March 19, 2008 (RetailWire) - Sourcing from China has become a lot more expensive, and seems to have caught some U.S. importers off guard. For some U.S. companies, the changes are squeezing margins, forcing price hikes, and leading many to scramble to find new ways to cut costs or locate new sourcing regions.
"Companies say that, all of a sudden it's not as competitive to make their product in China," and are looking at other locations, Patricia Mears, director of international commercial affairs for the National Association of Manufacturers, told the Minneapolis Star Tribune.
The higher costs are largely due to rising wages across China, as well as increased enforcement of existing labor laws within China. Some economists estimate that Chinese wages are rising about 15 percent per year.
Rising energy and raw material costs (e.g., steel, petroleum-based products) are impacting all sourcing regions. But rising oil prices have clearly hiked transportation costs for those shipping out of China. Also, U.S. companies have been hurt by a move by China to reduce exporter tax breaks, as well as the jump in the value of the yuan by 16 percent in 18 months.
Rampant inflation in China is also not helping. China's consumer price index jumped 8.7 percent year-on-year in February, rising at the highest pace since May 1996.
"Clearly, inflation has accelerated," said Manufacturers Alliance economist Cliff Waldman. "Much of the problem is food. Food price inflation in China is running about 18 percent year-over-year."
That's partly because of a massive diet shift toward grain-fed livestock and recent swine disease that have driven up grain and meat prices in China.
Chris McNally, China specialist for the East/West Center in Honolulu, said a few U.S. manufacturers such as Intel have moved factories into inner China to take advantage of cheaper land and local laborers who don't have to be fed and housed in corporate dormitories.
In some sectors, wages for high-skill professionals are doubling.
"I know companies that are paying $200,000 or more a year for a comptroller to oversee their business in China," Phil Mason, president of Asia Pacific and Latin American operations for Ecolab, a maker of cleaning products, told the Star Tribune. "The market has become extremely competitive...There is not a lot of difference today for us to be hiring somebody in China vs. putting in someone from the United States. That's for a high-level, skilled, experienced person going into a leadership position."
"For most of the businesses that we have been in touch with, wages are the big deal," Mr. Mason said.
What Happens if the U.S. Election Results in Big Changes to NAFTA?
March 6, 2008 (Supply Chain Digest) - With the Democrats having a strong chance of winning the White House in the 2008 presidential election, how should U.S. companies think about the potential for major changes in NAFTA, as both Democratic contenders currently argue that the agreement is bad for the U.S.?
Both Democratic candidates (Barack Obama and Hillary Clinton) have recently asserted NAFTA should be renegotiated to better protect U.S. manufacturers and workers.
"Democrats have been flirting with outright protectionism for some time now -- taking a dip with the 'fair trade' movement, cozying up to labor and environmental standards, and shunning trade deals in Congress," wrote Kimberly Strassel last week in the Wall Street Journal, "It's been a tease, though they've been careful not to let things go too far."
The real question for U.S. companies is whether the campaign rhetoric combined with a Democratic victory in the Presidential and Congressional elections could mean important changes in NAFTA provisions.
"Companies must weigh a variety of factors when making sourcing or outsourcing decisions, including total cost, certainty of supply, quality, government regulations, and increasingly, sustainability," notes John Blascovich, a partner at consulting company AT Kearney who leads the firm's Supply Management Sourcing efforts in North America.
"Any changes to NAFTA that have a negative impact on one or more of those dimensions will reduce the cost competitiveness of Mexican and Canadian suppliers in any assessment, especially when compared to countries in Latin America and Asia Pacific, unless similar changes are made to our trading relationships with those regions," Mr. Blascovich added.
If no other trade provisions are changed, this may have the effect of driving more business to Asia and/or Latin America. However, even if new changes to NAFTA mean increased costs in sourcing from Canada and/or Mexico, advantages in supply continuity may still favor sourcing from those companies in a new NAFTA environment.
Regardless, it's important that U.S. companies begin to assess the potential for changes to NAFTA in making near-term supply chain decisions. Use of "scenario analysis" - such as looking at supply chain network design or "make versus buy" decision given perhaps a 10 percent increase in tariffs on goods coming from Mexico - is the prudent move.
