons increasingly lead younger people to favour active leisurewear garments for their wardrobe and branded lifestyle items in all areas oftheir lives.

• North America leads the world in casual fashion brands while Europe –particularly Italy – sets the trends in more formal style and fashion. (SeeSection 2.3 below)

Developed and Developing Asia

• Where the West leads in fashion, the rest of the world follows. Everyone aspires tobuy – and wear – the brands that America promotes and the styles that Europeexcels in.

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• However tradition, even in Japan, and conformity to social norms – includinggender roles – will continue to drive a continued preference for more formal dresscodes.

• In China the change from agriculture to factory and office work and from rural tourban living means more town-based office workers, for whom the formal suit isthe ultimate in status. Casualisation is beginning in the more developed marketsin Asia, such as Japan, but at a slower pace than in the West.

Retail change

• E-tailing – retailing through the Internet – seems set to become a major newchannel for global sales, although it remains to be seen if it will be used for highervalue "see, feel, try" apparel purchases. (See Section 5.0 for more information one-tailing and Internet marketing).

Competitiveness and technology

• Synthetic fibres are developing new attributes – breathability, moisture control, UVblocks and other features. Many of these are trying to mimic the natural attributesof wool, especially moisture absorbency, where it excels.

• They have also begun to brand and sub-brand themselves to put across their end-user benefits. Wool has always been a premium fibre and has recently sub-branded – both in pure wool and in blends – to create a more focused story for itsmarkets.

• Further wool developments include Sportwool, a range of new blends, easy careand processing enhancements. Extensive research is being conducted by woolproducers in New Zealand and Australia to increase the competitive position ofwool as a fibre for the modern consumer.

2.3 American Demographic Trends

American demographic trends are often mirrored in Canadian markets. In the April 1999issue of American Demographics, an article described “The New Consumer Paradigm”. Points of interest for the Knitwear Scoping Study are:

• Consumer spending has been growing: the population is growing, the number ofhouseholds is increasing, and the baby-boom generation-the youngest of which isnow 35-has entered its peak spending years. But a close look at trends inspending by individual households tells a different story. Despite lowunemployment levels and rising wages, the average American household'sspending has been cautious, if not downright miserly in the last decade. Afterplummeting during the early '90s recession, it wasn't until 1997 that spending byindividual households finally caught up to the level of 1987, according to latestConsumer Expenditure Survey (CEX), released by the Bureau of Labor Statisticsin December. In fact, the average household spent $34,819 in 1997, only 0.9

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percent more than the $34,493 of 1987, after adjusting for inflation. This isreflected in similar Statistics Canada surveys.

• There has been a dramatic decline in spending by householders aged 35 to 44.This downturn is of paramount importance to businesses, because the age groupaccounts for the largest share of American households-23 percent-and,consequently, the largest share of most consumer markets. Ten years ago, thisgroup spent 29 percent more than the average household on goods and services.Today, its spending is just 16 percent above average. Between 1987 and 1997,householders aged 35 to 44 cut their spending 9 percent, after adjusting forinflation

• Between 1987 and 1997, spending by the 65-plus group rose faster than in anyother age group, fueled by a more educated and affluent generation enteringsenior citizenhood. Thus, older Americans' spending is rising to approach theaverage, and the trend will only intensify as the hyper-educated boomers hit theirsixties in 2006. Entertainment and travel are two of the industries that havebenefitted from these trends.

• Many businesses still haven't noticed the aging consumer markets. Some areignoring it entirely. Older consumers are spending money, but they're spending iton the industries that have been courting them.

• More important is the clothing industry's failure to create products that appeal tomiddle-aged women. The biggest spenders on women's clothes are householdersaged 45 to 54, followed by those aged 55 to 64. Yet most clothing is designedand marketed to teens and young adults. With so little to choose from, womenaged 35 and older are spending their money elsewhere.

2.4 The Echo-Boom

Now 70 million strong, echo boomers – also known as Generation Y – are projected tooutnumber their parents at some point between the years 2010 and 2015. Ranging from5 to 22 years old today, Gen Y has become a critical consumer groups. According tomarket experts, $168 billion was spent by or on youths between the ages of 4 and 19 lastyear.

At the same time the target market – 17 to 22 year olds – is difficult and expensive toreach. Youth marketers have to embrace fast change and reinvent themselves nearlyevery six months to keep up with the latest trend. Some of these trends can be set by

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sports or entertainment celebrities, or by very popular figures in the local community. Journalists are also important influencers on this group, with editorial coverage beingmore relevant than important advertising campaigns. This market is challenging butlucrative.

2.5 Canada’s Textile and Sweater Industry

The textile industry is one of the oldest manufacturing industries in Canada. Establishedover 150 years ago, the textile industry commenced with the production of natural fibreyarns and fabrics. The industry has evolved from its early beginnings to a highlymodernized and capital-intensive industry selling to over 150 industrial sectors in Canadaand worldwide.

Concentrated mainly in Quebec and Ontario, the industry rose up along waterways totake advantage of water-generated power and abundant water supply for dyeing andfinishing requirements. Currently, most textile production continues to take place insmaller urban communities which provide a stable labour supply. (Industry Canada)

Statistics Canada defines the Sweater Industry (SIC 2491) as: Establishments primarilyengaged in manufacturing for men, women and children, sweaters of wool, cotton or man-made fibre yarns either alone or with combinations of other materials such as suede,other leather or imitation leather incorporated into the garment.

Some, but not all of the products related to this industry include:

• Cardigans

• Coat sweaters

• Pullovers

• Sweater knitting

• Sweater vests

• Sweaters

• Turtle neck sweaters

In 1996 the Sweater Industry accounted for 12.9% of total shipments valued at $1.8 billionfor the Other Clothing segment of the apparel industry. Over the 1990 to 1996 period,total employment within Canada's Sweater Industry declined from 3914 to 3199. In theU.S., total employment in the industry decreased from 31900 in 1990 to 21900 in 1996.

2 “Review of the Textile Industry in Northern Scotland”. Final Report for Highlands and IslandsEnterprise and the Scottish Textile Association. May 1997. Malcolm Newbery Consulting Company.

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Canadian domestic exports totaled $63.8 million in 1996. In 1996, Canada's totalimports were $280.3 million, which represented a decrease of 8.25% from the 1995 levelof $305.5 million. The Canadian industry received 26.8% of its revenues from exports in1996. In 1996, Canada's apparent domestic market for products manufactured by theSweater Industry was estimated to be $0.5 billion.

The top 10 countries of destination for the Canadian Sweater Industry are:

USA 84%

Japan 6.8%

Belgium 0.45%

Hong Kong .3%

United Kingdom .3%

Italy .2%

Germany .1%

Netherlands .1%

United Arab Emirates .1%

Brazil .1%

These statistics, while broad and limited to the definition of sweaters as shown above,nevertheless give some perspectives on the value and size of this apparel segmentwithin the Canadian economic and export context.

2.6 Knitters in Northern Scotland

The Newfoundland and Labrador knitwear industry is comprised solely of hand knittersand home machine knitters. Due to the nature of production, most of the statisticsavailable on international trends as well as on Canadian sweater production dealprimarily with factory made fabrics and knitted products. Of more relevance to ourunderstanding of the trends in our particular provincial product niche are the studiesavailable from Northern Scotland 2. “The Review of the Textile Industry in NorthernScotland” looks at the economic importance of the textile industry to this region andprofiles the industry in terms of its strengths, weaknesses, opportunities and threats along

3 These are the percentages as found in the study. It is recognized that they do not add up to 100%.192

with recommended support programs to be offered by Local Economic Councils andgovernments.

The study defined the textile industry as comprised of textile manufacture, manufacture ofwearing apparel, dressing and dyeing of fur, and the manufacture of leather and leatherproducts. Exports in the Textile industry were valued at £40 million, accounting forapproximately 66% of sales. The top destination countries for textile exports were:

• USA 9%

• Germany 18%

• France 9%

• Italy 11%

• Other European countries 5%

• Japan 17%

• Rest of the World 18%3

Knitwear was identified as a subsector within textile manufacturing. In Northern Scotland,it is estimated that 800 people (full time, part time and outworkers) are employed asknitters, with self employment and small enterprise size (less than 10 employees)important attributes of this sector. Total sales value is estimated at £5.4m (1994 figures).The Northern Scotland knitwear producers who participated in this study indicatedapproximately 8% growth in sales over the previous year’s figures (1995/1996).

Scottish knitwear as a subsector exported primarily to Japan with France and Italyfollowing. The USA as a market for Scottish textiles has declined since its heyday in thelate 1980’s. Japan and Germany have been the growth markets. Companies at thesame time seem to recognize the need to spread their exports across a variety ofmarkets.

The study notes that production in knitting tends to be extremely uncompetitive in terms ofcosts because the product is competing with products manufactured by low unit cost, highspeed machinery. It is also a low wage industry. Strengths and weaknesses in theknitting sub-sector were:

Strengths

• Good supply of relatively local woolen yarns;

• Use of wool commands higher price points;

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• Domestic outwork knitting uses very cheap labour;

• Computer driven knitting is very flexible.

Weaknesses

• Wool is now open to competition from super-soft acrylics. Acrylics and woolen blendsrepresent easy care to the consumer.

• Domestic outwork knitters represent a very low paid, and generally aging workforcewith an increasing range of better paid local employment opportunities. Thisaccounts for the gradually decreasing supply of knitters.

• Computer driven knitting is a threat to hand frame/hand knit. Customers are often noteducated concerning methods of knitwear production, and therefore do not recognizethe skill and efforts required for handknit and handcrafted products.

• Sales of Scottish knitwear are nearly all agent based, with the result that producerslack sufficient customer contact to identify new trends and consumer demands. .

The Scottish Textile Industry report contained other perspectives which are useful for thisNewfoundland and Labrador Knitwear Scoping Study: The research findings noted belowhighlight points of importance for the future development of additional knitwear productionin Newfoundland and Labrador:

• Market feedback obtained by conducting “Made in Scotland” Trade Promotionsurveys suggests that the “craft look” in knitwear (novelty materials, pictorial images,etc.) is no longer as popular as in the past, and that classical and relatively plaindesigns by high quality producers have been increasingly successful. Classicaldesigns have stood the test of time extremely well.

• Textile related initiatives focused at sustaining the knitwear industry have includedrecommending that companies concentrate on niche marketing to increase theproduct selling price points e.g. identifying garments as produced from Orkney spunwool and garments that are hand knitted.

Inward buyer missions have been organized of groups such as Japanese andAmerican specialist buyers, who may be interested in limited editions (up to 500garments) which suits local production capacity.

• Companies have been assisted to develop the mail order side of their businessesthrough the efforts of a full-time Orkney Marketing Scheme project officer.

• Designers reacting to market trends can in a relatively short time drive the demand forspecific skills in an area. The study found that it is primarily the smaller companies inthe industry who feel they lack the ability to access to contemporary design trends.

• There is a need to facilitate awareness among the textile entrepreneurs ofcontemporary design, technology, equipment and market trends in order to keep theindustry firmly planted in the present time.

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• One key benchmark in textile production is labour costs. International comparisonssuggest that higher value added per employee through quality and the use of state-of-the-art computer equipment should be the target rather than competing through lowlabour costs.

2.7 Profile of the Textile Industry in Shetland

The report prepared by The Malcolm Newbery Consulting Company included an editedversion of a Shetland Islands Textile Report prepared by AB Associates. This reportpresents a profile of the Shetland Islands Textile industry.

There are approximately 25 knitwear businesses operating in the textile industry inShetland, six of which are entirely outworker operations with annual sales which rangefrom $50,000 to $500,000. These 25 businesses employ:

• 83 Full time workers

• 17 Part time workers

• 829 Outworkers

78% of the garments manufactured in Shetland are directly exported:

• 48% to the European market,

• 6% to the USA, and

• 24% to Japan.

• About 10% of the garments are sold locally,

• London retailers and wholesalers are major customers for the remaining 12%output.

Sales (outputs) of the total Shetland knitwear industry – $4m/year. These sales werestable between 1992 and 1995.

Relevant points from this study which are useful for the provincial knitwear perspectivesare:

• Shetland has a tradition of knitwear dating back 500 years. In more recent times,however, the arrival of highly paid oil jobs, and a general improvement in theeconomy, have resulted in fewer people entering the industry, as well as many peoplemoving into other areas of the economy. However, with oil related work declining, anda general slowing down of the economy within the islands, Shetland must look

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towards its traditional industries, including textiles, as a source of employment andincome for its inhabitants.

• Automation was believed by all those interviewed to be the only way forward for theindustry to remain competitive, especially in the face of cheap imports from the FarEast. It was believed however that there would always be a market for hand knittedgarments, and the decline in home knitters was generally viewed with regret. Thiswas attributed not only to the attraction of better paid jobs elsewhere, but also to thefact that skills are no longer passed on.

• In Shetland there has been a significant shift over the past ten years from home-produced hand and hand frame garments to factory made machine products.

• Inability to protect the word “Shetland” as denoting those products produced on theislands has limited the impact of economic support measures as other producers notlocated in the Shetlands can promote “Shetland” knitwear at various levels of quality. The “Shetland Lady” label is used to identify garments produced within the islands,but the public outside the islands, in general, do not know the significance of the label.

The following needs in the Shetland knitwear industry were identified:

• Investment in machinery, so that production techniques do not become out-dated

• Attraction of young people into the industry, with a proper wage and careerstructure

• A modern approach that did not lead to the demise of traditional knitwear

• Increasing promotion of the designs of local companies

• Developing more courses at Shetland College

3.0 Profile of Knitwear Producers in Newfoundland and Labrador

Knitwear producers in Newfoundland and Labrador have been seemingly ever present inthe coves and crannies of the province. Home knitting clothed families, supplied income,created gifts and heirlooms. The opportunities for a redefined knitwear sector will co-exist with time-honoured traditional practices, creating a multi-dimensional industry whichmeets home and industrial demands.

3.1 History of Knitwear in Newfoundland and Labrador

One of the issues that always arises when discussing the promotion of Newfoundland andLabrador knitwear surrounds the definition of the distinctive traditional Newfoundland

4 “Picking up Lost Stitches” Research into the History of Knitting in Newfoundland. Gloria Hickey,supported by the Craft Council of Newfoundland and Labrador and the Jean A. Chalmers Fund for theCrafts secured through The Canada Council for the Arts.

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sweater. In her study “Picking up Lost Stitches”,4 Gloria Hickey provides the followingchronological summary of the history of knitting in Newfoundland and Labrador:

G Prehistory

The Aboriginal population practiced woolcraft (weaving and quilting with dog wool)but did not undertake knitting with fibres

G 1000 AD – L’anse aux Meadows.

A woman’s tool kit (soapstone spindle whorl, small quartzite needle and a longbone needle) has been found in the Viking settlement but this is considered to beevidence of nalbinding, the one needle ancestor of knitting, similar to crochet.

G 6th century - Red Bay Labrador.

A fragment of knitted cap was found at the Basque whaling station. It is attributedto the seasonal Basque fishery. The cap was restored at the CanadianConservation Institute in Ottawa. It is a simple stocking stitch toque with no brim.

G 17th century

English workers from West Country England visit Newfoundland with the seasonalfishery. They wore what we consider the “fisherman’s sweater” or guernsey –richly cabled according to family traditions and knit in a 4 ply heavy weight wool.

