SIC 2337 Women's, Misses, and Juniors' Suits, Skirts, and Coats

SIC 2337

This category covers establishments primarily engaged in manufacturing women's, misses', and junior's suits, pantsuits, skirts, coats (except fur coats and raincoats), and tailored jackets and vests, from purchased woven or knit fabrics. These garments are generally tailored and usually lined. Establishments primarily engaged in manufacturing fur clothing are classified in SIC 2371: Fur Goods; and those manufacturing raincoats are classified in SIC 2385: Waterproof Outerwear. Knitting mills primarily engaged in manufacturing knit outerwear are classified in SIC 2253: Knit Outerwear Mills.

NAICS CODE(S)

315212

Women's and Girls' Cut and Sew Apparel Contractors

315234

Women's and Girls' Cut and Sew Suit Coat, Tailored Jacket, and Skirt Manufacturing

INDUSTRY SNAPSHOT

Although 96 percent of apparel sold in the country in 2004 was produced elsewhere, U.S. manufacturers were beginning to see increases again after several disappointing years. In 2003, the overall product value of American-made women's apparel was reported at more than $13 billion. Of this total, $581 million was in skirts, $143 million was in coats, and $36 million was in suits. By the mid-2000s, the trend toward more tailored clothing and style innovations was lifting the suit sector rapidly.

Following the twenty-year trend of declines in apparel purchases, sales made sharp declines throughout the early 2000s. More consumers—including upper-end consumers—also preferred shopping for apparel in discount channels, lowering the value of purchases. The apparel industry as a whole shipped $23.0 billion in products in 2003, a decline from 2002 levels of $26.3 billion. After 2003, spending in this industry began to increase as consumer confidence increased with the stabilizing economy. While discounters were still doing well, upscale designers and retailers were back in the game, with surges in sales activity in the mid-2000s. But in 2005, quotas on imported textile and apparel goods were lifted, causing a glut of inexpensive imports, primarily from China, to flood the American market. Manufacturers in this industry were fighting back, aiming for reinstatement of the longtime quotas or some version of them in the spring of that year.

ORGANIZATION AND STRUCTURE

The apparel industry is composed of three types of producers: contractors, jobbers, and manufacturers. Contractors are independent firms performing specialized work, such as sewing a garment, for a number of competing firms. Contractors were hired by producers who either did not have their own sewing apparatus or whose own capacity had been exceeded. Contractors are not involved in the retail sale of merchandise. More than 50 percent of the plants making women's coats and suits are run by contractors.

Jobbers are design and marketing businesses that are hired to perform specific functions. For example, jobbers might purchase materials, design patterns, create samples, cut material, and hire contractors to manufacture the product. Most jobbers, however, do not sew garments, but instead hire contractors to sew and finish the products. These contracted sewing-machine operators complete specific parts of the garment, which are provided by the manufacturer. Through this system of piece work, operators can work more quickly and efficiently because they do not need to switch or adjust their machines.

Jobbers often have their own design staffs to create seasonal lines, or they hire freelancers to do design work. A jobber buys the materials needed to produce the pieces and then creates the patterns for different sizes. The cut material is then sent to contractors to be sewn and finished. Orders are taken for the garments, and the finished garments are then shipped to retailers.

Manufacturers are those establishments performing all functions involved in creating apparel from purchased materials. The manufacturer has a staff that produces designs, or it buys work from freelancers. The manufacturer then purchases the needed materials (fabric and trimmings). Generally, the cutting and sewing of the garment is done in the manufacturer's factory. However, when demand for an item exceeds the manufacturer's ability to supply it within shipping deadlines, outside contractors are hired. The manufacturer's own sales and shipping staff takes orders and sends them out.

When a manufacturer handles all stages of a garment's assembly, it clearly has greater control over the quality of the product. Nevertheless, the advantages to using contractors are numerous. For example, those companies without the capital to update machinery find the system advantageous. Manufacturers who rely on contractors also avoid the responsibility of hiring and training workers. Additionally, the contractor system is flexible—providing manufacturing capacity when needed at busy periods without needing to meet payroll obligations at off-peak periods.

BACKGROUND AND DEVELOPMENT

The growth of the U.S. women's apparel business began in the mid-nineteenth century when certain garments that did not need to be fitted, such as cloaks and mantles, started to be mass-produced. Small quantities of women's suits and skirts were turned out in a limited number of factories, but most women still made their own clothing at home.

Early in the twentieth century, the number of apparel manufacturers grew as more women chose to buy their clothing. New York City became the center of the women's apparel business for a variety of reasons. For example, manufacturers were able to take advantage of the inexpensive labor found in newly arrived immigrants—most of those working in the industry were young Jewish and Italian women. New York City also formed an ideal location for the industry due to its position as a port city and its proximity to the textile mills in New England and the South.

Soon, many manufacturers began to outgrow their quarters in an industry that was expanding rapidly. A consortium of apparel makers, investors, and a real estate developer came up with the idea of moving to an undeveloped area of New York City. Between 1918 and 1921, approximately 50 clothing makers moved to the area along Seventh Avenue, which came to be known as the garment district.

Because the garment industry was...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT