[TC]² Bi-Weekly Technology Communicator
July Seminar Offerings at [TC]²
Lean Manufacturing - July 9-10, 2008
Are your required lead times shrinking? Are the quantities of different styles you are being asked to design and produce growing? In today's ever changing marketplace, Lean business practices are a must. Sign up for this two-day program to learn how Lean practices reduce work-in-process and operating cost while increasing quality, manufacturing flexibility, plant efficiency, and employee retention.
Accurate Costing to Build a Profitable Supply Chain Seminar - July 23, 2008
Attend this seminar to understand the underlying factors of sourcing costs. This knowledge will provide the basis for comparison of vendors or evaluation of the accuracy or fairness of a specific quote. Direct Labor is not the only consideration, but it has traditionally been the cornerstone of the pricing equation. This seminar will investigate the other factors manufacturers include in cost beyond cut and sew as they meet the retail expectation of providing floor-ready products.
The seminars will be presented at [TC]²’s new facility at 5651 Dillard Drive, Cary, NC.
For additional information or to register, contact Elizabeth Salisbury at 919.653.3507, or via our contact form.
To download or print a copy of [TC]²’s seminar offerings for 2008, click here (pdf).
[TC]² Activity
SizeUSA User Group Meeting - June 2008
By Kim Anderson, [TC]²
The fourth SizeUSA User Group meeting was held at [TC]² on June 18th in Cary, NC. SizeUSA is a national sizing survey of over 10,800 people conducted by [TC]² in 2002-2003 using 3D body scanning. Jim Lovejoy, Director of Industry Programs, opened the meeting with a brief summary of topics covered at the three previous SizeUSA meetings.
Dr. David Bruner, Vice President, Technology Development, began the presentation session by detailing the latest upgrades to [TC] ²’s body scanner. He also shared with the audience [TC] ²’s recent research in the development of “digital humans” also known as avatars. [TC] ²’s research staff has developed a way to morph a generic avatar to a body scan image to create a replica of the scanned subject. The total process takes about 3 seconds. Dr. Bruner also discussed some of the latest ways body scanning technology is being used, including predictive weight loss and size prediction.
Dan St. Louis, Director of the Hosiery Technology Center, gave a presentation entitled Hosiery Sizing Breakthrough using Volume Data. St. Louis has worked with key sheer hosiery professionals to develop a standard method for testing the size of sheer hose. St. Louis and his colleagues used SizeUSA data to develop two forms—one used to test the size of the leg part of the hose and the other to test the size of the panty. Although there is still some minor tweaking to do on the panty form, both forms have been deemed successful and will be available for less than 1000 dollars.
Dr. Cindy Istook, Associate Professor at NCSU College of Textiles, has been using data collected in the SizeUSA survey since it was completed in 2003. Dr. Istook recently re-defined the waist position and re-examined the prevalence of different body shapes within the population. She utilized the doctorial research conducted by Karla Simmons under Dr. Istook’s supervision. Simmons defined nine body shapes and investigated the prevalence of each. Using the re-defined waist measurement, Dr. Istook found that the rectangle shape was still the most predominant shape in women. However, she discovered that the oval shape came in second instead of the spoon. The bottom hourglass was the third most predominant—not the inverted triangle as was previously assumed. Dr. Istook says she continues to find new ways to use the SizeUSA data to investigate body shapes.
Dr. Karla Simmons, Associate Professor at Auburn University, reviewed her recent research. Dr. Simmons and her colleagues are investigating the body shapes of tweens—adolescents between the ages of 9-14 years old. All scanned subjects are required to complete a questionnaire. Utilizing the data, Auburn researchers hope to shed light on adolescent body shape and want to investigate the correlation of body shape and shopping preferences of adolescents.
Dr. Lynn Boorady, Assistant Professor at the University of Missouri, and Dr. Nancy Schofield, Associate Professor at the University of Wisconsin, have used the SizeUSA data to investigate the correlation between actual body measurements and the apparel industry’s sizing practices of men’s dress shirts and suits. Dr. Boorady took key measurements of name brand shirts and suits that are currently being sold in retail. Dr. Schofield plotted the data collected by Dr. Boorady with pertinent SizeUSA data. It was discovered that 34% of men are not being served in the shirting category and 42% are not being served in the suiting category. It was also determined that because there are numerous big and tall shops, larger men were being better served than smaller framed men.
