INDUSTRY PROFILE #3
MEN'S DRESS SHIRTS
Prepared By
Edward Hochberg
Reviewed By
George J. Coury
Robert W. Rugenstein
VITA
Published By
VOLUNTEERS IN TECHNICAL ASSISTANCE
1600 Wilson
Boulevard, Suite 500, Arlington, Virginia 22209 USA
Telephone: (703) 276-1800, Fax: (703) 243-1865
Telex 440192 VITAUI, Cable: VITAINC
Internet:
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Men's Dress Shirts
ISBN: 0-86619-290-5
[C]1987, Volunteers in Technical Assistance
INDUSTRY PROFILES
Introduction
This Industry Profile is one of a series briefly describing
small or medium-sized industries. The
Profiles provide basic information for starting
manufacturing plants in developing nations.
Specifically, they provide general plant descriptions,
financial, and technical factors for their
operation, and sources of information and expertise. The
series is intended to be useful in
determining whether the industries described warrant further
inquiry either to rule out or to
decide upon investment. The underlying assumption of these
Profiles is that the individual
making use of them already has some knowledge and experience
in industrial development.
Dollar values are listed only for machinery and equipment
costs, and are primarily based on
equipment in the United States. The price does not include
shipping costs or import-export taxes,
which must be considered and will vary greatly from country
to country. No other investment
costs are included (such as land value, building rental,
labor, etc. as those prices also vary.
These items are mentioned to provide the investor with a
general checklist of considerations for
setting up a business.
IMPORTANT
These profiles should not be substituted for feasibility
studies. Before an investment is made in
a plant, a feasibility study should be conducted. This may
require skilled economic and
engineering expertise. The following illustrates the range
of questions to which answers must
be obtained:
*
What is the extent of the present demand
for the product, and how is it now being
satisfied?
*
Will the estimated price and quality of the
product make it competitive?
*
What is the marketing and distribution plan
and to whom will the product be
sold?
*
How will the plant be financed?
*
Has a realistic time schedule for construction,
equipment, delivery, obtaining
materials and
supplies, training of personnel, and the start-up time for the plant
been
developed?
*
How are needed materials and supplies to be
procured and machinery and
equipment to
be maintained and repaired?
*
Are trained personnel available?
*
Do adequate transportation, storage, power,
communication, fuel, water, and
other
facilities exist?
*
What management controls for design,
production, quality control, and other
factors have
been included?
*
Will the industry complement or interfere
with development plans for the area?
*
What social, cultural, environmental, and
technological considerations must be
addressed regarding
manufacture and use of this product?
Fully documented information responding to these and many
other questions should be
determined before proceeding with implementation of an
industrial project.
Equipment Suppliers, Engineering Companies
The services of professional engineers are desirable in the
design of industrial plants even though
the proposed plant may be small. A correct design is one
that provides the greatest economy in
the investment of funds and establishes the basis of
operation that will be most profitable in the
beginning and will also be capable of expansion without
expensive alteration.
Professional engineers who specialize in industrial design
can be found be referring to the
published cards in various engineering magazines. They may
also be reached through their
national organizations.
Manufacturers of industrial equipment employ engineers
familiar with the design and installation
of their specialized products. These manufacturers are
usually willing to give prospective
customers the benefit of technical advice by those engineers
in determining the suitability of their
equipment in any proposed project.
VITA
Volunteers in Technical Assistance (VITA) is a private,
non-profit, volunteer organization
engaged in international development. Through its varied
activities and services, VITA fosters
self-sufficiency by promoting increased economic
productivity. Supported by a volunteer foster
of over 5,000 experts in a wide variety of fields, VITA is
able to provide high quality technical
information to requesters. This information is increasingly
conveyed through low-cost advanced
communication technologies, including terrestrial packet
radio and low-earth-orbiting satellite.
VITA also implements both long- and short-term projects to
promote enterprise development and
transfer technology.
MENS' DRESS SHIRTS
Prepared By: Edward Hochberg
Reviewed By: Robert W. Rugenstein
George
J. Coury
PRODUCT DESCRIPTION
1. The Product
Men's dress shirts are made from white broadcloth. They come
in a
variety of styles and are made to be worn with suits and
ties.
They can be either long or short sleeved.
2. The Facility
This Profile describes one small plant operating with one
shift
and manufacturing 15,000 dozen men's dress shirts a year. It
also
describes a larger plant running a single shift and
manufacturing
22,000 dozen shirts a year.
