Market research and reliable machinery are key to a new garment manufacturer’s success
With global revenue expected to exceed $1.7 trillion in 2023, the garment industry is one of the largest industries in the world. This makes it a competitive but potentially lucrative area for entrepreneurs.
Read on for a seven-step breakdown of how to set up a profitable garment manufacturing business in 2023.
1. Specialize in a niche garment type
Since the garment industry is a crowded field with most production of everyday garments happening in low-cost manufacturing centers overseas, it’s wise to find a niche that’s specialized, profitable, and in demand. In one study, the majority of US textile and apparel companies surveyed reported using a niche strategy had boosted their profits and market share, especially because it had helped protect them from overseas competition with lower prices.
With this in mind, new garment manufacturers are advised to focus on a specialized apparel type that’s growing in demand, such as athleisure or gender-neutral clothing. They can also exploit industry trends like the expected post-pandemic return of workwear and luxury fashion. Since nearly 20 percent of businesses in the US fail in their first year of operation, it’s crucial for new garment manufacturers to gain a foothold in the industry as soon as they can. Adopting a niche strategy is sure to help.
2. Register the business and obtain garment industry-specific certificates
Before going into business, new garment business owners must first register their business with the relevant government bodies where their business will be located. In addition to registering their business, garment manufacturers will need to acquire industry-specific certificates. Garment manufacturers located in the United States will need to acquire a Garment/Apparel Certificate from the federal government, which they can only do after acquiring a Federal Employer Identification Number.
Depending on their location, they may also need to gain permits from various state, city, or county bodies. In New York state, for example, garment manufacturers must file with the state’s Department of Labor every year to retain their Apparel Industry Certificate of Registration. In California, new garment business owners have to secure a Garment Registration Certificate from the state’s Department of Industrial Relations, which like New York’s must be renewed each year. To get this certificate, they need to complete an exam that tests their knowledge of laws and regulations to do with garment manufacturing and occupational health and safety. Each country has their own certificates and permits to legally do business, so it’s important to do your due diligence on barriers to entry before signing your first customer.
Depending on their location, they may also need to gain permits from various state, city, or county bodies. In New York state, for example, garment manufacturers must file with the state’s Department of Labor every year to retain their Apparel Industry Certificate of Registration. In California, new garment business owners have to secure a Garment Registration Certificate from the state’s Department of Industrial Relations, which like New York’s must be renewed each year. To get this certificate, they need to complete an exam that tests their knowledge of laws and regulations to do with garment manufacturing and occupational health and safety. Each country has their own certificates and permits to legally do business, so it’s important to do your due diligence on barriers to entry before signing your first customer.
3. Find a manufacturing location
New garment manufacturers need to find a manufacturing location with enough space to fit both the manufacturing equipment and storage space for raw materials and finished product. It takes an area of about 600 square feet to mount garment manufacturing machinery. The facility must have a reliable water supply, electricity supply, and drainage capacity. It also helps if the production plant is near to raw material suppliers and, ideally, customers as well.
4. Buy the right equipment
Once new garment manufacturers have rented out a manufacturing facility, they need to outfit their facility with manufacturing equipment that suits their production needs. Garment manufacturing requires an array of different machines, including:
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Spreading machines for laying out fabric
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Cutting machines for cutting fabric to design
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Pressing machines for reshaping garment pieces
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Sewing machines for piecing garments together
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Fabric fusing machines for bonding fabric garment pieces to interlining
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Heat press machines for transferring logos and patterns to fabric
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Fabric inspection machines for quality control
Garment manufacturing machines come in manual, semi-automatic, or fully automatic varieties. Automatic machines tend to have higher start-up costs, but these machines bring higher profits in the long run thanks to their superior efficiency. Manufacturers are advised to find a supplier who can provide all or most of the equipment they need, as this makes it possible to integrate machinery and means only one call will have to be made for maintenance and repair.
5. Hire skilled factory workers
Even if a new garment business owner opts for automatic machinery, they’ll still need to hire skilled workers to keep the machinery running and oversee production. In powerhouse manufacturing regions such as India, skilled workers can be hired directly from training centers where students learn crucial skills like sewing. Training centers are a promising source of workers who are disciplined and reliable, and who plan to stay with one employer for the long term. Hiring from training centers also cuts down on in-house training costs. As smart digital machinery becomes increasingly prevalent, it’s also wise to find workers who are tech-savvy and able to adapt to changes in manufacturing methods.
6. Find reliable suppliers
New garment manufacturing businesses also need to find reliable suppliers from which to source raw materials. They can find suppliers by searching online or visiting industry trade shows. Business owners should conduct research on potential suppliers to make sure they have a solid reputation among established garment manufacturers. As sustainability becomes a greater concern for governments, non-governmental organizations, and consumers, new manufacturers would do well to source organic, recycled, and/or recyclable materials to reduce their carbon footprint and attract eco-friendly customers.
7. Make samples for buyers
Of course, beyond legalities and setting up a production center, there’s one thing every business needs before anything: customers. For a new garment manufacturing business, these customers will be clothing brands who sell products in the business’s niche. New garment manufacturers should prepare product samples to share with prospective customers. Garment manufacturers are advised to hire a professional patternmaker or technical designer to prepare their product samples’ blueprints and specifications. This will help ensure the quality of samples, which is crucial for earning the trust of potential buyers. Prospective customers will also expect discounts on high-volume or regular orders.
Conclusion
Starting a garment manufacturing business takes a lot of planning and forethought. New garment business owners must first establish a niche that’s both specialized enough to help them stand out and popular enough to help them attract customers. They must then register their business and secure permits specific to the garment industry. After that, it’s time to set up a factory with sufficient space, suitable manufacturing equipment, and skilled workers. Finally, it’s necessary to find suppliers with solid reputations, and to attract customers using discounts and product samples. But if new garment business owners have a strong vision for their business and the means to realize it, these initial efforts are bound to pay off.
A supplier of garment manufacturing machinery for almost all stages of production, OSHIMA works with garment manufacturers of all sizes to provide machinery suited for their specific manufacturing needs, with strong after-sales support. Contact us today to find out how we can help new garment manufacturing businesses get off the ground.
