New York - Garment Industry Development Corporation
This case study explores the Garment Industry Development Corporation’s (GIDC) role in revitalising the New York garment industry, an often-quoted example of an initiative that equates to a skill ecosystem. It is taken from one funded by the Aspen Institute, (see link below for the original case study). One of the main insights to come from this case study is, it is not enough to train workers for manufacturing jobs, as the sector itself needed retooling as much as the workers needed retraining. Working with a fragmented industry under intense international competition GIDC, by taking a multifaceted approach, has facilitated viable new niche markets and cost efficient production processes for the sector.
One of the main insights to come from this case study is, it is not enough to train workers for manufacturing jobs, as the sector itself needed retooling as much as the workers needed retraining.
'The Garment Industry Development Corporation was founded in 1984 by a tri-partite collaboration among the local union, industry associations, and local government. The purpose of the organisation was to support the garment industry, which had been losing jobs, yet remained the largest source of manufacturing jobs in New York City and an important employer of low-income residents with limited language skills.'
GIDC has helped many firms’ operations become more efficient and has also connected firms to new markets and sources of revenue. By upgrading workforce skills, while providing services that improve the overall operation of businesses, GIDC has become a valued presence in New York City’s garment industry.
Significant changes in the external operating environment, both nationally and globally, and substantial reductions in protective tariffs have affected the garment industry. More production is occurring offshore and employment numbers are declining. In addition, fashion retailers are consolidating and working with lean retailing controls, involving minimum inventories with quick turnover of styles and ranges. At the other end of the supply chain the textile manufacturers are large operations whose size gives them a pricing control advantage over the small and often fragmented garment manufacturers. Alongside increased foreign competition, the sector is facing demands for more styles more times per year in smaller orders and shorter production cycles.
Clearly aligning itself with one industry sector, GIDC is able to gain a thorough understanding of the sector's problems. These problems included:
- attitudinal barriers to change
- technology deficiencies
- production process inefficiencies, and
- human resource management issues
It was not a simple supply problem of not enough skilled workers, meaning GIDC has taken a systemic approach to analyse the entire garment industry. GIDC maintains relationships with all major participants in the sector including buyers, suppliers, contractors, retail outlets and offshore competitors, for example.
The intervention looks to effect change on the supply side (training, labour supply and recruitment practices available for people entering or in companies within the sector) and the demand side (the work processes, technology and competitiveness of companies).
Diagram 1
Working with one company at a time, GIDC were able to demonstrate meaningful bottom line successes to others in the sector and effectively manage the change throughout an entire company. In partnership with the garment industry, GIDC has identified unforeseen business opportunities and promotes new kinds of industry alliances.
'GIDC seeks to create systemic change in a variety of ways. By linking firms to new markets, GIDC hopes to protect New York City’s large base of jobs in the industry. GIDC also attempts to introduce new technologies and production processes to the industry in order to increase local firms’ efficiency and competitiveness. The organization has successfully influenced public officials’ views of the garment industry, convincing New York City, state and federal officials of the importance of the industry and the possibility for the industry to be competitive within New York City.' i
GIDC has developed training programs for both employed and unemployed workers, provided technical assistance programs to improve the efficiency of apparel contractors and to introduce them to the benefits of new technology, introduced a market development program that assists manufacturers in export development, and offers a sourcing program that helps manufacturers find suitable apparel production shops in New York City.
Diagram 2
The Super Sewers course provides 240 hours of training to displaced workers which is delivered full-time over eight weeks. It is offered four times a year with regular adjustments to course content. Most of these displaced workers have experience in a specific production operation, such as setting pockets or doing side seams, and this limits their chances for reemployment. Whole garment sewing is taught as part of the program enabling students to participate in modular production processes. Older assembly production processes meant that many workers know nothing about sewing a whole garment or about working in teams, or quality control. Modular production process can result in faster production, better quality control and greater work satisfaction. The union is the major referral to this training program. ESL (English as a Second Language) and OH&S are taught as part of the course.
The Apparel Skills Training Courses are for employed workers, operators, supervisors, managers and owners and are continually changed depending on the needs of the company and individuals. Content can cover specific areas such as machine maintenance and repair, pattern making and computerised marking/grading. Training hours vary from about 15 hours to 53 hours. GIDC also offers seminars on topics such as labour law compliance and maximising profits. Courses are held in the Fashion Industry Modernisation Centre, which is equipped with the latest production equipment for training purposes. It also exposes managers and owners to new technology even if they are not being trained on it. Training can occur on-site for specific technologies or company requirements and generally involves a train-the-trainer component for sustainability.
Funding comes from a range of government and union sources.
The Technology Training Extension Service includes helping firms make minor and major changes to production processes, provides engineering assistance and quality control training.
Market Development involves keeping the sector economically viable and, therefore, maintaining jobs in New York City. Marketing strategies include labels with ‘Made in New York’, trade shows, government procurement priority for local apparel (such as police uniforms), and finding new niche export markets. The service also helps companies produce garments faster, particularly for retailers, by reviewing and up-dating production processes and developing staff skills. GIDC provides an export assistance program to help firms identify new markets. The Sourcing Centre helps garment buyers, designers and producers find each other.
GIDC has developed an essential role in the New York garment sector with high profile recognition. International competition with cheap labour was threatening the sector's viability. GIDC’s holistic intervention in industry restructuring and skill development has helped the garment sector understand how best to use skilled labour for productivity and efficiency gains. The GIDC case study suggests that a sector specific approach is required to run truly effective employment development and industry restructuring.
Reference: i CONWAY, M & Loker, S, A Case Study of a Sectoral Employment Development Approach, The Garment Industry Development Corporation
See also
Skill Ecosystems/Industry Partnerships | A-Z Resources
PARTNERSHIPS AND ENTREPRENEURSHIP - for other exemplars and papers
