THE WOMEN'S APPAREL MANUFACTURING

INDUSTRY IN FLORIDA

By

BARRY JAY HERSKER

A DISSERTATION PRESENTED TO T H E GRADUATE COUNCIL OF

THE UNIVERSITY OF FLORIDA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

DEGREE OF DOCTOR OF PHILOSOPHY

UNIVERSITY OF FLORIDA

August, 1962

Copyright by

BARRY JAY HERSKER

1962

ACKNOWLEDGMENTS

The author wishes to express his appreciation to those who

have offered their invaluable assistance in the preparation of this

dissertation. Initially, he gratef'ul.ly acknowledges the professional.

advice and guidance furnished by the members of his Supervisory Com­

mittee: Dr. J. D. Butterworth, Chairman; Dr. Ralph B. Thompson, Co­

Chairman; Dr. Ralph H. Blodgett; Dr. C. A. Matthews; and Dr. W. V.

Wilmot, Jr.

The author is also indebted to the many persons who have

generously supplied information based upon their years of practical

experience within the woaen's apparel industry. Much practical.

information and advice was gi'Y8n by Mr. Martin O. Kahn, former

Fashion Coordinator of the R.H. Macy Company in New York City.

Mrs. Belle Bermann, Executive Director of the Florida Fash.ion Coun­

cil, and the members of that organization furnished val.uable infor­

mation concerning the nature of the Florida industry. Mr. Charles

s. Zimmerman, Vice-President of the International Ladies' Ga.rm.ant

Workers• Union, and Mr. Robert Gladnick, Manager of Local 415, in

Miami, personally furnished much infonnation on unionization.

To these persona, and to many others within the industry,

some of 'Whom specifically requested that they not be identified, the

author expresses hie gratitude. Of course, the author alone accepts

full resporu,ibility for all errors 'Which this dissertation may be

found to contain.

ii

TABLE OF CONTENTS

ACKNOWLEOOMENTS • . . . . . . . LIST OF TABLES . . . . . . . . . . . . . . . . . Chapter

I.

II.

nrmoroCTION • . . . . . . . . . . . . . .

Con.fusion Concerning the Fashion Industry

Objectives of this Study •••••••••

Manufacturing Establishments Included in the Women• s Apparel Manufacturing Industry

General Nature of Research Employed within thia Stu<ly • • • . • . • • •

THE NATURE OF mE WOMElP S APP AREL MANUFACTURING INIUSTRY IN FLORIDA

Development of Women's Apparel Manufacturing in florid.a . . . . . . . . . . . . . .

Women• s Apparel Manufacturing Relative to All Manufacturing in Florida •••••••

Location of Women's Apparel Manufacturing Establishments • • • • • • • • • • • • • •

III. THE 'IBREE MAJOR CLASSIFICATIONS OF WOMEN'S APP AREL

Page

ii

viii

1

B

7

8

10

12

15

17

24

MANUFACTURING ESTABLISHMENTS IN FLORIDA. • • • • • 35

Production of Women's, Misses', and Juniors' Outerwear • • • • • • • • •

Relative Importance and Development of Women's Outerwear Kamifacturing •••• 55

Types of Garments Included in Women's Outerwear 58

iii

Chapter

TABLE OF CONTENTS--Continued

Production of Girls', Children's, and Infants' Outerwear •••• . . . . . . . . . . Production of Women's Misses', Children's and Infants' Undergarments ••••••••

IV. THE GENERAL NATURE OF THE PHYSICAL ENVIRONMENT FOR

Page

41

45

~MEN• S APPAREL MANUFACTURING • • • • • 48

v.

Physical Plant and Capital Requirements

Labor

Availability of Raw Materials

Proximity to Market

THE PHYSICAL ENVIRONMENT FOR WOMEN' S APPAREL MANUFACTURING IN FLORIDA • • • • • • • •

Physical Plant and Capital Requirements in. florida . . . . . . . . . . . .

Labor in the Florida Environment ••

"Workers • . • • • •

. . . . .

. . . . .

Legal Minimum Wages.

Extent of Unionization . . . . . . . . . . . . Wages in Nommionized FirJlls ••

Wages in Unionized Firms

Nature of Wages md Wage Costs

Reactions to Unionization •••

. . . . . .

'Ihe Availability o! Raw Materials in Florida.

The Florida Market Area . . . . . . . . . . . . .

iv

48

53

57

60

63

64

70

70

74

75

78

80

85

86

92

98

Chapter

VI.

TABLE OF CONTENTS--Continued

THE ORIGINS OF APPAREL DESIGN AND FASHION CREATION. • • •••

Importance of Style

Style, Fashion, and the Fashion Cycle

Influence of Parisian Style Innovation.

Acceptors of the Haute Couture

Private Clientele.

Manufacturers and Retailers.

The Fashion Editors •••••

Prerequisites for Acceptable Style Innovation

Relationship between Site of Production and Style Innovation •••••.••••

Historic Importance of Parisian Fashions

Explanations for Parisian Supremacy

Translation of French Innovations into

Page

101

102

105

106

108

109

109

ll0

ll0

115

ll6

ll8

American Fashions • • • • • • • • • • • • • • • • • • 122

VII. THE FASHION ENVIRONMENT FDR APPAREL MANUFACTURING IN FLORIDA • • • • • •

Wages and Production Costs in Florida

other Advantages Noted by Florida Women's Apparel Manufacturers ••••

Product Identification

Advantages of Specialization

Advantages of a Fashionable Location '

V

126

127

152

155

154

154

TABLE OF CONTENTS--Continued

Chapter Page

VIII.

Trade Associations and Collective Action. . • • . 156

A Tax Advantage of Florida Purchases

Ability to Innovate High Style

'.the Florida Apparel Manufacturer as an Innovator of Fashion • • • • • • • • •

SUMMA.RY AND CONCLUSIONS

Sl.mmtacy • • • • • • • • •

Nature of the Women's Apparel Manufacturing iD. Florida . . . . . . . . . . . . . .

Three Major Classifications of Women's Apparel Manufacturing Establishments

General Nature o~ the Physical Enrtronment for Women.' s Apparel Manufacturing • • • • .

Physical Environment for Women's Apparel Manufacturing in Florida .•••.••.

General Considerations of Apparel Design

156

157

158

146

146

146

147

150

151

and Fashion Creation • • • • . • • . . • 155

Fashion Environment for Apparel Manufacturing in Florida • • • • • • • • • • • . 157

Conclusions

Future De~lopment of the Women's Apparel Industry in Florida ••••••••••

Relationship of Florida to the National. Industry • • • • . • •

Observations on Florida's Physical Environment • .••..••....

Florida ae a Site for Fashion Innovation

vi

159

159

161

163

168

Chapter

TABLE OF CONTENTS--Continued

The Nature of Future Production • .

Recommendations for Further Study

The Women's Apparel Industry

Other Fashion Industries in Florida.

PUBLISHED WORKS CITED •

BIOGRAPHICAL SKETCH . •

vii

Page

. . 169

171

171

172

174

177

Table

1.

2.

5.

4.

s.

6.

7.

8.

9.

10.

ll.

LIST OF TABLES

Women's Apparel Manufacturing in Florida: General Statistics with Comparative United States Data: 1958, 1954, 1947 ••

WOlllell's Apparel Manufacturing and All Manufacturing: General Statistics with Index of Change: Florida, 1958, 1954, 1947

Establishments Manufacturing Apparel and Related Items by :Employment Size Class for Five Florida Counties: 1958, 1954, 1947

Women's Apparel Manufacturing in Florida: Number of Establishments and Employees for Five Counties, 1962, 1960, 1957 ••••••

Women's Outerwear, Undergarments, and Children's Wear Manufacturing in F1.orida, 1958 and 1954 ••••••••••••••

Women's, Misses•, and Juniors' Outerwear Manufacturing in Florida: General Statistics: 1958, 1954, 1947 • • • • • • • • • • • •

Types of Women' s Outerwear Manufacturing Establishments in Florida: General Statistics, 1958 . . . . . . . . . . . . . . . . . . .

Girls', Children's, and Infants' Outerwear Manufacturing in Floridaz General Statistics, 1958, 1954, 1947 •••••••••••••••

Women's Undergarment Manui'acturing in Florida: General Statistics, 1958, 1954, 1947 •••••

Twenty Women• a Apparel Manufacturing Establishments: Survey of Net Worth, Sales, Trade Payments, History, Number of Employees, and Establishment Area, F1orida, 19 62 . . . . . . . • . . . . . . . . . . . . .

Textile Mill Production within Dade County, Florida, 1961 • • • • • • • • • • • • • • •

viii

Page

14

18

26

56

40

45

46

67

94

CHAPTER I

INTRODUCTION

The general development of the Florida economy has become

a topic of increasing importance in recent years, not only to state

and local officials interested in fostering additional progress, but

also to business executives who are directly concerned with the prof­

itable exploitation of Florida's economic potential. It is the

conviction of the writer that substantial. further investigation should

be directed at individual industries within this state, in an effort

to ascertain the significance of current developments, as well as to

furnish indications of the future course of business growth within

the Florida economy.

The total increase in manufacturing activitie3 in Florida,

for example, is reflected in statistical data furnished by the

U.S. Census of Manufactures. In 1958, the total number of manufac­

turing establishments was 224.6 per cent of the nµmber of such estab­

lishments in 1947, and the value added by such manufacturing reached

a level over 405 per cent of 1947 value. It may be further noted

that total manufacturing employment in 1958 was 213.3 per cent of

1947 employment, while total payrolls of these establishments reached

388.9 per cent of the 1947 totalo1

1 U.S., Bureau of the Census, U.S. Census of Manufactures:

1958, Florida, Area Report MC 58(3)-9, 1961, 5, Table 2. Percentage computations by the author.

1

2

In Florida great emphasis has been placed upon the develop­

ment of significant light . industry which can profitably utilize local

labor and resources with a m1nbmm of capital investment. In addi­

tion, these industries may need to utilize raw materials and supplies

lihich are unobtainable locally, but which can, by the nature of their

shipping costs, be incorporated into finished products with suffi­

cisnt value in relationship to their weight and bulk to permit proi'it­

able distribution of these items to both local and distant markets.

In this category one would include the manufacturing industry engaged

in styling, manufacturing, and distributing women's apparel.

It appears to this writer that the women's apparel manufac­

turing industry, with a.11 of' its varied activities and ramifications,

would be worthy of particular investigation and study. Not only is

women's apparel produced by light industry, but it may, by its very

nature, be in a position to profit by association with Florida's

reputation as a national and international resort area. Fashion­

ability of women's apparel might logically be enhanced by the com­

plementary association of this product with a glamorous site of

production.

Further, it has been noted that the fashion world no longer

concentrates its attention upon all four seasons. Rather, it is be­

coming increasingly recognized that winter and summer are the tw

basic seasons of the year which dominate fashion trends throughout

the entire industry. 1 This development raises the question whether

South Florida is therefore in an even more advantageous position

relative to fas.non goods, since it might serve as a national or even

international center for the innovation and perpetual testing of

summer fashions.

Confusion Concerning the Fashion Industry

There are few industries 'Which, for the uninitiated at least,

appear as mysterious as does the women's fashion industry. The very

process by which style change occurs and fashion results seems,to

many observers, arbitrary, if not capricious, in its nature. This

belief is not of recent origin--throughout the ages it has been said

that fashion has no rules, and that it is one of the most unpredict­

able of human phenomena. Seneca is quoted as having written to

Lucilius: "Style has no fixed laws: it is changed by the usage of

the people, never the same for any length of time." 2

In 1928, Paul H. Nystrom noted that the world of fas.11.ion had

continued to present a Ilzy'stery to most observers:

1Martin o. Ka..11.n, "The Death of the Four Seasons," keynote address at the national convention of the National Retail Dry Goods Association, Hotel Statler, New York City, January 15, 1955. Mr. Kahn was formerly Chairman of the Ready-to-Wear Group of N.R.D.G.A. and Executive Fashion Director of the R.H. Macy Company, Nev York.

2 Agnes Brooks Young, Recurring 9tcles of Fashion, 1760-1957

(New York: Harper Brothers, 1957), p. vii..

5

Exceedingly important as fas.11.ion is both to the individual consumer and to all business catering to the fashion demands of consumers, probably less is known about it than about any other human activity. Oceans of material have been written and spoken about fashion, but there is very little that shows what f as.11.ion really is, how it arises and declines, what its causes are and what principles govern its activity. 1

4

It was Dr. Nystrom1 s intention "to make a beginning in set­

ting up the principles governing the movements of fashion. 112 In the

performance of this task, he recognized the need to utilize t.~e

studies of economics and social psyc.~ology. For example, Dr. Nystrom

noted that the views expressed by Veblen in The Theory of the Leisure

Class offer insight into t.~e character and direction of fashion

movement.

'lhere are, in general, two ways in which wealth may be demonstrated. 'l'"ne first is by means of habits of life that will indicate to the social world that the con­sumer need not work for a living, or, as Veblen expresses it, proving the possession of wealth by conspicuous lei­sure. The second method of demonstrating the ownership of wealth and power in its use is by means of conspicu­ous consumption. In every case in which the power of wealth is dominant either one or both of these methods of demonstration of wealth is likely to appear.3

1Paul H. Nystrom, Economics of Fashion (New York: Ronald Press Company, 1928), p. 8.

2Ibid.

5:rbid., p. 97.

Based upon his analysis of the implications of Veblen's

theory, Dr. Nystrom comments as follows:

Here then are two important rules regarding fash­ion. If weal th is as muc.>1 a dominating factor as has been suggested here, then in the creation of new designs and in the promotion of new styles in the development of fashion, the styles should go as far as possible in proving that the owner does not have to work for a living. Secondly, to be­come a successful fashion, a style must appear expensive, not crudely, but artistically if possible, but always expen­sive. T"ne degree of artistry, of course, will depend upon the sophistication of the people who are to be impressed by the style. To put this another way, commercial interests attempting to promote fashions are almost certain to fail il the goods or styles they offer do not sufgest conspic­uous leisure and conspicuous expensiveness.

5

Unfortunately, very few sc.liolars have since continued this

research, especially as it relates to the industry which creates fash­

ion. That an ocean of material has continued to pour forth is readily

apparent; such material, however, is ill suited to fulfill the need

for economic research. Dr. Nystrom's observations continue to be as

true today as they were when originally presented in 1928:

The writers and students of fashion have for the most part confined themselves to fashion news such as reporting the observed fashions at gatherings of fashionable people, and to fashion prediction in articles that are, more of'ten than not, inspired and intended to influence consumer demand in order that certain manuf'acturers' goods might be sold. other statements have appeared on the economic wastes of fashions, their i.nmorality and sinful­ness; still others have appeared on the evils of tight lacing and ••• against tight shoes, hig.11 heels and scanty clothing.

1Ibid., p. 105.

Then there are always with us the smartly written fashion articles trying to be funny. Fashion seems to have long been one of the seven original jokes. The title of a recent article along this line was "The Ter­rible Consequences of Clothes with Women in Them. 11 1

6

Many "scholarly" presentations of recent date are psycholog­

ical in nature, but are for the most part only interesting reading of

an intangible and speculative character, 'Which attempts to dissociate

consumer motivations relating to style change from the very function­

ing of the industry which creates this innovation.

