This is a business model that focuses on adding design capabilities to the production of garments. These products require numerous details and are typically more complex to produce and require specific inputs.
Third, new initiatives are emerging from more mature suppliers to professionalize the apparel labor force, including managerial training to deal with growing pressures for lean Page 3 6 manufacturing and compliance with corporate codes of conduct and the creation of national certifications for product and process upgrading in Turkey and Sri Lanka.
Sri Lanka has been able to add design capabilities, while Turkey is also selling their own brand products. As a result, workforce skills will become increasingly important elements for developing economies to maintain and upgrade their positions in the global apparel value chain.
Design may be in collaboration with the buyer, or the buyer may attach its brand to a product designed by the supplier.
Improving productivity through new capital investments. Design functions require innovative skills related to new product development and knowledge of global standards, process and information technology upgrading. Workforce Development and Global Value Chains in Developing Countries This research project examines workforce development strategies in developing countries in the context of the shifting upgrading dynamics of global value chains.
This is a business model that focuses on branding and the sale of own-brand products. In automated facilities, cutters electronically send the layout to a computer-controlled cutting machine. Lead firms have taken a more active role in facilitating training in two key areas: Fostering collaboration with successful training institutions in the developed world can speed firmlevel learning for upgrading, rather than relying solely on learning through experience.
Expatriates generally meet this skills gap or, where possible, when existing skills are not present in the local labor market, certain upstream or downstream activities are performed abroad in firm headquarters.
Supervisory roles; oversee the pace of the work and ensure stoppages are minimized, monitor production levels, train new workers, and manage constant problem solving.
While global expansion of the apparel industry historically has been driven by trade policy, bythe Agreement on Textiles and Clothing ATC by the World Trade Organization had phased out many of the quotas that had previously regulated the industry.
Formal employment in the sector totals over 25 million in low- to mid-income economies ILO, Table 1 provides examples of these lead firms.
Technical staff, such as mechanics and engineers, may benefit from additional external training programs. Today, it is a trillion dollar global industry and provides employment to tens of millions of workers in some of the least-developed countries in the world.
In those segments of the value chain focused on manufacturing, the private sector has played the leading role in workforce development, and most firms offer internal training of entry-level employees. This change brought other key factors in country competitiveness to the forefront, including labor costs, productivity, and managerial and institutional competencies.
Global Value Chains in a Postcrisis World: On-the-job training Training for use of new equipment Private sector suppliers and lead firms Government incentives for investment in training Equipment providers Source: Page 5 8 Table 1.
Funded by RTI International and carried out by Duke CGGC, this research addresses policymakers, donors and development practitioners to improve our understanding of how workforce development strategies can enhance the upgrading efforts and competitiveness of developing countries in global industries.
The focus of the supplier is on production alone; suppliers assemble inputs, following buyers specifications. Creative talent within the industry that can develop new design lines for production. Four of the five countries studied entered the industry principally because of favorable trade agreements.
Lesotho and Nicaragua are in the lowest stage of the value chain, offering only assembly operations. This report examines the role that different workforce development initiatives have played in the evolution of the apparel industry in five developing countries: These nations represent different stages of industry development.
However, while the required formal skill level is relatively low in the CMT segment of the value chain, this rises rapidly as countries upgrade into higher value stages, and workers with more advanced skills are needed to support new functions, such as logistics, finance, design, and marketing.
Successful workforce development for ODM and OBM stages in the value chain has leveraged knowhow in the developed world by engaging foreign universities in successful apparel countries to help design curriculum for local programs and hiring foreign consultants to help develop in-house talent.
Lead firms include retailers and brand owners and are typically headquartered in the leading markets—Europe, Japan, and the United States.
Research Global Value Chains At a simple level, the concept of a global value chain GVC depicts a value-adding sequence of business functions such as research, design, production, marketing, transportation, logistics, distribution, after-sales service, and recycling.
By the turn of the century, most lead firms had implemented private standards and codes of conduct based on cost, quality, timeliness, and corporate responsibility in terms of labor and environmental standards.
Product focus may be relatively narrow. A current project is examining how one province in South Africa KwaZulu-Natal intersects with distinct segments of automotive, electronics, and apparel GVCs lean and time critical supply, fast fashion, and reverse logistics for repairand with service GVCs such as executive education, call centers, hospitality and tourism, and air transport.
Initiatives such as these are important precursors to establishing comprehensive workforce standards for upgrading. Supplier acquires post-production capabilities and is able to fully develop products under its own brand names.
While currently, the Better Work program has been implemented in Cambodia, Haiti, Jordan, Lesotho, Vietnam, and most recently Nicaragua, to date the ILO-IFC partnership has focused primarily on encouraging social dialogue and improving working conditions.
Developed country consultants can provide important training for the firm. Page 1 4 Economic Upgrading The main stages of upgrading in the apparel value chain are 1.
Indeed, apparel production is considered a springboard for economic development, and often is the typical starter industry for countries engaged in export-oriented industrialization due to its low fixed costs and emphasis on labor-intensive manufacturing.New Trends in Value Chain Upgrading: Lessons from Large and Small Countries.
Global value chain framework developed over the past decade by a diverse interdisciplinary and international group of researchers who China’s Supply Chain Cities in Apparel. ^Creating Sustainable Apparel Value Chains: A Primer on Industry Transformation _ Impact Economy Primer Series, we cover specific solutions in this Primer that can help to take global apparel value chains to the next level.
resource productivity and transparency across the supply chain; (2). The Apparel Global Value Chain. CENTER on GLOBALIZATION, GOVERNANCE & COMPETITIVENESS The Apparel Global Value Chain ECONOMIC UPGRADING AND WORKFORCE DEVELOPMENT Karina Fernandez-Stark Stacey Frederick Gary Gereffi Contributing CGGC.
Nicaragua and the Apparel Value Chain in the Americas: Implications for Regional Trade and Employment Duke CGGC is a center Nicaragua’s Position in the Global and Regional Apparel Value. Organisation Supervisor’s Registration.
1. Organisational Information: You can only register as an organisation supervisor if your organisation name is in the registered list and. The Philippines in the Automotive Global Value Chain This research was prepared by the Duke University Center on Globalization, Governance & Competitiveness (Duke CGGC) on behalf of the USAID/Philippines, through the Science.Download