G 17th century

English and Irish settlers in Newfoundland knit for themselves plain workingsweaters of undyed wool from local sheep. The structure of these sweaters issimilar to the gansey/jersey but also to an Irish farm labourer’s smock. UnlikeEngland, both women and men are involved in the cod fishery and there wasneither time nor commercial wool available for cabled work in Newfoundland. However, a steady supply of sturdy sweaters, socks, underwear and mitts wereregularly knit by womenfolk. Mitts are the only patterned items and oftenspecialized for specific work functions (trigger mitts, header and splitter mitts,thrummed mitts).

G 18th century

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The Moravian mission was established in Labrador in 1771. Inuit in Nain aretaught German (left over) style knitting and patterns (perhaps the snowflake).

G 19th century – L’anse aux Loup Labrador.

Brown and white plaid knit men’s costume discovered. Attributed to Basqueseasonal worker or soldier – may be machine knit. Dated 1810. Can be viewedat the archaeology study collection, Memorial University of Newfoundland.

G 20th century 1906 onward

Knitters in Labrador and the northern peninsula produce “fancy work” for theGrenfell Mission. Patterns were pictorial and made with wool from England via St.Anthony. This practice continues. For domestic use Labrador knitters orderedwool from the Hudson Bay Company.

G 20th century – The War Effort.

Knitting mitts, sweaters and specialized pieces for the war effort is organized bythe Red Cross and the Women’s Patriotic Association in Newfoundland. Manyhome knitters learn to read and work from patterns for the first time.

G 20th century 1924 onward

NONIA knitters produce garments based on cabled and “Norwegian” sweatersbrought as patterns from the Shetland Islands by the Governor’s wife, LadyAllardyce. Wool for these patterns was brought from England. NONIA patternswere imitated by home knitters for their own use.

G 20th century 1930 onward

The Jubilee Guild actively promotes non-commercial knitting across the province. As of 1961 the Guild had 230 knitters and 157 weavers (NONIA at the same timehad 423 knitters and 10 weavers). The Guild becomes an educational program ofthe Women’s Institute of Newfoundland and Labrador in 1967.

G 20th century 1940s

Patterns for pictorial motifs such as the Newfoundland dog are printed in pre-Confederation newspapers, which have a regular craft column. Circa 1945government sets up the National Handicraft Centre in St. John’s duplicating theJubilee Guild’s office and school.

G 20th century post-Confederation

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Patterns from mainland distributors become more available through companiessuch as Eaton’s and Mary Maxim. Patterns are imitated from illustrations seen incompany advertising. Fashion knitting and functional knitting co-exist. Workingsweaters, salt and pepper caps, banded socks and diamond mitts continue to beknit from local wool as long as sheep are kept.

It is evident from the above historical research that the threads that lead to Newfoundlandand Labrador knitwear are many and varied. If a traditional sweater was to be identified,it would probably be a fishermen’s guernsey with little shaping and no fancy cable work.

3.2 Newfoundland and Labrador Knitwear Producers

From the interviews conducted during the Knitwear Scoping Study, it has been possibleto draw a generalized profile of the knitwear industry in the province. While the intent ofthe Scoping Study was not to undertake a comprehensive survey, but rather to identifysector issues and make recommendations, enough material was collected to draw afairly comprehensive picture of the industry and its participants as it currently exists.

Knitwear producers throughout the province produce the full range of knitwear associatedwith hand knitted/hand crafted products. These include:

• Sweaters (cable, Fair Isle, Norwegian, double knit, plain knit, fashion knits,thrummed

• Mitts

• 3 finger mitts

• vamps

• socks

• ski socks

• headbands

• children’s wear – sweater sets, dresses.

3.2.1 Nature of the Business

• 50% have been in business for 18 years or more

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• 33% are one person operations (self owned, self producing)

• 50% operate the business with a manager/owner and piece workers forproduction

• 45% pay full time or part time staff as well as being involved in the businessthemselves

This is an industry sector with a long established production base and productlines. The one person operations allow for individual creative expression as well asindependent choice of materials and marketing approaches. The larger segment of thebusiness is that formed by a nucleus of manager/owners with a network of knitwearpieceworkers established in their homes producing either handknits or machine knits. These operations are run both as independent businesses as well as cooperative groupsreporting to a Board of Directors. Full or part time employees are an important elementof this industry.

3.2.2 Employment and Sales

• Employment

The industry supports approximately 450 pieceworkers as per figures suppliedduring the interviews. These figures do not take into account individual knitterswho supply the community craft shops around the province, or other knittersworking with other companies not interviewed. It can safely be assumed that thisnumber could be as high as 1000 pieceworkers taking part in domesticcommercial knitting activities. From figures obtained during the interviews, theknitwear sector employed 35 full time employees – including the owner operators. Once again – this figure does not include all production enterprises in the provinceor those who operate retail operations not involved in production. The knitwearsector provided part time employment for 10 people – this figure does not includethose who work in summer craft shops or retail operations during the year.

• Sales

From extrapolation of interview findings and with corroboration of industryparticipants, sales within the knitwear sector may be valued at close to or morethan $1 million. From information received during the course of the study, itappears that there is also a thriving “underground” knitwear economy – earningsthat are unreported and uncounted. This has always been the case, particularlywhen many Newfoundland communities had a number of knitters living there, butbecame a more serious concern with the advent of HST. Those who produce andretail knitwear are aware of many who copy patterns and have them knitelsewhere to avoid the additional 15% tax

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• Comparative Analysis

Using the Shetland study, and from the comparative table below, the provincialemployment figures compare favorably with those from the Shetland study, exceptin the area of long term employment (85 versus 35+) gained from the knitwearmanufacturing operations resident there. What is most evident is the disparitybetween sales figures, with the Shetland industry in 1996 obtaining an “output” ofapproximately $10mill/Cdn, with present day Newfoundland and Labradorknitwear sales estimated at between $1.5 million and $2 million/Cdn with a similarsize work force.

From internet listings, it appears that hand knit/hand loomed products elsewhere (USA,Channel Islands, Scotland, Shetland, Ireland) retail at higher prices than those currentlysought by provincial knitwear producers. It is of course unknown at this point what themarket response to these products/prices is. From this cursory comparison, it isapparent that the Newfoundland and Labrador knitwear industry has room for growth interms of production output and product pricing.

Location Full timeEmployees

Part TimeEmployees

Pieceworkers(Outworkers)

Sales

Shetland (’96figures)

83 17 829 £4m/year (approx,$10mill/Cdn

Nfld/Lab 35 10 450 $1.5 mill+Cdn

3.2.3 Material in Use

75% of those interviewed use only 100% wool or natural fibres with the exception ofspecialized yarns for baby wear. The other 25% use 100% wool in addition to woolblends/acrylics, with a small percentage using mainly acrylics. A tiny percentage includescotton products in their repertoire.

As indicated in the trends in Section 2.0, these figures are important when considering“easy care” fabrics and garments.

3.2.4 Production Methods

Production methods are varied and generally quite flexible.

• Approximately 40% handknit only.

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• Approximately 20% market both machine knit and hand knit products

• Approximately 40% produce machine knit products only.

Handknitting, as might be evident, is carried out predominantly by thoseoperations with larger numbers of pieceworkers. The numbers of handknitters still inexistence in the province is a feature that may allow some niche market specialization. At the same time, it is the perception of the knitwear producers that the market is notcurrently distinguishing between hand knit and machine crafted. Most producers pricehand knits slightly higher than machine crafted products.

3.2.5 Targeted Market Segment

The targeted market segment for most provincial knitwear producers was very broad,and was comprised generally of middle to upper middle class income earners ranging inage from 40 – 60, with a preponderance of female customers. This market segment wascharacterized as interested in classic styling, good value and excellent quality. Someproducers are targeting the casual/sporty crowd and a younger market comprised of 18 –20 years old. Others who are relative newcomers to the sector see this younger group asthe target market because of their disposable income.

Groups may wish to consider their market segment approach based on trend informationsuch as that contained in Section 2.0. Trend analysis based on demographic andstatistical data coupled with in-depth retailer feed back would be useful inputs forbusiness planning and strategic marketing efforts.

3.2.6 Retail/wholesale Marketing Efforts

• 53% of the knitwear producers interviewed reported that retail sales make up 50% ormore (up to 100%) of their total revenues.

• 33% reported that wholesale sales make up 50% or more (up to 100%) of their totalrevenue.

• 14% have an even split, with 50% of revenues from retail sales, 50% from wholesalesales.

• 20% undertake no retailing, relying entirely on wholesale or consignment markets.33% undertake little or no wholesaling.

This profile is a moving snapshot: wholesale sales have declined over the past few years,pushing many into additional retail venues to keep their sales levels up. Others havechosen to increase their wholesaling efforts, preferring to attend wholesale events

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resulting in orders and a production schedule rather than building inventory and attendingretail events. As the market varies, so too will the marketing method choices made bythe knitwear producers.

• Wholesale venues

Wholesale venues include Edmonton, Calgary, Vancouver, Halifax, St. John’s andToronto. The Atlantic Craft Trade Show (ACTS) is an important event for most whowholesale. ACTS is well attended by Newfoundland knitwear producers and may provideadditional opportunities to seek retailer feedback about provincial knitwear products.

• Retail venues

Retail venues include producer owned shops, the One-of-a-kind Show in Toronto, theOttawa Xmas Craft Sale, St. John’s craft sales, and other smaller retail opportunities.

• Consignment venues

Consignment knitwear is primarily sold through the network of community Craft Shopsopen during the summer to service the tourist trade. Some knitwear producers workalmost exclusively with specific shops, gearing their entire production to theseoperations.

• Marketing reps/other marketing approaches

One company uses reps for its products. Some have tried reps for very short times in thepast, but have not pursued these relationships. There is little expressed interest in thisform of product marketing. The few that did express an interest in agents stated that ithad to be someone familiar with the production process used and the craft industry ingeneral.

Other marketing approaches currently being used include individual corporatecatalogues. These catalogues feature the company products only, and are generallydeveloped and designed as a company initiative. Brochures fall into the same category,with product photos and pricing structures presented in a brochure format. Over 50% ofthe knitwear producers who currently have catalogues/brochures expressed concern thatthese need to be updated and remodelled to meet a changing marketplace.

• Commentary

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Knitwear producers find that the bulk of their market is Ontario and East, with a fewbuyers in the West. At the same time, the Edmonton show appears to be good businessfor most and received favourable reviews. Repeat show attendance year after year isrequired to “crack the market” in most locations: the buyers are more comfortable with theproduct when they know that it has staying power in terms of presence and quality. Theywill generally try a small order or smaller items for first orders, increasing their purchasesdepending on their satisfaction with the initial sales.

These marketing patterns – wholesale and retail venues, virtually no reps - mean thatmost of the knitwear producers in the province have real contact with their buyer –whether that be a retail store owner or an individual consumer purchasing product at aretail event. This creates currently underutilized opportunities for eliciting buyer feedbackon established products, prices, new product ideas, trends, consumer demands andchanging buyer demands.

3.2.7 Changes in Products/Prices

Most of the essential product lines of established Newfoundland and Labrador knitwearproducers have changed little over time. New product lines have been added, lines thatare not selling have been dropped or re-designed. Individual knitwear producers whoproduce fashion items do track yarn and colour trends, but for the most part the coreproducts of most producers have remained firmly rooted in their traditional base. Thefashion market is fast moving and ever changing, with the result that it is exceedinglydifficult to anticipate or predict. For these reasons, it is not a suitable market fortraditional knitwear producers.

Prices for retail and wholesale products have also changed little over time. Knitwearproducers state that the market will not pay higher prices. Small increases to reflectincreased price of yarn have been added, but these are very insubstantial. Thereappears as well to be little differentiation in the consumer’s mind between handknitproducts and machine crafted products, with the result that there is also little pricevariation between the two.

Special orders form an important part of over 50% of the knitwear operations. Theseorders not only allow them to offer additional customer service, but can also act as a formof product development. Some requested changes for special orders are animprovement over the existing product, and these changes are then incorporated toproduce a better modified product.

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Regardless of changes to basic product design, it is essential that something “new” beintroduced each season – whether an embellishment to an already existing design, a newaccessory or a new colour – allowing buyers to add to their previous purchases, and tofeel that the line is current.

3.2.8 Competitors

Over 50% of the knitwear producers interviewed stated that they had no in-provincecompetitors: their products were sufficiently distinctive in terms of quality, design ormaterials to be in a niche to themselves. The other 50% stated that their competitioncame from other in-province producers. 100% stated that they had no competitors out-of-province. Some members of the IAS committee found these results astounding,having assumed that competition from outside knitwear industries such as those inScotland, Shetland and Iceland would be top of mind – but the results reflect the fact thatNewfoundland and Labrador knitwear producers for the most part attend retail events thathighlight Canadian products, and generally deal with retailers who wish to stockCanadian products. The larger market picture is not of relevance at this particular time. These other products will assume importance in a different type of aggressivemarketplace.

In the absence of perceived competition, some provincial producers felt that they had acompetitive advantage based on the quality of their product and their ability to meet theneeds of their buyer. An important financial aspect of their competitive advantage wasthe DDRR support for attendance at retail and wholesale events. The responses dealingwith this issue will be discussed in Section 5.0 under Policy Issues and in Section 6.0Conclusions and Recommendations.

3.2.8 Promotional material

Most knitwear producers have their own hang tags with logo and product descriptions. One pre-advertises their presence at certain shows to previous buyers. One has abrochure with a map which fits into the promotional material racks in tourism chalets. Another advertises through the Yellow Pages, the Tourism Guide and St. John’s “What’sHappening”. One has tried a shared web site with another local company, but itappeared to be ineffective. Another concentrates on personal contacts and continuingmarket follow-ups.

Unsolicited comments were received about the “Crafts of Character” catalogue. Exceptfor one knitwear producer, all offering comment stated that they had received very littlebusiness as a result of this catalogue and felt that it was perhaps not an effectivemarketing tool. The one knitwear producer in support of the catalogue felt that even

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though no direct order were received, it acted as an awareness raising promotional tool,resulting in retailers seeking out her products as a direct result of seeing the catalogue. This aspect of marketing will be more fully discussed in Section 5.0 under “Branding”.

3.2.9 Publications/Sector Specific Information

A variety of magazines, supplier catalogues, pattern books were named as being ofinterest, but approximately 50% of knitwear producers felt that fashion publications werenot useful to them in their business. Other avenues for information about fashion trendsincluded TV programs, especially those geared to younger (18 – 25 year old) viewers.

In general, many of the traditional knitwear producers received very little informationabout current apparel trends, yarn types or demographic buying patterns. Most are alsonot connected to the internet due to distance from a service provider as well as having noimmediate access to a computer, so this source of information is not available to them atthe current time.

3.2.10 Comments from Individual Knitwear Producers

The following comments were received by the research team from the majority of knitwear producers interviewed during the course of the study. These are reflected inSection 6.0 Conclusions and Recommendations.

• Consultations between government and knitwear producers concerning fundingsupport issues should be initiated in order to solicit industry input into policydecisions and develop appropriate strategies.

• Changes in funding support through the Craft Industry Development Program willdamage many knitwear producers and may lead to their demise.

• Each of the following comments represents an individual viewpoint received by theconsultants during the study. These are referenced here in order to fully representthe range of views received during the course of our research.

• Interested in increasing production, but would need new knitters and the time toensure quality products.

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• Interested in increasing production, particularly because the shoulder touristseason is extending into both the spring and fall seasons, but limited by ability togenerate more product.

• Interested in designing for machine knitwear companies, with a particularemphasis on Newfoundland designs.

