Prices in the Clothing Industry

Abstract

THE clothing industry manufactures an immense variety of garments ranging from the sheerest of women's underwear to the heaviest types of men's protective clothing, and as would be expected a high degree of specialization of product exists. It should, therefore, be stated at the outset that the present remarks refer to a family manufacturing business of medium size (about 200 employees) producing a wide variety of men's and boys' raincoats and lumber jackets. The raw materials, e.g. cloths, are purchased in the piece from mills and merchants, and all the processes required to convert the piece goods into complete garments are performed in the factory. Firms manufacturing clothing are usually termed 'makers up' and a few words about the early history of our firm may be found useful. The business was founded in the early I920S by my father on a very small scale, and with capital which was the result of his savings, and there was a steady growth until I939. In the beginning, the main lines had been ladies' and men's mackintoshes (i.e. rubberized raincoats) and these continued to be the main products until about I934-35. For a few years previously competition had been becoming more intense and many orders were obtainable only at prices which did not show a profit. My father had therefore begun to look out for a different product to manufacture and he eventually found one in lumber jackets which he manufactured in a variety of textile materials as well as leather. These were well in production by I 935, and in this year also men's raincoats made from chemically shower-proofed gabardines were added to the range, and rubberized mackintoshes were allowed to peter out. It was at this time, therefore, that the foundation of our present trade was laid, and various types of lumber jackets soon became the main production. By I939 the business had expanded considerably, was producing a better type of product and several overseas markets had already been found, principally in the Union of South Africa and the Scandinavian countries. The war brought many changes. Production was switched from civilian to service requirements, and, at the same time, greatly expanded. The factory was totally destroyed in I940 through enemy action and accommodation was secured in premises far too small so that a large number of outdoor makers had to be employed. (An