MEXICO: Clothing industry "poised for major expansion"

just-style.com

By Andrew Rosati | 4 February 2014

Mexico's clothing industry is poised for a production boost

A senior official at Mexico's National Chamber of Apparel Industry (CANAIVE) has told just-style that the Mexican fashion sector - including clothing, leather and jewellery - is well placed to realise plans to sharply increase exports to US$8bn in 2014.
 
The goal was announced at this year's Intermoda fashion show in Guadalajara, said an official memorandum from the expo. It argued that because of its impact on employment, Mexico's fashion sector has the best "potential to develop the country's overall economy."

With its key US and European markets rebounding, the CANAIVE official told just-style that Mexico's apparel sector, unlike other industries, "has the potential to provide rapid returns by renovating existing facilities and creating large employment opportunities...".

He added while the industry required skilled manpower, it did not demand huge investments to significantly increase production.

Sergio Lopez de la Cerda, president of CANAIVE and coordinator of Committee of Mexican Fashion (CMM), said Mexico's textile and clothing industry is the country's third largest sector and could soon become the second largest.

Its interests should be given more priority by the Mexican government as a result. The CANAIVE official said in 2013 the Mexico apparel industry exported approximately US$5.8bn worth of goods.

Speaking later to just-style, the association's president added that Mexico's fashion industry "has the ability to increase its production by 50%."

Benefit Apparel to Build Plant in Jalisco, Mexico

Fibre2Fashion.com
October 31, 2013

Benefit Apparel, a US company which manufactures clothing for large firms such as Ross, Forever 21, and Adidas, is investing $5 million to construct a manufacturing plant in the Teocaltiche region of Jalisco

Jalisco, Mexico - US based apparel firm Benefit Apparel has announced plans of investing $5 million for constructing a manufacturing plant in the central western state of Jalisco, Mexico, creating nearly 750 direct jobs in the state.

According to a statement issued by Jose Palacios Jimenez, Jalisco's minister of economic development, the apparel manufacturing unit would be constructed in the Teocaltiche region of the state, increasing employment and promoting regional development.

Mr. Jiminez emphasized the fact that the US firm’s project meets the working outline of the government of Jalisco to decentralize and bring more investments to its regions as a model of balanced development.

Kang Wook Lee, CEO of Benefit Apparel, said the firm chose Jalisco's Teocaltiche region due to the area's industrial production meeting the quality the firm expects, and the skilled personnel who can work at the plant.

The Teocalitche region is a strategic location for the firm due to its proximity and greater connectivity with US, which is the firm’s headquarters, he added.

Mr. Lee said that besides having skilled labor and experienced people, the decision to open a manufacturing plant in the region was also favored due to tax benefits available in Teocalitche.

Benefit Apparel manufactures clothing for large firms such as Ross, Forever 21, and Adidas.

During the new plant's initial stages, the company would be manufacturing only casual wear, but once full capacity is achieved, the apparel manufacturer would also start production of high quality clothing like couture dresses.