• Concerned about Special Event promotions (such as the Viking Millenium) whichattract tourists away from her retail outlets on the East Coast.

• Stuck with Briggs and Little as a supplier – limited colour range and yarn variety.

• All members of the knitwear sector contribute to the economy – the olderestablished companies as well as the independents who only retail. They all needrecognition of their role and support in a variety of areas.

• Suggestion to those in the sector: either stay small and keep costs down, or growlarge and diversify.

• Government should stay out of the business altogether: the red tape required forshow attendance is more work than the return in sales.

4.0 Retailer Perspectives

At the outset of the study, it was hoped that sufficient information could be gatheredthrough retailers of Newfoundland and Labrador knitwear to be able to analyze thecompetitive environment and opportunities/constraints for provincial knit products. Insome small measure this was accomplished, but not to the depth desired. For the mostpart, the retailers interviewed did not appear to have a strong sense of consumerpreferences or buying patterns, but could identify products which sold well. At the sametime, there were a number of interesting observations related to provincial knitwear andniche markets. The following comments are taken directly from the research material andas such represent the views of retailers interviewed for the study.

Product origins

The importance of product origin depended on the predominant market:

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• “Made in Canada” is a big seller in Canadian tourism markets, particularlytargetted at Asian visitors. Newfoundland products with the Canadian flag sell wellin these markets.

• “Made in Newfoundland” is a big selling point to tourists visiting the island. Eventhough no Labrador knitwear producers were identified as part of the survey, it canbe assumed that a “Made in Labrador” label would also be important. If productsmade in the province are not available, retailers indicated that a “Made inCanada” preference was evident.

• “Made in the Maritimes” suits shops selling Newfoundland products in the region. There was no direct link from these retailers perspective to an identifiableNewfoundland product in terms of customer demand.

• In some tourist locations “iconic” patterns sell well (whales, puffins). Others havehad to get rid of these at a discount.

Consumer trends

Consumers buying knitwear in the region are generally looking for a “traditional “ style. Designer knits can also fit into this category. Traditional knitwear seems to be defined byan apparent handknit quality and cable/Aran styles. Customers prefer the ‘plain cableknit’ sweaters.

Customers prefer hand knit sweaters, but don’t seem to grasp the concept ofinconsistencies in a hand knit sweater. For example, one size medium Fisherman’s knitsweater can fit entirely different from another sweater in the same style and size.

Sometimes customers ask specifically for a handknit garment, but if time is taken toexplain the hand worked nature of machine knits the consumer will accept a machine knitproduct.

Typically, the pricing for sweaters in the local market is considered to be too high. Thecustomer doesn’t usually have a lot of cash and is looking for smaller items that are easyto pack. A reasonable (retail) price for a sweater is considered to be about $100.

Customers generally don’t care what type of yarn is used in knitwear, but ‘easy-care’does sell better.

There has been a slump in the knit industry across Europe as well as Canada over thelast few years, but the industry appears to be picking up again.

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No foreseeable future trends. However, it is expected that ‘Newfoundland and Labradoriconography’ (i.e. products with designs that show animals, birds or cultural trappingssuch as houses, communities, boats, etc.) will continue to be of interest. Perhaps moreattention will be given to products that are clearly marketed based on the functionality ofdesign and material.

Fit, style, and quality are the major concerns for the consumer.

Product Presentation/Design

Products have always been required to include tags that specify company name,garment size, material content, washing instructions, and priced. Several producersneglect to adhere to this policy. Occasionally goods are received in a state of havingbeen thrown in a box (not even folded) and without any of the required label information.

Producers could give more attention to marketing details/ploys through proper productlabels. It might be good to have some information on the Fisherman’s knit, such as astory.

Customers are more concerned about fit than design.

Marketing Approaches

Electronic commerce will only affect sales of knitwear if the site can educate thecustomer. The site designer has to compensate for the inability to touch a tangible item. Ideally, this could be done by making the site as ‘3-D’ as possible. This can beaccomplished by providing adequate information about the traditional uses of a ‘knit’garment, and the functionality of wool as the composite fibre.

Service of account - It would benefit the producer to schedule their production toaccommodate peak periods of shop sales. Low stocks/display/presentation implies athin product line, whereas adequate quantities of well displayed product allude to a highervalue product.

Changes to suit consumer demand – It is very time consuming for retailers to takeresponsibility for extracting this kind of information. The onus should be on the producer.At present there is nothing in place to inform producers of changing demands or providefeedback on their products. Something should be in place, but it has to be initiated bythe producers as retailers don’t have the necessary time to commit to this.

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Direct marketing is the best method of determining consumer demand.

A good packaging process helps to prevent a shop worn look.

Attributes of provincial knitwear

Quality is rarely questioned, but it is generally appreciated.

In terms of competitive pricing, Newfoundlanders and Americans have an underlyingnotion that our knitwear should be priced for ‘next to nothing’.

Typically, the pricing for sweaters is too high. The customer doesn’t usually have a lot ofcash and is looking for smaller items that are easy to pack. A reasonable (retail) pricefor a sweater is considered to be about $100.

Competition

Producers shouldn’t try to undercut each other.

Producers should also pay appropriately for outsourced works.

Biggest in-store competition for knitwear could be any of the other products in the store. Consumers generally spend according to an ‘expendable dollar amount’, therefore it isjust a matter of deciding which product to spend that money on.

First, a lot of floor space is required to properly display the product. This means spacehas to be given up when it could otherwise display smaller items that will sell both fasterand in greater quantities. Second, knitwear is too expensive to carry. A number ofretailers can't afford to purchase out right from the producer, and the typicalconsumer/tourist just can't afford to buy it anyway.

5.0 Issue Framework

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The following section identifies issues resulting from the analysis of knitwear producerinformation and retailer perspectives. Each issue is briefly described, with commentaryon suggested actions. The issues are then set into a “framework” comprised of:

• The issue statement

• The objective of addressing the issue

• Examples of actions suggested to address the issue

• Stakeholders responsible to initiate the actions

This is not intended to be a generic approach – a “one size fits all” – action plan. Many ofthe issues identified are fundamental to building good business practices within anymodern progressive industry. The issues are central themes around which a cluster ofactivities can take place. The intent of this scoping study is not to exhaustively defineeach issue for each individual product - but to alert those involved to the issues raisedduring the course of the study that are deemed to have an impact on the economic futureof the knitwear industry. Appropriate activities will be determined at times inconsultation with individual knitwear producers or at other times in collaborationwith all members of the knitwear sector.

Section 6.0 Conclusions and Recommendations outlines those priority actionsrequired to begin to address the framework issues.

Issues

• Newfoundland and Labrador “Brand Symbol”

Times have changed. Newfoundland and Labrador is currently enjoying a heightenedprofile as a unique and interesting tourism destination of choice, with an emphasis onoutdoor experiences and cultural heritage. This is due in large part to strategic marketplanning and promotional efforts undertaken by the provincial Dept. of Tourism,Recreation and Culture. Other initiatives through agencies and departments such asOperation Online, the Newfoundland Ocean Industry Association, the DITT AmbassadorProgram, “Doing it. Right Here” promotional campaign, etc. are heralding the province’smodern IT capabilities and leading edge technologies. The range of imagesunderpinning all of these promotions spans the spectrum - from quaint to hip - havingbeen carefully designed to compete internationally for business and economic growth.

These promotional messages/images - be they traditional, modern or a combination -create a climate of opportunity for recognition of other provincial products, including

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traditional and non-traditional knitwear and other niche apparel. The assumption is thatincreased product recognition in the right context increases consumer demand,especially if associated with other important factors such as quality and customerservice.

An example of this is the Woolmark symbol. The Woolmark symbol is the world’s bestknown textile symbol and also one of the most recognized trademarks. The Woolmark,launched in 1965, was designed to identify quality products of pure new wool. It has beenextensively promoted for 35 years and appears on over 200 million garments producedeach year in more than 65 countries. As wool blends have become widely used, otherWoolmark symbols have been developed. Research conducted in 1993 showed thatconsumers recognize the symbol, and many are prepared to pay extra for a Woolmarkgarment. (See http://www.wool.com.au/global/woolmark for additional information).

In terms of knitwear, the bugaboo for many years has been the lack of a “NewfoundlandSweater” recognized on a global scale similar to the knitted sweaters of Shetland,Norway and Iceland. It is time to move past the need for a distinctive, clearlyrecognizable design associated with Newfoundland and Labrador and begin to create anassociation in the buyer’s (retailers as well as consumers) mind between the productsand the place. A symbol which denotes place of origin, linked with perceptions of qualityand consumer satisfaction, is a base from which to build. The images associated with asymbol can be many and varied, meeting the needs of various knitwear/apparelproducers who wish to be associated with such an effort - but the underlying messagemust always be the same.

DDRR currently uses a symbol - the “Crafts of Character” logo - developed in the late‘70s which has been associated with products from this province. The “Crafts ofCharacter” logo is a trade mark and trade name representing all the craft producers invarious mediums who have been screened to participate in the DDRRmarketing/promotion program. This logo or another newly designed symbol couldbecome the visual “brand symbol”, appearing in all apparel/knitwear linked advertising,etc. The precise term for this identifying symbol can be defined by the knitwearproducers/apparel industry itself: words such as “Trade Mark”, “Trade Name”, “BrandIdentification”, “Branding”, etc. have meanings which may or may not apply to thisparticular situation. The important point is not what the symbol is called, but that effortsbe made to link this symbol in the consumer’s mind with distinctive quality productsmade in a unique setting: Newfoundland and Labrador.

This concept is not new, and forms the basis for most brand advertising campaigns. Without action in this area, provincial knitwear products are essentially left to sellthemselves as they have been doing for the past 10 years. The market has changed, ischanging, and will change. It is necessary to market our apparel/knitwear products from

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the basis of a conscious strategy focused at a specific market segment which has beendetermined through market research efforts.

• Product Diversity

The range of products offered by knitwear producers is fairly representative of traditional,classic and fashion items, with the bulk of products fitting into traditional and classic. Diversity has been limited in some cases by yarns available as well as opportunities toexplore new yarn types.

Total Easy Care (i.e. products that can be cleaned and cared for with minimum effort athome) has become a consumer mantra, with interest in wool blends and cotton yarnshoulder season products. 100% wool at the same time has stood the test of time, andmarketing messages which slot into consumer trends (such as the interest in classicdesigns and versatility) can be promoted.

It has been assumed for quite some time that one of the primary reasons for decreasingsales of some product lines has been the lack of new designs. From the research, theintegration of new designs into a product line is not an easy task. Designs which useyarns of different weights and sizes than those familiar to the client group require thatknitters be found and trained, yarns purchased and new marketing efforts considered. Along the same line, from information obtained during the Apparel Training NeedsAssessment survey, many of the knitwear entrepreneurs do not know where to find theresources to have their product design ideas translated into sample swatches or sampleproducts. This issue relates to money, time and know-how. Perhaps the CIDP ProductResearch and Development Program which provides 75% grant funding to producerswanting to introduce new products is suitable, and needs to be more widelypromoted/facilitated to assist producers to reduce the high costs associated with “designexperimentation”.

The issue of product diversity is most importantly linked to the need for each knitwearproducer to showcase something “new” at each buyer contact: as stated previously, thiscan be as simple as an embellishment of an existing product, a new colour – or ascomplex as a new line. With better trend analysis information, and a better understandingof the target market, improved returns on diversified products may be a futureopportunity.

There is an opportunity for both fashion and traditional products. Involve designers asentrepreneurs rather than as technical specialists. Encourage designers through specificprograms to become entrepreneurs and utilize existing knitwear producers for their

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production. Assist in training knitwear producers how to make required samples, how tocost products, how to deal with special requests, contracting issues, etc. Start small andniche – the effort may grow into larger industries.

• Marketing Practices

Marketing practices for most knitwear producers have lagged behind the current marketenvironment. There is limited or non-existent customer satisfaction follow up, primarilydue to lack of knowledge how to initiate and maintain these contacts. Consciousmarketing strategies based on previous wholesale or retail performance linked to marketintelligence are lacking. The context within which products are presented to the market(logos, product information, story presentations, provincial “branding”) is generally withoutpizzaz. At the same time, there are those who in fact do follow up with their buyers,having past buyer records at hand during wholesale shows in order to compare currentorder levels and ask follow up questions when the buyer is in the booth. One producerdoes most marketing through individual retailer contacts and call backs, spending a timeengaged in marketing trips.

E-tailing (i.e. retailing through the Internet) is surrounded by a great deal of hype andpromotion. Using the Internet as a marketing tool to showcase products and providecontact information is not the same as actual Internet retailing. Detailed discussion ofthese practices is outside the scope of this study, but needs to be understood bymarketing professionals. Workshops through agencies such as Operation Online maybe one avenue to explore these approaches further.

Marketing practices in general need to be upgraded, with workshop input fromspecialists in the field. This activity should be tied in to “brand identification” strategiesand business planning support. Once producers work to understand their markets, theycan then determine who their competitors are, and begin to design products andmarketing approaches with a true competitive edge.

• Competition

One important aspect of strategic business planning is detailed description and analysisof the competitive environment, both from the industry segment level as well as thecorporate level. It is difficult to position your product if your stance vis-à-vis yourcompetitors is not clear. Even though at the present time the knitwear producersdefinition of competitors is limited to other provincial producers, retailers indicated thatcompetition may in fact be primarily non-knitted products.

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Competition from the other “northern knitters” (i.e. Shetlands, Norway, Scotland, Iceland,Guernsey, etc) was not referenced during the study, which leads to the conclusion thatNewfoundland knits are for the most part not found in the same marketplaces as theseothers. The marketplace distinction probably lies in the fact that Newfoundland knits arefor the most part ordered by companies who sell Canadian products for a local or touristmarket, rather than ordered by apparel companies that sell sweaters. The apparelmarket for Newfoundland knits needs to be better understood and analyzed throughattending specialized apparel shows (ski wear, leisure wear, outdoor wear, etc.)to get afirst hand look at other competitors, their prices and their product presentation.

A business case analysis of the competitive environment for knitwear is required, with aview to identifying potential cooperative approaches either among knitwear producers orbetween knitwear and other apparel manufacturers. An analysis of this sort may facilitateincreased information sharing and joint market approaches to enhance “brandidentification” efforts and present critical mass for larger market opportunities.

• Information Base

As the word “connectivity” is increasingly used, it is apparent that those who remain“unconnected” will gradually lose the benefits of easily available useful information. At thepresent time, due to technological difficulties, Internet connections are not feasible forrural areas of the province. This shortcoming can be mitigated by providing pertinentapparel/knitwear information (statistics, analysis, trends, show reports, supplier requests,workshop opportunities, training seminars, etc.) via fax. The apparel industry/knitwearsegment will begin driving its own agenda from the foundation of a focused informationbase.

• Organization and Decision Making

An issue for some involved in knitwear production as well as other apparel production isthe education of a governing Board of Directors. It is virtually impossible for a managerto be treated as “staff” while at the same time being responsible for the general shape,direction and success of the enterprise. The lack of specialized knowledge or perhapseven lack of interest in the apparel/knitwear sector by Board members is difficult toaddress by those employed to run the apparel/knitwear operation. Lack of importantinformation and sector specific understandings leads inevitably to poor decision makingconcerning future plans and product positioning.

There are a number of Board of Directors educational formats which could be deliveredby outside consultants, or perhaps by DDRR EDOs. At the same time, it is sometimesdifficult to sway a Board with a fixed opinion about their position. This issue needs to berecognized and opportunities sought to educate not only Board members but also other

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community economic development agencies concerning the economic potential of theknitwear/apparel sector and its future investment opportunities.

