BOBBIN Expo 2000

Bobbin, Feb, 2000 by Jordan K. Speer

Mexico & Central America Caters to THRIVING Region

Mexico remains the leader in apparel exports to the United States, with year-ending August 1999 apparel exports up 20.4 percent to $7.3 billion over the previous 12-month period. In non-apparel sewn products, Mexico is the third largest exporter to the United States, behind China and Canada, with $1 billion and 1.7 billion SME in product shipped during the year ending August 1999.

The doors will open at this year's Bobbin Expo -- Mexico and Central America to a strong Mexican apparel industry that is still riding high on the NAFTA wave, as manufacturers continue to bolster their production capabilities and even look to expand exports across the oceans.

This second annual Bobbin Expo event, to be held March 28-30 at the World Trade Center in Mexico City, Mexico, is geared toward the Mexican and Central American marketplaces. Suppliers to the sewn products industry are expected to feature their latest products and technological advances at the show, including fabrics, equipment, software, CAD and sourcing services, among other offerings. In addition, the show's educational seminars will cover subjects including embroidery, screenprinting, textiles and fabrics, information technology and manufacturing management.

Also held in conjunction with the show will be a three-part nightly educational series (totaling nine hours) entitled "Survival Strategy," geared toward contractors that are striving to become full package providers.

Produced by the Bobbin Group of Miller Freeman Inc., this year's Bobbin Expo -- Mexico and Central America is sponsored by the American Apparel Manufacturers Association (AAMA), the Camara Nacional de la Industria del Vestido (CNIV), Mexico's main apparel association, and La Bobina, Bobbin's Spanish-language sister publication. It is once again supported by primary marketing partners Sunbrand and AMF Reece.

The 1999 Bobbin Expo attracted more than 5,000 attendees from 20 countries and four continents, and organizers expect an even larger crowd for this year's event. Jackie James, group show director, remarks: "The turnout at last year's Bobbin Expo -- Mexico and Central America, which is the only audited sewn products event in Mexico, was impressive. A diversified exhibitor base showed everything from sewing and cutting equipment, fabric, screenprinting and embroidery [machinery] to software and hardware and design systems. Our widespread marketing efforts throughout Mexico and Central America should draw an even larger number of qualified attendees this year."

Mexican Market Continues to Grow

Mexico remains the leader in apparel exports to the United States, with year-ending August 1999 apparel exports up 20.4 percent to $7.3 billion over the previous 12-month period. In terms of volume of merchandise shipped, this equates to a 20.3 percent increase to 2.2 billion square meters equivalent (SME).

In non-apparel sewn products, Mexico is the third largest exporter to the United States, behind China and Canada, with $1 billion and 1.7 billion SME in product shipped during the year ending August 1999, up 7.8 percent and 9.2 percent, respectively, over the previous 12-month period.

What's more, as of this writing, Mexico was close to finalizing a free trade pact with the European Union, which would likely take effect July 1, 2000. The accord would offer Mexico an opportunity to be less dependent on the United States as a customer for its exports. The United States was the destination for 88 percent of Mexico's exports last year, according to the Wall Street Journal.

In terms of foreign investment, Bancomext, the Trade Commission of Mexico, reports that there are 463 foreign firms in the textile and apparel industries in Mexico, representing investment totaling more than one half-billion dollars from 1994 through August 1997.

Other economic indicators also look good for Mexico. Inflation during the first nine months of 1999 was down to 9.5 percent, the lowest figure for that period since 1994, reports the Ministry of Finance and Public Credit of Mexico. In other statistics, Mexico's unemployment rate continues to drop, in September 1999 falling to 2.2 percent, which is down from 3.3 percent during the same month in 1998, and down from 2.8 percent in January 1999.

But what the numbers alone don't show is the country's tremendous growth in the area of full package production. To get a leg up on the competition from Asia and elsewhere, Mexican manufacturers are working to expand their capabilities to provide everything necessary to produce a floor ready garment.

Mike Grogan, vice president of Apparel Machinery & Supply Co., says his firm has recognized a definite trend toward full package production in both Mexico and Central America. "This includes cutting, sewing, finishing, packaging and shipping directly to the stores or distribution centers," he notes. "In some cases the operation is completely vertical from fabric to store or distribution center."

Sharon Britt, marketing development manager, Avery Dennison Worldwide Ticketing Services, concurs, noting the many added advantages for those companies moving toward vertical production. "Many organizations are discovering that verticalization can reduce production costs, eliminate customs and duty charges and allow for shorter lead times," she emphasizes.