The proposed plant should not be confined to the production
of
just men's dress shirts. It should be able to adapt to many
other
similar products. For example, the same facility can be used
to
cut and sew plaids, checks, oxford, other shirts, school
uniforms,
and women's blouses. If proper supervision is maintained,
there should be no loss of production capability. In fact,
making
a variety of styles should make it easier for the factory to
sustain itself.
GENERAL EVALUATION
The shirts described here are worn mostly on prestige
occasions
by white collar workers, government officials, and business
executives. As such, the market for them may be greater
among the
white collar members of any society, including less
industrialized
nations.
1. Outlook
A.
Economic
Will depend on
the society and existing conditions.
B.
Technical
Much of the
machinery listed in this profile is expensive; if
purchased new. In order to cut costs, it can be substituted
with
reconditioned used sewing machines.
2. Manufacturing
Equipment Flexibility
The machinery and equipment required are much the same as
those
used to manufacture other clothing. As a result, fixed
capital
expenditure may be identical, but the fabric used is
somewhat
more expensive. The degree of skill needed may also be
greater,
and the total labor force somewhat larger. But it is
possible to
produce both men's dress shirts and men's work shirts in the
same
factory at different times, depending upon the demand.
3. Knowledge Base
A good business plan is necessary. A two-to three-year projection
should be prepared carefully to avoid exaggeration.
Management should have:
a) Business
experience
b) Knowledge of
field
c) Sources of
capital
d) Capability of
finding government support
e) Knowledge of
market and sales
f) Knowledge of
procurement of material and equipment
g) Knowledge of
export capabilities
4. Quality Control
Quality control is very important, and specifications vary
from
company to company and garment to garment. For example, an
entire
order can be rejected for as little an error as the number
of
stitches per inch or the tension of the thread.
5. Constraints and Limitations
In developing countries there is usually an ample labor pool
easily adaptable to this industry. However, there is some
possibility that a shortage of designers, pattern-makers,
and
possibly cutters and mechanics may occur. Other
considerations
include:
--No special
transportation requirements.
--Manager and
supervisors should be fully experienced.
--Some operators will
work on more than one machine.
--After break-in
period, production workers should go on piece
work rates.
--Plant should be
near a source of labor and a reliable
electric power
system.
MARKET ASPECTS
1. Users
White collar workers, officials and executives.
2. Suppliers
With a specific investment size in mid, management should
plan a
trip to New York or other garment centers for fabric sources
and
equipment dealers. There are usually sales representatives,
of
equipment and fabric in most urban centers, but there is
much
more diversity in the United States.
3. Sales Channels
and Methods
This plant may sell directly to large stores and to
wholesalers
for resale to small retailers and dry goods stores.
4. Geographic Extent
of market
Domestically, the market may be nationwide. The limiting
factor
in this case may be size of plant and outside competition
rather
than transportation. The product is easy to ship, and
transport
costs are normally low in relation to product value.
Export - Large investments in plant and equipment for
textile
export at this time is not a good idea, unless there is a
written
firm commitment from a textile outlet for the garments.
5. Competition
In the domestic market, more expensive materials may compete
for
prestige wear. Large-scale foreign manufacturers, with a
large,
low-wage labor force available, may constitute serious
competition.
Export Market - The plant is relatively small and might have
great difficulty in competing with large-scale plants or
with
exports from areas where labor is plentiful and cheap. There
is a
possibility of entering this field as contractors for U.S.
manufacturers.
6. Market Capacity
The rate of consumption of dress shirts will depend
primarily
upon the level of income, and the availability of other
prestige
wears. Where such shirts are worn for more formal occasions
and
at all times by officials, higher white collar workers and
professional people in a population between two and three
million
should be sufficient to support the output of this plant.
PRODUCTION AND PLANT REQUIREMENTS
Requirements
Annual Output:
15,000 dozen
22,000 dozen
1. Infrastructure,
Utilities Small Plant
Medium Plant
Land
1/3 acre
1/2 acre
Building
one story
6,000 s.f.
to 10,000 s.f.