• Policy Changes

Policy changes that have affected funding programs are an issue of concern presently,but policy changes should be anticipated as the apparel sector begins to organize itselfand seek various forms of support. Policies having to do with existing programs andfunding access that are relevant to the apparel sector will require review, with appropriateframeworks put in place which will serve apparel industry participants.

This applies to the knitwear producers in particular as they orient themselves within theapparel context. Craft and other industry policies should be reviewed in consultation withknitwear producers as the apparel group proceeds through the next year.

• Promotional Materials

Promotional materials are often an enterprise’s worst nightmare: nothing seems exactlyright, but it is difficult to determine exactly what is wrong. This issue dovetails into“branding identification” initiatives, and will require professional perspectives to increasepromotional awareness and implementation.

A marketing workshop with presenters well versed in marketing strategies andapproaches would assist knitwear producers/apparel manufacturers to identify theirtarget markets, design a marketing plan and link a promotional plan with appropriateimages and written materials to their marketing objectives. Following that, a focus grouprepresenting the industry, with an industry facilitator engaged, needs to work out theoptions for “industry promotion” vs. individual company promotion, and endorse a clearstrategy, with costs attached. There may be those who opt out of such a program. It isnot possible to please all.

• Business Skills and Knowledge about Market Planning

Knitwear producers in many cases do not perceive of themselves as small businessowners, but have tended to place themselves in the craft producer context of informalbusiness practices. This is changing for craft producers, and should be bolstered forknitwear producers to prepare them to move into different ways of doing business. Business plans are a tool to achieve an end and to keep enterprises on track. Moreimportant is the business planning process which involves a producer/Board/group in theidentification of vision statements, strategic objectives, market definitions, competitive

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environment, strengths, weaknesses, opportunities and threats. This process can rebuildin some cases and strategically focus efforts in others to meet producer visions of theirbusiness.

All interested knitwear producers should not only have a business plan, but should gothrough the process for the sake of taking ownership of future plans and presentconditions. Funding for needs analysis consultancies for knitwear producer enterprisesand those interested in undertaking work in the sector may be available.

• Access to Technology

Access to technology in terms of Internet connectivity has been previously described, butaccess to appropriate technologies of the required scale and utility are issues for manyof the knitwear producers. The technology conference recently held in St. John’s amplydemonstrated this point with new technologies related to product design, testing, sizing,care, etc. brought to the attention of the group.

Information about appropriate technologies can provide a good research area, withupdates provided to all in the knitwear sector. Initiating this entry point may give rise tofuture interests in other types of production methods.

• Client Feedback Mechanisms

The lack of structured client feedback mechanisms was identified as an issue from boththe knitwear producers and the product retailers. Information received directly from themarket place is the best market planning/product development tool there is. Mechanismsto assist knitwear producers to receive, process and implement this feedback areessential. The need for this has been stated over the years, but it seems that acomfortable and appropriate way to go about it has not been found.

Group collaboration on this issue may uncover methods for creating client/producerdialogue or may at least identify the barriers currently preventing this from taking place. One option may be to build in technical assistance aspects for show attendance – oneday of the trip will be subsidized to visit factories, see other operations, visit retailers, talkto customers (in Halifax, Edmonton, Ottawa, Vancouver,etc).

• Performance Analysis Tools

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In his presentation to the Technology Workshop April 15, 2000, Donald Tham fromRyerson emphasized one of the major points he makes to clients requiring industrialengineering assistance. This is: “You can only manage that which you measure”. Performance analysis requires that each element which leads to success is identified along with a means by which to measure its progress. Only through tracking thesesuccess elements can an enterprise determine whether it is going in the direction definedin its business plan. Too often, the only measure of success that is tracked are salesfigures – yet sales figures may actually be symptomatic of other elements that are offtrack.

The identification of performance analysis tools, while not overly complex, generallyrequires the guidance of someone experienced in monitoring and evaluation activities.

• Future Forecasting and Determining Required Actions

Future forecasting is an area fraught with myths and verbiage. For those producers oftraditional and classic style knitwear, the requirement to future forecast may not appear tobe great. At the same time, a sense of trends and an information base about activities inthe sector in various parts of the globe would be important should product changes orvariations be desired, or should new technologies be introduced. With a sense of what’shappening, knitwear producers would less likely be victims of isolation and lack ofinformation resources.

From a knowledge base, required actions are easier to identify and implement, eventhough future forecasting is certainly an inexact science.

• Issue Framework

The Issue Framework on the following page summarizes the above discussions, andidentifies the objective of addressing each issue, suggested actions which might betaken, and the suggested time frame. The time frame for all activities is ongoing – thiscan be refined as activities are initiated and move into later phases.

The actions suggested require assignment of a lead agency/department/groupresponsibility, to ensure that recommendations are acted upon. The suggested leadagency is indicated in the Issue Framework. The Apparel Sub-committee of theManufacturer’s and Exporter’s Association of Newfoundland and Labrador is at this timebeing newly formed, but will have a major role to play in moving the knitwear industry

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component as well as other apparel sectors forward. It is assumed that knitwearproducers will be members of this sub-committee.

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Issue Framework

Issue Objective Action Required LeadResponsibility

“Brand Symbol” Maximize returns forproducers

Place of origin labels linked topromotional plan

DDRR

Product Diversity Add to product lines,shoulder seasonproducts

Market research, informationdissemination

DDRR, knitwearproducers

MarketingPractices

Improve marketsegment targeting,business practices

Develop marketing plans withproducers,

Promote business practices

DDRR, ApparelSub-committee

Competition Define what it is andwhat it means

Examine internal and externalcompetition, developapproaches

DDRR, ApparelSub-committee

Information Base Overcome geographicand sector isolation

Develop use of Internet asinformation source

Apparel Sub-committee

Organization andDecision Making

Educate Boards andpotential knitwearproducers

Present seminars about theindustry to REDBs,community groups andproducer boards.

Apparel Sub-committee,Board trainingconsultants

Policy Changes Involve producers inpolicy decisions

Organize collective meetingsfor policy discussions

DDRR, Apparelsub-committee

PromotionalMaterials

Enhance productattractiveness and buildon “Brand identification”

Organize workshops withpromotional specialists for avariety of entrepreneurs

DDRR, Apparelsub-committee

Business Skills Improve knitwearproducer efficiency

Promote appropriate businesstools

DDRR

Access toTechnology

Create momentum forchange

Continue to seek leading edgeand appropriate knitweartechnologies

Apparel sub-committee,knitwearproducers

Client FeedbackMechanisms

Build increasedcommunicationchannels

Initiate “Tips of the Trade” andother workshops,

DDRR, Apparelsub-committee

PerformanceAnalysis Tools

Build sound enterprises Organize performancemeasurement workshops

DDRR, Apparelsub-committee

Future Forecasting Build modernenterprises

Track trends, disseminateinformation

DDRR, Apparelsub-committee

Determine ActionsRequired

Grow the knitwearindustry

Undertake BusinessPlanning/mentoring programs

DDRR, Apparelsub-committee

Consultant’s comments: an issue not defined during this study but critical just the same isthe need for apparel industry training within the province, either through an institution suchas the Anna Templeton Centre or through distance education means. This issue wasaddressed in the initial study “Training Needs of the Newfoundland and Labrador ApparelIndustry” completed by Management by Design. Research conducted for this currentknitwear study brought this issue to the fore once again. A variety of training programs inapparel are offered in every location where there is a knitwear industry. The investmentsmade by the UK in such facilities are evidence of the importance of the knitwear industry,

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based not only on knitwear product sales, but also based on the need to promote nationalwool industries. Australia and New Zealand invest heavily in R&D conducted by UKtechnical universities. For information on one such institution, see Appendix B Heriot-Watt University Scottish Borders Campus, School of Textiles.

Ways should be sought to ensure that apparel industry training recommendations areimplemented, particularly the apparel industry overview segment. This segment tellspeople what the apparel industry is all about: its definitions, players, technicalrequirements, opportunities and risks. Responsibility for implementation of theserecommendations should be spearheaded by the Apparel Industry sub-committee of theAssociation of Manufacturers and Exporters of Newfoundland and Labrador, involvinggovernment and appropriate Canadian training institutions.

6.0 Conclusions and Recommendations

The knitwear segment of the provincial craft industry at the present time does notrecognize its economic significance. With the IAS initiative and the definition of aprovincial apparel industry, knitwear in Newfoundland and Labrador has been given theopportunity to reflect not only on its past but on its future orientation. As a component ofan apparel industry it can remain true to its traditional, classic roots, bridging betweentime honoured methods as well as entertaining new technology.

The time is right to revitalize the vision. Many of the established knitwear producers willat some time over the next decade be looking at retirement options or lifestyle changes. This is the time to implement business planning principles which will enhance andmaintain enterprise productivity and future attractiveness. This is also the time toencourage young entrepreneurs to consider business developments in this sector.

Recommendations

The major and primary recommendation is that the DDRR marketing specialist who hasbeen working with the Apparel IAS Committee be “seconded” to the Apparel Industrysub-committee of the Association of Manufacturers and Exporters to bring some focus onthe issues framework.

The knitwear producers have recognized the value of remaining with the apparelmanufacturers as the group sets out to organize a sub-committee within theNewfoundland Association of Manufacturers and Exporters. The knitwear producers cancontinue to work towards a stronger network among themselves within the apparel

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industry context, while at the same time exploring potential future products andtechnologies. In order to begin to address those items identified in the foregoing issueframework, it is essential to have a dedicated resource to begin to put the pieces inplace to increase investments to and raise returns from the apparel industry.

An ongoing series of targeted workshops such as the technology workshopbe scheduled for apparel industry participants/knitwear producers.

Workshops would include market specialist presentations, business planning and trendanalysis, as well as technical workshops with industrial engineers, knitting specialists,hardware and software specialists. At the present time, the apparel subcommitteethrough its DDRR specialist will be required to develop knowledge about industryattributes and bring in specialists to work with established knitwear producers on productimprovements such as labeling, potential new materials which have the same attributesas their current ones as well as working with new entrants on quality issues and producttesting.

Specific workshops should include a 4 day technical workshop with Asha Ruperelia forknitwear producers. Paula Cornec of Winterhouses should be invited to present aseminar on Tips of the Trade, lessons learned during her 20+ years as a knitwearproducer, retailer and craft shop owner. Other workshops should be identified duringconsultations with industry participants.

A series of consultations with apparel industry/knitwear producers bescheduled to discuss policy issues and the other issues described in thisreport.

The knitwear producers at the present time do not see themselves as a potentialmarketing network or collaborative industry sub-sector. Meetings which bring knitwearproducers together to discuss issues of common concern will continue to consolidatetheir position within the apparel industry and contribute to sectoral thinking.

Address the issues of industry support. Review the present supportmechanisms and other existing programs which may in fact be available toand suitable for apparel manufacturers/knitwear producers. Revise policiesas required and inform sector participants of appropriate programs.

The current policies and programs available to craft producers may not be entirelysuitable for apparel manufacturers. An entire review of existing support programs shouldbe undertaken with a view to addressing specific needs and interests of the apparel

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industry group in the province. This will require consulting with other craft and industrialstakeholders, and identifying already existing programs which are most suitable to smallscale manufacturers.

Appendix A Interview ListBaynoddy

Distinctive Knitting

Eastern Quality Apparel

Exploits Oilskins Originals

Harpur’s Knitting

Jane McGrath

Anne Marie Knight

NONIA

Pools Cove Crafts

Southwest Arm Knitters

The Sea Urchin

Trinity Knitwear

Winterhouses

Woof Design

Woolen Wonders

Yarn Point Knit

The following were not available for interviews

Diane Meservey

Stitches from Salmonier

Aunt Maggie’s Handknits

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Appendix B Heriot-Watt University School of Textiles

(Editor’s note: This information may be obtained at the following web site.)

http://www.hw/ac.uk/sotWWW

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Apparel Contracting Operations

Potential for Newfoundland and Labrador

Final Report by

Management by Design

May 2000

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Acknowledgments

Management by Design would like to thank those who contributed their time and efforts tothe successful completion of this study. At the same time, all conclusions are theresponsibility of the project team.

The funding for this study was provided under the Labour Market DevelopmentAgreement, a joint initiative between Human Resources Development Canada and theProvince of Newfoundland and Labrador.

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Contracting Operations

Table of Contents

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212

1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218

1.1 Study Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

2.0 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

3.0 Contract Operations in the Apparel Industry . . . . . . . . . . . . . . . . . . . . . . . . . 221

3.1 Size and Scope of Contracting Operations in Canada . . . . . . . . . . . . . . . . . 230

3.2 Elements of Contracting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

4.0 Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

4.1 NAFTA and other trade agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

4.2 GATT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

4.3 FTA and NAFTA impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241

4.4 MFA Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242

4.5 Future Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

5.0 Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

6.0 Apparel Manufacturing – Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

7.0 Newfoundland and Labrador Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

Appendix A Clothing Contractors Association of Quebec . . . . . . . . . . . . . . . . . . . 249

Appendix B Contributors to the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

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Executive Summary

Background

The Industrial Adjustment Strategy process, based upon industry participation, isdesigned to create rapid and effective knowledge transfer among government agencyrepresentatives, industry players and private sector consultants. The purpose of initiatingan IAS process for the apparel industry was to identify and validate provincial as well asindustry issues and develop strategies to aid the local sector in taking advantage of theopportunities presented.

The IAS Apparel Committee, consisting of apparel companies, DDRR and HRDC hasbeen meeting over the past year to discuss and research issues related to growth in theapparel industry in this province. The committee commissioned a study on TrainingNeeds in the Apparel Sector in Newfoundland and Labrador. During that research itbecame evident that many Canadian designers choose to contract out their productionrather than do the work in-house. The study identified some companies in the provincewho are also interested in contracting out. These numbers are very small at present, butthe trend appears to be growing.

In order to give informed direction concerning investments in contracting operations, theIAS committee contracted Management by Design to undertake a study on apparelcontract operations and their potential for enterprises in Newfoundland and Labrador.

Contract Operations in Canada - Size and Scope

The approximate size of the Canadian apparel retail market in 1999 was about$10billion USD. In 1998 Canada imported approximately $4billion in apparel, andexported approximately $2billion. The US is Canada’s biggest market, withapproximately 93% of apparel exports going to the US. The Canadian domestic marketfor apparel is flat, and has been for a number of years. 65% of all apparel produced inCanada is produced in Quebec - and 50% of this production is done through contractors.(O’Farrell)

Definitive numbers of both contract sewing and contract knitting operations in Canadaare difficult to quantify. This is due to the fact that contracting takes many forms, frompiece work done at home to full scale manufacturers who produce other products undercontract depending on their capacity and facility availability. It is estimated that there areapproximately 1000 contract sewing operations currently at work in Canada. Contractknitting operations represent a very small percentage of knitwear facilities, but knitwearmanufacturing is not very prevalent in Canada, with between 25 and 50 manufacturers

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producing knit apparel. The definition of knitted goods is also very broad, with the resultthat manufacturers of a wide diversity of products define themselves as knitwearproducers.

The Quebec Clothing Contractor’s Association is the only contracting focusedorganization in Canada at the present time. The Association provides a directory of itsmembers to interested parties free of charge.

