Chinas Garment Suppliers Expand Capacity To Meet Expected Increased Orders

China’s Garment Suppliers Expand CapacityTo Meet Expected Increased Orders
According to a new report published by Hong Kong-based Global Sources, more than 91 percent of summer garment suppliers in China are expanding production capacity in anticipation of increased orders following the elimination of textile quotas.The report, titled “China Supplier Survey: Summer Garments 2005 Buying Season,” said among the 205 suppliers surveyed, 92 percent anticipate higher sales for the summer 2005 season compared to 2004. More than 60 percent of respondents expect sales to increase by more than 10 percent, with24 percent preparing for increases of more than 25 percent. More than half of the survey’s respondents indicated plans to increase capacity by 20 to 50 percent by hiring more workers, purchasing additional machinery and/or expanding existing factories. Additionally, one-third are currently planning or building new garment plants.

Seventy-five percent of suppliers see the European Union as a post quota growth market, while 68 percent regard the United States in the same light. As a direct result of increased concentration on Western markets, exports to Asian markets are expected to decrease. The report includes manufacturers from the major production hubs of Guangdong, Zhejiang, Jiangsu, Shandong, Fujian provinces, and the Shanghai and Beijing/Tianjin municipalities.
January/February 2005