Other current publications which might initially seem promis­

ing all too often prove to -have been written to satisfy the needs of

those female adolescents who feel compelled to explore the career

possibilities of the "glamorous and exciting world of fashion. 112

Despite the lack of scholarly literature 'Which relates the

economics of fashion to the industry which produces style goods, the

principles involved are not nebulous or recondite, as some mig.~t con­

clude. T"ne production of women's apparel is one of the nation's

major industries; one authority does not hesitate to rank it with steel,

building, and food production. 5 The total value of production of

lrbid.

2See, for example, Frieda Steinman Curtis, Careers in the World of Fashion (New York: Women's Press, 1955), which contains advice on "The Personal Qualifications You Need," such as "Adapt-ability, 11 "Imagination, 11 11 Curiosity, 11 and "Desire to Reach Perfe?tion, 11

and "Skills You Must Develop," such as "Making the Most of Yourself," "Ability to Work with Others," "A 'Flair' for Fashion," etc. (pp. 9-24).

5 . ( Bernice G. Chambers, Fashion Fundamentals New York: Prentice-Hall, 1950), p. 205.

women's apparel in the United States exceeded f7.5 billion in 1958;

the value of the production of women's dresses alone exceeded $4

billion. 1 It hardly seems plausible that an industry of such magni­

tude could profitably operate in the production of fashion goods

without considerably more academic effort having been devoted to its

study.

Quite obviously, the functioning of this industry in the

United States has evolved along lines which indicate a considerable

order of function, not only in manufacturing, but in style innovation

as well. In fact, it is the consistency within the functional nature

of the industry itself which makes possible an investigation of the

relative success which apparel manufacturing activities can be ex­

pected to enjoy in a given geographic area.

Objectives of this Study

When viewe.d in its entirety, this :study has two fundamental

and interrelated objectives1 first, to investigate and describe the

nature of the women's apparel manufacturing indu.stry in Florida, in

terms of both its recent growth and its current status; second, to

determine the most profitable course for its future development.

1u. s., Bureau of the Census, U. s. Census of Manufactures: 1958, Industry Report MC 58(2)-2513, 2; Industry Report MC 58(2)-25C, 'l;Industry Report MC 58(2)-25D, 2-6. '.lhe total value of production of all women's apparel includes S.I.C. 253 through 258; for women's dresaaa, it includes S.I.C. 235.

7

In accomplishing these objectives, especially the latter,

it is also necessary to devote considerable attention to the func­

tioning of the national industry. Only by relating such material to

the Florida industry can sufficient perspective be gained to permit

conclusions relative to local development.

Manufacturing Establishments Included in the Women 1 s Apparel Manufacturing

Industry

8

The definition of the women's apparel manufacturing industry

as it currently exists in Florida presents some dif'ficulty in the

utilization of census data. In the case of manufacturing establisJ1-

ments, such data (presented in accordance with the Standard Industrial

Classti'ication Manual) must be regrouped to conform with the require­

ments of this study. Further explanation of precise areas to be in­

cluded is therefore desirable.

The manufacturers' classification of women's apparel will

include the Standard Industrial Classification number 234, women's,

misses', children's, and infants' undergarments. This grouping

includes:

Industry number 2341:

Establishments primarily engaged in manufacturing women's, misses', children's, and infants' underwear and nightwear cut and sewed from purchased woven or knit fabric.

Industry number 2342:

Establishments primarily engaged in manufacturing corsets, corset accessories, or allied garments.l

9

Manufacturers' classification of women's apparel shall also

include classification number 233, women's, misses', and juniors'

outerwear. This grouping includes industry number 2331, establish­

ments primarily engaged in manufacturing women's, misses', and juniors'

blouses, waists, and shirts, cut and sewed from purchased woven or

lmit fabric. Also included in classification number 233 are:

Industry ntm1ber 2335:

Establishments primarily engaged in manufacturing women's, misses', and juniors' dresses, including ensemble dresses, whet..~er sold by the piece or by the dozen.

Industry number 2337:

Establishments primarily engaged in manufacturing women's, misses', and juniors' suits, skirts, and coats except fur coats and raincoats.

Industry number 2:339:

Establis.~ents primarily engaged in manufacturing women's, misses', and juniors' outerwear, not elsewhere classified, cut and sewed from purchased woven or lmit fabric. 2

Manuf'actu.rers' classification of women's apparel shall also

include Standard Industrial Classification number 256, girls',

1 Bureau of the Budget, Technical Committee on Industrial Classification, Standard Industrial Classification Manual, 1957,

2Ibid.

10

children's, and infants' outerwear. This grouping includes:

Industry number 2361:

Establis.'llllents primarily engaged in manufacturing girls', children's, and infants' dresses, blouses, waists, and skirts, cut and sewed from purchased woven or knit fabric.

Industry number 2363:

Establishments primarily engaged in manufacturing girls', children's, and infants' coats and suits, cut and sewed from purchased woven or knit fabric.

Industry number 2369:

Establishments primarily engaged in manufacturing girls', children's, and infants' outerwear, not elsewere classif'ied, cut and sewed from purchased woven or knit fabric. 1

General Nature of Research Employed within this Study

If' the report which follows is to reflect accurately the con­

ditions relevant to the Florida industry under examination, the data

must largely be derived directly from within the industry itself.

Such research necessitates that persons within the industry be inter­

viewed, since it is t..~eir honest appraisal of local conditions 'Which

will largely influence future activities within Florida. In large

measure, the author has deliberately relied upon such primary research,

both to determine the true nature of present activities, and to fonn

a basis for conclusions relevant to grovth potentials.

1 Ibid., p. 62.

ll

Due to the highly competitive nature of the fashion industry,

many of those interviewed requested that their names be withheld.

In fact, in many instances, the author's assurance t.~at the persons

interviewed would not be identified was a necessary prerequisite to

the interview itself. Wherever possible, t.~e source of such material

is documented; in other cases, however, the author has included a min­

imum explanation of the general position of the interviewee within the

industry.

To obtain the statistical material contained within this re­

port, the author has found it advisable to rely heavily upon informa­

tion furnished by the United States Bureau of the Census. For exam­

ining the development of specific classifications of manufacturing

activities within the industry, however, such information is frequently

incomplete. Data presented in accordance with the Standard Indus­

trial Classification of 1957, are not available for prior years, nor

are data currently available for the years following 1958. Further,

during census years in which only a few firms of a given classifica­

tion are engaged in manufacturing operations within an area, vital

information may be withheld by the Bureau of the Census, to avoid the

disclosure of specific infonnation which was reported by the individ­

ual companies. It was necessary, therefore, to rely also upon other

sources, including trade publications, Chamber of Commerce publica­

tions, personal interviews, and occasionally, confidential credit

reports, to obtain the necessary infonnation.

CHAPTER II

THE NATURE OF THE WOMEN'S APPAREL MA.NUFAC'IDRING INWSTRY IN FLORIDA

The manufacturing of women's apparel is one of the most

important industrial activities in the United States. In 1961, over

350,000 workers were employed in the approximately 10,000 establish­

ments which manufactured women's outer garments. In addition, one

must consider that another 77,000 persons, working in approx:I.Jnately

2,000 establishments, are engaged in the production of children's

clothing. The corset and allied garment industry employs still

another 38,000 workers; the knit-goods industry employs 60,000; and

the millinery industry employs 20,000 in the production of those

respective items in the United States. Total employment is thus in

excess of 500,000 workers.1

Apparel manufacturing was the first segment of the women's

fashion industry in Florida to evidence signs of sound business

development. Many firms have been in existence for over twenty years;

a few employ well in excess of 100 persons. In Florida, as in

California or New York, the industry is highly competitive. Manu­

facturers and salesmen, -while they enthusiastically participate in

~aren R. Gillespie, "Apparel and Accessories for Women, Misses, and Children," Small Business Bulletin, No. 50 (Bibliography), Washington: Small Business Administration, May, 1961, p. 1.

12

trade organizations and joint selling efforts, are extremely reluc­

tant to divulge infonnation relating to the true scope and nature of

their business activities.

De~ent of Women's Apparel acturing in Florida

13

Examination of the extent to which the manufacturing of

women's apparel has devel~ped in Florida can be undertaken initially

through a survey of available aggregate statistics. The development

of this manufacturing is depicted for the years 1947, 1954, and 1958

in Table 1.

The 1947 to 1958 interval has evidenced both rapid development

and strength of growth within the women's apparel manufacturing indus­

try in Florida. During this period, the number of such establish­

ments tripled, and establishments employing over 20 persons increased

sixfold. Total employment in these Florida establishments was more

than 535 per cent of the 1947 level, while suc..11 national employment

was only slightly over 121 per cent of what it had been in 1947.

It may be further noted that, -while such national employment showed

a minor decline of 1.2 per cent between 1954 and 1958, such employ­

ment within Florida continued to increase by almost 9.5 per cent dur­

ing this same interval. This provides additional evidence of the

strength of this development within Florida.

14

Year

I

1958

1954

1947

TABLE 1

~• S APPAREL a MANUFACTURING IN FLORIDA: GENERAL STATISTICS WITH COMPARATIVE UNITED STATES

DA.TA: 1958, 1954, 1947

No. of All Production Estab. Employees Workers

Ill G) ¢)

M ~ ID 0 ,--l ~, ...--.. 8...--.. ~8 s.. M 00 .....

i 00

i ::i::o

as .i:: a> ~.i 10

-+" -+" M ' § ....... 0 :£ :S E-t ,::i.. .._,, :::E: .._,,

149 60 3,581 10,616 5,024 5,457

125 i 51 5,271 7,849 5,122 5,252

48 10 669 1,261 595 NAC

...--.. 0 0

IDO ., '"' «lar-i

~~

7,842

6,255

1,045

Source: U. S., Bureau of the Census, U. S. Census of Manufactures: 1958, Florida Area Report, MC 58(5)-9, 8; Industry Report, ~(2)-25!3, 7-9; Industry Report, MC 58(2)-25C, 8-9; U.S. Census of Manufactures: 1954, I, 8-9; U. S. Census of Manu­factures: 1947, III, 145.

a.nus table includes Standard Industrial Classifications 235, 254, and 236. In 1947, full statistics on S.I.C. 254 were not fur­nished by Census due to Disclosures Rule; the author supplemented the establishment and employment figures on the basis of data found in: Florida State Chamber of Commerce, Directory of Florida Industries ( Jacksonville: Florida State Chamber of Commerce, 1958) and U. S., Bureau of the Census, U. S. Cenaus of Manufactures: 1947, II, 229. Understatements present in the remaining columns are relatively slight, since supplementary data included only two small firms.

15

TABLE 1--Extension

Number of Employees for the United .. States and Comparative Indexes DJ <D

E Index of 'M

k 'C ~ Employment Change

.0 a,,.-... cu 'O I) l§ 1947 • 100 ~ ~

.. DJ . ~~ <ll Cl)

'C +> ,.-... "' <oo r-1 r-1 ., cu . as o QJ~ :,.. J., 'O :::>

C) ~ 0 ~ .__,, ~ i . Fla. U.S. 'M ::s ... 1t): s.. ~ 'iii ~ ri ft!~ 0 0 ..,~ as ., r-i > ~ .__,, oz l:z:'.l ::=> fz.'<P--

17,082 401 552,155 555.:3 121.1 .0064

12,120 252 555,668 488.9 121.4 .0059

2,048 141 455,955 100.0 100.0 .0015

b,,or 1958, value added by manufacture represents adjusted value added, and for 1954 and 1947, unadjusted value added. Unadjusted value added is obtained by subtracting the cost of materials, supplies and containers, fuel, purchased electric energy, and contract work from the value of shipments for products manufactured plns receipts for services rendered. Adjnsted value added also takes into account (a) value added by merchandising operations (that is, the dilference be­tween the sales value and cost of merc.1'1andise sold without further manufacture, processing, or assembly-), plus (b) the net change in finished goods and work-in-process inventories between the beginning and end of the year.

cnata not available.

16

The strong development of women's apparel manufacturing is

not an isolated occurrence within the entirety of apparel manufactur­

ing in this state. Increasing recognition of the nature of this

growth and the strength which it has exhibited may be noted in the

following quotation, which recently appeared in a Miami publication

and which referred to the growth of all apparel manufacturing in

Dade County during the decade 1950 to 1960: "T'nis growth developed

against a flow of a national trend which has seen a 6.8 per cent

reduction in employee numbers in this manufacturing field. 111

In the entire women's apparel industry in the United States,

Florida concerns clearly play a minor role, but it is also true that

in the totality of all manufacturing activities in this country,

Florida manufacturers play a minor role. In view of both t.lie rapid

growth and the strength of development indicated by Table 1, however,

the author believes that women's apparel manufacturing will be a

significant factor in the economic development of the state of Florida.

While the statistics concerning the early development of any industry

in a given state may well be expected to be too meager to permit any

reasonable predictions regarding the future significance of these

developments on a national level within an already well-developed

industry, it seems readily apparent that this investigation may quite

profitably explore the economic implications of this infant industry

wit.'lin the rapidly developing state of Florida.

1Metropoli tan Miami Memo, Vol. II, No. 5 (January, 1961), p. 4.

Women's Apparel Manufacturing Relative to All Manufacturing in Florida

17

The role of women's apparel manufacturing activities as a

segment of all industrial activities within Florida appears worthy of

investigation in greater detail. Not only does such presentation

facilitate a current understanding of the relative importance of

women's apparel manufacturing within the Florida economy, but it may

also assist in furnishing an indication of the relative nature of its

future significance.

The manufacturing of women's apparel is contrasted with the

growth of all manufacturing activity in Florida for the years 1947,

1954, and 1958 in Table 2. For each of these years, index numbers have

been calculated by the author which relate the general statistics for

all manufacturing activities in Florida wit.~ the corresponding general

statistics for the women's apparel manufacturing industry in this

state, using 1947 as the base year.1 When vie-wed in this manner, it

is readily apparent that the percentage increase in these apparel man­

ufacturing activities has been considerably greater than the over-all

percentage increase of the total of all manufacturing activities in

this state during the interval 1947 to 1958.

1Index numbers based upon years prior to 1947 would be inappropriate due to the modest nature of activities in Florida before that t:une. Also, detailed information as presented in Table 2 is unavailable from the Bureau of the Census .for years prior to 1947, due to the Disclosures Rule.

Year

1958

1954

I 1947 i

TABLE 2

WOMEN'S APPAREL8 MANUFAC'IURING AND ALL MANUFACTURING:

Type of j I I Mfg. I I ! I

I

All Mfg. I I

Women's I Apparel I

I

I All Mfg.

I Women's i

Apparel I

All Mfg.