The meeting concluded with a lively attendee discussion of desired parameters for future sizing surveys.
Freight Costs in the 21st Century…and the moment of Truth for Latin America and the U.S.
By Arturo Rodriguez, [TC]² Latin America Manager
I recently read an article in the NY Times on the illogical reasons of why bananas are the cheapest and most popular fruit in the U.S., in spite of not being grown in U.S. Ecuador is the main producer of bananas to supply the American market. I came to the conclusion that if the cost of gas reaches astronomical heights, that first place fruit might become cranberries. Freight costs will just devour those bananas before they make it to the U.S. cereal bowl at breakfast.
The world is many times not a logical place and thus where there is abundant supply, many times there is no demand and vice versa. Thus, mankind started transporting things to match demand with supply creating the freight cost component of a price structure.
If there is something that distinguishes our current commercialization structure in the world, it is that of Globalization. An example is the apparel industry, with cotton grown in the U.S., weaved into fabric in China, cut and sewn in Viet Nam, screen printed in the U.S., sold /used in Florida and finally sent to a used cloth market in Africa. What unites all of these operations in the five continents? TRANSPORTATION is the “glue”…whether it be by truck, train, boat or airplane.
Yet, all this Globalization is “reversible” if higher energy prices broadside transport costs. Can you imagine paying more on freight than on the goods portion of, say, a T-shirt? And, because you want that T-shirt “pronto”, it is put into a container that is loaded onto a container ship. Container ships are faster than the bulk-type ships and can be unloaded much faster. Faster means using up more energy, which in turn means paying a higher fuel bill. But in a world of triple digit oil prices, soaring transport costs–not tariff barriers–pose the greatest challenge to world trade. At current oil prices, roughly half of the total freight cost is the fuel portion.
The following illustrates the above statements:
• |
China to the Eastern seaboard in the U.S. by sea = 4 weeks average |
• |
In 2000, a 40’ container paid $3,000 USD with oil @ $20 USD per barrel |
• |
In 2008, the price went up to $8,000 USD |
• |
Estimates put prices at $15,000 USD when the oil barrel hits the $200 USD mark |
The closer to home that you can get that item (or a similar one) you will avoid the escalating freight cost. What is closer to the U.S. market than its own sewn products industry and that in the Western Hemisphere? This proximity is giving the Latin portion of the Americas a second chance to become a supplier of apparel products for the U.S., and for U.S. companies to be more competitive in the marketplace. Soaring transport costs will be borne by the consumers and markets will respond accordingly by substituting goods that can be sourced from closer locations.
The first casualties of this freight cost hike are capital intensive manufactured products that contain an elevated portion of freight costs, such as steel . Numbers show that China’s steel exports to the U.S. are decreasing. Given the importance that soaring transport costs now pose, one can imagine that a significant chunk of trade could be diverted from China and other Far East sources.
What about the Apparel supply chain? Apparel (as well as furniture and footwear) incur relatively high transport costs. What this means is that since these apparel products are generally “inexpensive” goods, their value to the freight ratio is quite low, rendering significant shipping costs. Instead of scouring the world for cheap labor wherever it might be, the key is to establish a reasonable shipping distance from your target market and then go source within the projected boundaries.
Mexico’s proximity to the U.S. market (including the CAFTA-DR region and some of South America), due to the raising cost of oil, is a huge advantage. Today’s extra shipping cost from Asia is like imposing a 9% tariff on those goods entering the U.S. One can conclude that distance = money and–in apparel at least–that just might tip the balance in favor of Latin America.
Another significant part of the equation is that manufacturing prices and those in China are also going upward. Steve Jesseph of WRAP has said that the new labor law that will go into effect this year in China, “might drive labor costs up 35 – 42 % this year alone.” He continued to say that in the past 12 months, over 10,000 factories (apparel, toys, electronics and more) have closed in southern China. With regard to Viet Nam, Jesseph adds that “wages in that country are going up fast and they’re having labor strikes.” He concluded that if one studies Asia vs. Latin America, Latin America has many advantages, but they must sell themselves to the U.S. buyers and establish relationships now.
