W194: Community Economic Development by Merchandising, Producing, and Distributing Textiles and Sewn Products
Statement of Issues and Justification
STATEMENT OF THE PROBLEMContinuing decline of the production base in textiles and sewn products has resulted in the loss of manufacturing knowledge, and jobs, and impacted the balance of trade. In the period 1974 - 1993 approximately 700,000 jobs were lost in the textiles and sewn products industry. Between 1960 and 1993 the trade deficit in the textiles and sewn products industry grew from near zero to nearly $29 billion (Dickerson, 1995). Changes in the U.S. retailing environment in recent years have created economic and competitive challenges for smaller retailers. Plant closing and the loss of retail businesses have a disproportionate effect on rural areas. Loss of jobs can devastate small communities, and loss of local purchasing choices for rural consumers can lower quality of life.
JUSTIFICATION
Economic revitalization in rural America can occur with creative strategies in production, merchandising and distribution of todays textiles and sewn products through a rural-urban interface of consumers, designers/producers and merchandisers and retailers. Merchandising, production and distribution of these products will increase options for entrepreneurs and others seeking domestic rather than offshore production opportunities. Improving the merchandising, production and distribution of U.S. textiles and sewn products will increase demand worldwide. Further, effective merchandising strategies of these products can increase consumer satisfaction, market share and profitability for rural businesses and can enhance choices for rural consumers. This project will enhance rural economies by developing effective strategies for merchandising, production and distribution of textiles and sewn products in rural communities. High technology advancements in textiles and sewn products and their production and distribution have vastly increased end-use potential for both natural fiber and synthetic fiber fabrics (Holch, 1998). Product development is often directed to niche markets (e.g., active sportswear, environmentally friendly textile products, and western clothing) not imagined previously (Cornelius, 1997; Karpoff, 1997). New technologies for production of goods that satisfy consumers needs such as mass customization are increasing opportunities for rural manufacturers. This project addresses two ESCOP Research Initiatives and Cross-Cutting Issues. The research thrust of the project is centered within the Economic and Social Issues initiative. Relevant goals are to enhance agricultural and rural economies with new industry and opportunities for employment, to enhance rural community development especially in the area of entrepreneurship and job creation and to empower people for economic and social viability through consumer acceptance of technological advancements in textiles and sewn products and new production and merchandising strategies. Textiles and sewn products production and merchandising are ideal vehicles for home-based business, small rural production facilities and for many types of jobs from production to management. Sewn products include apparel, interior furnishings, and industrial and consumer uses, a wide range of products important to the national economy. Adoption of innovative consumer-driven retail strategies (e.g., non-store competition, technology, entertainment) will enable small retailers of all types of sewn products to compete more effectively (Du & Apfel, 1995). An increase in market share will likely result in efficiencies and increased profit due to new markets for textiles and sewn products and/or more efficient and profitable methods for distribution.
Loss of production capabilities to offshore manufacturers is a primary concern in the sewn products industry. The resulting loss of jobs and production capability leads to economic losses and the eventual loss of production knowledge. This will result in a loss of workforce preparedness in the industry. Efficiency, transportation, quality of work performed and training for non-English-speaking workers, as well as trade, quota and tariff restrictions are reasons cited by some companies for opening domestic production facilities rather than looking to offshore production (Spruill, 1996). The products manufacturing and distribution strategies that will be investigated in this study are focused on keeping or developing production capability in rural America. A second goal of the ESCOP initiative, Processes and Products, is addressed by developing new or improved non-food products, (i.e., innovative textiles and sewn products). A second goal of this project is thus to investigate the multidimensional nature of innovative textiles and sewn products worn or used by consumers in rural and urban areas and to explore ways to support the viability of these products and their contribution to the value added philosophy. Value-added textiles and sewn products designed relative to consumer concerns, rural life, natural resources, and consumer characteristics (e.g., lifestyle, age, gender, ethnicity) have potential to increase global competitiveness and thus enhance rural economies. In addition, investigation of the potential appeal of rurally-produced products in the urban marketplace will be investigated.
Textiles and sewn product production is a significant industry in the west and northeast contributing $6.1 B and $8.2 B in gross state product respectively (ATMI, 1997). Approximately 240,000 people are employed in the textile complex in western region states and 204,000 in the northeast. Of these, 22,000 are directly employed in western agricultural-related textile production fields; 5,000 work in such occupations in the northeast. Many major manufacturers and retailers have design, production and/or sales operations located in rural areas throughout both regions. A limited sampling includes Northface, Pendleton Woolen Mills, Spyder, Rocky Mountain Jeans, Obermeyer, Wyoming Woolens, Columbia Sportswear, Cattle Kate, Angelhart, Don Alleson, Jag, Woolrich and Eddie Bauer. Catalog and internet sales are an important distribution outlet for smaller rural manufacturers or home-based businesses and also provide a greater variety of products to rural consumers. The internet also provides potential for marketing worldwide. In addition, there are a growing number of small entrepreneurial home-based businesses that are often not included in economic surveys. The financial impact of these businesses in the rural community warrants further research. Some specific research topics have been identified in Wyoming and Colorado. Ninety-four apparel manufacturers are located in Wyoming (ATMI, 1997). A number of these manufacturers identified needs for assistance including quality assurance, cell manufacturing, pattern making and design, technical production skills, business skills, and marketing and management training (MAMTC, 1998). Colorado is home to 3912 apparel manufacturers (ATMI, 1997). Manufacturers in Colorado look to Cooperative Leadership in Networking Colorado (CO-LINC), the program at Colorado State University which connects industry and academia to address company-specific needs in such areas as pattern making, fabric characterization, merchandise selection and promotion. New York State firms have also been surveyed to identify current technology use and perceived needs for information and educational programs. In a sample of 73 apparel manufacturers, from both upstate and metropolitan NY firms, about half used electronic data interchange (EDI) and 27% used the internet. Over half of the firms used bar coding and computerized inventory tracking. Interest in information about new technologies was expressed by many of the respondents (Kozen, 1997).