Presentation by James O’Farrell - Apparel Industry Consultant

One of the main contributors to the report was the presentation made at the ApparelTechnology Workshop by James O’Farrell of O’Farrell/Houde. Mr. O’Farrell has beeninvolved as a consultant with the Clothing Contractor’s Association of Quebec. Hispresentation is contained in its entirety in the report. Major trends identified were:

• There are fewer specialty stores and more chains due to increasing amalgamation

• Imports are up, particularly in goods that are labour intensive but low priced at theretail end

• There has been an enormous pressure on prices with the result that prices formany apparel items are the same or lower than 20 yrs. ago.

• New players have arrived on the scene (e.g. Gap, Old Navy, Banana Republic,Zara, H&M). These will have a big impact on contractors and the industry ingeneral.

• Canadian exports are up. These exports are generally better goods in the high endprice range.

• Private labels are appearing. Vertical integration is eliminating the middle man,often the manufacturer

• The domestic market is flat. It is stable at about $14 billion

• New technologies i.e. Computer Assisted Design (CAD), marking and grading,Electronic Data Interface (EDI) are becoming essential for competitive advantage

• New business models – i.e. partnerships between manufacturers and retailers -are being put in place to address the vertical integration and amalgamation ofcompanies within the industry.

• Bigger is better. All the buy-outs and consolidations are creating large andpowerful entities which will require new marketing methods and approaches.

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Mr. O’Farrell identified that retail market suppliers are faced with a number of decisionsconcerning apparel production. These are:

• Own production versus contracting

• Contracting locally or offshore

• Fast delivery versus lower prices

What is contracting?

• Contracting is essentially the rental of labour

• Contracting is work done for manufacturers, design houses or other contractors

• Private label is work done for retailers

Who uses contractors?

• Retailers through vertical integration

• Marketing oriented suppliers (designers)

• Other contractors (sub-contract excess production demand)

Different customers need different contractors. Factors such as whether the product is afashion good or a basic good, whether the price or quick delivery is the most criticalelement. The determining factor at the present time for all apparel is the labour content,because labour is a major cost. Those items that require high labour content are morelikely to be contracted to low cost labour enterprises offshore.

Volume production is where contractors are most in demand, so some of the trends -such as the move to larger chains - are good news for contractors. Contracting used tobe a matter of opening a facility, and the demand for production was there. Now that isnot the case. Competition within the sector is fierce driven by falling demand. This hasincreased the need for marketing, and opportunities for export.

The most basic form of contracting is CMT (cut, make,trim). There are also contractorswho sew precut pieces, but sometimes buyers are looking for more than just sewing andanother trend is toward full package services which may attract buyers.

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One of the major drawbacks of contracting is that a company does not control its owndestiny - it is essentially at the mercy of the customer’s ability to sell their product,resulting in repeat orders. If the customer can’t market the product, the contractorreceives no additional work from that client.

Competition

Competition for a contractor comes from:

• Other contractors

• Domestic “branded” manufacturers

• Offshore contractors

• “sweatshop” blackmarket operators

A successful contractor has to offer additional selling features such as quality, service,responsiveness, etc. to compete. Contracting services are sold almost exclusivelythrough personal contact. The contractor usually only handles a few accounts, and thebusiness is built on ongoing relationships. Mr. O’Farrell also indicates other specificsrequired to sell contracting services.

Using a contractor is also an acquired skill, one that needs careful attention to detail andclear understanding as to what is expected from both parties. Buyers are looking for:

• Consistency

• Meeting delivery dates

• No substitutions of any kind

• No changes in specifications

Research Findings

Investment costs for contract operations revolve around equipment/machinery andbuilding an efficient workforce. Contract knitting operations must have the appropriateequipment to complete garments as required by the buyer. This means that machineshave to be compatible to those producing the samples, and that the contractor is adept athandling the yarn required. In contract sewing operations, after the completion of training,the industry considers that a sewing machine operator is 10 - 15% efficient. It takes atleast one year of experience to train an effective industrial workforce.

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Contract operations fall into the category of standard manufacturing, except that in theapparel industry Industry Canada estimates that labour costs are approximately 17%higher than in other manufacturing sectors. This accounts for fairly small profit margins inthe industry, and the requirement for large volumes. A rule of thumb to estimate thevolume required to sustain a profitable operations is that each worker represents about$100,000 in wages, fabric, overhead, machinery and profit. From this perspective, anoperation with ten sewing machine operators would require about $1million in contracts.

Success of contract operations is built on many of the same business requirements asstandard enterprises, but it is important as well to have access to someone who isknowledgeable about the product and production, as well as having someone who isknowledgeable about the industry itself, and has good contacts. Other important aspectsof future oriented competitive thinking are found in the Next Generation ManufacturingProject, a framework for action to assist US manufacturers to become better equipped tosucceed in a complex and increasingly global market.

NAFTA and other trade agreements have had and will continue to have major impacts onthe apparel industry in Canada. The creation of a single North American marketplacehas encouraged many Canadian apparel manufacturers to develop an export orientation. It has also forced them to refocus their strategies and adjust their organizationalstructures to meet the demands and take advantage of the opportunities the NorthAmerican market offers.

Newfoundland and Labrador Strategy

From research conducted for this study, as well as the input received from JamesO’Farrell, contracting presents itself as a demanding and difficult sector – a business withno guarantees of success, but also one with no guarantees of failure.

The findings of the report can not conclusively dismiss contracting operations as aneconomic opportunity. At the same time, the information contained in this reportidentifies an industry that is in flux and under pressure from exterior challenges to its wayof doing business.

There are a number of broad strategic considerations which need to be taken intoaccount. The need for a trained industrial workforce for both contract knitting and sewingoperations is paramount. Facility layout and business planning are critical factors inachieving production efficiency and sustainable profits. One of the recommendationsarising from the research is to tie contract operations to the apparel productionrequirements of an in-province designer known outside of Newfoundland and Labrador. A niche market opportunity may arise from this combination.

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A number of initial steps are recommended as the foundation for assessing the potentialviability of contracting operations:

1.01 A familiarization tour should be organized to visit apparelmanufacturers/contract operations in Quebec and Ontario. Participants shouldinclude those private entrepreneurs with an interest in investing in this area, aswell as rural group representatives who see this as a potential sector foreconomic development in their region. This will allow potential investors theopportunity to see first hand if this is the type of operation they envisage fortheir community or as their enterprise.

2) Industry contacts at all levels should be accessed to identify potential mentors orexperienced industry professionals who are available to assist in the development of aspecific contracting operation. These people can suggest the most appropriatefacilities/operations for a familiarization tour and provide guidance on the significantaspects of each location on the tour.

3) An operation that does in fact undertake contracting work and train a work force willbecome a potential provincial resource for designers and training institutions. Consideration should be given to involving other stakeholders at the outset, to identifypotential supporting roles and future opportunities.

4) Other areas of future consideration which may actually come under the purview of theApparel Sub-Committee of the Manufacturers and Exporters Association would be theestablishment of an apparel showroom in St. John’s, primarily intended not only to adviseapparel producers of in-province producers, but also to advise specialized interestgroups (like Mountain Equipment Coop, or perhaps the oil industry) of provincialcapabilities.

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1.0Introduction

The Industrial Adjustment Strategy process, based upon industry participation, isdesigned to create rapid and effective knowledge transfer among government agencyrepresentatives, industry players and private sector consultants. The purpose of initiatingan IAS process for the apparel industry was to identify and validate provincial as well asindustry issues and develop strategies to aid the local sector in taking advantage of theopportunities presented.

The IAS Apparel Committee, consisting of apparel companies, DDRR and HRDC hasbeen meeting over the past year to discuss and research issues related to growth in theapparel industry in this province. The committee is due to release a strategy document byMay, 2000.

The committee commissioned a study on Training Needs in the Apparel Sector inNewfoundland and Labrador. The study was completed in December and will form part ofthe final strategy document. During that research it became evident that many Canadiandesigners choose to contract out their production rather than do the work in-house. Thestudy identified some companies in the province who are also interested in contractingout. These numbers are very small at present, but the trend appears to be growing.

The Training Needs Assessment study has given recommendations to guide thedevelopment of a modern apparel industry in the province. It touches on the aspect ofcontracting out as just one production method that requires further research. Thestudy’s mandate did not include an investigation of a Sewing or Knitting Contract Facilityfrom a business investment perspective.

In the meantime, while the IAS committee has been doing its work, some of the ZonalBoards and individuals around the province have been doing some investigating into theconcept of contract sewing facilities as an economic development opportunity for theirareas. Change Islands, Bonavista, the Northern Peninsula, and Burgeo are some of theareas concerned. At this point, the Committee is not aware of any comprehensiveresearch done on the subject of contract operations, or any reports that are available tothe broader industry. In order to give informed direction to the apparel industry, ZonalBoards and individuals interested in this type of business opportunity, a comprehensiveinvestigation should be done to determine the scope and viability of such an operation.

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1.1 Study Scope

Management by Design, having previously completed the Apparel Training NeedsAssessment for the IAS Committee, was contracted to undertake the present study. Thescope of the study included:

Review of all reports, studies, articles, published statistics available.

Determine size and scope of present facilities operating, including how many,where, who their clients are, types of services offered, types of garments made,level of technology employed, number of employees. Include information on atypical client - ie. a designer and what specific requirements/expectations thatdesigner would have of a contract sewing or knitting operation.

Develop profiles of successful operations, including staffing and trainingrequirements, typical size of the operation to be profitable, level of utilized capacityto be profitable, typical size of production runs, how specialized they might be intypes of garments made or other services offered, level of technology required,investment required/start up costs.

Analyze trends in the Contract Sewing and Contract Knitting business and whatimpact these trends may have on the development of this type of business inNewfoundland and Labrador including anticipated rate of growth, levels of utilizedcapacity in existing businesses, any anticipated trends or changes in technology,level of demand from certain types of contracts or clients, geographic issues,competition issues, impact of transportation costs, other possible constraints orbarriers, etc.

Recommend a strategy to develop Contract Sewing and/or Contract Knittingbusiness(es) in Newfoundland and Labrador.

The Apparel Contracting Operations report which follows is comprised of 7 sections:

Section 2.0 of the report examines the history of the apparel industry.

Section 3.0 contains a discussion of knitwear and sewn product contracting. A report infull on the presentation made by James O’Farrell at the Technology Workshop of April15/16 follows. Section 3.0 also examines the size and scope of contracting operations inCanada, with special attention paid to the Quebec Clothing Contractor’s Association. Itdetails elements of contracting including apparel assembly, contracting operations,contracting and design, investments and success factors.

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Section 4.0 Issues outlines national textile policies, including NAFTA and GATTarrangements, to shed some light on the tariff context within which the industry operates.

Section 5.0 identifies future trends and the state of play in apparelmanufacturing/contracting.

Section 6.0 talks about points to consider concerning apparel manufacturing in general.

Section 7.0 identifies various strategic components of initiating contract operations inNewfoundland and Labrador.

Appendix A contains contact information for the Quebec Clothing Contractor’sAssociation with press releases identifying concerns.

Appendix B lists contributors to the study.

2.0Background

Apparel is manufactured in virtually every country in the world. Industry Canada reportsthat on a global basis, the apparel industry together with the textile industry are the largestsource of industrial employment in the world. Apparel industries account for roughly half ofthat employment.

In the mid-19th century, mass production of apparel in Canada began in urban centresthat supplied pools of semi-skilled labor as well as functioning as the major consumermarkets. Currently, apparel is manufactured in all provinces and territories, but Quebecaccounts for the majority of the industry's production, with Ontario, Manitoba and BritishColumbia continuing to produce apparel as major components of their provincialeconomies. More recently there has been a trend toward firms establishing operations inrural areas and smaller communities in Canada. Similar to the textiles industry, theCanadian apparel industry has grown from its modest beginnings to become the supplierof a wide range of apparel to domestic consumers and, increasingly, to foreign markets.(Industry Canada)

The total Canadian market for apparel, based on wholesale prices, was estimated at$10billionUSD in 1999. Fifty-eight percent of the domestic market was supplied byCanadian manufacturers and the rest by imports. In 1997, the apparel industry

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contributed 2.2 percent of Canada's total manufacturing gross domestic product (GDP)and accounted for 5.3 percent of total manufacturing employment. The relatively highcontribution of the apparel industry to total manufacturing employment as compared to itscontribution to manufacturing GDP reflects the industry's continuing high degree of labourintensity, despite the adoption of computer-aided technology in the early stages of theproduction process. As of 1996, the Canadian apparel industry comprised close to 1 800firms. Approximately 75 percent of firms have fewer than 50 employees and account forabout 33 percent of total industry shipments. The industry profile highlights that theapparel sector offers generally low barriers to entry, a fragmented production base, aswell as a very entrepreneurial orientation. (Statistics Canada)

3.0Contract Operations in the Apparel Industry

Contract operations in the apparel industry can be divided between sewn apparel andknitwear. These two sub-sectors which make up the apparel industry are reportedindividually through Statistics Canada, with the production of yarns and some knittedproducts considered as a portion of the textile industry.

James O’Farrell with O’Farrell/Houde in Quebec is an apparel industry consultant with aspecialty in apparel contracting enterprises in Quebec. Mr. O’Farrell presented sessionsat the Technology Workshop held in St. John’s April 15/16 2000. A report on hispresentation is contained in its entirety in the following section. The reader should viewthis material as being the authoritative source concerning this sector. Mr. O’Farrell’spresentation material has not been integrated into the body of the report in order to givecredit where credit is due, and also to better highlight aspects of his experience whichmay be useful for enterprises considering contracting initiatives.

James O’Farrell

O’Farrell Houde Inc.

3539 Boulevard St. Charles, Suite 201

Kirkland, PQ H9H 5B9

Tel: 514-990-1802 Fax: 514-696-4561

e-mail: ofarl@total.net

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Presentation to the Apparel Technology Conference

April 15 & 16 2000

Apparel Industry Background

The approximate size of the apparel retail market in 1999 was:

• Canada - $10billion USD

• USA - $200billion USD

In 1998 Canada imported approximately $4billion in apparel, and exportedapproximately $2 billion. The US is Canada’s biggest market, with approximately93% of apparel exports going to the US. The Canadian domestic market forapparel is flat, and has been for a number of years. 65% of all apparel produced inCanada is produced in Quebec – and 50% of this production is done throughcontractors.

Major Apparel Industry Trends

There are major trends which can be identified, with future implications forcontracting operations. The following material is based on the presentation madeby Mr. O’Farrell. Some of these topics are dealt with in subsequent sections of thereport as well.

• Retail concentration: there are fewer specialty stores, more chains due toincreasing amalgamation within all industries today. This has significantimplications for apparel, particularly those products which rely on niche marketsales.

• Imports are up, particularly in goods that are labour intensive but low priced atthe retail end i.e. flannel pajamas.

• Prices are down. There has been an enormous pressure on prices with theresult that prices for many apparel items are the same or lower than 20 yrs. ago. If you produce garments that are in the higher price points, the pressure is less,but even in these garments price pressure is increasing unless you are in theexclusive 1% of the market where price is not a consideration.

• New players have arrived on the scene (e.g. Gap, Old Navy, Banana Republic,Zara, H&M)

• Canadian exports are up. 93% of our exports go to the US (valued at $2 billion). These exports are generally better goods in the high end price range.

• Private labels are appearing. Vertical integration is eliminating the middle man,often the manufacturer

• The domestic market is flat. It is stable at about $14 billion

• New technologies i.e. Computer Assisted Design (CAD), marking and grading,Electronic Data Interface (EDI) are becoming essential for competitive

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advantage

• New business models – i.e. partnerships between manufacturers and retailers -are being put in place to address the vertical integration and amalgamation ofcompanies within the industry.

