With the Australian knitwear manufacturing industry suffering from overseas competition, Melinda Oliver discovers that existing operators are becoming increasingly innovative in a bid to keep work onshore.
Alice Euphemia store owner Karen Rieschiek has a steadfast approach to buying product for her mixed-label Melbourne boutique – she will only order Australian-made designs.
However, knitwear is proving a challenging category in which to fulfill this premise.
“The closure of knit manufacturing in Australia is a real disappointment,” she said. “A lot of people go to China for it [production]. There is some fantastic quality coming out of China as well, but we are interested in local product.”
This difficulty is no surprise to TFIA chief executive officer Jo Kellock, who conducted a survey of Australian knitwear manufacturers earlier this year. Kellock discovered a concerning decline in operators, particularly for knitwear fabric makers, which she estimates is down to four companies nationally.
“[We estimate] there are around 25 sock knitting companies and around 25 jumper or full garment knitting companies,” she revealed.
Kellock said it is essential for the remaining manufacturers to have a niche ability to offer clients, such as a special treatment of the fabric, organic options or a unique design function. Creative director of Melbourne-based knitwear accessories brand Otto and Spike, Alasdair MacKinnon, agreed.
“If you don’t have an innovation strategy you won’t be here in the future,” he said. “You have to be able to adapt to what people need.”
Otto and Spike is produced by LMB Knitwear in Brunswick, which was established 40 years ago by the Mananov family. It was recently accredited by Ethical Clothing Australia, due to its ethical treatment of employees. It uses industry excess wool from Australia and New Zealand and now has 100 stockists nationally.
MacKinnon said LMB Knitwear used to produce goods for major brands such as Nike, Adidas and Quiksilver. However, when the big players moved to offshore production, it set out to diversify its business, introducing Otto and Spike as well as embroidery and trim services. It also creates accessories for sporting groups, unions and schools.
Newer company F2 Knitting Mills, based in Northcote in Melbourne, has also carved a niche business. Established four years ago by husband and wife team Mike and Lori Hancock, it has attracted independent Australian brands seeking creative garments that require a high level of skill.
“The industry over the years has definitely become smaller,” Lori said. “People have retired that have been in the industry for a long time and were just ready to move on.”
She said the company began with one second-hand machine and a shared factory space, but now it has seven machines and its own factory, a display room and office. The pair have not established a website nor undertaken any advertising, but said business had grown rapidly due to word of mouth.
“This season we have been inundated,” she said. “We have a diverse range of clients starting from new young designers and established young designers, right through to very well known established labels.”
Hancock said F2 works closely with designers to offer a point of difference from offshore competition. Independent brand Romance Was Born is a key client, but she will not disclose further names.
“We have picked up a couple of customers this year that are represented in Myer and David Jones in concession areas,” she said.
On the issue of price, she said it can be more expensive to produce locally, but she finds customers accept this. “We source our yarns from Italy and we have a local supplier as well,” she said.
F2 Knitting Mills fulfills small runs for boutique brands, or around 500 units for more significant collections. All trimming work is outsourced to local finishing experts.
“It is busy the whole year, because people do supplementary ranges or an injection into their collections to give it some life,” she said. “Or we might get some school wear – it just never stops.”
A challenge is finding staff that are trained in the use of complex knitting machines. They are exploring cadetship opportunities in conjunction with the fashion divisions at RMIT and Monash universities.
“I don’t have a crystal ball, but if we stay at the same pace we are growing now, we will be very, very happy. I think that knitwear is coming back to Australia.”