LANCASHIRE M A N U FA CT U R I N G
LANCASHIRE MANUFACTURING COMPANY
Wearing the Proudly SA
Badge With Pride PRODUCTION: Manelesi Dumasi
Lancashire Manufacturing has a long history of excellence in South Africa and has been named as a Proudly South African organisation. Exporting products around the world and supplying heavily into the local market, this is a business that is excelling in an industry under threat.
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INDUSTRY FOCUS: TEXTILES
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The textile, clothing and footwear manufacturing industry in South Africa is perhaps one of the most under threat sectors in the country. Basement prices from markets in the Far East (China, Vietnam, the Philippines etc), demand for instant turnaround from brands and retailers, everchanging international quality compliance regulations, a supply chain that has been dismantled over the years, constant currency price fluctuations have resulted in the decline of job numbers from 200,000 to under 20,000 in just 15 years. Clothing and textiles is a big industry for job creation; it remains labour intensive despite a rapid rise of technology. African governments strongly support development of the industry across the continent. This was highlighted in June when the African Development Bank (AfDB) called for the empowerment of small and medium operators in the textiles, apparel and accessories sectors as a deliberate job creation strategy. The AfDB even launched an innovative initiative, called Fashionomics (the economics of fashion), to increase Africa’s participation in the global textile industry supply chain. Fashionomics exists to support the development of micro, small and mediumsized businesses (MSMEs) operating in the textile, apparel and accessories industry in Africa, with a focus on women and youth empowerment. South Africa’s clothing and textile industry is worth R12 billion-a-year to the economy and just 12 months ago there was a major push to revitalise the industry when Sactwu (Southern African Clothing and Textile Workers’ Union) hosted the 2016 Clothing, Textile and Leather (CTFL) Imbizo in Cape Town. The industry is the second largest sector in the developing world after agriculture and Southern African governments recognise the potential for job creation. Since ’94, huge sums (more than $1 billion) have been spent on modernising and upgrading SA’s textile manufacturing infrastructure. But with the threats that face the industry, one being premature deindustrialisation across African
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economies (manufacturing in SA was 15% of output in 1962, plateaued at 25% in 1981, but by 2011 shrunk to 18%), you may wonder if it’s possible to really thrive. Can clothing and textile manufacturers really create the number of jobs that are expected? Can they exist as technology develops and continues to offer a new hurdle? The answer is not simple, but by looking at one of the industry’s success stories you can see that opportunities exist for those with a sound business case and a quality offering that serves the needs of the market. Lancashire Manufacturing Company, based in Diep River Cape Town, has been manufacturing clothing and textile products, mainly school wear, for 84 years. The company has built a sterling reputation that spans international markets and has grown its employees base from a small family operation to a become an employer of more than 500 people. SA HISTORY Founded in 1933 by the Swiel family, the company is managed today by third generation family leader, Marc Swiel. His grandfather founded the business after moving from Lithuania originally, to Lancashire in England – one of the global textiles centres at the time – before arriving in SA. Second generation leader, Arnold, was born in Cape Town and alongside his brother, he joined the business which had made a name for itself, producing first-class juvenile clothing. By the time Marc joined the business, a strong reputation in the local market had led to international orders and customers in the UK, including John Lewis which would order its school blazer and trouser range from Lancashire Manufacturing. But when international sanctions increased against South Africa, this business was instantly lost. The local market again became the focus for the business before international markets reopened in the ‘90s. Today, the company exports a large percentage of its product while keeping a strong foothold in the local market. Its Envoy brand is considered among the best school wear brands in the world, and the