• Bigger is better. All the buy-outs and consolidations are creating large andpowerful entities which will require new marketing methods and approaches.

Small specialty stores have been especially hard hit by these trends towards biggeris better. They are not able to carry large inventories, or go out on a limb to try newproducts, and hence are either being bought up or going out of business becausethey cannot compete. The larger stores used to grow through adding additionalproduct lines, thereby increasing sales. That is not possible anymore, so the onlyway to grow is through acquiring additional retail space and additional consumers. At the same time, the consumer is probably paying 10% less than they were tenyears ago for the same product.

The new players on the scene are giving the established apparel retailers realcompetition: their prices are substantially lower on a number of items, attractingattention from the local consumers. For the most part the consumer does not askwhere a garment is produced, but is more concerned about price.

Vertical integration within the industry is cutting out the manufacturer, with theretailer contracting out production of its own brands. This is private labelproduction. Niche marketing is successful for those who specialize in very specificareas, and become known for their quality and product. New technologies areessential to keep in tune with the market, thereby placing an additional burden onmanufacturers and contractors to keep their operations current.

Examples of partnerships include the manufacturer who approaches a smallspecialty store and offers stock to them on a “pay when sold” basis, with a sharedpercentage of subsequent markdowns for unsold stock.

All in all, the trends point towards an approach which is that “bigger is better”.

Apparel Production

Retail market suppliers are faced with a number of decisions concerning apparelproduction. These are:

• Own production versus contracting

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• Contracting locally or offshore

• Fast delivery versus lower prices

What is contracting?

• Contracting is essentially the rental of labour

• Contracting is work done for manufacturers, design houses or other contractors

• Private label is work done for retailers

In traditional terms, a manufacturer is an enterprise which designs products,manufactures the products and sells the products. In the past this was the mostcommon form of enterprise. Presently design houses are those enterprises whichdo not manufacture – they design products and sell these products, with productioncontracted out. It is extremely difficult in the fast paced present day apparel sectorto be excellent in all core competencies – designing, production and marketing –required to compete at all levels in the industry. Design houses have identified theircore competencies as design and marketing. Private label refers to a retailer’sown brand. Each of these production styles requires a different approach to themarket.

Who uses contractors?

• Retailers through vertical integration

• Marketing oriented suppliers (designers)

• Other contractors (sub-contract excess production demand)

Different customers need different contractors. Some of the basic questions thatdetermine the choice of contractor relate to whether the product is a fashion goodor a basic good, whether the price or quick delivery is the most critical factor. Contractors are chosen for different reasons. Traditionally a straightforward basicstyle would be imported from China, whereas fashion items were produced closerto home. At the present time, the determining factor for both fashion items and forbasic goods is the labour content: those items that require a high labour content arecontracted to low cost labour enterprises offshore, those requiring low labourcontent are produced at home.

One of the recent issues that has arisen as a result of offshore contracting is themonitoring of human rights conditions. It has become a big issue, with questionsasked about who is responsible for working conditions under which a product ismade. All the large US companies, as a result of recent scandals, now publish a

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Code of Ethics which is to underpin all aspects of their production. There has alsobeen increased pressure against child labour from labour unions such as UNITE. Companies can hire independent inspectors who will tour contractor operations toensure compliance to human rights codes. Scandals create an unacceptable levelof risk in terms of loss of customers and irreparable reputation damage.

Contracting vis-à-vis Apparel Industry Trends

Certain of the apparel industry trends vis a vis contractors are very positive: themove to larger chains, larger operations means volume buying – and volume is thearea where contractors are in most demand.

Previously contracting was easy. It was just a matter of taking order: if you had afactory, buyers were beating down the doors to get production. At the present timeit is much more difficult. Contractors are notoriously terrible at marketing, becausetraditionally their skill was handling labour and production. With the falling demandand the need for increased marketing, there are also increased opportunities forexport.

The trend towards vertical integration is positive from a contractor’s point of view. Operations which are being squeezed from both ends are the small manufacturerswho produce their own brand. In the past, their business was primarily donethrough little specialty stores: now these stores are being bought up or going out ofbusiness. The production of private labels and licensing agreements areparticularly fruitful for those contractors who have resources to invest.

The contracting industry in Quebec is made up of primarily small to mediumenterprises (i.e. those with 10, 20, 40 employees). There are the large companiesas well, but the smaller companies are niche players who are surviving, so there isroom for all types of operations.

Description of Contracting Operations Services Offered

The most basic form of contracting is CMT (cut, make, trim) where the client doesthe design and sources the fabric and the contractor cuts the fabric and puts thegarment together. There are contractors who just sew pieces together without anycutting.

Sometimes buyers using local contractors are looking for more than sewing, and

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are interested in a Full Package Production. Various contractors may or may notoffer any or all of these production services. The trend is towards adding serviceswhich may attract buyers.

Full Package Service Elements

• Cutting

• Purchase of fabric

• Patterns and grading

• Floor ready packaging and ticketing

• Product development

• EDI

• Quick response

• Finishing

• Etc.

Purchasing fabric is one of the biggest hurdles for contractors, because theygenerally do not have sufficient cash on hand, and cannot arrange financing.

Some contractors will do patterns and grading, but most customers would prefer todo their own and give the specifications to the contractor. Important to specifyaspects such as how wide do you want your seams, and how do you want themfinished to ensure a certain look to the garment.

Floor- ready packaging and ticketing means that a product is ready for the storefloor. Some contractors can print barcodes, others can’t. This service element maydetermine whether they get the work.

At times certain contractors contribute to product development by suggestingmodifications, additions, embellishments, etc. based on their experience in theindustry. Some are now beginning to offer trend and colour projection analysis asan added service for their customers.

Electronic communication is part of the electronic data transfer world we live in, andcontractors are part of this.

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Quick response means that the delivery time is shortened, and the lead time isappropriate. For the most part, if a buyer wants quick response delivery, they willgo to a Canadian contractor, if they are interested in a low price, they will goelsewhere offshore.

Some contractors also do finishing work such as embroidery.

“Made in Canada” has a great reputation. Canadian quality is perceived as beinghigher than American, and more akin to European standards. Some of this isprobably due to the fact that only the best companies export, so the poorer qualitywork remains at home. Americans are also not hung up on purchasing “Made inthe USA” only: the market is dictated in a large part by price. Therefore, Canadiancompanies can capitalize on our lower dollar and our reputation for service andquality.

The Nitty Gritty of Contracting

One of the great drawbacks of contracting is that a company does not control itsown destiny. It is at the mercy of the customer’s ability to sell their product in orderto come back for more production. If the customer can’t market the product, youdon’t get the work. The nature of the business is precarious.

Location in terms of urban versus rural depends on the definition of “rural”. Fromthe vantage point of Montreal, certain areas three hours distant may be consideredrural – but they are in fact only one hour from the American border. The mostimportant aspect of the urban/rural distinction is in the area of labour. For example,in the Bose area, south of Quebec City, they are super entrepreneurs in an areawith virtually zero unemployment. The enterprises are dynamic and forward thinking. The difficulty is going to be the next generation: it is difficult to find labourers whowant to work in the apparel industry as it is presently perceived in the public mind. But – the industry is changing, with new opportunities due to high technology. It hascreated a net job increase in Quebec over the past ten years.

The urban situation is quite different: there it is a matter of managing multi-ethnicworkforces and cultural differences. There is still a pool of immigrant labour to workas sewers.

Competition

Where does competition for a contractor come from?

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• Other contractors

• Domestic “branded” manufacturer

• Offshore

• “sweatshop”

In terms of competition from other Canadian contractors, there are some aspects ofthe profile which define the sector. The basic point to be made is that

if price is your only selling point, you’ll always lose, because someone else willalways sell cheaper. In other words, you have to offer other selling features (such asquality, service and responsiveness) to compete.

• In general, marketing is a weakness. Most contractors have no clue how tomarket.

• Some contractors also offer branded products (glove manufacturer producingSilver Jeans)

• Some have problems offering Full Package Service

• Most (95%) specialize in a certain product

• The leaders among the contractors invest in technology

• The operations range in size from 5 to 500 employees, with most falling into thevery small, very specialized category

So how do you sell contracting services?

• Contracting services are sold almost exclusively through direct personal contact. For the most part, reps don’t work: a contractor usually only handles a fewaccounts, and the business is built on an ongoing relationship.

• Retailers get approached constantly by contractors, with the result that theyusually don’t jump at the first approach, and sometimes never jump no matterhow often they are approached. They are looking for a company that will bearound for a long time, with whom they can build a relationship. It is difficult toget in there, but once there you can be there for a good while.

• You can go to shows such as the private label shows held in New York and theMagic Show held in Las Vegas. This is not a first or even a second step, but itis good to go to have a walk through, look around at how other companies areselling their goods.

• Generally the first contract comes because you are filling a hole in someone’sexpected production. Perhaps another company had problems. This usually isthe way the business starts, and this is the opportunity to start to build therelationship.

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• References are critical, because they tell a potential buyer where you arepositioned. If you are selling services to Sears for example, they will know thatyou have a quality production, large volume and meet delivery deadlines.

• It is important to specialize, and be very good at the specialty you have chosen.

• But the most important aspect of selling contracting services is to be able togive the client the assurance that you will adhere to “ease of doing business”commitments: your pricing is clear, you respect delivery dates, and you willrespond quickly to requests. A retailer does not want to have to check anddouble check the work of a contractor. They want to be able to rely on aprofessionally run operation which meets their needs with minimum hassle.

There is a potential that the domestic branded manufacturer will be squeezed out,but with the current trend of cutting back on the number of suppliers that a companyhas to deal with, there is an opportunity for these manufacturers to do both their ownbrand and a private label brand both of which are sold to the same retailer.

Sweatshops are those operations that are black market, without reported earningsor sales. These operations use home sewers, and declare nothing. It is particularlybad in the Toronto area.

How to use a contractor (from general discussion involving all presenters):

Be ultra specific.

• Besides giving the contractor a sample of the product and asking if it can beproduced, ask the contractor to produce the sample for you.

• If you are dealing in various sizes, ask for samples in a size range.

• Check your fabric amount, to ensure that fabric that you are paying for is notdisappearing under the table and your production is being done at a loss.

• Set down all measurement details on a grading chart. Measure the returnedsamples for compliance.

• Decide what tolerance levels are acceptable.

• Quality is critical – contractors are out to make money like everyone else.

• Use different contractors for different products, then you are not stuck shouldsomething happen.

• Check the finished product down to the last detail.

• Specify how you wish the garment to be pressed.

• Specify what threads to use.

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• Specify no tilting patterns off the grain.

On the contractor side, buyers are looking for

• Consistency

• Meeting delivery dates

• No substitutions of any kind

• No changes in specifications

It is not surprising that the best companies work with the best contractors…

ISO 9000 certification does not guarantee quality, but it is helpful to impose internaldiscipline on the garment production. There is no proven marketing advantage tobeing ISO certified, and the registration process is expensive. From the buyerspoint of view, it is important to ensure that the contractors are meeting yourstandards, not somebody else’s. There are industry standards, but the buyer has totell the contractor how each of these should be applied to specific garments.

3.1 Size and Scope of Contracting Operations in Canada

The following material presented in this portion of the report is that gathered during theresearch phase of the study.

Reports and studies focusing solely on the contracting aspect of apparel manufacture,whether knitwear or sewn products, are not commonplace. Through interviews withIndustry Canada representatives, one of the dilemmas in defining the contractsewing/knitting as a sub-sector of apparel manufacturing is that they are not formallyrecognized in terms of Statistics Canada data collecting. Many apparel contractingbusinesses do not traditionally fit into established categories. Companies looking forcontractors in some situations will go to brokers, who in some cases use home workers tocomplete contracts. The activity generated at this level is difficult to measure, and there isa concern among established apparel contractors that the sector is being tarnished withreports of unfair wages, no benefits and unreported earnings. The focus of this concern isstrongest in the Toronto area. This issue has been widely reported in Quebec, with theClothing Contractors Association there taking a firm stand in regard to its members andtheir ethical approach to the industry (See Appendix A for current Press Releases on thistopic, and also for the Quebec Clothing Contractors Association webpage/contactinformation).

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3.1.1 Size of the Industry

Total employment in the apparel industry, including contracting out and part-timeemployment, is estimated to exceed 100,000 persons. The vast majority of apparelcompanies are owned by Canadians. Foreign-owned firms account for about 2 percent ofthe total and most are controlled by U.S.-based multi-national corporations. They tend tobe among the larger firms in the industry and concentrate on manufacturing large-volumestaple products such as jeans, underwear and foundation garments.

Bob Kirke, Executive Director of the Canadian Apparel Federation estimates that thereare approximately 1000 contract operations across Canada. Knitwear contractorscomprise a minuscule percentage of these operations. Firms that specialize in cuttingand sewing apparel account for about 25 percent of the total number of establishments inthe industry. Many large contractors are located in Quebec's Eastern Townships. The useof contractors is more pronounced in women's wear than in men's wear. Because thelatter is less influenced by fashion changes than women's apparel, production tends to bemore mechanized, requiring a greater level of capital investment. Production in women’swear requires greater flexibility to respond to rapidly changing demand.

These figures are open to interpretation, in that manufacturers during slow productiontimes may also do contract work for other manufacturers requiring production assistance.

One of the difficulties in identifying the size and scope of knitwear contracting operationsin Canada is that some companies that deal with interlock products such as T-shirtscategorize themselves as knitted product manufacturers. From information supplied byindustry professionals, there are probably between 25 and 50 knitwear manufacturersproducing goods in Canada. These cover the whole gamut - from large to smallcompanies. As with apparel, many of these companies undertake contracts from otherclients when their own production runs are completed, or when they have the capacity todo so.

As identified in the Apparel Training Needs Assessment, the profitability of sewn apparelis based on the ability of a worker to competently and efficiently operate a sewingmachine for maximum returns. The knitwear industry on the other hand relies oncompatibility of equipment and experience in handling yarns. The business environmentwithin which fabric apparel and knitwear operate as industries is similar. Similar trendsapply to both industries vis-a-vis the nature of business and competition, opportunities foroffshore production, client - contractor relationships and investment costs. The twosectors differ in some distinct ways:

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• For knitwear contracting it is critical that the contractor use the same machines asthose from which client samples were produced to ensure the desired garmentfinal finish.

• Machines that handle the exact yarn weight are essential when seeking knitwearcontractors.

• High quality knitwear also depends on the ability of the manufacturer/contractor tosuitably handle and knit expensive specialty yarns. This applies as well toexpensive apparel fabrics.

Davison Publishing Co. Inc. has been serving the textile industry since 1866. The"Davison's Textile Blue Book" allows for simple sourcing of companies in the UnitedStates, Canada & Mexico that produce or market textile products from Fiber ThroughFinished Fabric. This includes Producers of Fibers both Natural & Manmade, Spinners,Weavers, Knitters, Producers of Nonwovens, Dyers & Finishers, Converters, SellingAgents and Jobbers.

The "Davison's Textile Buyer's Guide" allows for simple sourcing of companies thatmanufacture or sell Textile Machinery both New & Used, Parts & Accessories, Chemicals,Supplies and Services. With over 7000 company listings in textiles for Canada, Mexicoand the U.S. has 93 listings for knitted fabric producers in Canada. 4 of these areidentified as contract knitting. This is in comparison to 1038 listed for the U.S. and 67contract knitting operations listed for Mexico. While this list is not exhaustive, it does givesome sense of the relative size of this sector in Canada. The other aspects of this listindicate some of the complexities of knitwear production: knit/circular; knit/warp; doubleknits, flat knits, jacquard, apparel fabrics, etc.

