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Financial Times (London, England)
August 30, 2005 Tuesday
London Edition 1
SECTION: LETTERS TO THE EDITOR; Pg. 14
LENGTH: 392 words
HEADLINE: Risks to importers with just one source of supply
BYLINE: By JAMES E SUGDEN
BODY:
From Mr James E. Sugden.
Sir, I was pleased to see global textile issues elevated to your main editorial in Saturday's paper. This must be a first, since textiles has long been regarded as both unfashionable and expendable by successive governments and indeed the City. The standard economic thesis you advance is irrefutable, but does not tell the whole story.
The main driver behind the imposition of new quota ceilings is the US, assisted in these endeavours largely by Italy and France. The UK textile industry, and particularly the Scottish cashmere and tweed sector, faced these realities many years ago, accepting without demur or government support large-scale winding down of the industry, and repositioning ourselves as high added-value producers in niche areas with a big export turnover. This has not been easy, particularly since government has little real interest in our future; but nonetheless in Scotland alone we still employ more than 22,000 people, and our greatest threat just now is a shortage of young trainees in the industry.
My company sells expensive jumpers to several members of the cabinet - presumably they do not make these purchases just to salve their consciences - our quality and design is better. The point your editorial does not make, however, is the risk run by importers that opt for a single, offshore source of supply. China is still a command economy, it is a long way off, and in the modern textile industry proximity to market is important. Transport costs, integrity and individuality of design, speed and ability to repeat orders in season are vital factors. The true costs of outsourcing are often ignored. That is why one managing director of a large UK chain, and a customer of mine, told me recently that he would never risk more than 75 per cent of his purchases offshore, preferring like any prudent businessman to hedge his bets.
This would surely be good advice to the government, for when China, now in the World Trade Organisation, is forced to face up to health and safety issues, environmental costs, ethical trading issues and so on, mothers will not be able to go to Matalan to buy their children a complete back to school outfit for Pounds 8, and "Jermyn Street" shirts will not be Pounds 25.
James E. Sugden,
Managing Director, Johnstons of Elgin
Chairman, Scottish Textile Manufacturers Association
LOAD-DATE: August 29, 2005
August 30, 2005 Tuesday
London Edition 1
SECTION: LETTERS TO THE EDITOR; Pg. 14
LENGTH: 392 words
HEADLINE: Risks to importers with just one source of supply
BYLINE: By JAMES E SUGDEN
BODY:
From Mr James E. Sugden.
Sir, I was pleased to see global textile issues elevated to your main editorial in Saturday's paper. This must be a first, since textiles has long been regarded as both unfashionable and expendable by successive governments and indeed the City. The standard economic thesis you advance is irrefutable, but does not tell the whole story.
The main driver behind the imposition of new quota ceilings is the US, assisted in these endeavours largely by Italy and France. The UK textile industry, and particularly the Scottish cashmere and tweed sector, faced these realities many years ago, accepting without demur or government support large-scale winding down of the industry, and repositioning ourselves as high added-value producers in niche areas with a big export turnover. This has not been easy, particularly since government has little real interest in our future; but nonetheless in Scotland alone we still employ more than 22,000 people, and our greatest threat just now is a shortage of young trainees in the industry.
My company sells expensive jumpers to several members of the cabinet - presumably they do not make these purchases just to salve their consciences - our quality and design is better. The point your editorial does not make, however, is the risk run by importers that opt for a single, offshore source of supply. China is still a command economy, it is a long way off, and in the modern textile industry proximity to market is important. Transport costs, integrity and individuality of design, speed and ability to repeat orders in season are vital factors. The true costs of outsourcing are often ignored. That is why one managing director of a large UK chain, and a customer of mine, told me recently that he would never risk more than 75 per cent of his purchases offshore, preferring like any prudent businessman to hedge his bets.
This would surely be good advice to the government, for when China, now in the World Trade Organisation, is forced to face up to health and safety issues, environmental costs, ethical trading issues and so on, mothers will not be able to go to Matalan to buy their children a complete back to school outfit for Pounds 8, and "Jermyn Street" shirts will not be Pounds 25.
James E. Sugden,
Managing Director, Johnstons of Elgin
Chairman, Scottish Textile Manufacturers Association
LOAD-DATE: August 29, 2005
posted by Eastlaw at 11:37 PM
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