North American Textile Industry analysis

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Northern America has a well-developed cotton industry; the industry emergence and growth can be traced from early days of slave trade where slaves were used as forced labourers. Mass production of cotton started in the 17th century. NAICS 31522 (Men’s and Boys’ Cut and Sew Clothing Manufacturing), is classification code of establishments and outlets made primarily for the manufacture of men and boys apparels.

The process of production starts from collection of raw cotton materials to making finished products. The entrepreneurs of these joints have the roles getting raw materials from established selling joints, coming up with various designs and preparing samples of new designs, making plans on clothing to be made, and after the products have been manufactured, they market and sell the finished apparel (Statistics Canada).

The industry has main players as business people referred to as clothing jobbers; they have the capital and establish big businesses for the manufacture of men and boys clothes. The industry has employed a large number of youth in Northern America who conducts different functions depending on one’s qualification and experience.

To get raw materials, the jobbers have close connection with local suppliers where they collect the product from large-scale cotton, fur and leather farmers as well as from collection points for cotton from small-scale farmers. They make the products from yarn, fur and leather. The products made include men and boy’s cloths, hosiery and socks.

According to census 2002, the industry is ranked fourth largest clothing industry segment; the sector made an annual wage of $1,477,653,000; it had employed 69892 employees. During the same year, the sectors industry made a shipment of $11,627,163,000. The total establishments were 933. The sector has increase of late and greatly favoured by advancement of international trade (U.S. Census Bureau).

Players in the industry have established strong good customer relations with their suppliers, this has assisted them get material needed for the industry at the right time. Constant supply of cottons is required for the industry; the companies have established collection points for small-scale farmers and collect cotton from large-scale farmers.

They operate the fair trade policy that ensures that they benefit, the farmers also benefit and they protect the environment too. Barriers to entry in the industry is the large capital outlay required, lack of raw materials as existing players have repo with farmers for the available supply and there is government regulations limiting the number of industries (Supplier Relations US).

Supply and demand, impact of business cycle on conditions

North American clothing industry has high demand and is a major source of income and employment in the states and in other countries; the demand for final products in the industry is affected by the demand of appeals’ in international and national markets. If the demand is high, then demand for cotton raw material is increased. Other than the market pull of demand, other factors affect demand for cotton materials; they include speculations, seasons and the price of the materials.

Supply from farmers is a factor of the price that cotton materials are selling in the market. When the prices are high, then farmers are more willing to supply cotton; rational farmers use their land to produce those commodities that will give him the largest income.

It is easy to speculate those seasons that will offer high returns since the end market which farmers are aware of its trend have an effect on prices of cotton. For example, near the festive seasons and cold seasons, the demand for appeals is high and its prices shoot sharply. Rational farmers are likely to produce at this time or hold stock of harvested products as they wait for prices to rise.

In every business, there are business cycles that affects the production and demand and supply of commodities in the clothing industry, some seasons are attributed to high demand of clothes both for men and women; the industry have a short term operation with one year completing the cycle.

However as people develop, they are developing different perception towards cotton products; they are favouring the industry and this means increased business (Supplier Relations US).

What are the major methods of product differentiation among companies?

To remain competitive in the fast growing and competitive clothing industries, different companies have adopted different product differentiations methods. Generally, for differentiation to occur, companies aim at developing products that are different and identifiable from others in the market. They do so through researching and coming up with superior and unique designs that are consumer oriented.

They aim at having different product for different market segments. Mostly in the industry, market is segmented using age brackets. After certain designs have been developed, the next step is to create brand familiarization and ensuring that the consumers can recognize the brand in the market. This can take the form of marketing, advertising and having promotion that give the positive side of the developed product as they bring out the superiority of the products.

North American trade laws allow for brand patenting. Patenting and rights policies and laws give companies a chance to develop new products in the market then register them as their brands. According to the laws, the company may be given the rights to produce solely such brand of products or arrangements can be made to franchise their brand to other companies (Backhouse and Roger 12).

