Global Manufacture

Global Manufacture

1. Multinational Manufacturing Companies

2. Trend towards global manufacturing is increasing. Driven by efficiency, competitive prices and continued developments in ICT.

   • High speed information is vital to communicate fast – effective functioning – design in one country – make in another. Being competitive means reducing labour costs, materials costs – Global Manufacturing makes this possible.
     • Many brands are designed in the ‘parent company’ and made in Asia/Africa – Low labour costs.

3. Issues relating to global manufacturing

   • Economic Environmental Moral Political Social
     • Improved quality of life in newly industrialised countries – Providing regular employment, steady wage, higher living standards Developing countries – Africa and Asia enjoy the benefits of global manufacturing companies Train workforce, build expertise, raise self esteem of individuals Brings money into the country and trade – Widens economic base
     • Can cause environmental damage – Energy of transporting products, materials, energy demand of factory
       • Jobs may be low level skills based – Higher jobs may be filled by individuals from developed countries/parent country
         • Profits back to home country. May cut corners in relation to health and safety, e.g. safe disposal of dyestuffs, regular rest breaks, maximising profit and therefore being able to be more competitive.
           • Raw materials may be exported, not processed locally. Little consideration for local community, impact of decisions – Building of new factories.
             • Unfair to be making products that workers would never be able to afford. Factories can be lifted and moved to a cheaper country, abandoning local workforce, e.g. Hong Kong to China.

4. Off Shore Manufacture

   • ICT, CAD, Flexibility,
     • Even Marks and Spencer, the company who once prided themselves on supporting British manufacture now manufactures ‘off shore’ – Where labour costs are low
       • Global manufacutring would not be possible without ICT – Skype, conference calls, email, excel.
         • CAD also a vital element, being able to send across plotted pattern pieces, product specifications, quality specifications, design concepts, etc.
           • As a result employees need to be flexible, keep up to date with new skills needed
             • Designer role has evolved, need for specialist skills – design software, design of fabrics using CAD, technical drawings, illustrations, logos, etc.
               • Manufacture is still hands on – Handling and positioning of fabric pieces – Obstacle of automation is the challenge of manipulating and handling fabric

5. Responsibilities of developed countries

   • Why ‘off shore’? – Lower labour costs. Loss of jobs in developed countries. A company that has acquired modern manufacturing technology is classed as ‘developed’. Set up costs for off shore are high, enables large companies to profit more but out of reach for the small companies that need to grow. Working conditions will be lower in developing/NIC’s. H&S not maintained – How can this be overcome? – Cost of H&S, clean technology – Responsibility of government? Provides employment benefits but creates environmental damage.

6. Manufacturers

   • Sub-contractors, wholesalers, CMT (Cut, make and trim) operations
     • A subcontractor is a manufacturing company/factory who are hired by a general contractor/client - to manufacture textile products for retail. The incentive to hire subcontractors is either to reduce costs and employ specialist skills of workers. In this way the general contractor receives the same or better service than the general contractor could have provided by itself. Many subcontractors do work for the same companies rather than different ones. This allows subcontractors to further specialize their skills. Sub Contractors – Small sub contracting firms make up a large proportion of the textile clothing industry in the EU. One third of all jobs in the textile industry. Have to cope with far reaching changes.