Most knitwear manufacturers are set up to complete all the stages of garment productionprocedures. About 10% use contractors, especially for embroidery, label attachment,dyeing & finishing, printing, steaming/pressing etc. Some use contractors for cutting. About 2-3% may use knitting contractors to knit the fabric or body blanks and/or trims i.e.ribs for cuffs, collars, pockets etc. (Asha Ruparelia, Knitwear Consultant).

3.1.2 The Quebec Clothing Contractor’s Association

Of all the apparel manufactured in Canada, 65% is manufactured in Quebec. Of this 65%,one-half is produced by contractors (James O’Farrell). This segment of the apparelindustry is of major economic benefit to Quebec. As a result, the Quebec ClothingContractor’s Association was founded in 1977 to promote and defend the interests of theQuebec Clothing Contractors. It is the only contracting focused organization in Canada atthe present time. Services to members include marketing seminars, a newsletter,customized projects (such as safety in the workplace, wage equity, training development,

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etc.), an information centre, contracting industry promotional events, and a Directory ofContractors with a list of contracting firms, their specialties and minimum quantitiesaccepted for each design. This Directory is distributed free of charge upon request. (Torequest the Directory, fax your name and address to The Quebec Clothing Contractor’sAssociation - Fax No: 514-384-1552 indicating that you would like a copy of the AECQDirectory 2000).

In his presentation during the Apparel Industry Technology Workshop, Mr. O’Farrellindicated that the Quebec Clothing Contractor’s Association is currently undertaking asurvey of members to determine present capacity and performance levels. Theinformation from this survey should be available in September 2000 and may be useful forconsideration by those interested in contracting operations.

3.2 Elements of Contracting

3.2.1 Apparel Assembly

The principal stages of apparel production are design, material sourcing, pattern making,marking and grading, fabric cutting/knitting, assembly and finishing. Some firms produceinnovative, high-fashion apparel while others concentrate on adaptations of styles that aregaining acceptance with consumers and for which demand can be reasonably projected.Still other firms produce apparel having longer production runs, such as basic underwearor T-shirts, whose styles do not cange as rapidly and for which demand can be predictedmore accurately.

As has long been the case, the assembly stages of sewn apparel manufacture rely on theuse of individually operated sewing machines. Developments have been limited primarilyto ergonomic features for operator comfort and highly specialized equipment, such aspocket setters and buttonholers, based on the incorporation of microprocessors intosewing machines. The development of automated assembly systems has been inhibitedby the complexities involved in the conversion of soft, limp fabrics into three-dimensionalgarments. The final production stages have seen technological advances in the form ofautomated garment-pressing equipment, and sorting and packaging systems.

Traditional apparel manufacturing has encouraged operators to maximize theirefficiencies on single sewing operations. An increasing focus on flexibility has led toinnovations such as unit production systems using computer-controlled overhead railsystems. New team work or modular manufacturing methods have been introduced todecrease work-in-progress and thus reduce production throughput times. Teamapproaches usually involve the cross-training of sewing machine operators.

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Knitwear is manufactured on flat and circular knitting machines, depending on the productdesired. Knitted apparel also includes socks and undergarments, as well as fullfashioned sweaters, jackets, hats, scarves, mitts, etc.

3.2.2 Contracting and Design

Apparel firms that produce more fashion-oriented products cater to up to six fashionseasons annually and need to start their planning cycles up to 18 months ahead ofexpected shipment.

Innovation in the form of fashion design is the apparel industry's most distinctive feature. Itis a factor often overlooked in assessing sector competitiveness. While many othermanufactured goods industries have a design focus, none has the same impact on themarketplace and influence on success as fashion design. It involves trend research, fabricsourcing and testing, and pattern and sample making.

While most Canadian fashion designers are employed as stylists by ready-to-wearmanufacturers, a number of talented individuals have established reputations in thedomestic market for the production of higher-end, ready-to-wear clothing under their ownlabels. Although most of these designers may not yet be known internationally, a few havegained recognition in the United States and other export markets. Linda Lundstrom isone such professional.

3.2.3 Investment Costs

Detailed investment costs for knitwear production and/or sewn apparel production canonly be determined through selection and costing of machines designed to accomplishthe production tasks required. The following points highlight some of the broadconsiderations surrounding investments in either knitting or sewing contract operations.

• Machinery

Both knitwear and sewn apparel require investments in technology and machinery whichis well suited to modern production operations. Knitwear production as indicated abovehas many facets, dependent on type of garment required, weight of yarn, style of yarn, etc. The focus of knitwear production is much more strongly related to efficient equipment.

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The workforce training needs are to increase basic skill levels (reading, writing,mathematics, etc.) as well as skills related to integrated quality management so as tofacilitate the transition of the workforce towards the adoption of new technology.

• Labour efficiencies

In sewn apparel, contractors essentially “rent” the skills of their labour force. Training is amajor issue in the industry. After completing training, the industry considers that a sewingmachine operator is 10 – 15% efficient (“Apparel Industry Training Needs Assessment”). Companies must have a well designed training program: courses should not be offered ifjobs are not available, because the skills will be lost. In this industry, every aspect ofgarment production is timed for efficiency. Two industrial processes are used to measurethis efficiency:

1) Motion time study

There are established predetermined production times which take into account how theoperator of each machine functions when optimal production is achieved. Studies haveshown that a sewing machine operator spends 80% of production time handling materialand 20% sewing. The attempt is to increase the amount of time sewing which is the profitcomponent.

2) Measure number of minutes to complete required tasks

The number of minutes from start of production to completion is measured. This is thepurview of industrial engineering, and measures all aspects that affect efficiency ofproduction flow – from how the machines are set up through to even how high the lightsare on the ceiling. All aspects of plant organization will impact productivity. (NBinterviews)

• Effective Size

Contracting operations in Canada range from operations with 10 employees to multipleplant firms employing hundreds of workers. Contracting operations are fairly standardmanufacturing operations. A rule of thumb to follow in costing for capital outlays inmanufacturing operations is to work backward from the Direct Product Cost (i.e. the costof producing goods taking into account the raw material delivered to the plant and

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labour with no market ups). The Direct Product Cost should be roughly 1/3 the retail costof the product. The breakdown is as follows:

1/3 Retailer profit and overhead

1/3 Direct Product Cost

1/3 Producer profit and overhead

For example: If the retail cost of a product is $24, the Direct Product Cost should be 1/3 ofthat or $8, with producer profit and overhead accounting for the other 1/3 ($8). Thismeans that the retailer is paying $16 for an item which can be marked up to $24. Thiswould account for a standard mark-up of 50% from the retailers point of view.

One major variance in this formula for apparel operations is that labour costs on averagerepresent more than 30 percent of production costs in apparel manufacturing, comparedwith 13 percent in the total manufacturing sector (Industry Canada). This means that theDirect Product Cost to the manufacturer is actually higher by 17% additional labour cost. With a Direct Product Cost that is higher, the only places it can be taken out of are eitherthe producer profit and overhead, or the retailer profit and overhead. This accounts for thelow profit margins in the industry and explains why the capping of retail prices at low levelscreates problems for the industry. It also explains why increasing numbers of retailers aresourcing products outside of Canada where labour costs are lower.

Industry Canada sources use another rule of thumb to determine what level of sales isrequired to generate profits. The rule of thumb in this case is that each worker in sewnapparel represents $100,000 in wages, fabric (50% of the product cost is fabric),overhead, machinery and profit. Profit in the industry is not large, ranging from –5 to 10%depending on the profitability of the company and the skills of the work force.

The contracting industry is extremely cost sensitive. The size per se of the operation isless the issue than the recognition that this type of business is based on high volumeoutput with low per-piece profits. Costs are the determining factor: these include labourwages, transportation of materials, overheads such as facility rent, heat and light. Withsmall profit margins, the requirements for an efficient labour force and effective plantlayouts are paramount.

3.2.4 Success Factors

Success factors in contracting are similar to those in manufacturing, although the costsensitive issues are more marked in the contracting business. Beside a highly trained

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labour force, successful contract operations depend not only on operational structures butalso on:

• Someone knowledgeable about the product and production.

As outlined in the sections above, competition in the apparel industry is fierce. Productsmust continually meet changing consumer demands on price and utility in order tomaintain their market share, or make strategic changes to move with the times. Olderoperations are continually required to retool and refit their facilities in order to effectivelycompete. New operations must be able to choose the appropriate technology, layout,marketing structure, etc. These are major investments which should be based onknowledgeable and experienced guidance. Errors in judgement will be reflected in lack ofnecessary production levels to ensure profitability and sustainable operations.

• Someone knowledgeable about the industry with connections.

The core of the industry has operated in other provinces for an extended period of time,with some companies celebrating over 100 years of apparel production. Because of thenature of contracting - its reliance on the reputation of the contractor in terms of meetingclient expectation and delivering as agreed - established relationships are important notonly for business growth but also to ride over any unforeseen difficulties or challenges. Knowledge of the industry is important in making initial contacts with the rights people inthe right way. Connections of a positive nature can ensure that the first steps in anyoperation go as smoothly as possible.

The following section is presented to increase the understandings of those interested insetting up modern operations with the benefit of new technologies and approaches.

G The Next-Generation Manufacturing Project

From information posted on its website, the Alberta Government through its EconomicDevelopment Department has instigated efforts to improve the productivity andcompetitiveness of Alberta manufacturers. These efforts are based on the Next-Generation Manufacturing (NGM) Project that was developed in the US in 1995. TheProject was to develop a framework for action to assist US manufacturers to becomebetter equipped to succeed in a complex and increasingly global market. The Next-Generation Manufacturing model is an integration of people, business practices andtechnologies.

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The NGM Project identified seven drivers that have a direct impact on a manufacturer’sability to compete globally. These are:

• Abundant availability and distribution of information

• Accelerating pace of change in technology

• Rapidly expanding technology access

• Globalization of markets and business competition

• Global wage and job skill shifts

• Environmental responsibility and resource limitations

• Increasing customer expectations

For firms to successfully respond to these pressures, the following attributes have beenidentified as essential:

1. Customer Responsiveness

2. Physical Plant and Equipment Responsiveness

3. Human Resources Responsiveness

4. Global Market Responsiveness

5. Teaming as a Core Competency

6. Responsive Practices and Cultures

To understand each of these attributes, the present methods of dealing with each of theserequirements is compared to the future standards which will apply to successfulmanufacturing attitudes and capabilities. The following comparisons may provide usefulanalytical tools and workshop topics for not only those interested in contractingoperations, but also others in the provincial apparel industry. To be successful inovercoming barriers that may result from location, it is essential that apparel operationsare as well positioned in terms of modern, leading edge knowledge as possible.

1. Customer Responsiveness Attributes

Now Next GenerationProduct Focus Solution FocusDeliver What is Ordered Deliver What is NeededMeet Current Requirements Anticipate Evolving RequirementsSingle Transaction Revenue Life-of-Customer RevenueSatisfy Customers Satisfy Customers and All Other Stakeholders

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2. Physical Plant and Equipment Responsiveness

Now Next GenerationExperience-Based Knowledge Science-Based KnowledgeProcess Development Lags ProductNeeds

Process Development Leads ProductNeeds

Dependence on Hard Tooling Soft Tooling and Tool-less ProcessesAutomatic Equipment (Operator Run) Autonomous Equipment (Self-

monitoring and Correcting)Fixed Capacity Variable Capacity (Flexible Process)Equipment has a Single Use Recyclable Plant, Equipment and

Property

3. Human Resource Responsiveness

Now Next GenerationLifetime Employment Lifetime EmployabilityCompany Plans Career Individual and Company Jointly

Responsible for CareerIndividual Provides Labour Individual Provides Labour and

KnowledgeHire and Retrain Universally Recognized Skills

CertificationAd Hoc Knowledge Acquisition Knowledge Acquisition Managed by

Supply Chain Principles

4. Global Market Responsiveness

Now Next GenerationMarket Globally (Home Country Ties) Operate Globally (Minimal Home

Country Ties)R&D in Home Country R&D DispersedForeign Company with Local Perceived as a Domestic CompanyInvestment in Each Market US MarketShare

Global Market Share

5. Teaming as a Core Competency

Now Next GenerationControl Intellectual Structures Control & Share Intellectual PropertyHierarchical Power Structures Shared Decision MakingReward Individual Contribution Reward Individual and Team SuccessPhysically Practice Core Competencies Control Knowledge of Outsourced Core

CompetenciesLoyal to Your Unit Multiple Loyalties

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6. Responsive Practices and Cultures

Now Next GenerationTeach Productivity Teach Innovation and CreativityTeach the Need to Change Teach the Process of ChangeCustomer Satisfaction All Stakeholders’ SatisfactionMy Standards and Metrics Our Standard and MetricsCompeting for Existing Markets Market Creation Through Innovation

4.0 Issues

The IAS committee was particularly interested in information about NAFTA and othertrade agreements in terms of potential short term opportunities as well as long termimplications for industry development. The following information is supplied by IndustryCanada.

4.1 NAFTA and other trade agreements

Over the past quarter-century, the Canadian textiles and apparel industries benefittedfrom significant import protection and adjustment assistance. The first national TextilePolicy, introduced in 1970, led to the provision of financial assistance to firms forrestructuring and adjustment assistance benefits to laid-off workers. With theannouncement of a new textile and clothing policy in 1981, financial assistance wasconsolidated under the Canadian Industrial Renewal Board (CIRB), which was given afive-year mandate to promote adjustment in the textile, clothing, footwear and tanning. Inthe late 1980s, protectionism gave way to trade liberalization, and Canada entered intothe Canada-U.S. Free Trade Agreement (FTA) in 1989 and, in 1994, the North AmericanFree Trade Agreement (NAFTA). More recently, agreements were concluded with Chileand Israel

A major feature of the FTA, made even stricter under the NAFTA, is the rules of origin. Ingeneral, they allow preferential access to apparel that is manufactured in North Americafrom fabrics woven or knitted in North America from yarns produced in North America. If aproduct exported to another NAFTA partner fails this test, it is subject to the MostFavoured Nation (MFN) rate of duty. Annual tariff preference levels (TPLs) are anexception to this requirement. In the case of apparel, they allow manufacturers to export a

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specified amount of products manufactured from non-originating inputs at the preferentialrate of duty. Under NAFTA, apparel tariffs in 1996 stood at 5 percent or less betweenCanada and the U.S. and, in general, at 17.5 percent or less between Canada andMexico. Under the terms of the NAFTA, which incorporates the tariff schedule of theearlier Canada U.S. FTA, all tariffs on apparel will be reduced to zero. This will happen byJanuary 1, 1998, for Canada U.S. tariffs and by January 1, 2003, for Canada Mexicotariffs.

4.2 GATT

From 1974 to 1994, apparel and textiles did not fall under normal trading rules of theGeneral Agreement on Tariffs and Trade (GATT). Trade in this sector was governed bythe Multi-Fibre Arrangement (MFA), which involved the negotiation of bilateral importrestraint agreements, or quotas. In 1996, Canada still had 43 bilateral apparel and textileimport restraint agreements in place.

