Whether you are an apparel buyer, a designer, or just interested in learning more about the garment manufacturing industry in El Salvador, you will find this article informative and useful. It lists the top 5 companies to watch in the industry, based on the number of clothing items they have sold over the past year. The list includes Liz Claiborne, Fruit of the Loom, Delta Apparel, and Chenduran Textiles.
1 Chenduran Textiles
During the first half of this year, the textile and clothing industry in El Salvador increased exports by 5.6% to $1.3 billion. The total value of its textile and clothing exports was expected to reach US $2.6 billion by the end of 2018.
The garment and clothing industry in El Salvador has long been a driver of economic development, employing over 70,000 direct workers and 200,000 indirect workers. The industry also has long-term contracts with U.S. clients and suppliers.
In the past, a significant number of adolescents worked in maquilas. Unicef and other representatives have confirmed the problem, stating that adolescents are paid less than adults and forced to work overtime.
The American Chamber of Commerce in the Dominican Republic was unaware of the codes of conduct for the garment industry. However, the Chamber does keep its members informed. It is monitoring the implementation of corporate codes of conduct in U.S.-based factories.
Among the companies that employ Fabena Fashions are Macy’s, Wal-Mart, Sears, Target (Dayton-Hudson), Kmart, Mervyn’s, and Certified Apparel Services. All of these companies require Fabena to sign a no child labor clause.
Fabena, however, is a Macy’s supplier, which checks the personnel records of its contractors. Other contractors include RK Fashion, Grupo M, Interamericana Products, D’Clase Corporation, and Toscana Corporation.
The garment and clothing industry in El Salvador is facing headwinds, with an inflation of raw materials and an economy that is less dynamic in the United States. This could give the industry the opportunity to expand and maintain competitiveness.
The Department of Labor, which conducted the study, interviewed both industry and government representatives in El Salvador, Guatemala, and the Dominican Republic. They also interviewed NGOs and unions. They found that the awareness of U.S. corporate codes of conduct was high in the Philippines, but relatively low in both El Salvador and the Dominican Republic.
2 Fruit of the Loom
Originally founded in Warwick, Rhode Island in 1851, Fruit of the Loom is a major global manufacturer of high-quality apparel for women, men, and children. Despite a turbulent period during the early 1990s, the company continues to lead the garment industry.
The company’s apparel manufacturing operations are primarily located in Honduras, Mexico, and the Caribbean. It also employs more than 11,000 people in El Salvador and Ireland. Its textile business will be reducing the number of employees by 800 in October.
During the late 1990s, Fruit of the Loom faced multiple challenges, including declining sales, intense price pressure, and a rise in cotton prices. To solve these issues, the company closed nine plants in the United States and began moving its manufacturing operations to Central America and the Caribbean.
The company’s move to Central American countries and the Caribbean was part of a broader plan to cut costs. In addition to the closing of US plants, Fruit of the Loom laid off over 6,000 workers. The company cited falling orders from customers as the main reason for the layoffs.
In 1997, Fruit of the Loom announced that it was planning to close the Campbellsville, Kentucky plant. It announced that it was considering the closure of several other U.S. facilities, including its hosiery division.
The company’s debt decreased by $100 million, while its net earnings declined. In the third quarter, the company reported a 39 percent drop in its profits. In the fourth quarter, the company reported a 50 percent decline in its stock price.
The company’s move to Central America in the mid-1990s was a major step toward improving cost efficiency. Although the move didn’t resolve the company’s fundamental operating problems, it improved the company’s bottom line and allowed it to report better operating performance. Its net earnings returned to positive territory in 1996.
3 Delta Apparel
Whether you are looking for a garment manufacturing company in El Salvador or another region, you should know that Delta Apparel is one of the leading manufacturers of branded activewear and sportswear. Founded in 1995, the company’s operations include production centers in California, San Diego, and Tijuana, as well as in Mexico. It also produces knitwear for women and men, as well as recycled polyester and organic cotton.
In addition to producing branded and private-label activewear apparel, Delta Apparel also markets Salt Life(r) and Soffe(r). This military business is the largest segment of the company’s sales, representing over five percent of the total revenue.