Greener Considerations:
OKI to Start Recycling Uniforms to Reduce Environmental Burden
Tokyo, March 10, 2008 (Business Wire) - Oki Electric Industry Co., Ltd., Teijin Fibers Ltd., Chikuma & Co., Ltd., announced that OKI is recycling its uniforms by collecting used uniforms and restoring the fabric. Disposed uniforms are reincarnated into polyester fabric through a complete recycling system called “Eco Circle,” based on Teijin Fibers’ “fiber-to-fiber” technology. Chikuma will then sew the fabric to a fully recycled uniform and provide it back to the OKI Group, which will enable OKI to recycle uniforms over and over again.
“We are pleased to contribute to reducing the environmental burden through recycling our uniforms. This is part of OKI’s group-wide commitment to 3R (Reduce, Reuse and Recycle) activities which include activities to achieve emission of zero waste to minimize landfills, and activities to use the water effectively,” said Masataka Sase, senior vice president of Oki Electric Industry and general manager of OKI's Global Environment Division. “As part of these activities and leveraging Chikuma’s status as an authorized operator of a cross-jurisdictional waste treatment scheme, OKI decided to collect and recycle used uniforms at all OKI Group business locations.”
OKI provides uniforms to its employees at its plants and those in administrative positions. By March 2009, the OKI Group plans to recycle approximately 2000 uniforms, equivalent to a gross weight of 1.2 tons. Recycling uniforms will generate less CO2 than disposing of them and making new uniforms from petroleum products. Therefore, OKI will be reducing approximately 3.7 tons of CO2 through uniform recycling.
The completely recycled uniforms will have “eco-marks” sewed onto them to qualify them as meeting the criteria for used clothes by the Japan Environment Association. OKI Group will appropriately recycle used uniforms as resources by adopting widely the uniform recycling program and leveraging the waste treatment scheme operated by Chikuma.
Going forward, the OKI Group will actively work on various recycling activities and aims to further reduce environment burden.
Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, with its headquarters in Tokyo, Japan. OKI provides top-quality products, technologies and solutions to its customers through its info-telecom system business, semiconductor business and printer business. All three businesses function as a collective force to create exciting new products and technologies that satisfy a spectrum of customer needs in various markets. Visit OKI's global web site at www.oki.com
As the core company of the Teijin Textile Fibers Business Group, Teijin Fibers engages in the research, development, manufacture and sale of polyester materials, polyester fibers for clothing and other polyester-centered textiles for clothing as well as related businesses.
For Apparel Manufacturers, It’s Not Easy Going Green
March 24, 2008 (Los Angeles Business Journal) - At fashionable boutiques throughout Los Angeles, shoppers can find the latest “green fashions” – fabrics marketed as organic or eco-conscious in some way – and often at prices well above that of regular apparel.
But what exactly makes a garment environmentally friendly? Is it because it’s made of soy or corn or tree bark? And what if the apparel has been shipped in a way that consumes a lot of energy?
When Brian Weitman, owner of L.A.-based Security Textile Corp. saw other local manufacturers jumping on the organic bandwagon, he was skeptical.
“It is very difficult to be completely green,” Weitman said. “It isn’t just the fabric that has to be 100 percent organic. Is the thread organic? Is the label organic? Is the truck it’s sent in low emissions, or is it sent overnight air from China? Are they putting it in polyurethane bags or are they putting it in recyclable products for shipping?”
Weitman asked himself these questions as he was deciding whether his company, which makes apparel components such as embroidery backings and pocket linings, could honestly venture into this green new world.
In two years of research, he discovered that some companies weren’t as eco-friendly as they claimed, especially those producing green clothing on a large scale.
Weitman and others familiar with the apparel industry said some clothes with organic labels have only minimal amounts of eco-fibers and are made mostly of nonorganic material. They often even blend synthetics into the mix.
Because the textile industry isn’t regulated the way foods are, manufacturers can call anything organic, even if it’s not.
Green fashions can have adverse environmental impacts, said Georgia Kalivas, an independently contracted textile coordinator for the Institute for Marketecology, which inspects and certifies eco-products, and a professor at the Fashion Institute of Design.
Corn fiber, for example, goes through an extensive manufacturing process that creates harmful byproducts.