An exploratory study in North Dakota and South Dakota found that for some communities, sewn product manufacturers are a major non-farm employer with 43 sewing plants in 1993 (Lyons & Manikowske, 1997). Product lines in these plants included fashion, functional outerwear for hunting, protective apparel, embroidered caps and shirts, machine-knitted dance wear, and home furnishings. Management personnel in the firms discussed their concerns in the areas of Aopportunities for the industry@, Aissues facing the industry@, Aresources used@, and Aassistance needed@. Managers were interested in new developments in technology, niche marketing and globalization. Researchers hope to develop an outreach program through the university for these companies.
One major product category produced and sold at wholesale and retail in Colorado and Wyoming is western wear. Western wear industry executives note a recent focus on new trends in some categories of merchandise. For example, western wear and functional workwear worn in rural communities are sometimes purchased by urban consumers as fashion goods. However, industry executives of rural-based western wear manufacturers need assistance in merchandising strategies in order to compete successfully with mainstream manufacturers such as Tommy Hilfiger (Palmieri, 1998). Activewear is another important category of textiles and sewn product manufacturing in Colorado and Wyoming. A challenge facing the activewear industry is to market innovative fabrics for activity-specific end uses (e.g., phase change fabric for thermal insulation, fabrics to reduce aerodynamic drag and increase heat dissipation) (Cox, 1998) while marketing activewear to mainstream consumers. In addition, consumers who participate in active sports have also been found to be concerned with environmental issues and may be more willing to purchase environmentally friendly products raising other marketing issues and opportunities (Engel, Blackwell & Miniard, 1995). Though some services to producers and merchandisers exist through university programs such as CO-LINC and MAMTC and through agencies such as Small Business Development Center (SBDC) and Small Business International Development Center (SBIDC), there is a need for a holistic approach to producing and merchandising of innovative textiles and sewn products to enhance consumer acceptance. This project proposes to strengthen cooperation among agencies, libraries and businesses through identification of producers and merchandisers of textiles and sewn products, through evaluation of consumer responses to these products in rural and urban environments, and through development and testing of new creative strategies for producers and merchandisers. Evaluation of consumer responses will be used to develop innovative processes that meet industry needs for efficiency and profit and result in products that are appealing to consumers. These innovative processes can convert to value-added products by creating an awareness of new markets for existing products, designing new products from existing fibers and fabrics, developing new merchandising strategies to reach rural and urban environments, and new production strategies involving the rural labor force.
The development of mass customized sewn products is an area that can provide opportunities for rural development. Mass customization is defined by Pine (1993) as a strategy that uses technology and management tools to efficiently produce customized goods and services with maximum differentiation but that still maintains low cost production. Mass customized apparel gives the consumer choices in style, fabric, and size and can be produced inexpensively using existing technologies of computer-aided pattern making, single-ply cutting, and team sewing systems. Production of mass customized apparel depends on a stable, trained work force located geographically so that many small orders can be shipped quickly to any part of the country. The competitive advantage lies in keeping the manufacturing process close to the point of delivery, eliminating the possibility of using offshore production facilities. Production methods concentrate on flexibility and rapid filling of small orders. This is in contrast to mass production in which the cost of producing each item is low, but total costs are high because of the cost of creating, warehousing, and distributing large inventories. Apparel companies will return to domestic production for many reasons, including quality issues, training issues and tariff restrictions. However, as consumers increasingly demand apparel that fits their specific needs, the reduced transportation time and cost will be the most compelling reasons to strengthen the apparel production base in this country. Rural areas offer the attractions of lower employment costs and a stable workforce necessary for such facilities in contrast to urban areas.
An integrative approach to studying the relationships of merchandising, production and distribution of innovative textiles and sewn products offers distinct advantages. This approach will allow scientists to: (1) integrate qualitative and quantitative methods for researching consumers responses to innovative textiles and marketing strategies; (2) relate consumer responses and strategies to various product categories and retailers; (3) incorporate diverse expertise into a multifaceted approach drawing from both the physical and social sciences; (4) pool resources to expand data collection across several regions of the country; (5) further validate and quantify relationships to enable cost effective and successful merchandising, production and distribution methods in the sewn products industry. Retailing in the U.S. has changed dramatically in the last six to eight years. For example, discounters, category killers, warehouse clubs, factory outlets, and specialty mail order catalogs have all emerged as competition for the consumer dollar. In particular, the presence of discount mass merchandisers has resulted in market saturation, driven retail prices lower (thereby driving production offshore), and impacted consumer choices, and consequently has added to the difficulties for small businesses in rural settings to generate profits (Stone, 1995). However, small manufacturers and retailers can compete through innovative strategies. Additional research is clearly warranted here to develop such strategies as modernizing through technology, increasing business efficiency, introducing customized or niche products and emphasizing quality customer service. Figure 1 illustrates how an understanding of the needs and perceptions of consumers, merchandisers, manufacturers, and retailers are addressed within the proposed project. An integrative approach allows methodological advances by coordinating the experimental control associated with laboratory settings with the realism gained from field research (Eckman, Damhorst & Kadolph, 1990). This project will yield information to provide a framework that may be used by entrepreneurs, home-based workers, manufacturers, designers, retailers, merchandisers, consumers, extension agents and textile and clothing specialists. Thus, this project will contribute to more effective production and merchandising strategies and increased consumer satisfaction.
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