The textile and clothing industry in El Salvador has long been one of the country’s main economic development drivers. Its value-added exports are among the top in the Americas, and the industry is vertically integrated. With 70,000 direct workers and 200,000 indirect employees, the industry is a significant contributor to the country’s economy. In the first half of 2018, the industry exported US $1.3 billion to overseas customers, which represented an increase of 5.6% over the same period last year.
In addition to the company’s military business, Delta also produces branded and private-label sportswear, as well as accessories. In fiscal 2021, the Delta Activewear business saw $127 million in sales. The company has production facilities in the United States and Mexico, as well as Honduras.
In the second quarter of fiscal 2019, Delta’s sales were slightly lower than the previous year. The company blamed the decline on the spread of the COVID-19 pandemic, but officials said the disease has not negatively impacted 25 percent of the company’s business.
4 Liz Claiborne
During the first half of 2018, El Salvador’s garment and textile industry exported $1.3 billion in clothing and other apparel to overseas customers. Exports increased 5.6% over the previous year. The value of exports is expected to reach US$2.6 billion in 2018.
According to the Apparel and Textile Industry Commission (AITC), the El Salvador garment export industry is the third largest in the world in terms of value-added exports. The industry employs about 200,000 direct and indirect workers. It is vertically integrated and is one of the world’s leading producers of value-added exports.
The textile industry in El Salvador employs 70,000 direct workers and 200,000 indirect workers. The labor code sets the minimum age for employment at fourteen years. Approximately 2% of the maquila workforce are aged twelve to thirteen. However, the Minister of Labor has indicated that codes of conduct are not being enforced in the country.
Liz Claiborne is committed to protecting the rights of workers. It has a significant presence in the Dominican Republic. The company has an office in the Philippines to monitor the quality of its products. It has contracts with several plants.
Liz Claiborne has signed a code of conduct with Primo Industries. In the Philippines, Liz Claiborne monitors contractors. It has contracts with six contractors. It has also contracted with an Indian company called Triburg Consultants. Its staff attend total quality management programs. These consultants also discuss Liz Claiborne’s human rights guidelines with its contractors.
The American Chamber of Commerce, which has a garment industry committee, is also concerned with the issue of codes of conduct. It has representatives from companies such as J.C.Penney, Playtex, Renzo, The Gap, Nike, A La Mode, Globalwear, and others.
5 Electronic Component Procurement & Distribution
During the 1980s, the textile and clothing industry in El Salvador was on the upswing. Several factories were making simple assembly operations into finished goods. Its largest export market was the United States, where a large percentage of the country’s production was exported under the Caribbean Basin Initiative.
The textile and clothing industry in El Salvador has room for growth. It has been one of the main drivers of economic development in the country since the 1950s. In the first half of 2018, the industry churned out $1.3 billion in exports to overseas customers.
It’s not surprising then that the supply chain is crucial to manufacturing electronic components. The supply chain, as with any other line of business, is susceptible to disruptions ranging from a pandemic to regional adversity.
The best way to make sure that your company is not left out of the loop is to source your electronic components from manufacturers or distributors with established connections in the country. Whether you’re looking to source components for a new business venture or you’re looking to expand your existing operation, Central American Group can help. Alternatively, you can set up shop in a number of the country’s economic free zones.
The cheapest and most effective supply route may involve purchasing electrical products from your manufacturer or distributor. This shortens the supply chain and reduces the amount of time it takes to reach your customer.
There are many electronic component suppliers in El Salvador. Some offer a wide range of product lines in small quantities. Some even deliver your orders the next day. It’s important to note that not all companies are eligible to source electronic components from manufacturers.
Henry Pham (Pham Quang Anh), CEO of DONY Garment
This year, we have found that many international buyers are seeking new suppliers based in nations outside of China and Thailand to purchase many goods and products, including uniforms, workwear, reusable cloth face mask, and protective clothing.
At DONY Garment, we are proud to welcome international customers, especially those based in the US, Canada, the Middle East, and the EU market to discover the professional production line at our factory in Vietnam.
We guarantee our products are of the highest quality, at an affordable cost, and easy to transport across the world.