“They are made from resources that are renewable. That’s better than making them from fibers that aren’t renewable,” she said. “But is it greener? Maybe it’s a baby step.”
Fibers from hemp and bamboo can be turned into clothing and are often sold as green, but they have to be treated chemically in order to get them soft enough.
The most popular fiber to make it into green clothing is organic cotton. It’s only real organic cotton, however, if it’s grown without fertilizers or synthetic pesticides through sustainable methods. In fact, far less than 1 percent of the cotton produced in the United States is organic, Kalivas said. Worldwide it is 0.02 percent.
As a result, cotton marketed as organic frequently has been mixed with bio-engineered cotton. Or it’s been dyed with chemicals.
Jan Rosen is a green consultant who works with an organic cotton farm in Thailand called Nan Yang Textiles. Because of supply shortages, Rosen questions the truth behind all the organic labels on apparel.
“There isn’t enough production to supply what everyone is talking about,” Rosen said. “Oftentimes, organic cotton crops don’t grow as large as engineered cotton and it is more susceptible to insect attacks. It is therefore 30 to 50 percent more expensive, driving up the cost to buyers who make it into clothing.”
The U.S. Department of Agriculture inspects organic cotton crops. But after they leave the farm, there is no official tracking of what happens to that cotton on its way to store shelves.
Several organizations from various countries have created their own international certification processes that companies can use on a voluntary basis.
The Organic Trade Association of the U.S., the Japanese Organic Cotton Association, the International Association Natural Textile Industry of Germany and the Soil Association of England created a system of organic certification called the Global Organic Textile Standard or Gots in 2002 to determine whether an apparel company meets a certain level of green friendliness. The group is gaining prominence and was chosen by Wal-Mart and Sam’s Club to certify that their organic cotton products are genuine.
Kalivas is a Gots inspector and helped develop the standards. She follows the garments from the mill to the shelf, ensuring that a certain percent of the garment is organic and that the companies follow fair environmental and labor practices.
“I would say that there are a lot of people out there that aren’t educated on what organic means, even designers,” she said. “I don’t think they do it on purpose. Using organic fiber doesn’t mean you have an organic shirt.”
She said companies have even added decidedly nonorganic formaldehyde finishes to garments.
Even after a company receives certification, Kalivas said the tag modestly states, “Organic according to Gots.”
Kalivas comes to Los Angeles often to inspect companies for certification.
One of her stops in the future might be with Weitman of Security Textiles.
After his research into the industry, Weitman decided to make a limited selection of organic pocket and fabric linings. However, his other Los Angeles-based company, Security Sourcing, which makes complete garments, is going to have to wait because he doesn’t have enough resources to ensure that the whole process can be done organically.
Company Releases:
Milliken, G&K to Supply BioSmart™ Textiles to Food Services Industry
Textile World, March 19, 2008 - Spartanburg-based textile and chemical manufacturer Milliken & Company and Minneapolis-based supplier of branded identity apparel and facility services G&K Services Inc. have extended their contract to provide BioSmart™ apparel and towels to the food services industry.
Milliken’s patent-pending antibacterial and antiviral BioSmart technology binds chlorine molecules to textile surfaces, reducing microbial cross-contamination in such industries as food services, healthcare and public safety; as well as for activewear, sports apparel and military applications. When washed according to care instructions using Environmental Protection Agency-approved chlorine bleach, textiles treated with the technology have been shown to kill 99.9 percent of E. coli, Staphylococcus aureus, Salmonella choleraesuis, Hepatitis A, and other common bacteria and viruses. The technology can be applied to fabrics made with cotton, man-made-fiber and polyester/cotton blends.
G&K provides towels and apparel treated with BioSmart as part of its patent-pending ProSura™ food safety solutions program for processing plants, restaurants and retail food service departments. The program also is used in conjunction with Hazard Analysis Critical Control Point programs to ensure proper documentation of procedures and controls.
“BioSmart has allowed us to bridge the gap between customers’ written standard operating procedures and the realities of operating in a food environment by helping mitigate the risk of human error,” said Carter Bray, marketing director, G&K. “The reaction of the market has led us to develop additional BioSmart products, which we expect to introduce before the end of this fiscal year.”