Power
connected load
100 hp
to 120 hp
Fuel
__________
___________
Water
__________
___________
Other
__________
___________
2. Major Equipment
& Machinery Small Plant
Medium Plant
Units
Units
Tools &
Machines
cloth
unwinder (1)
(1)
cloth
spreader (1)
(1)
cutting table
(360sf & 225sf) (2)
(1)
cutting
machine (3)
(4)
cloth drill
(1)
(1)
buttonhole
machine (2)
(2)
buttonsewer
machine (2)
(2)
sewing machines
single
needle (20)
(26)
shirt
front (2)
(2)
safety
stitch (2)
(2)
*1 lap
seam (2)
(2)
trimmaster
(portable) (2)
(3)
collar &
pocket shapers (1)
(2)
Support
Equipment & Parts
furniture &
fixtures
turning stands
hand trucks
(2)
(2)
steam irons
(with generators) (6)
(8)
chairs &
workbenches (36)
(45)
work tables
storage shelves
spare parts *
tools
work baskets
truck/van
(1)
(1)
*TOTAL ESTIMATED COST
of equipment & machinery only
$84,000
$96,000
Duty & shipping not included
*Based on $US 1987 prices. The costs provided are estimates
and
are given only to provide a general idea f or machinery
costs;
they are not intended to be used as absolute prices. Costs
still
need to be determined on a case by case basis.
*1 Assemblers could use lap seam or safety stitch.
*3. Materials &
Supplies Small Plant
Medium Plant
Raw Materials
broadcloth
400,000 yards
600,000 yards
lining
8,000 yards
10,000 yards
buttons
15,000 gross
22,000 gross
tags and
labels 1,800
gross 2,400 gross
thread
3,000 cones
4,000 cones
Supplies
lubricants
office &
factory supplies
Packaging
shirt boards
& paper 15,000
dozen 22,000 dozen
pins
10,000 gross
10,000 gross
boxes (6
shirts/box) 2,500
dozen 3,750 dozen
shipping cartons
(3 doz./carton) 5,000 dozen
7,500 dozen
4. Labor
Small Plant
Medium Plant
Skilled
cutters
2
3
operators
26
36
pressers
6
8
floor help
6
8
Semiskilled
Unskilled
bundling/cleaning
4
6
Indirect
manager
1
1
office
1
2
supervisor
2
3
5. Distribution/Supply
flow Small Plant
Medium Plant
Amount in per day
Amount out per
day 60 dozen
75-85 dozen
6. Market
Requirements Small
Plant Medium Plant
population
2-3 million
7. Other
Requirements Small
Plant Medium Plant
*This includes an approximate amount of materials used over
a
period of a year. It does not mean that a year's supply must
be
stored on the premises.
PROCESS DIAGRAM
The plant layout should be no problem as the equipment is
easily moved about to
mds.gif (600x600)
provide an efficient flow of work. Adequate work space needs
to be allowed for
ease of movement. Room should be allocated foa a
designer/pattern maker.
REFERENCES
Unless otherwise stated, these addresses are in the United
States.
1. Technical Manuals & Textbooks
Fashion Institute of Technology
7 Ave. & 27 St.
New York, New York 10001
Library and bookstore with full listing of books on design
and
pattern-making, marketing, etc.
Model Garment and Factory for Men's Shirts and Trousers.
United
Nations Industrial Development Organization. 31 pp.
December,
1974.
2. Periodicals
Women's Wear Daily & Daily News Record
Fairchild Publications
7 E 12 St.
New York, New York 10003
Apparel World
366 Park Ave., South
New York, New York 10016
Bobbin Magazine
Bobbin International, Inc.
PO Box 1986
1110 Shop Road
Columbia, South Carolina 29202
Apparel Industries Magazine
180 Allen Street
Atlanta, Georgia 30328
3. Trade Associations
American Apparel Manufacturing Association
2500 Wilson Boulevard
Arlington, Virginia 22201
(703) 524-1864
National Knitwear & Sportswear Association
366 Park Ave., South
New York, New York 10016
4. Equipment Suppliers, Engineering Companies
Hudson Sewing Machine Co.
109 Johnston St.
Newburgh, New York 12550
(dealer in all types of equipment)
The Singer Company
135 Raritan Center Parkway
Edison, New Jersey 08837
(sewing room equipment, cutting room equipment)
Kurt Salmon Associates
350 Fifth Avenue
New York, New York 10118
(management consultants, consulting services)
5. Directories
Buyers Guide:
Sourcing Guide for the Apparel Industry
produced by
The Associate Membership Congress
American Apparel Manufacturers Association
2500 Wilson Boulevard
Arlington, Virginia 22201
6. VITA Resources
VITA has on file a number of documents related to the
textile and
clothing industry. For example:
Selected Information Resources on Textiles. Compiled by J.A.
Feulner. National
Referral Center, Library of Congress. May,
1986. 17 pp. XII E-1, P.1, 022470, 12.
7. VITA Venture Services
VITA Venture Services, a subsidiary of VITA, provides
commercial
services for industrial development. This fee-for-service
includes technology and financial information, technical
assistance,
marketing, and joint ventures. For further information,
contact VITA.
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