Women's Apparel

WITH INDEX OF CHANGEa 1958, 1954, 1947 (1947 • 100)

Estab- Employees Payroll lishments

...--.. ~s 1-4 1-4 Q) >< i ~ § o .. ><

l (I) (I)

"O "O ,~ "O s::: s:: i::

H H H

6,505 225 167,812 215 656,599 389

149 310 3,581 535 10,616 842

4,792 170 125,368 157 385,291 228

125 260 3,271 489 7,849 622

2,807 100 78,665 100 168,817 100

48 100 669 100 1,261 100

GENERAL STATISTICS

Value Added by Mfg,b

...--.. 0

§ 8., >< Q)

I j~ "O i:: I H

1,418,993 405

17,082 834

797,721 228

12,120 592

349,976 100

2, 048 100 -

Capital Exp., New

...--.. 0 ~s

§ " M (I)

!~ "O r:l H

120,789 241

401 284

104,651 209

252 179

50,052 100

141 100

I-' OJ

Source:

TABLE 2--Continued

U. S. Bureau of the Census, U. s. Census of Manufactures: 1958, Florida Area Report, MC 58~5)-9, 5-8J Industry Report, MC 58(2)-2513, 7-9; Industry Report MC 58(2)-25C, 8-9; U. S. Census of Manufacturess 1954, III, 109-7; U. s. Census of Manufactures: 1947, III, 145. Index cafculations by the author.

&women's Apparel includes Standard Industrial Classifications 233, 254, and 236 (see footnote a, Table 1).

bFor 1958, value added by manufacture represents adjusted value added, for 1954 and 1947, unadjusted value added (see footnote b, Table 1).

For example, employment within this period increased over

fivefold for women's apparel manufacturing establishments, compared

with an increase to slightly more than twice the prior level which

occurred within all manufacturing establishments. While actual dollar

value added by all manufacturing increased to about four ti.mes its

1947 level, value added by women's apparel manufacturing increased to

more t..lian eight ti.mes its 1947 level. Only in the expenditure of new

capital did this latter industry indicate a slight lag in 1954.

While this might well have been expected to occur, since the capital

requirements of apparel manufacturing are relatively modest, even in

this expenditure the over-all index of percentage change was greater

than the same index for all manufacturing for the entire eleven-year

period ending in 1958.

The reader is cautioned to note, however, that while the man­

ufacturing of women's apparel in Florida evidenced a much greater

percentage change than did all manufacturing in this state during the

entire eleven-year period 1947 to 1958, the total of all manufactur­

ing evidenced a greater percentage increase than women's apparel

manufacturing during the four years following 1954.

To further exemplify this development, one may note that,

-while employment in women's apparel manufacturing was 0.85 per cent

of total manufacturing employment in Florida in 1947, and while this

percentage increased to 2.15 per cant by 1958, employment in these

apparel manufacturing establishments had been 2.65 per cent of all

20

manufacturing employment in 1954. Similarly, value added by this

apparel manufacturing was 0.59 per cent in 1947, 1.20 per cent in

1958, but had been 1.52 per cent of total value added by all Florida

manufacturing in 1954.

21

Si.nri!arly, one may also note that, relative to the year 1954,

employment in women's apparel manufacturing increased by almost 9.5

per cent by 1958, yet employment in all manufacturing increased by

about 56 per cent during this same interval.

'lbe more recent trend for women's apparel manufacturing to be

developing less rapidly t.~an all manufacturing activity in Florida

from 1954 to 1958 could merely indicate that a more rapid advancement

in other areas of manufacturing activity had occurred. In such case,

it would be significant only in regard to the relative importance

of apparel manufacturing in the Florida economy. However, the exam­

ination of women's apparel manufacturing statistics themselves indi­

cates that the percentage of early increase in the apparel industry

actually did diminish between 1954 and 1958.

Assuming that the percentage increase in women's apparel manu­

facturing activities has begun to decline in Florida, then does this

simply reflect the .fact that development of an infant industry can

hardly be expected to maintain the large original increases calcu­

lated as a percentage value relative to the formative years of early

development? Or could it also reflect the presence of other elements

lihich, in fact, are hampering the increasing development of apparel

manufacturing activities in Florida? 'I'.he author believes that the

nature of future development may best be determined through the sub­

sequent availability of census data covering the interval 1958 to

1962. In the absence of such data, one must rely upon the examina­

tion of other sources of information currently available.

22

Beginning with the year 1958, one can note the number of

women's apparel manufacturing establishments through tabulation of

listings in the Directory of Florida Industries.1 'I'.he author's tab­

ulations from these directories indicated a total of 150 such estab­

lishments operating in the state of Florida in 1958. (This corresponds

very closely with census data for the same year, which indicated 149

establishments, as shown in Tables 1 and 2.) Using this same source,

the author tabulated employment figures, which indicated that approx­

imately 4,300 employees were working in these establishments in 1958.

'!his total employment figure was higher th.an that indicated

by the Census of Business in 1958. (The Census indicated a total

employment of 5,581 persons in this year, as shown in Tables 1 and 2

of this report.) 'I'.he author notes several possible reasons for this

discrepancy.

Census data renect the average yearly employment, derived on

a twelve-month basis, while the employment figures available for

1Directory of Florida Industries, 1956-1957 Edition; 1958 Supplement; 1959-1960 Edition; 1961 Edition; 1962 Supplement (Jacksonville: Florida State Chamber of Commerce).

inclusion in the industry directory tend to reflect employment at

times of greatest activity within the industry listed.

Insofar as such employment figures are based upon replies

from executives who are asked how many persons they employ, and who

are cognizant of the fact t.."1.at the inquiry is intended to furnish

information to be included within an industry directory, it may well

be expected that the information furnished will tend to be, if not

overstated, at least relatively optimistic.

2:3

However, even if the employment infonnation obtained contains

an upward bias, it may still be used to furnish some evidence of the

nature of growt..l-i over an interval of years. Such bias, if indeed it

exists, may be assumed to have been present in all years under inves­

tigation from the source in question, and this will not in itself

negate the value of such information when used to compare the years

in question in terms of growth.

In 1960 there were 174 listed establishments engaged in the

production of womem 1 s apparel in Florida, and these establishments

employed a total of approximately 5,000 persons. 1 By 1962, the

number of such establishments was 199. Employment was approximately

6,900 persons in that same year. 2

1Ibid., 1959-1960 Edition. Tabulations and adjustments by the author:--

2Ibid., 1961 Edition, 1962 Supplement. Tabulations and adjustments by the author.

24

Thus, total employment within the women's apparel industry

increased by approximately 25 per cent from 1958 to 1960, and

increased by approximately 40 per cent from 1960 to early 1962. Such

info:nnation would seem to indicate that the women's apparel industry,

in terms of percentage increase, has not encountered a slowing devel­

opment such as might be assumed from the examination of census data

for the years 1954 to 1958. On t..~e contrary, it appears that a vig­

orous growth is continuing in women's apparel manufacturing activ­

ities in Florida, and is actually accelerating during the current

period.

A clearer picture of the nature of developments within the

industry which were associated with accelerated growth may be found

in the more detailed discussion of t..~e apparel industry which follows.

Location of Women's A;fuiiarel Manufacturing Establi ents · ·

One of the most obvious characteristics of all apparel manu­

facturing activities in Florida is their geographic concentration.

This tendency for concentrated location has existed over a consider­

able period of time, and the development of such activities has been

a topic of considerable importance in Dade County. Evidence of such

concern may be cited by quotation from a recent publication compiled

by the Dade County Development Commission:

Fabric products, composed primarily of wearing apparel, is not a new industry in Metropolitan Miami.

In 1940, Metropolitan Miami had 42 apparel manu­facturing finns. 'lb.ese employed 500 persons.

By 1950 this industry had increased 112 per cent to 89 finns with 2,500 employees.

In the past decade, from 1950 to 1960, the number of finns increased 240 per cent to a record high of 505 firms producing fabric products.

During this period the number of employees in­creased fo an impressive full capacity of more than 6,200 workers.

25

It would seem especially desirable to note the distribution

of establishments and employees engaged in the production of all types

of wearing apparel within Florida. Table 5 of this report depicts

this establishment distribution by employment size class for the five

major counties in which these manufacturers were located for the years

1958, 1954, and 1947.

It can be noted that the relative importance of these five

counties as sites of apparel production has remained fairly constant

during this interval, both in terms of their relationship to all

establishments in Florida, and also in regard to the relative positions

which they hold relative to one another.

In 1958 these five counties contained over 87 per cent of all

establishments manufacturing apparel and related products in Florida.

1Metropolitan Miami Memo, Vol. II, No. 5 ( January, 1961), p. 4. These statistics include S.I.C. 251 and 252 (men and boys suits, coats, and furnishings). 'lb.is source reported that in 1960 there were 56 firms producing such goods, and employing approximately 1, 555 persons •

TABLE :3 .,.

ESTABLISHMENTS MANUFACTURING APP AREL AND RELATED ITEMSa BY EMPLOYMENT SIZE CLASS FOR FIVE FLORIDA

COUNTIES: 1958, 1954, 1947

Number of Establishments County

1958 1954 1947

Dade 1 to 19 Employees 161 128 54

20 to 99 Employees 65 57 12 100 to 249 Employees :3 2 --

Broward 1 to 19 Employees 15 10 2

20 to 99 Employees :3 2 --100 to 249 Employees -- -- --

Hillsborough 1 to 19 Employees 8 8 5

20 to 99 Employees 4 :3 1 100 to 249 Employees 2 2 1

Pinellas 1 to 19 Employees 9 9 4

20 to 99 Employees 2 1 --100 to 249 Employees 1 -- --

Duval 1 to 19 Employees 7 2 6

20 to 99 Employees 2 4 7 100 to 249 Employees 2 -- --

Total Establishments in 'Ihese Counties 284 228 92

Total Establishments in Florida 3:30 269 117

Source: U. S., Bureau of the Census, U. S. Census of Manufactures: 1958, Florida Area Report, MC 58( 5)-9, 15-15; U. S. Census of Manufactures: 1954, III, 109-10 - 109-12; U. s. Census of Manufactures: 1947, III, 147-149.

astandard Industrial Classification 23.

26

Dade County alone contained 229 of the total of 330 such establish~

ments found within the state, or almost 70 per cent, in this same

year.

It should be noted that the statistics presented in Table 3

include establishments and employees found in t.~e production of all

types of apparel and related it8lllS. Such inclusion, while it is

broader than the author's concept of the women's apparel manufactur­

ing industry, illustrates through the use of census data the loca­

tion and employment range of that total group within which women's

apparel production is contained.

Unfortunately, to indicate the even greater degree of concen­

tration which exists for the specific production of women's apparel,

one must turn to other sources of infonnation. Census data, because

of both the previously mentioned rule relating to disclosures and

because of recent changes in the nature of t.~e Standard Industrial

Classification, cannot provide the detailed infonnation desired for

analysis of women's apparel manufacturing by county during a series

of recent years.

To obtain this desired data, the author has relied heav:i..fy

upon the personal assistance of Mr. N. P. White, Directory Manager

of the F1..orida State Chamber of Commerce, and the industrial direc­

tories which are published by that organization.1 This material is

1 Directol of F1..orida Industries, 1956-1957 Edition; 1958

Supplement; l95~1960 Edition; l961 Edition; and 1962 Supplement.

27

28

presented in Table 4, and will be found to indicate not only the loca­

tion of the industry within the state, but also t.lie growth of the indus­

try from 1958 to 1962, at least insofar as can be determined from an

examination by number of establishments and number of employees.

Examination of the data contained in Table 4 permits several

important observations.

Dade County in 1958 dominated in the production of women's

apparel. Within this county were employed 7'3 per cent of all persons

working within the industry in Florida. In terms of establishments,

81 per cent of the total were located here.

Since 1958, Dade County's relative prominence has shown a slight

decline. Employment stood at 73 per cent of total employees in 1958,

and 62 per cent in 1962. In 1958, 81 per cent of all such establish­

ments were located in Dade County; 78 per cent were found in this

county in 1962.

The decline indicated here is of relative importance only,

since the total number of establishments and employees has shown a

steady increase in absolute terms.

Five counties in Florida--Dade, Broward, Hillsborough, Pinellas,

and Duval--contained 86 per cent of the total employees within the

women's apparel industry and 91 per cent of all establishments in 1958.

By 1962, these counties employed 79 per cent of all workers, and con­

tained 90 per cent of all establishments. In terms of both establish­

ments and total employees, Dade County's position within these five

TABLE 4

WOMEN'S .APPAREL a MA.NUFACWRING IN FLORIDA: NUMBER OF ESTABLISHMENTS AND EMPLOYEESb FOR FIVE

COUNTIES, 1962, 1960, 1958

29

County 1962 1960 1958

Estab. Empl. Estab. Empl. Estab. Empl.

Dade 155 4,524 ,g of Five

153 5,423 121 3,125

, Counties 87% 791, 84~ 794, 89% 8Si '% of Entire

State 78% 62% 76'% 6~ 81% 73%

Broward 6 476 6 243 4 103 Hillsborough 5 180 4 150 5 135 Pinellas 6 253 - 9 257 4 130 Duval 7 231 7 286 2 185

Total in These Counties 179 5,464 159 4,359 136 3,678

Other Counties 20 1,467 15 661 14 617 Total in Florida 199 6,931 174 5,020 150 4,295

Source: Florida State Chamber of Commerce, Directory of Florida Indus­tries, 1956-1957 Edition; 1958 Supplement; 1959-1960 Edition; 1961 Edition; 1962 Supplement (Jacksonville: Florida State Chamber of Commerce). Tabulations by the author.

astatistics in this table include Standard Industrial Classi­fications 255, 254, 256, and such other classifications (or segments t.liereof) which can be identified as women I s apparel. This includes women's robes, belts, hats, caps, and hosiery.

~loyment figures have been supplemented by the author where unavailable from the major source noted above. Supplementary information was based upon the Directory of Florida Industries for t.~e nearest year following employment data omission, statistics fur­nis.~ed by the Dade County Development Conmdssion, and/or confidential credit information in the possession of the author. Statistics for establishments and employment in the Directo~of Florida Industries, 1959-1960 Edition, were adjusted to include ~onnation on four firms included in 1957, 1958, and 1961, but erroneously omitted in the 1959-1960 Edition.

counties has remained fairly constant. Collectively, the employment

position of all five has declined relative to the entire women's

apparel manufacturing industry in Florida.

30

It is apparent that production of women's apparel in other

areas of Florida is becoming increasingly important. In 1958, em­

ployment scattered throughout the state (that is, located in other

than the five leading counties) was only 14 per cent of all such em­

ployment. By 1960, only 13 per cent of all employment occurred in

other than the five counties, but in 1962, a definite change in this

relationship occurred, and employment in the other counties increased

to al.most 21 per cent of the total employment within the state. The

data in Table 4 indicate that this change was not associated with a

substantial increase in the number of establishments located in other

areas; in fact, only 20 establishments are noted in 1962, as compared

to 14 establishments in 1958.

These statistics clearly reflect a new development within the

women's apparel manufacturing industry in Florida. Investigation of

this change indicates the nature of this development.

In the years 1960 to 1962, a few large1 manufacturing estab­

lishments located within the other counties of Florida. These were

firms that had relocated here, in preference to other areas of the

country, and, one might add, in preference to locating wi tJ1in the

1For the purposes of this report, a Florida firm may be considered "large" if it employs 100 persons or more.

51

five counties of Dade, Broward, Hillsborough, Pinellas, or Duval.

