The year 2012 brings with it many new expectations and challenges for the garment manufacturing industry… Should players go ahead with investments and in which areas, or should they just wait for the situation to improve, the industry is still uncertain. Team StitchWorld talks to a number of technology providers on what according to their experience is the best approach for the industry as the situation stands today…
There is no denying that 2011 was one of the most difficult years in the entire history of garment exports in India, be it the rising inflation, labour problems, Government regulations or the fall of the western hemisphere. But what is more disturbing is that this time India is the only country that is faring so badly in comparison to 2008 when the whole world went into recession. The strategies to survive the slow period and prepare for a more competitive tomorrow can be many, but it is important for companies to take an informed decision on what best suits their need and remain proactive even when the tide is not favourable.
Strategy One Identify needs
“Many companies are struggling because of the increase in material and labour cost; while the market is soft, economic environment is pessimistic, and the market change pace is faster. Gerber encourages companies to analyze carefully their strategical and tactical needs. If it’s the right time for their investment, do not hesitate, otherwise, they will lose opportunity. Of course, they don’t need to waste money if their investment is too uncertain,” argues John McCall, Regional Sales Manager, SW Asia, Gerber Technology.
Strategy Two Utilize in-house resources better
“Before even thinking of new technologies, the factory should first utilize the resources available with them at optimum levels. Adding new technology/systems for best productivity fails if it is not properly utilized or maintained,” says Anshuman Dash, MD, Loiva Intech. There are many ways that manufacturers of all sizes and types could reduce existing waste and streamline their factories, increasing the profitability of each style. “In the last few decades, Tukatech has helped many to re-engineer their working, not just through the installation of our software but by sharing our staff’s extensive knowledge of garment manufacturing with all of our customers,” says Ram Sareen, Head Coach-Founder, Tukatech.
According to Manoj Goyal of Auriga Software, the solution lies in using ERP in the real way so as to cut down costs by preventing over buying, bringing the dead inventory to minimum level, by stopping pilferage in the company, ensuring shipments on time, thus avoiding air fare and building credibility with customers, dataflow for information to take quick decisions. “Optimizing the machinery and manpower is the key,” says Goyal.
Strategy Three Investing in cost-effective and productive technology
As a company that has worked extensively with the Indian garment industry, Studio Next realizes the importance of “CHANGE MANAGEMENT” as a small step to rebuild confidence in manufacturers by implementing cost-effective technology. “The shrinkage in global demands will eventually mould manufacturers to come up with cost-effective solutions to cope up with the changing demands of the consumer,” says Vishal Sher, MD, Studio Next Technology. Adds Sri Ramaswamy, Regional Manager, VEIT Asia Pte. Ltd., “We are focusing on building products that will make the technology reachable to the entire garment manufacturing industry by reducing the need for skilled labour and energy consumed.”
[bleft]The strategies to survive the slow period and prepare for a more competitive tomorrow can be many, but it is important for companies to take an informed decision on what best suits their need and remain proactive even when the tide is not favourable. [/bleft]
There are many areas that can be improved upon and each company has a take on what according to them is the most critical solution. Yet the goal for all is the same to improve the competitiveness of the industry. “To me the only solution to this problem is a better and global outlook towards innovation, management and better human resource development. It is high time that people should adapt the new technologies available and start thinking big like China rather than trying to source the cheapest raw material available,” muses Arindam Basu, Area Manager – North India, Schmetz India.
“This is the best time for companies to adopt newer and more efficient way of production, like RFID systems. As the market is slow and pressure of production is less, hence time can be spent on developing better working systems,” reasons Megha Anand, Director, HCA. “One of our goals as a company is to lead the garment industry into the 2lst century, and we do that by using machines that can handle multiple operations, add value, and save labour and energy,” adds Sareen.
It is evident that the three critical areas on which the technology providers are focusing their R&D, based on the need of the industry is – labour saving devices/technology, energy saving machines and ways to reduce wastages in production processes to save on cost of production.“In our mind, Indian companies should avail themselves of the opportunity to upgrade technology to improve both productivity and efficiency. Material and energy savings will result in a higher margin for the producer. This should go hand in hand with improvements of the human resources, better educated personnel on the management floor as well as on the production floor. In the end this will result in products of higher value that will be better paid for,” reasons Reinhard Kohler, Topcut Bullmer.
A word of caution comes from ML Jain, MD, Mahaveer Industrial Suppliers who says, “Effective planning and careful analysis in buying spare parts can reduce costs in replacement materials by 35%, as every company is benefited by usage of new technologies, but the costs might be more if it fails to have an effective replacement strategy of parts.”
Strategy Four Concentrate on Quality
The most important point on which the garment manufacturing companies should focus on as a counter measure to the market slowdown is the quality of both their product and their process, says Daniele Cerliani, Director, Cerliani. Expanding on the thought he says, “The better quality of their product will help them to successfully compete with their Chinese and South Asian competitors, who are focused only on price. Secondly, the quality of their process will allow them to increase efficiency and automation and, as a result, to increase productivity and to reduce their costs. On both issues, the companies need high quality machines and components for their plants and also reliable and top quality supplier.”
Strategy Five Automation
Automation is a direction that most technology providers believe in, but the same according to most must be supported by strong management systems. “Manufacturers need automation system to make better profit by improving their quality, throughput, efficiency, and reduce material and related cost as well. However, their management capabilities also determine or at least influence their profitability. Just like 2 legs for a person, they could get benefit from both automation technology and management systems,” says John. Adds Sareen, “We are firm believers that technology is only as good as the people who use it, and without a qualified team of managers, patternmakers, designers, sewers, and merchandisers, a garment company will have trouble making a go of it in the current marketplace.”
Bharat Tex Special Report 2026 
