Hosiery manufacturing jobs come back to US – CCFGroup.com (subscription)

News that one of the largest hosiery knitting facilities in the world, based in the US, is to reshore its finishing and packaging operations, increasing its workforce by more than a quarter demonstrates the new confidence permeating US-based manufacturing.

Low energy costs are undoubtedly a factor driving this trend, and bringing operations back ‘in house’ where it is economical to do so allows better control over quality and logistics. Local government and agency support is also a factor as is consumer loyalty to ‘Made in the US’.

While hosiery manufacture has lower labour requirements than other garment manufacturing operations, and is therefore a more likely survivor in high labour cost countries such as the US, it is nevertheless a welcome turnaround to see repatriation of jobs and a stemming of the tidal wave of off-shoring which has occurred in recent years.

HanesBrands, basic apparel and hosiery manufacturer, is to expand its Clarksville, Arkansas, US-based plant, creating 120 jobs.

The plant is one of the largest hosiery knitting facilities in the world and has a workforce of approximately 450 today. In cooperation with the city of Clarksville, Johnson County and the state of Arkansas, the company decided to increase employment at its Clarksville plant to add finishing and packaging of Hanes and designer hosiery sold at department stores. Currently this work is outsourced and conducted offshore.

Javier Chacon, Hanes senior vice president of global operations, said: “We are delighted to be able to add jobs at our Clarksville plant. It is not easy for a US plant to compete with offshore competitors, but the capabilities of our plant workforce and management team in Clarksville to continuously adapt, automate and improve efficiency is a testament to the resiliency of this facility since it opened in 1988.”

The plant’s competitiveness is aided by its scale and size, superior product quality, leading safety record, lower US energy costs and proximity to the US market, according to HanesBrands.

Plant manager Cathy Stalcup said: “I am so proud of this plant and our employees. The hosiery business has been impacted for more than two decades by workplace trends away from formal dress to casual business attire, but our employees’ commitment to flexibility, knowledge of automation and dedication to quality and safety has kept the Clarksville plant at the forefront of global competitiveness.”

The new jobs will average approximately $39,000 per year in wages and benefits. Hanes expects to invest approximately $1.5m to buy and install additional machinery and to relocate and upgrade its packaging and dyeing operations.

Unlike most apparel companies, Hanes manufactures the majority of its products in company-owned plants in its global supply chain. For the North American market, Hanes currently knits all of its sheer hosiery in Clarksville, splits the sewing of seams for the knit hosiery between Clarksville and a company-owned facility in El Salvador, and splits the finishing and packaging of hosiery between Clarksville for mass retailers and an offshore contractor for department stores. The expansion will result in all finishing and packaging being conducted in Clarksville. The company also operates hosiery manufacturing facilities in Europe for the European market.

Hanes worked with and appreciates the assistance of the Arkansas Economic Development Commission and the Johnson County Economic Development Corporation to bring the additional jobs and associated economic influx to Clarksville. The agencies are providing approximately $900,000 in job development incentives and training assistance.

source: WTIN