Small clothing manufacturers in the Johannesburg inner city

Inner-City economic revitalisation through cluster support: The Johannesburg clothing industry

“…In general, it is expected that the industry as a whole must undertake a conscious move out of the lower end of the market and become more export-oriented, focussing on value added products and niche markets. In addition, through the adoption of what were earlier referred to as dynamic adjustment strategies the clothing sector must improve industry productivity through enhanced human resource development, work organisation and improved technology (CloFed, 1998;Kesper, 1999). Nationally, there are signs that the industry is restructuring in order to meet the challenges of new global competition (House and Williams, 2000).…”

“…It is evident that the 1990s have seen a period of considerable change and restructuring in the inner-city clothing economy of Johannesburg (Kesper, 1999). Key features of this restructuring have been the progressive emasculation of the formal clothing economy, particularly in the wake of competitive imports, and the parallel rise of a burgeoning small-enterprise clothing economy, dominated by black South African entrepreneurs (the majority, women entrepreneurs) and yet with an increasingly important segment of production from immigrant-run businesses.…”

“…By contrast to static strategies are those dynamic organizational changes which occur when enterprises implement practices that permanently address their capacity to respond to changing market circumstances (see Kesper, 1999). Amongst these kinds of strategies are process innovations, organizational changes, the introduction of new technologies or programmes for skills development that enhance human resource development.…”

“…It is evident from the findings of several regional and national studies of the clothing industry in South Africa that as historical options for labour displacement are closed off in a post-apartheid regulatory environment, domestic producers have to restructure in order to survive in an increasingly competitive global clothing market (Altman, 1994(Altman, , 1996Prinsloo, 1996;Harrison and Dunne, 1998;Kesper, 1999). In particular, a new emphasis upon dynamic changes, increased flexibility, quick response and process innovations is seen as critical.…”

“…In 1980 there was an estimated 232 factory establishments with nearly 15 000 employees; a decade later the factory establishments were down to 170 in total with 13 500 workers; by 1999 it was evident that the numbers of factories was further reduced to 111 offering only 9000 employment opportunities within Johannesburg inner city (cf Rogerson and Rogerson, 1995;Rogerson, 2000b). Key reasons for this loss of formal employment and closure of formal clothing factories are those of (1) low productivity, (2) a concentration of Johannesburg producers on the lower-income end of the clothing market which is particularly sensitive to competition from imports, and (3) a reluctance of clothing enterprises to undertake dynamic adjustment strategies that might contribute towards enhanced competitiveness (Kesper, 1999).…”