The Industry Services Division of [TC]² provides consulting services in many areas of the industry around the globe. Often beginning with a Plant Assessment and/or a Business Process Analysis, the Industry Services team provides on-site training and development in Lean Practices and Organizational Culture, as well as Industrial Engineering. For further information on these and other valued services, please contact Will Duncan at (919) 653-3505 or use the [TC]² contact form.
[TC]² acknowledges Jeff Rubin and Benjamin Tal of CIBC World Markets, Inc. and their article “Will Soaring Transport Costs Reverse Globalization?” for information used in this article.
New Member Profiles
Cheeky Banana, Ginny-Lyn Organics, and LZM LLC
By Karen Davis, [TC]²
Three start-up companies have recently become [TC]² members to tap into available company expertise and services, and to take advantage of networking opportunities with other member companies.
Cheeky Banana is a Raleigh, NC-based company that focuses on bright, comfortable clothing with style for children 2-6 and 7-10 years of age. Lesley Fleming, company president, creates the garments using colorful fabrics, original appliqués and embroidery designs.
The clothing – “for kids who know better” – is currently available in specialty boutiques in North Carolina.
Ginny-Lyn Organics, Inc. offers certified organic products Made in the USA. The product line includes children’s apparel, prototype design and development, and dyed and printed cotton fabrics, including digital printing services. The complete clothing line is currently under development.
Organic cotton is very soft and uses no chemicals in finishing, thus making it a good environmental choice for apparel for children’s sensitive skin. To be certified as organic, cotton must meet strict standards established by the National Organic Program and the USDA.
Ginny-Lyn Organics is based in Smyrna, GA.
LZM LLC is a start-up company in Florida, established to develop women’s sleep and loungewear products. The concept is to produce tasteful, comfortable garments with a fashion flair.
With a house full of teens and college-age guests, Lynn Zachos, company president, saw the need for apparel that could double as sleep and casual wear which incorporated modesty as a key element. Her friends, family, and associates confirmed her business plan and, with this encouragement, she has moved through product design, sampling, and is working on the launch of her clothing line.
Speakers Confirmed for
Innovative Textile Printing: Green & Global Symposium
September 17-19, 2008
Sheraton Imperial Hotel, RTP
Raleigh/Durham, North Carolina
[TC]² and AATCC have joined together to present an educational symposium highlighting innovative approaches for textile printing. Confirmed program speakers are: Richard Malakowski, Cranston Print Works; Patty Williams, IT Strategies; Karen McGhee, American Eagle; Stephen Fraser, Spoonflower; Rob Morskate, Osiris Digital Prints; Mary Ankeny, Cotton Incorporated; JeongGook Cho, Yuhan Kimberly; Tom McCall, CloverTex; Marci Kinter, SGIA; Art Allen, Sensient; Fernando Vazquez, Dow Corning; Hitoshi Ujiie, Philadelphia University; Jos Notermans, Stork Digital; Jesse Leskanic, Cheran Digital; Tom Stutts, DataColor; Danielle Locastro, First2Print and Ann Laidlaw, X-Rite.
In addition to participation by [TC]² staff members Dr. Michael Fralix, Kerry King, and Jim Lovejoy, the agenda includes company representatives from Pantone, Brother International, and Dystar. Organizers are working to confirm several additional speakers and updated information will be forthcoming as the conference details develop.
On September 19th, attendees will visit Cotton Incorporated for a tour of its digital print and textile processing areas and [TC]², where visitors will gain insight into 3D technologies for product development and the integration of digital printing into the sewn product manufacturing environment.
Click here for conference registration.
Important Dates
July
9-10 |
Lean Manufacturing, Seminar at [TC]². To register or for details, click here. |
15-18 |
INTERMODA, Guadalajara World Trade Center. For information, visit www.intermoda.com.mx. |
23 |
Accurate Costing to Build a Profitable Supply Chain, Seminar at [TC]². |
August
12-14 |
SIGGRAPH 2008, Los Angeles Convention Center. Visit [TC]² in Booth 136. For conference details, go to www.siggraph.org/s2008. |
24-27 |
Made in USA Products Show, Sands Convention Center, Las Vegas. Go to www.madeinusaproductsshow.com for information. |
For detailed information about industry events, visit www.techexchange.com
Thanks to the techexchange site sponsors
Apparel Magazine, Gerber Technology, Lawson, Lectra, Methods Workshop and Reach Technologies.
A Look Ahead in the Newsletter
Intermoda
View previous editions of this newsletter
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