company enjoys a reputation for quality and flexibility. “Envoy, has been the Industry benchmark in School Uniform Manufacturing in South Africa for decades. This has been achieved by continuously updating our plant and equipment to ensure the best production methods are used by Lancashire Manufacturing enabling us to consistently manufacture highly durable and stylish School Uniforms. “Lancashire Manufacturing refuses to compromise on quality standards and only the finest performance fabrics, tried and tested over many years are utilised for our School Uniform range,” the company states. PROUDLY SOUTH AFRICAN Lancashire Manufacturing has achieved sought after status as a ‘Proudly South African Company’. “As a School Uniform Manufacturer in South Africa we are extremely proud of that,” the company says. “It comes as a result of our strict quality standards, fair labour practice, environmental standards and 100% of our direct labour costs incurred in South Africa.” To be recognised as a Proudly South African company, businesses must utilise local content and spend money on suppliers located in SA; must prove products are high-quality; utilise fair labour practices; and adhere to strict environmental standards. These guidelines are developed by the Proudly South African organisation which was established in 2001 through Nedlac (National Economic Development and Labour Council). Achieving this status has allowed the company to grow and build its infrastructure. The Lancashire Manufacturing factory is home to a large number of high-tech pieces of equipment and a highly skilled workforce. This helps the business to complete large bulk orders and also smaller, more complicated runs quickly and efficiently. CAD systems are used to ensure precision of designs and patterns. Electronic cutters and automatic
LANCASHIRE MANUFACTURING COMPANY
spreaders reduce manual intervention and improve safety. Modern fusing equipment ensures quality, even through severe temperature changes. Sewing machines have underbid trimmers and are sourced from organisations that supply the best machines in the world. Automatic jet pocket, PW machines have been installed to guarantee consistency across trouser and blazer pockets, and sleeve setting and button hole machines ensure quality. There’s also a strong focus on safety for the end-user and a needle detector has been installed to ensure no broken needles are left in children’s clothing. “We assist in creating jobs by procuring from local manufacturers,” the company says. THE ENVOY ADVANTAGE In South Africa, Lancashire Manufacturing supplies its Envoy brand, and other products, to a number of the big retail chains and school shops. The company estimates that it supplies the uniforms to over 1000 schools, representing significant market share - perhaps a reason why the company has managed to avoid the slowdowns that have dogged the industry over the past four decades. “The Envoy Schoolwear brand remains truly committed to providing unbeatable quality at a great price,” the company states. A natural progression strategy for the business to achieve expansion is to look at complementary industry sectors and the management has done just that, starting manufacture of a range of workwear and corporate uniforms in 2013. The Enviado security uniform range is popular thanks to its quality; made from superior polyester barathea weave from a South African mill. Having made clothing for the hotel industry and for security businesses, corporate wear is certainly seen as a potential growth market. So, Lancashire Manufacturing enjoys a strong brand, is home to
experienced and knowledgeable leadership and staff, is technologically advanced, is wellpositioned, and is exploring growth opportunities; how has it managed to avoid the aforementioned challenges that have seen the industry spiral downwards? The management puts it down to quality, flexibility and sticking to its core strength. “The key to our success has been the philosophy of ‘sticking to our knitting’ and through this we have become masters in manufacturing School Uniforms in South Africa,” the company says. With many SA retailers looking East for savings, Lancashire Manufacturing reminds that the quality it produces is second to none, its turnaround is much quicker, and flexibility and after sales service offered are first class. Sticking to
these principles and showing historic ability to deliver on time and to defined quality standards make for a robust offering, one that cannot be ignored. Lancashire Manufacturing is an industry leader and that looks set to remain the case for the foreseeable future. “Lancashire Manufacturing, the preferred School Uniform Supplier, knows what fabrics perform best, what ‘cut’ children prefer and the features necessary for easy wash and care,” the company concludes.
LANCASHIRE MANUFACTURING COMPANY +27 21 705 3804 sales@lancashire.co.za www.lancashire.co.za
high efficiency. high quality. since 1946.
congratulations to Lancashire for being in business for 150 years
providers of:
worsted fabric.
knitting. yarn.
the Hextex factory
Telephone: +27 23 347 0814 Facsimile: +27 23 347 6117 E-mail: hextex@winetex.co.za website: www.winelandstextiles.co.za
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AFRICA
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Issue No.61
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JEGIE PADMANATHAN:
People Are The Power
of Bidvest Prestige ALSO IN THIS ISSUE:
CCI South Africa / Thebe Tourism Group / RPP Developments / ALG Estates
A S F E AT U R E D I N
ENTERPRISE AFRICA
AUGUST 2017