| Gerber Technology, a business unit of Gerber Scientific, a developer and supplier of automated CAD/CAM and PLM solutions for the sewn products and flexible materials industry, tells ATA Journal its experience in manufacturing in China |
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| James Arthurs |
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Gerber Technology, one of the world's largest suppliers, started to manufacture and sell the Infinity AE inkjet plotters in China since 2004. Later, the GERBERcutter XLc7000 was built and marketed in the country, followed by the GERBERcutter Z7, which is designed to operate with precision and without interruption at high speeds for around-the-clock production. The latest addition to the made-in-China product family is the XLp60 inkjet plotter.
Moving the production line to China has brought down costs for its customers, explained James Arthurs, Senior Vice President, Gerber Scientific and President, Gerber Scientific Asia-Pacific.
Producing in China allows Gerber Technology to save costs and the associated expenses such as freight and import duty. The payment method is also simpler when the product is manufactured and sold within China.
Moreover, China is the largest apparel supplier in the world, considering its exports and domestic market. It currently accounts for more than 40% of the global total apparel exports, with an export value exceeding US$120 billion per annum. The country's domestic market is worth approximately US$170 billion a year.
Every minute counts
Talking about today's apparel market, Mr Arthurs highlighted the need of quick response from apparel makers. It is getting more important for an apparel manufacturer to be able to provide one-stop services. It means that a company can offer services from design, manufacturing of apparel, to cut and sew, he said.
A key tool in this regard is the CAD system. According to Mr Arthurs, there's one area China has yet to adapt to - PLM (product lifecycle management) software that manages product specifications and adjusts the workflow to reduce expenses while taking new styles to the market faster. He added that PLM is useful to Chinese companies that have created their own brands and own retail chains.
There are some 60,000 sizable apparel makers in China (with an annual operating revenue of at least RMB5 million), according to the China National Garment Association (CNGA). About a quarter of them, or some 15,000 firms, are using the CAD software. Within this portion, Gerber Technology serves about 3,000 corporate users in the country, and provides software solutions and support to about 42% of the top 100 enterprises listed by the CNGA.
There is an estimated 1,500 cutters in China, of which, over 700 cutters were supplied by Gerber Technology, representing almost 50% of the market in volume and 32% in sales terms.
Market evolution expected
Gerber's technology center in Shanghai |
Currently, there are more than 30 CAD/CAM software suppliers in China. Half of them are local operators and the other half from abroad. In the segment of cutting machines, there are three local players out of 13 suppliers. And among some 20 suppliers who are providing spreading machines and plotting machines, half of them are locally-based, with the rest being foreign-owned companies.
He took Japan as an example, saying that Japan had less than three domestic suppliers in the field when Gerber Technology acquired a local company 20 years ago. By the 1990s, numerous suppliers emerged and there were once over 40 suppliers in this field. About 10 of them have remained in the market till today. Similarly, Mr Arthurs expects the China market to evolve as it develops.
In 2005, Gerber Technology laid down a "5x5" plan for its development in China, targeting a five-time growth in five years in number of employees, revenue, number of customers and so on.
It may take longer for the company to reach these targets following the global economic downturn. Moreover, competition is getting fiercer in Asia as there are more offshore investment activities within the region. For instance, China and India have started to invest abroad, such as in Vietnam and Bangladesh. Producers from Taiwan and Korea have also increased their production capacity in Vietnam. As the costs of fabrics and labour represent about 90% of the total cost for making an apparel, when these costs rise, it becomes critical to enhance productivity. The CAD solutions leading to improved operation and management thus lend a helping hand to apparel makers, Mr Arthurs said.
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