Superior Uniform Group Starts Trading On NASDAQ
Seminole, FL, March 24, 2008 - Superior Uniform Group, Inc. (Nasdaq:SGC), manufacturer of uniforms, image apparel and accessories, will commence trading on The NASDAQ Stock Market LLC(r) effective with the opening of the market today. The trading symbol will remain "SGC." Shares of Superior Uniform Group will no longer trade on the American Stock exchange under the same symbol.
Michael Benstock, chief executive officer, said, "We are pleased to join the growing list of companies trading on the NASDAQ and believe that the electronic multiple market maker structure will provide our company with enhanced exposure and liquidity, while at the same time providing investors with the best prices, the fastest execution, and the lowest cost per trade. Superior was founded in 1920, went public in 1968 and has paid a quarterly dividend, without interruption, for over 31 years. Superior's dividend is currently yielding in excess of 6%."
Superior Uniform Group(r), through its Signature marketing brands -- Fashion Seal(r), Fashion Seal Healthcare(tm), Martin's(r), Worklon(r), and UniVogue(tm) -- manufactures and sells a wide range of uniforms, image apparel and accessories. Superior specializes in managing comprehensive uniform programs, and is dedicated to servicing the Healthcare, Hospitality, Restaurant/Food Services, Retail Employee I.D., Governmental/Public Safety, Entertainment, Commercial, and Cleanroom markets. For more information, please visit www.superioruniformgroup.com
Seven Cintas Customers Nominated for 2008 IAI Image of the Year Awards
Chicago, IL, March 19, 2008 – Cintas, an industry leader in corporate identity uniform programs, today announced that seven of its customers have been nominated for the prestigious 2008 Image Apparel Institute’s (IAI) Image of the Year (IOY) Awards.
The IOY Awards recognize leaders in the corporate uniform and image apparel industry. For nine consecutive years, Cintas customers have won IOY Awards, including: W Hotels, Wynn Las Vegas, Table Mountain Casino, MGM Grand, Dairy Queen, United Airlines and Royal Caribbean Cruise Line.
"Cintas customers nominated for this year's IOY Awards showcase a few of our best apparel programs while also highlighting the extensive talents of our design team," said Ahmed Said, director of marketing for Cintas. "The nominees' programs feature chic and functional styles that serve as a true extension of each company's brand."
This year's IOY Award nominees include: Planet Hollywood; the cruise line Silversea;
Licking Memorial Health Systems; Centra Care-Florida Hospital Urgent Care; UCLA Medical Center; NYLO Hotels; and Terrace Restaurant, Ritz Carlton Naples Beach.
The IAI, a division of the North American Uniform Manufacturers & Distributors (NAUMD), will announce this year’s award winners on March 29th at the Gaylord Opryland Hotel in Nashville during the NAUMD’s annual convention.
Winners will be selected by a diverse panel of fashion professionals including designers, journalists and high profile fashion authorities. John Davidson will present this year's IOY Awards. Davidson is best known for hosting television shows such as "That's Incredible!" "The John Davidson Show" and "Hollywood Squares."
Cintas delivers fashion to customers unlike any other manufacturer in the industry. To help create fashionable uniforms suitable for any work environment, Cintas has partnered with renown designers such as Cynthia Rowley, Daniel Vosovic, Lafayette 148 and Michael Kors. In addition, Cintas designers seek inspiration for styles from the catwalks of New York's Fashion Week each year.
Cherokee Uniforms and Baby Phat Scrubs Factory-Direct Website Launched
Philadelphia, PA, February 11, 2008 -- In response to a great deal of customer-driven research, all items that Cherokee Uniforms offers, including Cherokee Medical, Baby Phat Scrubs, Rockers or Avia Nursing Shoes, or any of the stethoscopes and medical accessories that make up their huge catalog, are now available online at www.UniformSpecials.com
One of the main complaints of nurses and medical professionals everywhere is that uniforms purchases are limited to the small selections of sizes, colors, styles and prints that the traditional brick and mortar store managers choose to stock on their shelves. Now, due to the real-time inventory and free shipping, bad experiences due to expensive shipping and backorders are also a thing of the past.