Only one of these five counties, Broward, experienced the addition of

a new firm of large size during the period in question. This firm,

which located in Hollywood, Florida, is the largest women's apparel

manufacturing establishment in the state, and currently employs

approximately 400 persons in the production of sportswear. In fact,

as can be noted in Table 4, had it not been for this single firm,

Broward County would have experienced a decline in relative impor­

tance in 1962.

To examine the implications of this highly significant devel­

opment--that is, the entry of large manufacturing establishments into

the state of Florida--one lllll.St further describe the nature of these

establishments themselves. This infonnation is readily obtainable

from the examination of the directory listings which furnished the

major source of the data to which the author has been referring.

The firms which have located in the other counties of Florida

produce other than high-style items. T"neir products include hosiery,

women's undergarments, nig.>itwear, and less highly styled apparel.

'!here are only two large firms located in other than the five counties

noted in Table 4 which produce dresses or sportswear.

The majority of firms located in Dade County are primarily

engaged in t.>ie production of more hig.>J.ly styled merchandise, such as

women I s dresses, sportswear, beachwear, and bathing apparel.

Close association with the nucleus of more highly styled

apparel within Dade County appears essential for the producer of

similar items, but the possibility of locating elsewhere within the

state is materially enhanced if the items produced are of a nature

where the high-fashion element is less pronounced. If the firm is

32

of large size, it appears that proximity to Dade County becomes rela­

tively less important. Yet this qualification of finn size does not

appear to modify more t.11an slightly t.i-ie tendency for the firms whid1

produce highly styled goods to be located primarily in the Dade County

area. In this context, it should be pointed out that the large finn

which chose to locate in Hollywood is located in close proximity to

the adjacent county of Dade.1 The author believes that the prox­

imity of this location was largely dictated by the type of product

produced, namely women's sportswear, which is found to have the attri­

bute of higher style which is associated with the Dade County area.

The relationship between the style element and the site of production

is examined more thoroughly in Chapter IV of this report, in which

the author discusses the fashion environment in Florida.

1Confidential sources reported that the choice of the Broward County location in preference to the Dade County area was largely based upon personal business considerations relating to land owner­ship.

CHAPTER III

THE THREE MAJOR CLA.SSIFICATIONS OF WOMEN' S APP AREL MANUFACTURING ESTABLISHMENTS

IN FLORIDA

As defined, the women's apparel industry in Florida is

primarily composed of three major segments: women's, misses' and

juniors' outerwear (S.I.C. 255); women's, misses', children's, and

infants' undergarments (S.I.C. 254); and girls', children's, and

infants' outerwear (S.I.C. 256). An examination of the relation­

ship between these three segments of the women's apparel industry

is desirable.

Production of Women's, Misses', and Juniors' Outerwear

Relative Importance and Development of Women I s Outerwear Manufacturing

In an effort to relate the three segments of the women's

apparel manufacturing industry, the reader's attention is directed to

the data presented in Table 5.

This table indicates t.~at women's outerwear production is of

primary importance within the women's apparel industry of Florida.

In 1958 firms primarily engaged in women's outerwear production con­

stituted 81 per cent of all establishments, employed 75 per cent of

33

Industry

Women's Outerwear (S.I.C. 253)

Women's Undergarments (S.I.C. 254)

Children's Outerwear ( s.r.c. 256)

TABLE 5

WOMEN1 S OUTERWEAR, UNDERGARMENTS, AND CHILDREN'S WEAR MANUFACTURING IN FLORIDA, 1958 AND 1954

1958 1954

No. of All Production Estab. Employees Workers

fll (I) ,....... ] ,8

(I) 'O 0 •r-i ~ t>-.<ll ... 'O

~ ,D-.....,,rl

~,....... ~ 'O Q)-.....,, S§ ~

~~· 0 fll Ol Q) ,....... ~-- ,....... ...

0 Q) ~o 8 < 0,-... rl rl Cll :>. ~

[~ ... ~ 1§ ... (\l 'U ro~

'n1 ~~ i i O'JO ~~$ +'-.....,, (I) ... •r-i

+' ~, bOrl r-t ~ fll p.) 0 ro~ ~.:;. ~~ co ::l ~~ E-• p...-.....,, p, ~ .,..,

121 47 2,608 7,877 2,182 3,874 5,808 13,035 342

7 4 302 826 255 460 566 1,146 24

21 9 669 1,913 587 1,103 1,468 2,901 35

I,-... 'U 8

~~o ... erl fll

Q) Q) ]~-~ 'O I

'O +' ,~ < (),-.. co 'O

~~$ si 'n1 fJ ~ I> ::E: .,..,

2,734 9,975

246 871

291 1,274

Source: U.S., Bureau of the Census, U. S. Census of Manufactures: 1958, Florida Area Report, MC 58(3)-9.

35

all workers, paid 74 per cent of all wages, and accounted for 76 per

cent of all value added by manufacturing within the industry. Expend­

itures for capital goods by producers of women's outerwear amounted

to 85 per cent of all new capital investment by women's apparel manu­

facturers in 1958.

Women's, misses', and junior' outerwear manufacturing in

Florida is presented for the years 1947, 1954, and 1958 in Table 6.

'lhis table also indicates the percentage increase in employment for

women's, misses', and juniors' outerwear manufacturing and for the

totality of all women's apparel manufacturing in Florida through

the use of index numbers, using 1947 as t.~e base year.

It can be noted that the production of women's outerwear

enjoyed a considerable percentage increase in the years between 1947

and 1954. During this period, its increase as indicated by total

employment figures was greater than that enjoyed by t.~e entire indus­

try. In the more recent period following 1954, the percentage increase

has declined considerably; in fact, total employment and number of

production workers actually showed a minor decline in physical numbers

in the 1954 to 1958 period. This decline, which was most pronounced

in the number of production workers, was associated with an increased

productivity of the workers, in terms of both the total wages they

received and t.~e value added by their services. Increased absolute

amount of wages paid production workers berween 1954 and 1958, and an

even more substantial increase in value added by manufacture in that

TABLE 6

WOMEN'S, MISSES•, AND JUNIORS' OUTERWEARa MANUFACTURING IN FLORIDA: GENERAL STATISTICS: 1958, 1954, 1947

No. of All Production ........ Index of 8 Estab. Employees Workers 10 Emp. Change -rl " 1947 • 100 E" '"8£

.D (l) .._, '"O (l)

il Dl ,..

~ ~ ..

0 . ti) ~ ~ oi ,,---.. J..< ........ '"O +> ,,---.. (l) 0

~§ :;j,,---..

Dl § c:x: (.) 0 '@ s ,--t

~ ~ Year C\l ~ J..< J..< ~8 (l) co 8 " ~ f '@ Q) (1) +> O')

~ f ! ~d J § ~-- (1) " :;j l r-t" -~ ~ ell j$ .p p. ,--t ,--t 0..

0 ~~ ~~ ~ ~ ~~ ~6 E-1 p.. .._, ):: .._, 0 +>

1958 121 47 2,608 7,877 2,182 3,874 5,808 13,035 342 535.3 511.3 1954 100 42 2,734 6,551 2,649 4,365 5,229 9,975 215 488.9 536.1

1947 35, 7 510 1,028 465 NAd 849 1,705 131 100.0 100,0

Source: U. s., Bureau of the Census, U. S, Census of Manufactures: 1958, Florida Area Report, MC 58(3)-9, 8; U. S. Census of Manufactures: 1954, III, 109-7; U. s. Census of Manufactures: 1947, III, 145.

astandard Industrial Classification 233,

bl958 adjusted; 1954 and 1947 unad justed (see footnote b, Table 1).

cs.I,C. 233, 2:34, 236 (see footnote a, Table 1).

dnata not available.

37

same period, reflect a continuing increase in productivity, and there

is no apparent reason to believe that the production of women~s outer­

wear will not continue to be the dominant major segment of the entire

women's apparel industry in Florida. This type of production simi­

larly dominates within the national industry, were the manufacturing

of women's outerwear accounted for over half of the total value of

all women's apparel production in 1958.1

In this context, it may be readily noted that this decrease

in total employment and increase in total value added by manufacture

which occurred in Florida between 1954 and 1958 was matched by a

similar occurrence nationally in the production of women's outerwear.

Employment nationally was 5,893 persons less in 1958 than in 1954,

but total value added by manufacture was over $450 million greater

than in 1954. 2 It would appear that the production of women's outer­

wear in Florida is responsive to national trends within the industry.

In the period from 1958 to 1962, current evidence indicates

that employment in the production of women's outerwear has evidenced

a sustained growth. Survey of various editions and supplements to

the Directory of Florida Industries3 indicates substantial increases

1u. s., Bureau of the Census, U. s. Census of Manufactures: 1958, Industry Report MC 58(2)-23B, 2. Women's outerwear is S.I.C. 235.

2u. s., Bureau of the Census, U. S. Census of Manufactures: 1958, Industry Report, MC 58(2)-23B, 5; U. s. Census of Manufactures: 1954, I, 8-9. Computations by the author.

3Fiorida State Chamber of Connnerce, Directory of Florida Indus­tries, 1956-1957; 1958 Supplement; 1959-1960; 1961; and 1962 Supple-ment (Jacksonville: F1.orida State Chamber of Commerce). Calculations throughout by the author.

38

in total employment within finns producing women's outerwear. Unfor­

tunately, since these firms produce a variety of products which are

found in several classifications, it is virtually impossible to de­

rive detailed statistics comparable to the census data whic.~ relate

to employment by finns primarily engaged in one sector of the indus­

try. In 1961, however, the total employment of finns which produced

women's outerwear was reported to have been 3,172 persons in Metro­

politan Miami alone.1

A more detailed analysis of women's outerwear production may

be furnished through the examination of the types of establishments

which are found within this major sector of the women's ppparel indus­

try in Florida.

Types of Garments Included in Women's Outerwear

Production of women's, misses', and juniors' outerwear may be

examined in greater detail by considering four subclassifications of

such production: women's, misses', and juniors' blouses, waists,

and shirts ("S.I.C. 2331); women's, misses', and juniors' dresses

(S.I.C. 2335); women's, misses', and juniors' suits, skirts, and coats

(S.I.C. 2337); and women's, misses', and juniors' outerwear, not else­

where classified (S.I.C. 2339). Statistics relevant to establishments

1Metropolitan Miami Memo, Vo. II, No. 5 (Manuary, 1961), p. 4.

primarily engaged in production within these four subclassifications

of women's outerwear manufacturing in F1.orida for the year 1958 are

presented in Table 7. 1

39

Table 7 indicates that the production of women's dresses is

by far the most important segment of all women's outerwear manufac­

turing in F1.orida. Establishments primarily engaged in dress produc­

tion accounted for 70 per cent of all employment in women's outer­

wear manufacturing, paid 75 per cent of all wages, and accounted for

75 per cent of all value added by manufacturing. Their expenditures

of new capital accounted for 63 per cent of the total of such expend­

itures by women1 s outerwear manufacturers.

'!he second most important specialized segment of women's

outerwear manufacturing eatablishments--that is, those which are

primarily engaged in one type of production--is the segment cited

as women's outerwear not else-where classified. This segment included

approximately 20 per cent of women's outerwear employees in 1958.

This establishment classification includes the production of women's

service apparel, but is primarily composed of those F1.orida manu­

facturers wo specialize in t.~e production of women's beachwear, bath­

ing suits, shorts, slacks, and similar leisure apparel.

1unfortunately, comparable figures for these four subclassi­fications in prior years are not available from the U.S. Bureau of the Census, due to revisions in the Standard Industrial Classification.

,

TABLE 7

TYPES OF WOMEN'S OUTERWEAR MANUFACTURING ESTABLISHMENTS IN FLORIDA: GENERAL STATISTICS, 1958

No. of All Production Eetab. Employees Workers

I

I ,-.._ IX)

0 +> 10 i:::

Cl) I 'O 0 Cl)

s-. _g-<i: "' [ :S

...__, rl ""'-" ..-l

Industry 'O Q) ...__, ts s-. ~ ~ I 0 0) 0) ~ ,-.._ Q) ,-.._ s ,-.._ .,-... 'O +>

0 (1) ~o 0 <i: (.) ,-.._ 00 C\l l>. s-. s-.

S8 0 ('(J 'O 0

r-i 0

i 08 (1) 0) 0 Q)~ (1) Cl) 0

('(J ~ rl ~ rl"' 1 10 Q) "' ,q § ~ ::! "'

+> I +> 0. § r-i"' ~.It rl rl 0 •r-i s ('(J~ ('(J ::! ('(J~

E-< ~ µ:'.l p., ...__, ::E:...__, ::;: ...__, :> ::E: •r, :> ...__,

Dresses ( S.I.C. 2335) 81 54 1,824 5,953 1,502 2,636 4,239 9,819 17,643

Blouses, Waists, Shirts ( S. I. C. 2331) 8 4 150 402 123 202 309 706 1,587

Suits, Skirts, Coats ( S. I. C. 2557) 8 1 89 179 65 121 147 380 NAa

Women's Outer-wear, N. E. C, ( S.I. C. 2559) 24 8 545 1,563 492 915 1,113 2,150 3,950

Source: U, s., Bureau of the Census, U. s. Census of Manufacturesi 1958, Florida Area Report, MC 58(3)-9, 8. Computations by the author.

8 Data not available.

,-.._

8 10

..-l "' 'O rl i::~ (1) ...__,

fl 'ia "' +> 0) •r-i Q)

g- s 0 +>

217

5

65

57

By 1962, there were approximately 55 firms in Florida engaged

in the production of this type of women I s sportswear, employing rougb.ly

1,600 persons.1 In the production of women's beachwear, t.~ere were

18 firms by 1962, employing approximately 700 persons. 2

Firms primarily engaged in t.~e production of women's blouses,

waists, and shirts, and those primarily engaged in the production of

suits, skirts, and coats, are considerably less important in F1orida;

in 1958 their combined employment was less than 10 per cent of total

employment by finns primarily engaged in t.~e production of women's

outerwear.

Production of Girls', Children's, and Infants• Outerwear

That segment of women's apparel production which includes the

manufacturing of girls', children's, and inf ants• outerwear ( S.I.C.

236) is the second most important major classification of the entire

women's apparel manufacturing industry (see Table 5).

These establishments comprised 14 per cent of the total finns

engaged in producing women's apparel, employed 19 per cent of all per­

sons working within the industry, and contributed 17 per cent of all

value added by such apparel manufacturing in 1952.

1Directory of Florida Industries, 1961 Edition, pp. 256-257; 1962 Supplement, p. 28. Tabulations and adjustments by the author.

2Ibid., 1961 Edition, p. 253; 1962 Supplement, p. 28. Tabu­lations and adjustments by the author.

41

42

Perhaps even more significant is the rapid development which

has occurred in the production of girls', children's, and infants'

outerwear since 1947. Table 8 indicates development of this production

between 1947, 1954, and 1958, and indicates the percentage change in

employment, for girls', children's, and infants' outerwear, and for the

total of all women's apparel manufacturing in Florida, through the use

of index numbers, using 1947 as the base year.

