NATIONAL: Australian textile, clothing and footwear (TCF) manufacturers are sceptical over claims they may benefit from the country's weakening dollar.
TCF consultancy firms have reported an influx of enquiries from fashion brands looking to shift their garment production back onshore. Australian Fashion Partners, which consults to labels such as Oroton Group and Andrew McDonald footwear, claimed it had received an "unprecedented" amount of sourcing calls over the last month.
Managing director Dominic Beirne said this reflected a shift in the global playing field, with Australian manufacturers now able to compete on price.
"It's price that's driven designers overseas. Undoubtedly [these conditions] will inject fresh life into an industry that was feeling sadly neglected."
Sydney-headquartered TCF Services confirmed economic conditions had caused a "marked increase" in local costing queries from fashion brands. Marketing manager Llew Whetham said brands which imported from the Asian market were particularly interested, given most transactions were carried out in US dollars.
However, while domestic manufacturers acknowledged there had been an increase in enquiries, many claimed tough trading conditions would delay any significant changes to sourcing and supply chain contracts. Brisbane-based DR Manufacturing, which has been in operation since 1985 and services a range of small to large enterprises including Wyse Bodywear, King Gee workwear and Sunsmart, argued celebrations were premature.
"If the dollar remains low for a prolonged period and projections supported that position for the long term, then I believe some benefits may flow to local manufacturing," co-founder Warren Bray said. "The drop in the dollar would have to be significant and sustained to affect established overseas supply chains."
Niche manufacturing firm Canon Fashions said pricing structure was still an issue, even with the drop in Australia's dollar. Managing director Roula Gavalas, who has been involved in the industry for over 25 years, argued the cost of small volume, designer goods was more expensive when compared with offshore competitors.
"I recently had a discussion with someone who was making custom-made shirts in Hong Kong and retailing them for $99. I basically said that custom-making a shirt as a one-off here would probably cost $99 to start off with."
Gavalas believed local players would benefit if production moved back on shore but questioned whether a drop in prices would be necessary to service the market.
"I guess if the quantities are there, the prices will drop naturally but I doubt that we will be able to match what the overseas makers offer in price, regardless of the dollar."
Industry stalwarts were also sceptical whether designers who returned home could find a foothold in the industry. Adiamo founder Ronnie Sansonetti, who has been manufacturing her womenswear collections in Australia for more than 18 years, said some were already finding it difficult to secure contracts in the tight market.
"Many will have lost their contacts or in some cases, will be simply knocked back. Some manufacturers are staying loyal to their steadfast clients first and foremost so fitting into production schedules may prove difficult for those returning."