Kyser Urges Investment in Tech, Local Fashion
California apparel makers need to invest more in technology and take advantage of the strong demand for West Coast fashion while the going is good, according to Jack Kyser, chief economist for the Los Angeles County Economic Development Corp. (LAEDC).
Kyser, who spoke on the state of the apparel industry at a recent technology conference presented by Lectra Systems, noted that while Southern California is poised for recovery, shakeups at the retail level and migration toward offshore manufacturing will continue to present challenges to an industry that is losing jobs and still reeling from the events of Sept. 11.
Kyser said apparel marketers need to “burnish the L.A. brand” by continuing to concentrate on fresh goods that have a West Coast flavor.
“What L.A. does best is create fashion and distribute imported apparel. L.A. is the best place to be for global connections,” he said. “We have the ports and unparalleled distribution centers. The apparel industry here isn’t frivolous like a lot of people think. It generates lots of money for the economy [it is ranked fourth behind entertainment, aerospace and food products].”
Kyser also noted that the strength of the California appeal has been felt in Orange County, where job growth is holding strong with nearly 20,000 employed, aided largely by a healthy boardsports/surfwear industry.
The picture in Los Angeles County has dramatically changed, with 26,000 jobs lost over the past five years, but the types of jobs are also changing, said Kyser. Assembly line sewing operations are giving way to more designers and specialists. A recent LAEDC survey of about 1,000 companies showed there were only two to five sewers at each company, with most of them being sample/pattern makers earning more than $11 an hour.
Kyser went on to predict a saturated retail landscape becoming more driven by big box–format mass marketers with Kmart, Wal-Mart and Target now accounting for nearly 50 percent of all retail dollars, or $250 billion. Kyser said the local picture will be complicated as new players, including Menomonee Falls, Wis.-based Kohl’s, move into the area. Kohl’s is building a 600,000-square-foot-plus distribution center in the Inland Empire and is set to open stores throughout the state, including 35 in the Los Angeles area.
Kyser also said that he sees offshore production continuing to explode, especially with China joining the World Trade Organization and opening the door for more export opportunities.
“It’ll be very interesting to watch,” he said. “You’re already seeing Chinese investing here in biomedical fields in Southern California. Sooner or later, the apparel industry will catch their attention.”
To compete, Kyser urged the industry to “invest in technology in all aspects of business. There’s marvelous technology out there and you have to use it even if you’re fledgling.”
Lectra’s Francois Gaudissart agreed. The business unit manager for Lectra, Gaudissart said apparel companies have been slow to adapt technologies such as collaborative product development software that Lectra and other firms have developed to speed up the production cycle.
“It’s a result of the pains of outsourcing,” he said. “Now we’re sourcing all over the world and production has become complex. This technology streamlines the process and implements communication between information technology tools so you can get immediate feedback and make changes before you go to prototypes and product development.” —Robert McAllister