For the eleven-year period noted, the over-all percentage

increase in activity was somewhat less than t.'1at 'Which typified the

entire industry. However, this segment of t.11.e entire women I s

apparel industry showed its most rapid development in Florida after

1954. While the entire women's apparel manufacturing industry increased

by only 9.5 per cent between 1954 and 1958, t.'1e production of girls',

children's, and infants' outerwear showed an increase of 129.8 per cent

in its employment, and its value added by manufacturing showed an even

greater percentage increase.

This increase in activity in Florida's production of girls',

children's, and infants' outerwear was not matched by any comparable

national increase in such activities during the 1954 to 1958 interval. 1

Considerable growth continued to be ex...'1ibited after 1958.

By 1962, there were about 25 firms engaged in the production of

1tJ. S., Bureau of the Census, U. S. Census of Manufactures: 1958, Industry Report, MC 58(2)-23C, 9.

43

Year

1958

1954

1947

TABLE 8

GIRLS', CHILDREN'S, AND INFANTS' OOTERWEARa MANUFAC'IURING IN FLORIDA: GENERAL STATISTICS, 1958, 1954, 1947

No. of All Production Estab. Employees Workers

(I) M 0

;:I:

M 0 CD CD

(I) ,,-... M 0 Cl) r-lO ;:j,,-... N >, M r-l 0 M 00

r-l 0

i 00 Cl) ~o

<U :5 r-l ~d ..0 10 ~ J s:: .. 0 ~, Ill .--I

E-4 p.........., ;:e::.......,

21 9 669 1,915 587 1,103

16 4 291 745 267 497

11 3 142 235 150 NAc

,,-... 0 0

WO Q) .. '->r-i C11""'4-:;c.......,

1,468

589

194

Source: U. S., Bureau of the ·Census, U. S. Census of Manufactures: 1958, Florida Area Report, MC 58(3)-9, 8; U.S. Census of Manufactures: 1954, III, 109-6; U. S. Census of Manufactures: 1947, III, 145. Computations by the author.

astandard Industri~l Classification 236.

bi958 adjusted; 1954 and 1947 unadjusted (see footnote b, Table 1).

cData not available.

2,901

1,274

545

55

28

10

TABLE 8--Extension

Index of Employment Change

1947. 100

555.5

488.9

100.0

471.1

204.9

100.0

Index of Employment Change

1954. 100

109.5

100.0

Ill

229.8

100.0

44

children's dresses, sportswear, and beachwear. These finns employed

approximately 900 persons. 1

Production of Women's, Misses', Children's, and Infants• Undergarments

4S

As indicated in Table 5, the production of women's under­

garments (S.I.C. 254) is of less economic significance t..'1-ian t..'1-ie other

two major areas of the women's apparel manufacturing industry in Florida.

These establishments comprised 4 per cent of the total firms

engaged in producing women's apparel, employed 8 per cent of all persons

working within the industry, and contributed 7 per cent of all value

added by women's apparel manufacturing in 1958.

Some understanding of the development within this segment of

women's apparel rnanui'acturing can be obtained from Table 9. Although

index numbers included in that table indicate a considerable percent­

age increase in employment, it is difficult to speculate upon the im­

plications of statistics 'Which relate to such a small number of firms.

One may safely note, however, that considerable activity exists in

Florida in the production of both undergarments (S.I.C. 2341) and cor­

sets and brassieres (S.I.C. 2542). The finns engaged in the production

of the latter type of undergarments are substantially larger than is

generally typical within the women's apparel industry.

1Directory of Florida Industries, 1961 Edition, pp. 257-258; 1962 Supplement, p. 28. Computations and adjustments by the author.

Year

1968

1954

1947c

No. of Estab.

7

9

2

4

5

0

TABLE 9

WOMEN'S UNDERGARMENT8 MANUFACTURING IN FLORIDA: GENERAL STATISTICS, 1958, 1954, 1947

Employees

504

246

17

826

553

NA

255

206

NA

Production Workers

460

595

NA

566

435

NA

1,146

871

NA

24

9

NA

Index of Employment Change

1947. 100

555. 5 I 488.9

100.00

788.2

447 .o 100.0

Source: U. s., Bureau of the Census, U. s. Census of Manufactures: 1958, F1.orida Area Report, MC 58(3)-9, B; U. s. Census of Manufactures: 1954, III, 109-6; U. s. Census of Manufac­turest 1947, II, 229; Florida State Chamber of Commerce, Directory of Florida Industries, 1943 Edition (Jacksonville1 F1.orida State Chamber of Commerce) p. lOl. Computations by the author.

astandard Industrial Classification 234.

bl968 adjusted; 1954 and 1947 unadjusted (see footnote b, Table 1). 0 Data supplied by author, baaed upon census data and the Directory of Florida Industries.

Some data not available (NA).

47

In 1962 there were about 12 firms engaged in the production of

women's undergarments in Florida, and they employed approximately 500

persons. 1

1Directory of F1.orida Industries, 1961 Edition, pp. 254-256; 1962 Supplement, p. 28. Tabulations and adjustments by the author.

CHAPTER IV

THE GENERAL NATURE OF THE PHYSICAL ENVIRONMENT FOR WOMEN• S APP AREL MANUFACTURING

The preceding two chapters have described the structure of

the women's apparel industry in F1.orida. It seems desirable next to

examine the general nature of the physical requirements of the

women's apparel manufacturing industry in America as a prerequisite

to detennining how well these requirements are met within the Florida

environment.

Although the following presentation of general physical re­

quirements is partially a refiection of the industry as it exists in

New York City, these same basic requirements would, of necessity,

relate to any area under consideration as an apparel manufacturing

site. Determination of the nature of the physical requirements is

believed to be most representative when derived from the direct

examination of the manufacturing and marketing activities of the

centraiized industry itself'.

Physical Plant and Capital Requirements

The nature of apparel manufacturing firms themselves determines

the nature of their physical requirements. These finns are relatively

48

49

small, the vast majority employing considerably less than 100 persons.l

Women's apparel manui'acturing is further characterized by the

modest need for plant space, as evidenced within New York City. The

crowding of this industry within the small area between 20th and 40th

Streets, between Broadway and 8th Avenue, with the particular concen­

tration between 54th and 40th Streets, is made possible only by the

low requirements for manufacturing space in regard to the value and

volume of the product produced. 2

Despite the radical improvements in the light machinery used

in apparel production, the techniques and physical requirements of

this industry have remained remarkably stable over the years. In

this context, Meiklejohn may be quoted as follows:

The visitor to a steel plant, an automobile factory, a paper mill, a tool-making shcp, a meat-packing estab­lishment in 1895 would hardly recognize the physical real­ity of plant and process today. But the visitor of 1895 returning to a modern dress factory would today find his old friend the sewing machine--alone indispensable to the making of a dress--still there and easily recognized . It would, it is true, have undergone many improvements. The machine of 1895 may have been run by power, but it did not have the fineness of a machine today, which can make from 4 to 34 stitches per inch; nor did it have a

1Karen R. Gillespie, "Apparel and Accessories for Women, Misses and Children," Small Business Bulletin, No. 50 (Bibliography), Washington: Small Business Administration, May, 1961, p. 1.

2Helen Everett Meikle ,iohn, "Dresses--The Impact of Fashion on a Business, 11 in Walton Hamilton (ed.), Price and Pr ice Policies (New York: McGraw-Hill Book Company, Inc., 1958), p. 321. Confirmed by interviews within the industry.

speed ranging from 2,500 to 5,000 revolutions per min­ute. Our visitor would find in some shope additional mac.~ines for special purposes--snap stitching, felling, blind stitching--but the underlying construction of these is the same as the sewing machine, and with their differences he could soon come to terms.l

50

In many instances, the more complete mechanization of the

individual firm is not feasible, since the nature and number of the

garments being produced does not lend itself to the extensive utili­

zation of available labor-saving machinery. 2 In this context, the

production of women's style apparel differs in the degree of mechan­

ization which can be employed, from the more routinized production of

uniforms, shirts, and similarly standardized apparel.

Small capital needs are a renection of modest physical re­

quirements. 'l'he nature of these needs, which has not changed sub­

stantially since the beginning of the women's apparel industry in

New York City in the mid-1800's, may be noted in the following

quotation:

The industry requires only a small capital, and entrance through its hospitable doors is not con­ditioned by arduous apprenticeship in business or technical training •••• The activities of the dress

1Ibid., p. 313.

2For example, one manufacturer interviewed noted t.11.at a cloth­laying machine which runs along a steel track, insuring rapid and perfect alignment of materials prior to cutting, is often impractical, since t.~e number of garments being cut from any one fabric at a given time may be small. Thus the time required to change the fabric on this laying machine might offset the advantages secured from its use.

manufacturer lie outside the great network of big busi­ness, outside the organized security market, and outside the sphere of t.lie investment banker. As the technology of the industry lags behind the advanced sector of mech­anization, so the financial organization is innocent of many of the sophistications of modern financing. Although there has been a steady increase in the corporate form of organization, it has been used less to raise large amounts of capital than as a means of escaping personal liability.l

51

Generalization, therefore, regarding t.lie mechanization and

capital investment which is required by the typical apparel firm,

leads one to conclude that these fundamental requirements are modest.

The industry is characterized by high productivity within a given

manufacturing space. The ability to mechanize production of women's

apparel decreases as t.lie style element of the garment increases.

Greater variety in gannent design and textiles used, plus frequent

style innovation associated with high fas.liion, also materially re­

strict mechanization, herice reduce capital needs. Initial financing

is almost invariably accomplished with private funds supplied by the

manufacturers themselves. In addition, bot.lithe raw materials used

and the products produced have high value in relationship to their

bulk; storage cost, as well as costs of physical handling and trans­

portation, are thereby similarly characterized as imposing relatively

minor financial burdens upon the industry.

The sources of working capital are primarily a part of the

o"Wiler's original investment in the finn, and reinvested retained

~eiklejohn, p. 326.

52

income. Additionally, the manufacturer's cash-flow position is im­

proved by the availability of mercantile credit from 3Uppliers under

terms of sale which frequently permit sale and payment for apparel

produced prior to the payment for raw materials used. A direct

examination of both the terms of s·a1e under which raw materials are

purchased and the terms of sale under which items of finished apparel

are sold would be desirable.

Terms of sale customarily offered to apparel manufacturers

are noted as follows:

Cotton Cloth, Mills: _ These mills sell finished goods to apparel manufacturers under terms of 2 per cent, 10 days, 60 days extra.

Cotton Goods Converters: Predominantly net 70 days is offered to ai:1 classes of accounts, including apparel manufacturers. Some converters, however, use terms of 2 per cent, 10 days, 60 days extra for the "cutting up" trade •

. Rayon, Silk, and Acetate Piece Goods: Suppliers of these gooas (converters and mills) offer a wide var­iety of terms to all classes of accounts. Most sales are net, however, and to the apparel manufacturers terns of net 60 or net 70 days are most frequently offered.

Findings and Trim: Suppliers of findings and trim use varying terms, but generally ~erms of 2 or 5 per cent, 10 days, E.0.M. are offered.

1Roy A. Foulke (Vice President) "Terms of Sale Generally Used in 90 Lines of Business Activity" (New York: Dun and Bradstreet, Inc., December, 1957), pp. 1-5.

~ersonal trade observations by the author, and confirmed within the apparel industry.

53

The tenns of sale under which the apparel manufacturers sell

to retail accounts are almost invariably 8 per cent, 10 days, E.O.M.,

with the 20th or the 25th day of the month customarily considered to

be the "end of the month" for calculation of the payment date. 1

Thus a substantial portion of the manufacturers' payables

will not fall due until 60 to 70 days after purchase, during whic..11

time the goods could have been manufactured into finished apparel,

sold to retail accounts; and income received. In effect, portions

of a manufacturer's payables are "self-liquidating" through the nor­

mal course of business operations. In addition, manufacturers with

annual sales in excess of $250,000 may choose to factor their ac­

counts receivable and receive immediate payment from a commercial

factoring company for all goods shipped to approved retail accounts. 2

Some financing of inventories is facilitated by commercial bank loans,

but one finds wide variation in the abilities of individual manufac­

turers to avail themselves of this form of credit.

Labor

In any area of manufacturing, the availability of skilled

labor is a fundamental necessity of the physical environment. In

1 Foulke, pp. 1-5.

2see Clyde Phelps, The Role of Factoring in Modern Business Finance (Baltimore: Educational Division, Connnercial Credit Company, l956).

women's apparel manufacturing, where severe limitations are placed

upon ability to utilize machinery for the varied tasks performed,

54

the skill of the production workers assumes considerable importance.

The ideal location, therefore, would provide an ample supply of

workers, preferably those who possess or can readily develop consider­

able skills in the various tasks whic...11 are to be performed. In the

New York City area, for example, the presence of vast reservoirs of

immigrant workers contributed to t..'1-ie geographic concentration of the

women's apparel industry.

Typical workers of the apparel manufacturer include the pro­

duction man, foreman, piece-goods buyer, pattern-maker, grader, helper,

cutter, sorter, operator, finisher, presser, inspector, and packer.

In addition, the firms commonly employ sales, office, or maintenance

personnel. Quite frequently the manufacturer himself, or a partner

of the finn, will perform the designing function, although designers

and designer's assistants may also be employed, especially by the

larger finns. 1

T"ne women's apparel industry is heavily unionized, with over

90 per cent of all garment workers belonging to the International

1Manufacturers who employ their own operators and production workers as indicated above are known as inside shops. If t..'1-ie "manu­facturer" subcontracts the actual production other than the designing and cutting operations (although the cutting operation itself is sometimes also subcontracted), he is known as a ~bber. '!be organiza­tion of jobbers is called the National Dress Man acturers' Association. The firm ..ihich perfonns such manufacturing services for the 11 manufac­turer" or jobber is referred to as a contractor. Such contractors

55

Ladies' Garment Workers'Union. 'Ihe vast majority of production workers

are compensated on a piece-rate basis. Employees in unionized shops

who are not compensated on a piece-rate basis (as sample room employ­

ees) are paid prescribed minimum hourly wages which are determined on

a sliding-scale basis. That is, the hourly rate paid varies directly

with the wholesale selling price of the garment, the scale of payment

being set through union negotiation. Unionized employees working on

a piecework basis are paid in accordance with rates per operation

"settled" by a committee organized for that purpose. This coDJ11ittee

is composed of a representative of the union, the jobbers' associa­

tion, and a member of the Impartial C"nairman's Office.1

The appropriate piece-rates for each garment made by each

employer will vary, but the workers are guaranteed a specified mini.mwn

wage per hour, regardless of their production. Such piece-rates are

determined by estim.ation of t.~e average worker's productivity in per­

fonning a specified working task or operation, and multiplying by the

appropriate payment per unit of tim.e involved. For example, each

are used extensively in New York City, where their number exceeds 2,000. T"nus, the availability of contractors may alter the col­lection of various workers found within a single firm. The inside ::,1-iop is most commonly associated with the high-end, high-style producer, contracting" be~ more extensive in the case of less highly-styled

garments. Norell (of N. Y.) and Galanos (of California) are examples of inside shops producing expensive, high-fashion apparel.

