NewsWhore
05-08-2009, 03:30 PM
David Birnbaum, one of the leading world experts on the apparel industry is telling Dominicans that manufacturing in the DR "must change from being a product industry to a service industry". He spoke at a workshop organized by a Inter-American Development Bank and Ministry of Foreign Relations program that seeks to strengthen the competitiveness of Dominican exports.
Birnbaum stresses the need for more value-added in Dominican products. He said that the DR's advantage is in its multi-tasking, trained workers, and a history of better garments, such as suits and jackets. "The worker is a capital investment," he said, commenting on how the DR has a history of producing fine garments.
Nevertheless, he made the point. "We are taking that and we are making cheap lingerie, and we are finding it difficult to compete!" said Birnbaum, an advocate of the DR capitalizing on its higher skilled labor. He said the country has the trained labor to be specializing in the better-priced children's wear, men's suits and coats.
Birnbaum will be working with small and large Dominican apparel companies, from this May to August to prepare the way for a turn around in the industry. "Re-launching of the Dominican Apparel and Textile Industry: Tools for Survival" was a first seminar that took place in Santiago and Santo Domingo, coordinated by the Dominican Free Zones Association. A council with members of both free zone and domestic market manufacturers has been put together, with the support of Adozona, the National Free Zones Council and the Center for Export and Investment (CEI-RD).
Birnbaum made the point that the DR once had 50% of the US apparel export market share, but if measures are not taken it could practically disappear as an exporter.
He stressed that this is not about prices, as Dominican costs are at the same level as China. "It is about value, and value-added to the product," he mentioned. He said that Italy is "doing well" exporting at costs around five times those in the DR.
Birnbaum observed that Dominican manufacturers outside the free zones are better structured than the free zone. "As the industry moves from basic production to greater service, the model we need to be following is the one that is being done by the small local factory. They might not be the world's most efficient at it, they might be reinventing the wheel, but they have the wheel," he said, commenting they are better organized to work in the world market than most Dominican large free zone plants.
He urged export factories to move their production to local settings, and to invest money in regional labels. "Because at a difficult time the regional market is safer and more profitable. Unfortunately most major Dominican factories are still not able to put together the full production".
He also stressed that the DR needs to make the most of its free trade agreement with Europe. "There are restrictions to ship to the USA. To Europe you may get fabric from anywhere around the world, and the European market is larger than the American market," he said.
Birnbaum went on to say about Europe: "It is our future, and the fact that we are in a recession, is an opportunity to take the future and grasp it."
He challenged Dominicans to change. "Most of the world today is not going to change, and most of the world is going to be gone by 2011. You have better skilled workers, and a background of making good quality. You have been making clothes for 40 years, you have the skills, use them."
Educational seminars will be given on 15 & 28 June, 19 July and 2-8 August, and these are essential to all in the textile or apparel industry. For more information, contact Jose Torres at adozona@codetel.net.do
As part of the program, a database of garment manufacturers is being created.
See http://www.adozona-garments-and-textiles.org/
For more on Birnbaum's work around the world, see www.birnbaumgarment.com (http://www.birnbaumgarment.com)
More... (http://www.dr1.com/index.html#2)
Birnbaum stresses the need for more value-added in Dominican products. He said that the DR's advantage is in its multi-tasking, trained workers, and a history of better garments, such as suits and jackets. "The worker is a capital investment," he said, commenting on how the DR has a history of producing fine garments.
Nevertheless, he made the point. "We are taking that and we are making cheap lingerie, and we are finding it difficult to compete!" said Birnbaum, an advocate of the DR capitalizing on its higher skilled labor. He said the country has the trained labor to be specializing in the better-priced children's wear, men's suits and coats.
Birnbaum will be working with small and large Dominican apparel companies, from this May to August to prepare the way for a turn around in the industry. "Re-launching of the Dominican Apparel and Textile Industry: Tools for Survival" was a first seminar that took place in Santiago and Santo Domingo, coordinated by the Dominican Free Zones Association. A council with members of both free zone and domestic market manufacturers has been put together, with the support of Adozona, the National Free Zones Council and the Center for Export and Investment (CEI-RD).
Birnbaum made the point that the DR once had 50% of the US apparel export market share, but if measures are not taken it could practically disappear as an exporter.
He stressed that this is not about prices, as Dominican costs are at the same level as China. "It is about value, and value-added to the product," he mentioned. He said that Italy is "doing well" exporting at costs around five times those in the DR.
Birnbaum observed that Dominican manufacturers outside the free zones are better structured than the free zone. "As the industry moves from basic production to greater service, the model we need to be following is the one that is being done by the small local factory. They might not be the world's most efficient at it, they might be reinventing the wheel, but they have the wheel," he said, commenting they are better organized to work in the world market than most Dominican large free zone plants.
He urged export factories to move their production to local settings, and to invest money in regional labels. "Because at a difficult time the regional market is safer and more profitable. Unfortunately most major Dominican factories are still not able to put together the full production".
He also stressed that the DR needs to make the most of its free trade agreement with Europe. "There are restrictions to ship to the USA. To Europe you may get fabric from anywhere around the world, and the European market is larger than the American market," he said.
Birnbaum went on to say about Europe: "It is our future, and the fact that we are in a recession, is an opportunity to take the future and grasp it."
He challenged Dominicans to change. "Most of the world today is not going to change, and most of the world is going to be gone by 2011. You have better skilled workers, and a background of making good quality. You have been making clothes for 40 years, you have the skills, use them."
Educational seminars will be given on 15 & 28 June, 19 July and 2-8 August, and these are essential to all in the textile or apparel industry. For more information, contact Jose Torres at adozona@codetel.net.do
As part of the program, a database of garment manufacturers is being created.
See http://www.adozona-garments-and-textiles.org/
For more on Birnbaum's work around the world, see www.birnbaumgarment.com (http://www.birnbaumgarment.com)
More... (http://www.dr1.com/index.html#2)