Lectra Back in Black, Geared for Future Growth
After a round of cost cutting, global strategizing and investing in research and development, technology provider Lectra is back on a growth track. Its managers hope the company is at the forefront of a long expansion.
The company—which is based in Bordeaux, France, and works locally out of Santa Fe Springs in southeast Los Angeles County— is again sporting a strong balance sheet and is rolling out new products geared for an apparel industry that continues to shift from manufacturing into designing, importing and brand building.
Lectra’s sales grew 6 percent to 90.1 million euros for the first half of 2003. Profits grew to 2.5 million euros against a loss of 1.7 million euros during the same period in 2002. And for the first time in its history, Lectra has matched the sales volume of market leader Tolland, Conn.–based Gerber Technology Inc. Lectra officials estimate the company will become the U.S. market leader by the end of 2004.
In North America, which has been a dwindling source of revenues for many technology providers, Lectra has realized a 19 percent growth in orders for the first half of 2003. Even on the West Coast, where apparel jobs have been consistently dropping off, the company is seeing a strong market as the region shifts its base from manufacturing to import and design.
To address this trend, Lectra has diversified into software solutions such as Gallery and LectraOnline Exchange that attempt to smooth out the product-development process by allowing line builders and suppliers to collaborate. The company is also expanding on the marketing front with LectraCatalog, a product that uses 3-D technology to show products in various colorways and cuts before they are actually produced.
The company has updated Diamino marker making and Modaris pattern design— the nuts and bolts of its design software package—with more automated features and has integrated them so that pattern changes are automatically reflected in Diamino. The changes are part of Lectra’s $10 million annual investment in research and development. Products such as these have been helping the company stay alive in the apparel industry, which makes up about 70 percent of the company’s overall business. They also help the company stay alive on the West Coast.
“We realize the dynamic way business is being done now,” said Charles Spicer, strategic account manager for Lectra’s Santa Fe Springs regional offices.
“Companies aren’t just going to Asia [for sourcing]. It’s every part of the globe. There are different kinds of apparel firms now, and we’re adjusting to that,” added Bill Baird, regional service manager.
In California, Lectra has been gaining the attention of growing boardsports companies— such as Quiksilver Inc., Hurley International Inc. and Volcom—in addition to more traditional companies, such as Azteca, The Wet Seal Inc., St. John Knits International Inc. and Columbia Sportswear Co. Spicer said that as the surf-and-skate brands continue to grow beyond the United States, they seek the technology company’s products to help them get to the next level of growth. Lectra has customers in 100 countries.
Aside from apparel, Lectra has also gained ground in industrial applications for various industries. For example, the auto industry cuts about half of its air bags on Lectra lasers, Spicer said. The company has also been capitalizing on the growth in the home furnishings industry, said Cyrus Nia, who oversees Lectra’s home furnishings and textiles business in California and the West.
“We’re trying to be more flexible and more affordable,” Nia said.
Lectra has also worked on customer service by diagnosing problems via remote cameras on equipment and by improving diagnostic methods at its Atlanta-area call center. The aim is to get parts to customers within a day, said Baird.
“When it comes down to it, we deliver what’s needed,” Baird said. “We’re 100 percent invested in soft goods, and we’re going to be there for the long run.”