1Personal interview with Charles S. Zinnnerman, Vice President of the International Ladies' Garment Workers' Union and General Man­ager of the Dressmakers' Joint Council, New York City. This latter organization conducts the price-setting operations referred to here.

56

minute of estimated time has a unit value of 10, which corresponds

to a monetary equivalent. Thus, if it takes 15 minutes to perform a

given operation, that task has a point value of 150. If the appro­

priate rate per point is 2 mills, the piece rate becomes 30 cents for

that operation. The appropriate rate per point depends upon a manu­

facturer's set price range; that is, it depends upon t.11e wholesale

prices whic.11 he charges for his garments. Thus a manufacturer of high­

price, high-style garments will invariably be paying piece rates higher

than a manufacturer 'Who produces less expensive apparel, even though

the operations performed by the workers may be identical in both

cases. 1

Jobbers employing the services of a unionized eontractor are

required to pay the "settled" price plus 25 to 40 per cent, as deter­

mined in accordance wit.11 a sliding scale related to the wholesale

selling price of the garment in question. If, for example, the total

"settled" price per garment is $2.00, and a 35 per cent scale is ap­

plied, the jobber will pay the contractor $2.70 per garment, t.1-ie

$.70 representing the contractor's margin in this case. Tne total sum

of the contractor's margins is used to cover all of his operating

expenses, and to yield him his operating profits. 2

1John W. Wingate and Norris A. Brisco, ~g for Retail Stores (New York: Prentice-Hall, Inc., 1949), ~6. This met.lied of piece-rate determination was confirmed by Charles S. Zimmerman of the I. L. G. W. U. , and is common knowledge throug.1-iout the industry.

2rbid. Also confirmed by Charles s. Zimmerman and by confi­dential sources within the industry.

57

Unionization is both a reflection of common interest among

the workers and a curious reflection of social and religious affil­

iation of minority groups in New York City. The effects of such

tenacious associations upon ~~e supply of labor in that area are well

demonstrated by the following quotation:

Operators, pressers, and other garment-industry workers prefer to live in the metropolitan area. Work in the garment industries appeals to certain types of people who through family connections have inherited an interest in such work and who apparently prefer it to all others. An attempt by ~~e govermnent a few years ago to locate an apparel factory in Maryland met with little success, althoug.~ homes and gardens were provided for the workers at low cost. These workers preferred to live in New York because their friends and families are there, and because their churches and synagogues, clubs, and food shops catering to their appetites and food preferences are there. In New York they are understood and have their niche in the social order, and their unions work for their protection; employment in other centers appears to them either hazardous or unwise.l

Availability of Raw Materials

In ~~e production of women's apparel, as in the case of any

fashion commodity, the importance of raw materials must be emphasized.

For example, the growth of the apparel industry in New York has been

greatly facilitated by close proximity to the New England textile

mills.

1Bernice G. Chambers, Fashion Fundamentals (New York: Prentice-Hall, Inc., 1950), pp. 207-208.

Currently, New York City is the recognized textile center of

the United States. One authority notes that:

New York City is unquestionably headquarters for the textile industry. Although textile mills are located in New England and the South, New York City centralizes the styling, sales, and business offices of over 9~ of the industry. Until recently, famous Worth Street was the home of t.'lie large finns, but more and more of them have moved to modern buildings in the mid-town garment district, bringing them closer to their customers.l

In addition to textiles produced in America, access to im­

ported fabrics is extremely important. A.gain, it may be noted that

New York Cicy has long been a major port of entry for silks from

Lyons, France; worsted, tweed, and cottons from England; crepe from

Canton; damask from Damascus; madras and calico from India; and

Shetland from the Shetland Islands. 2

58

Another advantage in reference to the New York textile market

may also be noted. Some American apparel manufacturers use a sui'fi­

cient yardage of textiles to permit them to either design their own

fabrics or have the fabric producer confine given designs to them.

These activities require close contact between the apparel designers

and the textile manufacturers. While it is true that only the

largest apparel houses engage in these activities, 5 it seems apparent

1Eleanor L. Fried, Is the Fashion Business Your Business? (New York: Fairchild Publications, Inc., 1958), p. 25.

2~nambers, p. 252.

~ate, p. 265.

that for these firms the New York environment is especially well

situated relative to raw materials.

In general, one may note that proximity to raw materials is

59

of advantage in permitting closer market contact between supplier and

manufacturer, speeding delivery, and minimizing costs, including those

of inventory position, transportation, and marketing.

Tne importance of textiles to the production of women's

apparel is found in another context as well. To a large extent the

available fabrics and findings are both a vital complement to, and a

valid source of inspiration for, the design or styling of the items

produced. 1

The famous .American dress designer Pauline Trig~re has con­

sistently emphasized the use of fabric itself to provide inspiration

for t.~e design of women's apparel. In fact, for this designer, the

creation of style begins with the examination of available fabrics.

Samples of these materials are then placed upon a live model, draped

and folded until a pleasing silhouette results. '.fuus the creativ­

ity of the designer often does not originate on the drawing board

1As disclosed to the author by Mrs. Hope Skillman, President of Skillman, Inc., of New York City, manufacturers of cotton textiles. Mrs. Skillman is a former president of the Fashion Group, an organ­ization of over 3,600 women executives who are engaged in the fashion industry of the United States. Tb.is organization is active in most major cities of the United States, as well as in Paris, Montreal, and Toronto. A regional group is currently active in Miami, Florida.

or the sketching pad, but is rather the result of manipulation with

fabric itself.1

Thus the manufacturing site should afford ready access to

textiles, both domestic and imported. This accessibility not only

affects operating costs, but in addition, plays an important role

in the facilitation of designing or styling activities.

Proximity to Market

60

The marketing of any product is greatly facilitated by a prox­

imity of location which s:iJnplifies the buyer-supplier contact. To

emphasize the importance of such location, one author notes that within

350 miles of New York City is found one-third of the total population

of the United States. 2

There is little doubt that a nearby market is an advantage to

any given location, and that the growth of apparel manufacturing in

New York City, Southern California, or even in Miami, Florida, is a

1Pauline Trigere, a former resident of Paris and graduate of the Victor Hugo College in that city, began her designing career in .America shortly before World War II. Miss Trigere has received the Neiman-Marcus Award, the American Fashion Critics Award and Return Award, and has been elected to the .American Fashion Critics Hall of Fame. The above notation by the author of this designer's emphasis upon the influence of fabric was based primarily upon personal con­versation vi t.11 Mr. Martin O. Kahn, a personal friend of Miss Trigere. Mr. Ka.lin, whose generous assistance has been noted throug.liout this report, was former Chairman of the Ready-to-Wear Group of N.R.G.D.A., and Executive Fashion Director of the R.H. Macy Company, New York City.

2 Chambers, p. 207.

61

partial reflection of this advantage. The maj or advantage of location,

in this context, however, is to be found in the immediate area of the

manufacturer, and relates to the ability to~ (or pretest) consumer

reaction to apparel styling.1 This partially explains why the metro­

politan location seems essential to the development of the fashion­

goods industry.

The advantage of the location of apparel manufacturing activ­

ities in New York, however, extends far beyond the issue of ability

to test and confirm consumer reaction. The advantage of t.lri.s location,

as evidenced by the degree of geographic concentration wit.~in the

metropolitan area itself, is clearly a reflection of business practice,

which has been oriented to tb.e needs of the retail buyer.

So keenly competitive is the industry, so cru­cial are the daily marketing operations, that accessi­bility to buyers is of greater financial concern than the dif.ference in rent between a central and a peripheral location. • •• Wit.~ the influx of buyers, arriving for a .few hasty days, their convenience and pleasure have become the "key-note of selling policy for most gannent houses." The tradition of according the buyer certain courtesies while waiting hopefully for his order is a legacy from the days when buyers were .few and their trips infrequent. As far back as 1856 it was written, "The country merchant is booked on his arrival, is captivated by courtesy, is attracted by appeals to each of his appetites and passions, is coaxed, decoyed and finally ensnared and captured.•2

½:bid.

2Meiklejohn, p. 521.

The women's apparel manufacturing location is thus advan­

tageously associated with the metropolitan area, both because such

62

an area affords pretesting of style acceptance, and because such

centralization is convenient for buyer contact. In addition, metro­

politan locations themselves are conducive to retail buyer entertain­

ment, an essential reality in this competitve field. It is further

noted that buying habits are subject to some rigidity; that is,

metropolitan centers which have over long periods of time enjoyed

a reputation as a source of supply are obviously the most favored

areas in which to locate such manufacturing activities.

CHAPTER V

THE PHYSICAL ENVIRONMENT FOR WOMEN'S APPAREL MANUFACTURING IN FLORIDA

The preceding chapter has presented the general physical

requirements 'Which characterize the women's apparel manufacturing

industry. In the presentation which follows, the Florida environ­

ment is examined to determine its ability to fulfill these same

. requirements.

To obtain the material which is presented in this chapter,

the aut..~or has relied heavily upon the generous assistance of per­

sons actively engaged within the Florida industry; only as a result

of such assistance could the presentation which follows be expected

to reflect accurately the manner in which the physical environment

is considered by the women's apparel manufacturer. It is believed

that such a presentation can better serve to provide insight into

the nature of the decisions which have prompted the selection of a

production site by this industry within the state. It is further

believed reasonable to assume that these same physical aspects of the

environment will serve to influence heavily future decisions regard­

ing sites for the production of women's apparel, both by new firms

and by established northern firms seeking relocation. Interviews

with persons engaged in t..~e local industry, as well as the examina­

tion of confidential credit infonnation, clearly established the fact

63

that the vast majority of women's apparel manufacturing finns in

Florida are o"WD.ed and operated by persons whose prior experience had

been obtained in the North, especially in the metropolitan New York

area.

Physical Plant and Capital Requirements in Florida

Machinery used for women's apparel manufacturing in Florida

does not present any contrast with t.11.at liihich is typically employed

in other locations; in fact, these machines are obtained from the

same sources which supply the northern industry. The necessity of

transporting such capital equipment from northern locations is not

considered to be a significant factor in deciding upon a F1.orida

location. Both the cost of shipping such equipment and subsequent

considerations relative to maintenance of these capital goods were

reported as having been of but slight initial concern to the members

of the apparel manufacturing industry seeking relocation in Florida.

In considering the nature of physical acconunodations for the

Florida manufacturer, one may note that the majority of the struc­

tures themselves are of relatively new construction, their physical

design being well suited to the needs of the firms in question.

'lhe p...11.ysical layout of plant facilities is believed to present a

contrast to the cramped and often congested conditions wich prevail

in t."1.e garment district of New York City. One may quote the Dade

County Development Commission as follows: "The Metropolitan Miami

64

textile products group's plants occupy more than 2,581,000 sq. ft.

of space. '!his opposes traditional small employee-space character­

istics. In this area the average is 523 sq. ft. per employee •••

[which is] higher than elsewhere in the U. S. 111

There is some reason to believe that the working space re­

ferred to here is, in reality, not as great as this quotation would

indicate. Th.e author's investigation of individual firm space and

average number of workers indicates, in almost every case, that the

average space per worker is less than 525 sq .. ft. 2 Interrlevs

with the industry reveal, however, that adequate physical plant

65

space is not a major difficulty confronting the Florida manufactur ers.

They note that, on a cost basis, physical plant accommodations here

are superior to those which prevail in the garment district of New

York City.

'!he apparel manufacturer frequently cites the advantages of

these Florida acconmodations, which include parking provisions for

employees and buyers, greater flexibility of shipping and receiving,

and, in some cases, greater ease in routing the flow of manufactured

goods within the physical plant itself.

Capital requirements are initially small for the Florida

manufacturer, as well as for his northern competitor. 3 The absence

~etropolitan Miami Memo, Vol. II, No. 5 ( January, 1961), p. 4.

2confidential credit information in the possession of the author (see Table 10).

5The author has surveyed confidential credit information on 50 Florida women I s apparel manufacturing establis..lunents. This

66

of an abundant supply of contractors, however, frequently neces­

sitates that new firms be able to conduct all operations within their

own plants, which would require a some-what larger capital goods

investment than might prevail in New York City. This situation is

currently changing, however, as the number of Florida manufacturers

-who operate exclusively as contractors increases. Of four contracting

firms investigated by the author, all had originally produced their

own lines of apparel, and had later altered their operations to per­

form the contracting function exclusively. As the industry develops,

the contracting functions will probably become significantly more

prevalent. This development would tend to decrease the initial

capital goods requirements of other apparel manufacturers locating

in this area.

T"ne Florida firms rely heavily upon private capital; some

establishments with sales of from $soo,ooo to slig..~tly in excess of

$1,000,000 annually have little or no record of commercial loan

activity. Only one Miami firm, with sales reported in excess of

$7,000,000 annually, was noted as having had bank loans to the extent

of a low six figures.

infonnation furnished a partial basis for generalizations regarding capital structure, net worth, financing, firm history, payment rec­ords, sales, employees, manufacturing area, and similar information. Some of this material which could be arranged in tabular form is presented in Table 10 of this report.

Firm

Aa

Ba

C

D

E

F

od

Hd

Id

J

K

TABLE 10

TWENTY WOMEN 1 S APPAREL MANUFACTURING ESTABLISHMENTS: SURVEY OF NET WORTH, SALES, TRADE PAYMENTS HISTORY, NUMBER OF

EMPLOYEES, AND ESTABLISHMENT AREA, FLORIDA, 1962

Net Worth Sales Trade Payments Employees

$673,213 $7,538,287 Disc., Ppt. b 175

$191,534 $3,000,000 Ppt. 475

$811,808 $2,468,529 Disc., Ppt. 210

$343,112 $1,600,000+ (est.)

Disc., Ppt. 160

$209,558 $1,111,081 Ppt. 75-150

$106,791 $1,000,000 Ppt. 70 ( 1959) ( est.)

$103, 751 $ 679,409 Disc . , 160 ( 6 mos.) Slow 30 Days

$123, 023 $ 910,:340 Ppt. 150

$175,203 $ · 750,000 Disc., Ppt. 100 (est.)

NA $ 700,000 Disc., Ppt. 60 (est.)

$151, 241 $ 519,128 Disc., Ppt. 65 I ( 4 moe.) ( Max.) I

Sq. Ft.

NAC

NA

30,000

NA

34,000

12,700

30,000

32,850

NA

5,300

40,000

TABLE 10--Continued

L $157,185 $ 600,000 Disc., Ppt. 55-110 (est.)

M $85,585 ~ 500,000+ Ppt. 45

N $86,728 $ 270,689 Ppt. 20-60 ( 6 mos.)

0 $ 50,000+ $ 500,000+ Ppt., Slow 35 (est.) (est.)

p $10,618 $ 250,000 Ppt. 25-50

Qd (1959)

$82,452 $ 52,994 Disc., Ppt. 50 ( 4 mos.)

Re NA $ 120,000 NA 50 (Max.) (est.)

se NA NA Ppt. 80 (Max.)

T $ 5,000 $ 50,000 Slow, Cash 6 (est.)

Sourcez Confidential credit information in the possession of the author.

8 Firms having affiliations with northern branches.

bDisc .• Discount; Ppt .• Prompt.

CNot available.

dFirms located in other than Dade or Broward Counties. 8 Contractors.

