SIC 2335 Women's, Juniors', and Misses' Dresses

SIC 2335

This entry describes establishments primarily engaged in manufacturing women's, misses', and juniors' dresses (including ensemble dresses), from purchased woven or knit fabrics, including woven or knit fabrics of paper, whether sold by the piece or by the dozen. Establishments primarily engaged in manufacturing girls', children's, and infants' dresses are classified in SIC 2361: Girls', Children's, and Infants' Dresses, Blouses, and Shirts. Knitting mills primarily engaged in manufacturing knit dresses are classified in SIC 2258: Lace and Warp Knit Fabric Mills.

NAICS CODE(S)

315212

Women's and Girls' Cut and Sew Apparel Contractors

315233

Women's and Girls' Cut and Sew Dress Manufacturing

INDUSTRY SNAPSHOT

At the onset of the twenty-first century, American manufacturers of women's, juniors', and misses' dresses had seen an immense drop in presence, production, and profits. In the early 1990s, for example, 3,500 companies comprised this industry segment. As of the late 1990s, a mere 750 remained, and by 2002 there were only 537 reporting establishments. At that time, industry shipments were valued at $3.6 billion.

The clothing industry, particularly women's apparel, is sensitive to changes in economic conditions. When the economic boom of the late 1990s began to wane, consumers became increasingly concerned with value and savings. At the same time, consumer preferences continued to shift to more casual basic apparel at home, as well as at work. Another blow to the industry occurred during the mid-2000s, as World Trade Organization (WTO) countries began to phase out their quotas on clothing and textiles. This was in furtherance of the original agreement between member countries that created the organization itself. All quotas were eliminated as of January 1, 2005.

According to a 2005 FDCH government account report, U.S. shipments of apparel products fell more than 50 percent between 1995 and 2004, to about $56 billion. Likewise, overall industry employment also declined by more than 50 percent for the same period. Conversely, imports of textiles and apparel products grew significantly, from $44 billion in 1995 to approximately $83 billion in 2004.

ORGANIZATION AND STRUCTURE

The American Apparel Manufacturers Association (AAMA) is the central trade association for the U.S. apparel industry. The AAMA represented three-fourths of the industry and provided its members with guidance and support through publications, statistical reports, and trade negotiations. In addition to the AAMA there are regional associations that focus on local issues and policies.

Most of the smaller satellite manufacturing sites closed, but California and New York remained viable locations for dress manufacturing activity with some smaller facilities in Florida, Texas, and Pennsylvania. According to the U.S. Census Bureau's Economic Census, there were approximately 537 reporting establishments that manufactured women's and juniors' or girls' dresses in 2002 (the latest census available). The industry employed nearly 16,000 workers in primarily smaller facilities with less than 20 employees.

Business Centers

The industry's central business locations are New York City, Los Angeles, and Atlanta; each of these is supported by an apparel mart. These marts house showrooms in which manufacturers display their lines, and buyers and sellers converge at these marts to conduct the business of selling clothes. The selling periods for women's, misses', and juniors' dresses are typically condensed into monthly "market weeks." Retail buyers visit manufacturer showrooms to buy product for the coming season.

The apparel industry operates under the principles of clustering. Clustering requires makers of similar products to congregate their operations in a small geographical location. This facilitates communication between buyers and sellers, increases the speed of innovation, and promotes a business culture that nourishes and supports an industry. Clustering is well-established in New York City and Los Angeles, thus ensuring their prominence as fashion centers for the United States.

Manufacturing Process

The manufacturing process requires an average of 6 to 8 months to move a particular line from design to sale. The process typically begins with a designer's sketch, which is turned into a pattern. Fabric is selected and a cost sheet is established to detail expenses. A wholesale price is determined by using the cost sheet as the base. The production department grades a pattern to accommodate the required size range and then cuts the fabric according to the patterns. The materials are then sewn and finished, and finally, the garments are pressed. Then they are packed or hung on racks for shipment to the retail customer. Normally, design was the only process that manufacturers handled in-house. The ability of a manufacturer to maintain control of the remaining processes was a function of its size and capital equipment. The most frequently outsourced process was sewing and finishing. This process was given to small contractors, typically employing immigrant labor in sweatshop-like factories. The nature of the contracting business has made the tracking of operating businesses and gross sales nearly impossible.

Financial Structure

According to Bobbin magazine, two-thirds of apparel manufacturers factored their receivables. This accounting method entails a contract between manufacturer...

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