In addition to the phase-out of tariffs under the FTA and the NAFTA, the apparel industryis also facing tariff reductions as a result of the Uruguay Round of multilateral tradenegotiations under the GATT, concluded in 1994. These reductions are occurring inannual increments over a 10-year period beginning January 1, 1995, and will reduce theaverage tariff for apparel from 25 percent to 18 percent. Tariffs on textile fabrics will alsobe reduced from a maximum of 20 percent to a maximum of 14 percent.

These phase-out of tariffs apply only to Canada's agreements with member countries ofthe World Trade Organization (WTO), which comprise 32 of the 43 existing bilateralrestraint agreements. Public policy in the textile and apparel industries has also includedduty remission programs, which currently cover outerwear fabrics, shirting fabrics,outerwear apparel, blouses, shirts and co-ordinates, outerwear fabrics. These programs,which aim at assisting the most vulnerable sub-sectors of the apparel industry adjust toincreased competition, primarily from low-wage sources, will expire on December 31,2004. Producers who received benefits under the five existing duty remissions would beallowed to import certain quantities of apparel or fabrics duty-free to complementproducts that they make in Canada. Annual remission benefits for each individualrecipient will be restricted to amounts it received in 1995. These remission orders willhelp Canadian apparel and fabric manufacturers face the pressures of increased importcompetition as quotas are liberalized and eventually eliminated in 2005 under the WTO.

4.3 FTA and NAFTA impacts

As with other Canadian industries, the implementation of the Canada U.S. Free TradeAgreement (FTA) in 1989 and of the North American Free Trade Agreement (NAFTA)

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involving Canada, the U.S. and Mexico in 1994 has had profound effects on the structureof the Canadian apparel industry. The creation of a single North American marketplacehas encouraged many Canadian apparel manufacturers to develop an export orientation.It has also forced them to refocus their strategies and adjust their organizational structuresto meet the demands and take advantage of the opportunities the North American marketoffers.

Since the introduction of the FTA, apparel exports have almost quadrupled, mostlythrough increased sales to the U.S. market, which has long been the industry's mainexport target. In 1999, the Canadian apparel industry exported products valued at over $2billion, 93 percent of which went to the United States. Canadian apparel exports make uponly about 2 percent of total American apparel imports, but represent about one quarter ofU.S. imports from developed countries, second only to those from the European Union.Recent export success, due in part to the low Canadian exchange rate, reflects theCanadian apparel industry's successful adaptation to changing conditions, which augurswell for the industry's long-term prospects.

Although exports from Mexico to the U.S. have increased significantly since the NAFTAcame into effect, they have not had a major impact on Canada's position in the Americanmarket. The most competitive Mexican products are generally in lower-priced markets orin segments where Canadian producers tend increasingly not to compete.

Low-wage countries have historically been the source of about three-quarters ofCanadian apparel imports, with China, Hong Kong and the Republic of Korea being themost important suppliers. However, since the implementation of the FTA and the NAFTA,the United States has become the second most important source of imports overall andthe fastest-growing source in many product categories. Between 1988 and 1995, whileapparel imports increased by about 4 percent annually, imports from the United Statesgrew at an average rate of over 25 percent. The share of Canadian apparel imports heldby low-wage countries declined from 78 percent in 1989 to 72 percent in 1995, while theshare of developed countries (including the U.S.) rose from 22 percent to 28 percent overthe same period.

4.4 MFA Impacts

Although the protection offered by the MFA helped slow the growth of low-cost apparelimports from abroad, it did not prevent low-wage producers from increasing their marketpenetration. Because the quantitative restraints applied to volume as opposed to value ofimports, low-wage suppliers were able to increase the dollar value of their exports byshifting to higher-value-added products. They competed in these market segments withdomestic producers, who had initially shifted to higher-value-added product lines inresponse to low-cost foreign competition. The MFA thus had encouraged both domestic

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manufacturers and low-wage suppliers to produce higher-priced goods for more exclusivemarket segments. The result for Canadian apparel producers has been a continuederosion of their share of the domestic market. Import penetration varies considerably fromsubsector to subsector, but is most pronounced among the industries coming within thedefinition of Statistics Canada's Standard Industrial Classification (SIC) 249 (OtherClothing and Apparel Industries), which includes sweaters and work gloves, as well as inthe men's shirts and underwear subsector and the ladies' blouses subsector.

As a result of regional trading blocs and globalization, apparel firms operate in anenvironment that involves an increasing interdependence between countries supplyinginputs, other factors of production or finished products. Linkages among firms can becomplex, embracing both developed and developing economies in a network of traderelationships. For example, offshore processing, to take advantage of lower labour costs,is a common strategy of American and western European apparel manufacturers but isused only to a limited extent in Canada.

4.5 Future Agreements

Under the Uruguay Round Agreement on Rules of Origin, Canada and other WTOmembers are working to establish one set of non-preferential rules of origin that couldeventually be used for MFN tariff treatment, country-of-origin marking, safeguard actionsand other purposes. The government has sought the comments of interested parties onthe non-preferential rules for apparel and has submitted them to the World CustomsOrganization for consideration.

The tariff on fabrics from the U.S. was reduced to zero by 1998, and sourcing in the U.S.can help Canadian apparel companies meet the NAFTA rules of origin. Once the UruguayRound tariff reductions are in place, the average Canadian MFN tariff on apparel will beabout 2 percent lower than that of the United States, while average Canadian tariffs ontextile inputs will be up to 3 percent higher. While these differences are relatively small, theapparel industry argues that they put Canadian apparel manufacturers at a disadvantagerelative to their U.S. competitors and undermine tariff relativity between textile inputs andfinished garments in Canada.

One of the most dominant features of the Canadian apparel market has been the stronggrowth in imports. Between 1981 and 1999, imports grew from $1 billion to $4 billion, andtheir share of the domestic market expanded from 18 percent to 42 percent.

5.0 Trends

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• Technological developments in apparel manufacturing have occurred primarily in thepre-production stages of designing, pattern grading and marking, and cutting.Computer-aided design (CAD) and computer-numerically controlled (CNC) cuttingsystems developed in the late 1970s and early 1980s have allowed manufacturers toimprove efficiency, reduce throughput times, increase productivity and lower costs,and in some instances they have provided greater flexibility.

• Trends in knitwear production include offering more integrated services within oneoperations, such as custom dyeing to ensure that products are completed from onedye lot.

• Statistics Canada determined that 23 percent of all apparel manufacturers hadadopted between five and nine advanced manufacturing technologies (AMT) by 1993,compared with 27 percent for the total manufacturing sector. The technologies mostembraced by apparel manufacturers were CAD systems, factory computers andintercompany networks. In general, adoption is higher in larger firms having theeconomies of scale to benefit from the automation.

• The level of technology use also varies by apparel industry subsector. For example,the knitting subsector, which is considerably more capital-intensive than othersubsectors, has invested heavily in new technology in recent years. Comparativelyhigher levels of technology penetration are also found in the production of men's dressshirts and tailored clothing, which are less susceptible to style changes. Firms in thesesubsectors are considered to be as technologically advanced as their U.S.counterparts, although Canadian manufacturers generally have been slower than theircounterparts in developed countries in adopting new technologies. Canadian apparelmanufacturers have tended to invest in technology only when existing equipment brokedown or in the presence of government subsidy programs. In addition, theinfrastructure to support the purchase of new equipment is not as developed as it is inthe U.S. or Europe.

• There are a number of “buzzwords” in the industry. These include:

G Quick response (QR) technologies, designed to reduce the lead times required toget products to market including

1. electronic data interchange (EDI),

2. just-in-time (JIT) manufacturing,

3. bar coding and vendor-managed inventory.

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EDI provides two-way communication and paperless transactions, thuscontributing to a speedier turnaround time between the placing andcompletion of an order. In vendor-managed inventory, retailers are ableimmediately to process, store and forward point-of-sale statistics to themanufacturer, who assumes responsibility for replenishing inventory levels.Participation in QR initiatives demands close cooperation and investmentsin modern information technologies by retailers and apparel manufacturers.There is a proliferation of systems and software addressing all aspects ofthe apparel business. The challenge is finding ways to integrate the varioussystems in a manner that optimizes the resources and varied needs of theindividual firm.

• Canadian apparel manufacturers have also become importers themselves. As of1993, the latest year for which such data are available, apparel manufacturersaccounted for over 26 percent of the value and 31 percent of the volume of imports ofapparel products under restraint. These figures are up from 1988 levels, which were23 percent for both value and units. This trend was encouraged by the availability ofduty remission programs that allow Canadian manufacturers to complementdomestically manufactured product lines with imported garments and to harmonizeprices.

• One of the trends identified during interviews with Industry Canada representatives isthe focus by high end brand name companies such as Perry Ellis, Hilfiger, etc. on thefront end (product development, product design) and the back end (marketing,promotion, brand image), leaving the middle (assembly and production) to workersoffshore. These companies now subcontract locally because to contract offshorerequires a large operation with a lot of logistical support, but the next stage will mostlikely be increased subcontracting offshore.

• The trend in the US even for companies like Nike and Levis (who have always pridedthemselves on company owned manufacturing plants located in the US) is to closecompany owned plants and contract out to low wage countries. One of the trendswhich will impact apparel in the US are arrangements with Caribbean/South Americancountries whereby goods assembled there are exempt from tariffs.

6.0 Apparel Manufacturing – Considerations

Apparel production is not a high wage paying industry – companies in Winnipeg lamentthe shortage of workers, but they are paying minimum wage, with additional amounts perpiece. It is estimated by industry sources that an experienced worker can make $13/hr -

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but that is someone who can really put the work through the machine. The shortage is inworkers who are willing to work for minimum wage.

This is not solely a Canadian circumstance. Although wage costs are considerably lowerin developing countries than developed ones, Canada's wage rates in the apparel sectorare competitive with those of other OECD member countries. Labour costs peremployee in Canada are below the average for OECD member countries and belowthose for countries such as France, Germany and the United States, which rank amongthe world's top 10 apparel exporters.

The industry has a number of future obstacles to face. It is protected in a number of waysnow, but these protective tariffs and barriers are due to come down in the first decade of2000. Pressure will continue from low wage countries.

7.0 Newfoundland and Labrador Strategy

Successful leading edge apparel operations are currently operating in the province. These operations have invested heavily in forward thinking management, new technology,strategic training and specialized marketing. A workforce with good basic education andan interest in employment is an essential component. One of these companies - TerraNova Shoes - has expressed a willingness to assist other apparel companies in theprovince with business development issues.

Broad Strategic Considerations

An initiative to set up a contract knitting or sewing operation would need to carefully plan astrategy and integrate specific industry requirements. As indicated in the foregoingsections, both knitting and sewing operations require a trained workforce. Knitwearcontracting depends primarily on compatibility of equipment and experience in handlingyarns. Sewing contracting depends on the speed and agility of individual machineoperators. Facility planning and layout are critical factors for both forms of contracting, inorder to achieve production efficiency.

• The first major hurdle facing any group/individual interested in undertaking contractsewing/contract knitting is the current lack of an industrially trained workforce in the

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province. The need for industrially trained sewing machine operators was the mainconclusion reached by the Apparel Training Needs Assessment Study. A machineoperator only becomes profitably proficient after one year of training andexperience. This is the first and primary investment, required as a necessary stepin any strategy.

• Along with the training of an industrially competent workforce, all the other elementsof success – facility investments in equipment, plant layout; professionalinvestments in production design, marketing and industry contacts – must be wellplanned and executed. These are not dissimilar to other business start-uprequirements, and should be based on a good business plan and marketingstrategy.

• The important feature of the apparel sector to keep at the forefront is its currentrapid state of flux: on an almost daily basis, the manner in which apparel is orderedand produced is changing as more companies move toward private label productsand larger corporate entities. Fashion knitwear production success dependsheavily on up-to-date knowledge of consumer trends and technology advances.

Strategic Recommendation

From the material presented in this report, it is clear that in the apparel industry directcompetition in the production of standard garments is difficult if any cost factors increasebecause of location, technology or labour force inexperience. One of the strategicapproaches recommended by New Brunswick apparel sector representatives to generatea contracting operation is to tie contract production to niche fashion apparel designed bya professional designer within the province. The increased price points obtained by aspecial market niche garment at the retail level potentially overcome some of theincreased product costs. Efforts should also be made to turn location into a positive byanalyzing transportation modes, loads inbound and outbound, etc. Sea transport maypresent supply opportunities.

Recommended Approach to Assess Contract Operation Feasibility

Prior to making investment decisions, whether private or government supported, thereare some essential elements to be considered. These elements can best be understoodfrom first hand experience and exposure to the industry. In order to ensure that potentialopportunities are not overlooked, or that investments are made without sufficientgroundwork, the following items are recommended as initial steps which might contributeto understanding the potential of contract knitting or sewing operations in theNewfoundland and Labrador context. These steps are:

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1) A familiarization tour should be organized to visit apparel manufacturers/contractoperations in Quebec and Ontario. Participants should include those privateentrepreneurs with an interest in investing in this area, as well as rural grouprepresentatives who see this as a potential sector for economic development in theirregion. This will allow potential investors the opportunity to see first hand if this is thetype of operation they envisage for their community or as their enterprise.

2) Industry contacts at all levels should be accessed to identify potential mentors orexperienced industry professionals who are available to assist in the development of aspecific contracting operation. These people can suggest the most appropriatefacilities/operations for a familiarization tour and provide guidance on the significantaspects of each location on the tour.

3) An operation that does in fact undertake contracting work and train a work force willbecome a potential provincial resource for designers and training institutions. Consideration should be given to involving other stakeholders at the outset, to identifypotential supporting roles and future opportunities.

4) Other areas of future consideration which may actually come under the purview of theApparel Sub-Committee of the Manufacturers and Exporters Association would be theestablishment of an apparel showroom in St. John’s, primarily intended not only toadvise apparel producers of in-province producers, but also to advise specializedinterest groups (like Mountain Equipment Coop, or perhaps the oil industry) ofprovincial capabilities.

Conclusion

From research conducted for this study, as well as the input received from JamesO’Farrell, contracting presents itself as a demanding and difficult sector – a businesswith no guarantees of success, but also one with no guarantees of failure.

The findings of this report can not conclusively dismiss contracting operations as aneconomic opportunity. At the same time, the information contained in this reportidentifies an industry that is in flux and under pressure from exterior challenges to itsway of doing business.

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Appendix A: Clothing Contractors Association of Quebec

Contact Information/Press Releases

For those receiving this report in digital format, information on The Quebec ClothingContractor’s Association can be found at www.aecq.qc.ca

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Appendix B: Study Contributors

In order to identify appropriate information sources and potential studies/reports, thefollowing agencies/industry sources were interviewed.

Canadian Apparel FederationBob Kirke, Executive Director

Industry CanadaFrank PodruskyConsumer Products Industries Branch

Apparel Network – Industry CanadaJan TremblayOntario

Apparel Human Resource CouncilChris Charette, Executive Director

Dept. of Industrial DevelopmentGovernment of AlbertaSid Newenhuis

Dept. of Industry and TradeGovernment of New BrunswickBridgette RobichaudTextiles and Apparel

Dept. of Industry and TradeGovernment of New BrunswickLynn TompkinsMarketing – Clothing Contractors

Manitoba Fashion InstituteLaurie Smith, Training Co-ordinator

Clothing Contractors of QuebecLinda Gravelle, Executive Director

Government of QuebecPierre DuiyonsIndustrial Development Officer – Clothing Contractors

O’Farrell/Houde ConsultantsJames O’Farrell

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Kirkland, PQ