NA

15,500

NA

s,ooo

7,000

7,500

4,500

5,000

5,000

O') en

69

Factoring of accounts receivable is a more common practice,

for the Florida manufacturer as well as those located in the North.

These services are noted as being employed extensively by larger

producers with annual gross sales in excess of $250,000.1 In most

cases, the factoring companies are New York fims, a few of which

maintain resident representatives in Miami. These factors purc.~ase

accounts receivable on a nonrecourse basis, performing t.~e additional

function of reviewing and approving the credit of the manufacturer's

accounts.

In the performance of the credit and collection function for

his client, the factor will pay the manufacturer the net face value

of the receivables, less a commission, at their average due date. 2

The commission charged may range from less than 1 per cent to 2 per

cent or more. Thus a manufacturer who discounts one million dollars'

worth of receivables in a given ·year might pay $10,000 to $20,000 in

commissions to the factoring company. The exact amount of t.~e com­

mission charged, however, is BUbject to negotiation between client

and factor. 5 In addition, the client may elect to receive payment

for all or part of his receivables prior to their average monthly due

date. In t.~at event, ·he also pays interest, usually at the rate of

1Clyde William Phelps, The Role of Factoring in Modern Business Finance (Baltimore: Educational Division, Commercial Credit Company, 1956), p. 17.

2rbid., p. 55.

5rbid., pp. 52-55.

6 per cent per annum on all sums advanced or remitted to him prior

to the average due date of these receivables.1

One of the most apparent characteristics of the Florida

apparel manufacturer is the generally prompt payment record which

he almost invariably maintains with his suppliers (see Table 10).

70

In Miami, for example (as -well as in New York City), a less-than­

prompt payment to suppliers generally indicates serious difficulties.

The general consensus of opinion 1 among suppliers of Florida

women's apparel manufacturers, is that the majority of these manufac­

turing establishments are sound financial ventures. In this context

the author notes that although the poor 1961 season in Florida had

an adverse effect upon business in general (including the apparel

industry), few finns experienced real difficulty in maintaining their

records of prompt trade payments.

Labor in the Florida Environment

Workers

The small size of the Florida manufacturing finns has been

noted as being quite typical of the industry in general; t.'lat is,

the vast majority employ a yearly average of less than 100 persons.

The labor requirements of these establishments would appear to be

1rbid., p. 56, and W. H. Steiner and Eli Shapiro, Monit and B~, 3rd Edition (New York: Henry llolt, 1953), p. 238. ~e interest rate for prior payment of receivables is a simple rate of interest, not a discount or "flat charge."

71

readily met in the previously noted areas where they have located within

this state. Personal interviews by the author with persons actively

engaged in apparel manufacturing operations in Dade County, for example,

invariably established the fact that an ample supply of workers is

readily available, especially for producers of low-end goods. In most

instances, the production activities associated with machine sewing

are routinized operations and tasks which do not require hig..llJ.y spec­

ialized skills. Only in the production of high-end goods (retail $100

and up) must the manufacturers resort to considerable training of their

workers. Even in these cases, however, some manufacturers report that

experienced workers are frequently available to meet their requirements.

Several additional factors are noted within t.~e industry.

Attractive climatic conditions are a definite asset in contributing

to the availability of skilled and unskilled apparel workers in Florida.

For the Metropolitan Miami area, for example, the more highly skilled

workers, such as cutters, graders, and pattern-makers, who desire to

become perm.anent residents actively seek employment in the apparel

industry. Their considerable abilities, the result of former employ­

ment by northern manufacturers, are readily available to the Florida

manufacturers.

The cohesive association which has been noted in Chapter IV

as characteristic of the apparel industry in New York City, may also

influence the selection of a Florida location, especially by the more

highly skilled workers (such as pattern-makers or cutters) who for­

merly were employed in New York City. In fact, these considerations

probably infl.uence both employees and employers alike. It should be

remembered that control of the industry is dominated by two segments

of the population. One segment includes those of the Je'Wish faith,

and the other segment is predominantly of Italian extraction. In

direct manufacturing, one finds the former group , wile the latter

predominates in the contracting and subcontracting phase of apparel

manufacturing. One may note that the County of Dade has the highest

concentration of Jewish people in Florida, and further that there is

a high concentration of persons of Italian extraction also found

within this same county. While it might indeed be difficult to

demonstrate statistically the importance of such interpersonal or

religious associations, it seems readily apparent that these consider­

ations do and will continue to exert a substantial influence upon the

development of this Florida industry and upon the concentration of

activities within the Dade County area.

Another development, of more recent origin, has affected the

supply of labor available to the women's apparel industry in Dade

County. The influx of Cuban refugees has greatly augmented the labor

force in the area. There are in excess of 100,000 Cuban refugees

living in Miami at the present time, and they are continuing to ar­

rive by plane from Havana at the rate of about 2,000 a week. Under

the auspices of refugee relocation agencies, refugees are leaving the

area at a rate of about 700 a week. This still leaves a net weekly

increase in the Cuban population of about 1,300 persons. 1

1Juanita Green, "What Miami Faces with the Refugee Tide, 11

The Miami Herald, May 25, 1962, pp. 1A-2A.

72

73

Many Cuban workers are skilled in the basic operations required

for women's apparel manufacturing. Catholic schooling in Cuba fre­

quently included the development of skills in sewing and allied crafts,

and these talents are currently being utilized within the firms lo­

cated in Dade County. Many firms report that even untrained Cuban

refugees make excellent workers. They are anxious to work, learn

rapidly, are willing to accept minimum legal wages, and are described

by the industry as "anti-union."

There is a definite "caste system" among the workers. Persons

of the Jewish i'aith employed by the industry are generally found en­

gaged in the most highly skilled work (such as designing, pattern­

making, and cutting operations).

Oi' the less highly skilled workers (such as machine operators),

t..lie persons of Italian extraction consider themselves "superior."

Next in social "rank" are the Cubans, then the Puerto Ricans, and

lastly, the Negroes. Negro employees work together in a separate

area of the plant, and perform all pressing, cleaning, and porter

services. 1

1As reported by a leading manufacturer in Miami, who requested that his name be withheld from publication.

74

Legal Min:illlum Wages

One of the most apparent factors relative to available labor

is t.11e low level of wages which prevails throughout the Florida apparel

indu.stry.1 In all instances, the minimum payment per hour must conform

to the provisions of the Fair Labor Standards Act, as amended; in no

case can payment be less than required by this Act. 2

On September 5, 1961, Public Law 87-30, which amended the Fair

Labor Standards Act, became effective. Employees who had been entitled

to t.~e $1.00-an-hour minimum prior to that time were then entitled to

at least f-L.15 per hour. The minimum wage payment under t.11is Act will

increase to ~1.25 per hour, effective September 5, 1965. Homework is

also regulated in the women's apparel industry, as well as in allied

fashion industries. 5 Any apparel manufacturer who does not pay min­

imum wages as prescribed by this Act will be subject to both civil and

·1u. S., Department of Labor, Bureau of Labor Statistics, oc:,ational Wage Survek Miami, Florida, December 1960, Bulletin No. 285-33. 'ffie fact at wages are lower in Florida 1s apparel manufacturing establishments is freely noted within the industry.

2Apparel manufacturing employees are deemed to be engaged in producing goods for interstate commerce, or in occupations related and directly essential to such production; the apparel workers are not subject to "speci.i"ic exemption" under the Act.

5liomeworkers are covered by this act in the following indus­tries: Jewelry manufacturing industry, lalitted outerwear industry, embroideries industry, handkerchief manufacturing industry, button and buckle manufacturing industry, women's apparel industry, and gloves and mittens industry.

criminal action. Federal Courts are authorized to order payment of

back wages which were found owing by court action. 1

Extent of Unionization

75

It should be emphasized that the Florida women's apparel

industry is not highly unionized. T"ne influence which the Inter­

national Ladies• Garment Workers' Union, Local 415, has upon the

industry is a result of both the number of employees who are union

members, and, perhaps more important, the number of manufacturing

establis.'ll!lents which are under contractual agreement with the union,

and are hence considered "unionized." Considerable variation exists,

however, in the statistics which are available relevant to both

union membership and the number of unionized manufacturing establish­

ments.

For example, one qualiried union source reported that there

were approximately 2,500 members of Local 415 in 1962. 2 There is

reason to believe, however, that this estimate is, in reality, far

in excess of t.½.e actual union membership. This same source had ori­

ginally overstated (by about one-third) the total number of workers

1Information taken from form letter signed by Clarence T. Lundquist, Administrator, U. S. Department of Labor, Wage and Hour and Public Contracts Di.visions Washington 25, D.C., and enclosed Notice to Employees (poster, f~rm no. GPO: 1961 0-601039). 'Ihis fonn letter and enclosure were mailed to apparel manufacturers in Florida, to advise them of pertinent changes in the Fair Labor Standards Act.

2Robert Gladnick, Manager, Local 415, International Ladies' Garment Workers' Union, Miami, Florida.

76

employed in the Miami area, but 'When questioned further, corrected

this error. Independent and highly reputable nonunion sources con­

sistently reported that the total membership of Local 415 was no more

than 1,500 persons in 1962.1 It was further claimed that union offi­

cials are frequently guilty of overstating their membership totals,

as well as any other information which would tend to increase the

apparent significance of their current activities.

The greatest influence of the union is exercised not through

their individual members, but rather through the negotiations with

unionized manufacturers. A "unionized manufacturer" may be defined

as one who is under a contractual agreement v.i.th the International

Ladies' Garment Workers' Union which requires that the union be recog­

nized as t..lie sole and exclusive bargaining agent for all workers (both

union and nonunion members) in the "bargaining unit." The bargain­

ing unit covered by contractual agreement consists of all non­

supervisory production workers employed by the unionized manufacturer,

excluding office workers, executives, foremen, foreladies, designing

staff (except sample-makers), maintenance workers, porters, salesmen,

shipping and errand boys, and chauffeurs. 2

½i:anufacturers interviewed (o"Wilers of both unionized and non­unionized establishments) requested that they not be personally iden­tified as having supplied information relevant to union activities.

2contractual Agreement, July 16, 1957, by and between The fl.orida Apparel Manuf'acturers' Association and Local 415, Miami Joint Council of the International Ladies' Garment Workers' Union, Article II.

77

Most unionized women's apparel manufacturers in Florida are

members of the Florida Apparel Manufacturers' Association, an organ­

ization which was formed to represent them in t.11.eir contractual rela­

tionships with the union. Sources within that organization noted that

their members..11.ip currently totals 15 unionized manufacturers.

Some unionized manufacturers do not belong to this organization;

these negotiate their separate contracts directly with the union.

Currently, there are 10 to 12 such manufacturers. 1

Tnus, approximately 25 manufacturers were unionized, out of a

total of approximately 199 manufacturing establishments in the state

of Florida in 1962. These unionized manufacturers were located in t.~e

Dade County area, and it was further disclosed that most unionization

had occurred among the smaller manufacturing establishments. While

unionized manufacturers employ union members almost exclusively within

the bargaining unit, they can also employ some nonunion members. In

F1.orida, whic.11 has a "Right-to-Work" law, any manu.facturer can employ

both union and nonunion members, and any private agreement to the con­

trary cannot be legally enforced. 2

1As noted by sources within the industry, and confi:nned by Robert Gladnick.

2The Contractual Agreement (Article III, Paragraph 3), con­tains the provision that, "if State Law pennits, membership in the union shall be considered a condition of employment for all employ­ees on and after the thirtieth day folio-wing the beginning of such employment.. • • • 11 Mr. Robert Gladnick inf onned the author that the union is attempting to teat the applicability of Florida's "Right­to-Work" law.

Wages in Nonunionized Finns

Employees in nonunionized manufacturing establishments are

either "piece workers" or "time workers." Piece workers are those

compensated on a piece-rate incentive system, while time workers are

those compensated on straight salary.

78

The vast majority of workers are piece workers; these are the

"operators" who perform the machine sewing operations in the apparel

manufacturing firms.

Piece workers are paid according to their productivity; that

is, a given manufacturing task is commonly priced according to the

time required to perform that operation, so as to yield easily a

typical production worker 'What management considers to be a fair

minimum basic payment per hour. Currently, this basic minimum payment

is approximately $.10 above the legal minim.um wage, or about $1.25 per

hour of employment.

It should be emphasized that this basic rate serves as a

guide to the establishment of the appropriate piece rate on various

manufacturing operations--it does not serve to indicate either the

maximum or the minimum payments per hour which the operators actually

earn. It is apparent that a slow operator might actualfy receive the

legal minimum wage of $1.15 per hour, if t.~e piece-rate computation

yielded this amount or less during the period of employment. If the

operator earned less than $1.15 according to the piece rate, the

amount of additional compensation which would be paid in order to reach

the legal minimum would be referred to as the amount of "make-up" in

that worker's salary.

If an individual worker consistently cannot earn the legal

:m:i.nimum wage, he will soon be considered unemployable in that firm.

79

If a large number of workers cannot earn either the legal mininrum

wage or the basic payment per hour, the manufacturer must adjust the

piece rates used in the wage payment computations. In that case, the

necessary adjustment in piece rate will be quickly forthcoming, both

to prevent dissension between management and employees, and to provide

the incentive to increase production which is basic to the piece-

rate compensation plan. Manufacturers interviewed consistently pointed

out that when they have set accurately the piece rate so -that the

typical operator can easily earn the basic payment per hour ($1.25),

productivity will consistently increase to the point where the maj or­

ity of workers earn considerably more than this amount. On the other

hand, if the rate is such that the typical worker cannot easily earn

the basic payment, or even the legal minimum, incentive to increase

production vanishes, as the workers know they will receive "make-ups,"

and/or the rate will soon be readjusted.

Time workers on straight salary include those who perform a

wide variety of services for the manufacturer. Designers, crafts­

men,1 cutters, pressers, porters, and maintenance workers are all

generally compensated on t."1e basis of specified hourly rate, depending

1rn the trade, 11 craftsmen" are highly skilled workers, suc."1 as embroiderers or sewers of very expensive, almost hand-crafted apparel. Such workers are almost never paid on piecework.

80

upon the difficulty or responsibility associated wi.th their function,

and based in part upon management's personal appraisal of their capa­

bilities. In the case of unskilled persons this payment could be the

minimum prescribed by law, while in the case of more highly skilled

workers (as cutters and designers), wages are materially higher and

are greatly infi.uenced by t.~e individual circumstances involved in each

case.

In addition to regular wages paid, many nonunionized manufac­

turers offer additional compensations including overtime payments at

the rate of time and one-half, paid vacations, paid holidays, and

group insurance. In some instances, it is admitted that these benefits

serve to discourage unionization.

Wages in Unionized Finns

As in the case of nonunionized firms, employees in union­

ized manufacturing establishments are either piece workers or time

workers. The terms of employment and basic wages paid are spec­

ified in a uniform contractual agreement which has been accepted by

the manufacturers, either individually or through their membership

and participation in the F1.orida Apparel Manufacturer's Association.