The benefits of using a real-time inventory system are immense. Besides having access to everything in Cherokee Uniforms’ stock, prices are lower because there are fewer expenses in online sales than there are in normal storefront retailing. Some other options included besides free shipping are group discounts and online coupons. The site is extremely user friendly and takes group buying to a whole new level. Users have the unprecedented ability to create their own personal buying group, linking only their approved items and discount prices to the group code. This feature is particularly attractive to medical offices, nursing homes, hospitals and schools that require employees and students to wear identical uniforms.
As an added benefit, and another first in the industry, shoppers in the Philadelphia, South Jersey, and Delaware areas can visit Cherokee’s storefront retailer Keating Uniforms in Drexel Hill and Prospect Park to return or exchange purchases free of shipping charges. President of Keating Uniforms, Dan Keating said: “We can always expect Cherokee Uniforms to be at the forefront of satisfying our customer’s needs. They have proven to be the nation’s top manufacturer of medical apparel and we are thrilled to be part of this new venture. Our customers truly appreciate the added benefit of buying Cherokee and Baby Phat Uniforms online.”
The advantages that will come of this new venture include not only the increased buying power for nurses and medical professionals, but also many new community-wide benefits. Keating states: “We will soon be announcing several new and exciting sponsorships and alliances that will benefit charities, hospitals, schools and associations. Our website offers the ability to set up programs to assist fund-raising efforts and donations. We can offer discounts to all group employees as well as percentage contributions to the specific causes.”
Keating Uniforms has been in operation since 2000; KSG Sales is parent company. Keating Uniforms encompasses two retail locations in the Philadelphia suburbs, Drexel Hill and Prospect Park. Cherokee Uniforms is the nation's leading provider of medical apparel and accessories.
Fire-Dex Celebrates 25th Anniversary
Medina, OH, March 19, 2008 - Fire-Dex is proud to be celebrating its 25th anniversary as a leader in the fire service market. The company has been around for a quarter of a century providing “Protection for the Heat of the Battle.”
Fire-Dex is a 25 year-old manufacturer of firefighting protective clothing. The company got its start with an office in Cleveland and a manufacturing plant in Rome, GA, making welding gloves. The business quickly expanded with the addition of knit hoods and gear bags for fireman in 1984. The product line continued to grow as the company changed and started manufacturing fire fighting clothing, proximity clothing and EMS clothing in 1988.
In 1997 Fire-Dex built new offices and a manufacturing facility located in Medina , Ohio. Expansion of the product line continued in 2001, to include Wildland fire fighting clothing, and in 2003, added USAR (urban search & rescue apparel). In 2007, Fire-Dex introduced FX Gear. FX Gear is a revolutionary design for firefighter clothing that offers unprecedented comfort features.
Fire-Dex also manufactures NFPA compliant structural and proximity turnout gear - featuring its Express Gear line, and makes two models of NFPA compliant ParaDex™ EMS gear.
Penn Emblem offers PennWeave Woven Garment Labels
Philadelphia, PA, March 20, 2008 - The Penn Emblem Company, offering products in garment decoration and identification for over 60 years, is now proud to offer woven garment labels to its customers.
A part of the company’s popular PennWeave brand of products, the woven garment label is perfect for any garment company looking to personalize their garments, no matter how small. It is capable of reproducing even the smallest text and detail, down to less than ¼ in size. You will never have to redesign elements of a logo or have to use a larger label to make the washing instructions legible.
Available in a variety of styles and cuts, the label lays flat and is flexible so that it is comfortable to the wearer. PennWeave Woven Garment Labels can also be ordered in bulk and kept as stock for same day turnaround!
For more information, or to receive a catalog and samples please contact Phil Pogue at
800-793-7366 or phil@pennemblem.com
End Users in the News:
Ivanka Trump Debuts Uniforms Line
New York, February 11, 2008 – Her business savvy already well-established, Ivanka Trump has revealed a new, equally impressive talent as fashion designer. The 26-year-old Trump has incorporated her strong sense of style into a line of custom-designed uniforms for Trump Hotel Collection, the new, ultra-luxury hotel brand helmed by a new generation of Trump business titans: Ivanka and her brothers Donald Jr. and Eric.
The uniforms recently made their debut with the opening of Trump International Hotel & Tower Chicago on January 30, and reflect Ivanka's exceptional level of involvement in every detail of launching the new hospitality brand.