Role of technology patenting and other industrial property rights

The world has embarked on massive technological development; people are investing heavily on technology as they find solution to different issues they face. In the clothing industry, technologically, it is not left behind. It is working hard and every company is trying to develop new patterns and designs using technology.

Graphics have been computerized to enable the development of various brands, designs and styles; computerised branding assist a company to make an artificial world and test the experience of different product as if they were operating in the market.

Other than assisting in developing of products, computers play the role of products growth and developer, they are able to trace the trend of the market and thus making of strategic decisions is easy.

When a company have used or developed a certain technology to asset, it develops and design different products, the technology need to be protected by laws of the states. This encourages companies to work harder and develop better technologies that are more efficient for their company (Keat and Philip 23).

Like physical assets, intellectual properties are intangible assets that need to be protected by the governing rule and regulations. Industrial property rights aims at protecting intellectual properties that a company has in the efforts of ensuring that the company enjoy what it has developed.

When the properties are protected, companies in the industry will play on the same plat form without any taking advantage of efforts done by another without paying for it. It is a form of encouraging free trade (Boltanski and Chiapello 56)

Role of government regulation in the industry

Although North American economy can be said to me more of a capitalist economy, the government intervenes in clothing industry trade to make some policies for the benefit of the industry, employees and consumers. The government has some policies that protect the local cotton industry from international competition through taxation of imported appeals and using quota systems.

It also gives producers and companies incentives that reduce their cost of production so that they can compete effectively in the international and national market. Such incentives include tax holidays for multinationals having their operation base in the country, fertilizers and farming education to farmers, capital and industrial deductions to new establishments.

Capitalism economies are more venerable to exploit their work force, to ensure that this does not happen; the government has wage floors that companies should respect and uphold (Boltanski and Chiapello 58)

Identify names of overseas clothing manufacturing companies and gather statistics

Other than North America, there are other countries making clothing appeals they include:

India

India has a well-developed textile industry, employing over 1% of its work force. Products from the industry are exported to Asian countries and developing countries (National Information Centre for Textile and Allied Subjects 14).

Italy

Italy has the world most renowned textile industry where it specializes in designer products. The products from the country target middle and upper class market segments. The appeals from the country include shoes, suits, shirts, trousers and inner wears (IBP-USA 12).

Kenya

Kenya cotton industry has collapsed although the country is well known for its well-managed leather industry. Bata Shoe Company, which tans hides and skins, and then make different products, is competitive in international and national markets. The company’s products include shoes, wallets and bags made of leather (International Labour Organization 113).

Works Cited

Backhouse, Roger, and Roger Middleton. Exemplary Economists: North America. Northampton MA: Edward Elgar Publishing.

Boltanski, Luc., & Chiapello, Ève. The New Spirit of Capitalism. New York: Verso, 2005. Print.

IBP USA. Italy Clothing & Textile Industry Handbook. New York: International Business Publications, 2005. Print.

International Labour Organization. Labour practices in the footwear, leather, textiles, and clothing industries: report of the discussion at the Tripartite Meeting on Labour Practices in the Footwear, Leather, Textiles, and Clothing Industries, Geneva, 2000. Geneva: International Labour Organization, 2000. Print.

Keat, Paul, and Philip Young. Managerial Economics: Economic tools for today’s decision makers. Harlow: Prentice Hall,2003.Print.

National Information Centre for Textile and Allied Subjects. The apparel industry in India. Michigan: University of Michigan, 2010. Print.

Statistics Canada. North American Industry Classification (NAICS) 2007, 2011. Web.

Supplier Relations US. Men’s and Boys Cut and Sew Apparel Manufacturing Industry in the U.S. and its Foreign Trade, Research And Markets, 2008.Web.

U.S. Census Bureau. Industry Statistics Sampler NAICS 31522 Men’s and boys’ cut and sew apparel manufacturing, 2002. Web.

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