What challenges does the local fibres and fabrics industry face?
Chris Clarke - Sales and marketing director at The Wenzel Group
Given the rapid decline in Australia’s manufacturing base, we believe the single most significant challenge facing the textile industry is finding innovative ways to maintain growth and profitability.
The industry as a whole is faced with the same trading conditions – the decline in local manufacturing, increased competition from China factories offering FOB garments, easing of import tariffs, a tough retail climate, and continued global economic uncertainty.
We don’t see these trading conditions as challenges as such. These conditions are the reality of the current environment we trade in. The challenge is how do we maintain a growing and profitable business within this environment.
The Wenzel Group recognised that these factors are largely outside of our control. We needed to adopt a new business model that took these conditions into account and allowed us to concentrate on what was within our control, namely coming up with unique and creative ways to service our existing customer base and meet their changing requirements.
By establishing a presence in China, with the opening of our Shanghai office in 2009, along with keeping our local stock levels and overheads at a manageable level, we have been able to achieve growth during a time of significant change.
Finding innovative ways to service your customer base is the key challenge and will remain so for the foreseeable future.
Michael Sonand - Chief operating officer of Charles Parsons
The issues facing the fabric industry over recent years are well known and documented… removal of protectionist trade barriers in Clothing, Textiles and Footwear industry resulted in major dislocation and adjustment to the fabric/fibre industry, culminating with major dis-intermediation. Traditional firms involved for decades in this industry are no more, replaced by dominant vertically integrated retailers, both domestic and now international. Whilst efficient, they present a homogeneous retail landscape, that at times lacks excitement the consumers look for.
From this landscape springs opportunity for those niche and entrepreneurial operators who are innovative, flexible and provide the consumer with a point of difference and excitement.
The challenge of the fabric industry is to re-invent their own model to support this approach, not only as a supplier, but a true partner.
This has been Charles Parsons’ approach. Recognising major shifts in the landscape were unrelenting and rapid, to survive we changed how we service and interact with the broader textile and clothing industry. The key factors required to succeed today are a highly efficient and transparent supply chain, an atomised approach to managing our various business divisions, ensuring maximum flexibility to provide tailored solutions to customers and recognising the need for a deep technical knowledge of our products, so our customers can lean heavily on us for solutions to their problems.
John Agius - Director of Technical Fabric Services Australia
The past decade has seen the Australian textiles industry shrink year by year. For the remaining manufacturers the current market has seen fierce competition to stay afloat whist considering global pressures. For example, there is far less competition to manufacture commodity fabrics simply as there is no longer a demand due to offshore manufacturers saturating that market with attractive price structures.
The challenge for Technical Fabric Services (TFS) as an Australian manufacturer is to stay ahead by design and innovation. TFS has been able to address this challenge by investing in new technologies and adopting a strong focus on research and development. In addition to this the challenge within a challenge has been to ensure that intellectual property is kept within the business.
Another key issue that is faced by the textiles industry is the very prevalent skills shortage. The textiles employment numbers have dramatically decreased due to a large number of jobs being sent offshore. For the remaining workforce not only have many workers already moved to different sectors, but skilling of an upcoming workforce is minute. For many working in the industry there is a resounding unease surrounding job security. The challenge now lies with the remaining manufactures to maintain and strengthen skills of our Australian workers.
With many manufacturers having already recognised this the future looks bright for our growing industry.