Inspired by current fashions and architectural lines, and produced in conjunction with Chatsworth, Calif.-based House of Uniforms, Ivanka has created a cohesive collection distinguished by a clean, refined design, expert construction, and superior fabrics and textures that befit the world's most luxurious hotel brand. And she has balanced style with practicality, creating beautiful ready-to-wear garments that are also dynamic and easy to clean.
Ivanka has ensured that every element is as refined as the name behind the collection, bestowing a sense of pride and distinction on all associates, from front to back of house. Each look has been designed to reflect the associate's purpose and the area of the hotel in which it is worn. Together, the complement of styles creates a fashion statement that is understated and fluid – with a contemporary edge.
Charcoal tones are carried through the uniforms of the Trump Metro Collection, which will be worn at all city hotels – New York; SoHo; Chicago; New Orleans; Toronto; and Aberdeen, Scotland. A female concierge or front-office associate wears a striking three-piece suit of fine, lightweight wool in cool charcoal, with a fitted, single-breasted jacket with Mandarin collar, fine detailing and topstitching, and a choice of a pant with a tuxedo-inspired topstitched side-stripe or a knee-length pencil skirt. Her male counterpart is outfitted in a European-cut suit with peak lapel in charcoal pinstripe wool with trousers featuring a watch pocket.
Shades of charcoal also define the doorman's heavy Italian wool herringbone coat and two-toned jacket with off-center closure; the ladies' hostess dress in fine wool with waist treatment and off-center closure; and the housekeeping pantsuits, which have been designed with the same clean architectural cut of the collection in a fine synthetic blend for breathability and freedom of movement.
Restaurant uniforms reflect the elegance of the 1950s and the service-oriented culture of the finest European hotels. Female servers are outfitted in flowing, charcoal waist-length jackets with flared, elbow-length sleeves and a funnel collar, while male servers wear a tailored jacket with pointed hem and banded collar.
The uniforms of the Trump Resort Collection – Las Vegas; Dubai, U.A.E.; Baja, Mexico; Cap Cana, Dominican Republic; Fort Lauderdale, Fla.; and Waikiki, Hawaii – are equally sophisticated but with a lighter look and feel. Here, cool combinations of tan and stone or taupe and beige prevail. The ladies' suit, with its belted waist and long- and short-sleeve versions, matches the urban version in stylishness and carries through the same topstitch detailing.
Launched in October 2007, Trump Hotel Collection represents the next generation of luxury hospitality – one that promises to raise the bar on the top-tier travel experience with a level of customized service unrivaled on the market today. Within its prestigious portfolio are the highly acclaimed Trump International Hotel & Tower New York and soon-to-open Trump International Hotel & Tower properties in Chicago (January 30, 2008) and Las Vegas (Spring 2008). Additional hotel projects are under development.
With more than 50 years of experience, House of Uniforms designs and produces uniforms for many of the world's most prestigious hotel and casino properties. The company is owned by Strategic Partners, Inc., a recognized leader in uniforms, competing in the corporate, medical, school, work wear, footwear and other uniform categories. The corporation's offices are in Chatsworth, Calif., with a state-of-the-art distribution center in Dallas.
South Carolina Department Gets Fire-Resistant Uniforms
Greer, SC, March 12, 2008 (WYFF) -- The Greer Fire Department is one of the first in the state to get high-tech uniforms made of fire-resistant fabric.
The department purchased uniforms that are made with Nomex in hopes of preventing firefighters from being burned while on the job.
“We’re excited to be one of the first fire departments in South Carolina to use this technology,” Lt. Paul Brown said. “This really does give us another level of protection because the material self-extinguishes, significantly reducing any burn injury. It has been proven that fire-resistant clothing saves lives.”
Brown said the Greer department had been considering purchasing the uniforms before nine members of the Charleston Fire Department died while fighting a blaze last June.
He said the deaths accelerated the sense of urgency in providing new safety measures for firefighters.
“The fire-resistant uniforms cost more in the short run, but they have a life span of two to five years as opposed to one year with a cotton uniform. More importantly, the Nomex uniforms drastically reduce the possibility and expense of a serious burn injury,” Brown said.
“Making the move to fire-resistant material is a tremendous step forward,” Brown said. “You simply cannot put a price on a life. We’re very grateful to the city and to council for making these uniforms possible.”
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