All workers (-whether piece workers or time workers) receive

at least the following rates of pay:

Cutters. • ••. Operators •••••••••• Pressers . . . . . . . . . Pressers (female) •••• Special Machine Operators. F1.oor Girls • • • • • • • •

$2.285 per hour 1.428 per hour 1.714 per hour 1.428 per hour 1.428 per hour 1.150 per hour

81

Standard hours of employment are 35 hours per week, and persons

working more than 5 days per week or more than 7 hours per day receive

overtime at the rate of time and one-half. 1

Piece workers (operators) are therefore guaranteed a basic

min:i.nrum union wage of approximately $50.00 for a 35 hour week. It

should not be assumed that these workers will be limited to this

figure, however, as the method of payment virtually assures that their

compensation will exceed this amount.

As occurs in nonunionized firms, the manufacturers establish

piece rates for various manufacturing operations which they believe

should easily yield the typical operator approximately $1.428 per

hour. The manufacturers realize, however, that over two-thirds of the

production workers must earn more than $50.00 in a 35 hour week, for

if the piece rate applied necessitates "make-ups" for over one-third

of the workers, the union will insist upon an upward adjustment in

the piece rate. 2 (In fact, it is not uncollllnon to find unionized

workers producing at less than their normal rate of speed, pending

union action which will cause the rate to be increased. Thus a 10

per cent increase in the piece rate at the insistence of the union

may result in increasing the output by over 100 per cent.) 3

1Contractual Agreement Art" 1 VII P h 1 d ~ ••• , 1C e , aragrap an Vo

2Robert Gladnick.

¾bert Gladnick reports, however, that union officials are critical of this practice by their members.

Union sources emphasize t.~at despite the existence of a set

wage base, the actual wages are, in effect, revised almost daily,

since every change in style of garments produced is associated with

the establishment and negotiation of new piece rates. Nor is the

total wage determined solely by the piece rate computation. Since

July 1, 1962, piece wo-rkers have received an additional payment

82

equal to 18 per cent of their weekly earnings. (An original addition

of 12 per cent was to compensate workers for the shift from a 40

hour week to a 35 hour week, effective June 16, 1957, and was in­

creased to 18 per cent July 16, 1962.)1

Time workers in unionized manufacturing establishments

receive at least the minimum union wage payments previously specified.

Most, however, receive considerably more than these minimum payments.

On July 1, 1962, all payments to time workers were increased by 6 per

cent; 2 thus tiJlle workers employed in the unionized industry prior to

that date now receive a wage which is at least 6 per cent higher

fo.an the previously specif'ied minimum union wage payments.

Over and above· regular wages, both piece workers and time

workers receive additional benefits. Union members receive Health

and Welfare Fund and Retirement Fund benefits. To support these pro­

grams, unionized manufacturers are required monthly to remit to the

1contractual Agreement ••• , Supplemental Agreement of October 25, 1960, Item 3.

2rbid.

83

union a sum equal to 9 per cent of the total gross weekly payroll of

all workers (both union and nonunion) who are covered under the terms

of the union agreement. In July of 1965 an additional payment of one­

half psr cent must be made under these same terms, to furnish sever- .

ance pay for union members. 1

These payments made by unionized manufacturers are not in the

form of payroll deductions, and are calculated on the total gross

-weekly payroll prior to deduction for federal or state taxes. 2

Nature of Wages and Wage Costs

It is extremely difficult to generalize meaning.fully upon

the levels of actual hourly or weekly dollar wages that prevail in

both unionized and nonunionized manufacturing establishments. W"nile

both union and nonunion sources freely admit that the competitive

demand for skilled time workers, as cutters and graders, causes their

wage rates to be comparable between firms, it is apparent that the

bulk of the employees, the operators, receive widely varying dollar

incomes for given periods of employment. If one could statistically

determine the average dollar compensation for these workers, such a

figure would provide little or no insight into the nature and sig­

nificance of wages.

1 Contractual Agreement ••• , Article nv, Supplemental Agreement ••• , Items 1 and 5.

2rbid.

84

For example, Robert Gladnick, of Local 415 of the International

Ladies' Gannent Workers' Union frankly admits that one cannot determine

with certainty what it would cost to have a given collar se-wn, even

in two unionized manufacturing establishments in the Miami area. Just

as productivity between two workers may conmonly vary by 60 to 80 per

cent in a single shop, so productivity varies in tenns of physical

output per worker between shops. While productivity variation between

shops may or may not be associated with differing collective personal

abilities of the workers, one must also remember that no two manufac­

turers possess equal organizational or managerial skills, nor are they

producing the same quantities of identical finished products. Nor are

these manufacturers equally successful in their ability to market

their products. Therefore, despite t.lie fact that the same basic wage

minimums prevail, Mr. Gladnick emphasizes that the cost of perfonning

similar operations will vary greatly between establishments.

This variation in wage costs occurs irrespective of the seem­

ingly equitable application of the piece-rate system by the union, or

by nonunionized manufacturers.

Assuming, for the reasons given, that two unionized manufac­

turers are not equally productive in a physical sense, then one may

note that the union will endeavor to negotiate the piece rates in such

a way t.liat over two-thirds of the piece workers in each establishment

make substantially more than the specified minimum wage levels. 'lb.us

the dollar cost of producing a given collar (or performing a given

operation) will, of necessity, vary between two unionized firms, and

the physical productivity of equally skilled workers will likewise

vary between these firms. It appears that the union activities in

regard to piece rates tend to equalize dollar payments to similarly

skilled workers in various firms, but that considerable variation in

wage costs continues to exist between these firms. Only within a

given unionized firm can the wage costs be directly related to the

dollar wages of the piece workers.

If one applies the same analysis to nonunionized manufac­

turers :in Florida, similar conclusions must be reached. If non­

unionized shops are not equally productive :in a physical sense, yet

the manufacturers endeavor to compensate their piece workers on the

basis of rates which exceed the legal minimum hourly wage by approx­

imately $.10, then similarly skilled workers in various nonunion-

85

ized firms will tend to receive similar dollar payments, but consider­

able variation in wage costs will continue to exist between these

firms. Only 'Within a given nonunionized firm can the wage costs be

directly related to the dollar wages of the piece workers.

Both union activities and activities of nonunionized manu­

facturers 'Which are influenced by legal minimum wage requirements

tend to equalize dollar wages within the two classes of manufacturing

establishments, in much the same way that greater competition for the

services of workers would tend to accomplish these same ends over a

sufficiently long period of time. Whatever equilization of wage costs

occurs may be attributed largely to the .functioning of the market

mechanism as it affects the profitability of the production of highly

differentiated women's apparel.

86

Reactions to Unionization

The significance of unionization in F1.orida 1 a women's apparel

industry is great. There is no doubt that t..i,.e Miami manufacturers

consider absence of unionization to be an advantage which they hold

in the highest regard; yet there is perhaps no ct.lier topic which t..l-ie

members of the industry are so reluctant to discuss publicly. The

interviews obtained clearly indicate the strength of anti-union senti­

ment which currently exists. One manufacturer expressed his feelings

as follows:

T'.ne International Ladies' Garment Workers I Union 'is one of the wealthiest and strongest unions in the United States and has a stranglehold on t..l-ie garment industry in New York City, resulting in its ruin, and forcing the manufacturers to move to more favorable locations, such as florida.l

As noted in the preceding chapter, in New York City a garment

which will wholesale for $5.85 has a specific union wage scale. If

the same garment were intended to wholesale for $6.85, a higher wage

scale would be applied, despite the fact t..i,.at the labor task involved

was identical. The author's source referred to this as "exorbitant

scale pricing" lmich is "stifling the hig."1 end of U1e industry" and

is associated with "collusion between public officials, union infil­

tration by racketeers, and criminal activities withil'l the industry

l,l'his material was furnished to the author with the expressed condition that its source should not be divulged, for fear of union reprisals. The person interviewed is a highly reputable and respected member of the Florida industry.

itself." Control of industry is noted as being so complete that "to

fire an employee would be unthinkable."

87

The Florida manufacturers consider this state to be "anti­

organized labor." The "Right-to-Work11 law insures that a local

manufacturer can hire both union and nonunion help. The freedom from

union-scale pricing based upon wholesale selling price of a garment is

an advantage which cannot be enjoyed in New York. If Florida becomes

unionized, the author's source added, "The same conditions which exist

in New York will eventually exist here, and growth in the industry

will cease; in fact, the union would ruin the Florida industry if it

could, to perpetuate the control which it exerts over t...J.ie industry in

New York."

When asked what evidence there has been to substantiate the

contention that the International Ladies' Garment Workers' Union is

currently exerting considerable effort to organize the local industry,

the source replied as follows:

Any local manufacturer, such as myself, who publicly denounces the intolerable conditions imposed by the union is flirting with ruin. T"ne union could and would use every means possible to harass him in every conceivable way, even to the point of preventing his sales to unionized finns. In some cases this would mean he might as well close up shop--he would be finished.

Thus far the union has not been very successful in recruiting, so it spends mu.ch of its time harassing and threatening the local manufacturers. Some of the smaller firms are giving in. One firm, Scherer and Sons [a supplier of belts to the local industry], is currently trying to prevent Local 415 of the International Ladies' Garment Workere 1 Union from ordering Miami firms not to deal with them.

The outcome of this dispute has not yet been determined.

A recent decision by the Florida Supreme Court held that this Miami

manufacturer would have to go to federal court to prevent a union

embargo on its products. The decision, in effect, upheld a ruling

by the state Court of Appeals that the injunction against the union

could not be granted by the Florida court, since federal law has

pre-empted state action. The manufacturer must now seek relief in

federal court, or bring suit in the state courts on the grounds that

the embargo violates this state's "Right-to-Work" law. 1

88

While it is not within the purview of this report to explore

in detail the nature of management-union disputes, certain observa­

tions should be made. 'lhe local industry is concerned, and not with­

out apparent cause, about recent union activities. Union-scale

pricing, as it exists in New York, would obviously pose a serious

threat to the continued growth of the Florida industry. The diffi­

culty imposed by this practice in New York is well kno'WI'l. One author

observed:

The union's control over wage rates leads to an often illogical relationship betW9en cost of a dress and its intrinsic value. A manufacturer in a high price line bracket has to pay more to his operators and cutters than a manufacturer in a lower bracket. Theoretically, the workers in the higher lines are more skilled, but there may be no appreciable difference in their output. Again, the manufacturer in the high price line may have a very small output and have to charge nmch overhead to each garment, whereas the low price line manufacturer

1 The Miami Herald, May 10, 1962, p. 22-A.

may spread his overhead over a large volume. Thus, it is possible for a low-priced house to turn out a garment equal in material and workmanship, and pos­sibly style, to that of high-priced merchandise.l

It should be remembered that the above quotation refers to

competitive difficulties within New York. The threat is even more

serious when one considers that the Florida producers are low-volume

operators, trying to produce high-end goods, in competition with the

established might of both the high-end and low-end volume producers

located in New York. It seems readily apparent that a wage struc­

ture here similar to that which exists in New York could be disas­

trous to the local industry.

Persons within the industry further note that the small

Florida manufacturer, in this highly competitive field, cannot read­

ily afford to pay wages ldlich are greater than those which currently

prevail. While manufacturers of style goods will frequently main­

tain that the selling price of a finished line of apparel is deter­

mined largely by such intangible factors as styling and strength of

brand acceptance, this should not be interpreted to mean that such

items themselves are entirely immune to price competition. In other

words, while the productivity of any worker is directly related to

the price which a fashion coillllOdity can command in a given market,

the ability of the Florida manufacturer to compete in the national

1John W. Wingate and Norris A. Brisco, Buyin~ for Retail Stores (New York: Prentice-Hall, Inc., 1949), pp. 2 6-267.

89

90

market for fashion apparel would be greatly en..~anced by a lower dollar

wage level such as prevails in F1.orida, all other things being equal.

But, in reality, all other things are never equal. In regard to

local conditions, there is even reason to question whether wage costs

in F1.orida are not currently higher than those which prevail in New

York. It is argued within the industry, for example, that this is

the true state of affairs, since workers are considerably less pro­

ductive here than in the North. 1 If indeed this is the case, then

there is even more reason to believe that, if applied in F1.orida, the

union scale of wages which prevails in New York would be disastrous,

not only for the local manufacturers who would then be unable to com­

pete, but also for the workers themselves, who would soon become

unemployed.

While the major and basic opposition to unionization is re­

lated to the level of wages and wage costs, there are other factors

wich management also considers to be objectionable. For example,

efforts to make unionization a requirement for employment; 2 provision

that wages or piece rates can never be lowered; 5 restriction of the

right of an employer to perform productive services in his own behalf; 4

1This highly complicated relationship between wage costs and productivity in the apparel industry is discussed in further detail in Chapter VII of this report.

2contractual Agreement, Article III, Paragraph 5.

5Ibid. , Article VII, Paragraph 15.

4rbid. , Article IX, Paragraph 2.

91

restriction placed upon the ability to subcontract, and prevention of

purchases from nonunionized suppliers;1 holding a manufacturer respon­

sible for the payment of wages by other finns with which he deals;2

prohibition of the importation of goods from other countries; 5 restric­

tion of the right to open additional shops; 4 requirement that financial

records be submitted to union officials; 5 and favoritism in the appli­

cation of contractual provisions 6 are all considered by manufacturers

to be highly objectionable consequences of unionization. Irrespective

of whether or not manufacturers are justified in t.~eir opposition as

noted here, it is apparent that opposition to unionization is an im­

portant consideration materially influencing the decision to begin

or to continue operations in a given geographic area.

1Ibid., Article xv, Paragraph 2.

2 Ibid., Article xv, Paragraph 2.

5:rbid., Article xv, Paragraph 4.

4rbid., Article xv, Paragraph 5.

5Ibid., Arti.cle nx. 6This refers to union violation of Article XXIlII of their

contractual agreement, which reads, "In order to carry out the spirit of this agreement, the Union agrees that no more favorable terms or conditions than are provided for herein will hereafter be granted by the Union to any employers not members of the Association." (For ex­ample, Mr. Robert Gladnick admitted to the author that a unionized manufacturer in Hollywood, Florida, is permitted to operate on a BS-hour week, instead of a 55-hour week, as provided in this contract.)

The Availability of Raw Materials in Florida

92

Close physical proximity to the suppliers of fabrics intended

for use in the production of women's apparel is a clear advantage to

both the design and the subsequent production of these fashion commo­

dities, as noted in Chapter IV. For this reason, the author believes

it necessary to examine the environment of the Florida manufacturer

with particular attention to availability of fabrics and findings.

Many persons are currently enthusiastic about the existence of

a booming textile industry in Dade County. The president of a firm

reported to be weaving and sewing in excess of $500,000 worth of terry

clot.½. items yearly in Miami was recently quoted as follows:

Metropolitan Miami has a fortunate supply of weavers and loom fixers, plus retired textile veterans available to meet unforeseen needs.

Additionally, the Cuban situation has brought other textile workers to this area. A:rry language barrier is more than offset by the loyalty and experience of the Cuban people.

Eventually the textile industry will have its pilot plants here, its designing staffs being inspired locallyi and its Dior style of fabrics woven in Dade County.

1Metropolitan Miami Memo, Vol. II, No. 8 (April, 1961), p. 1. Quotation from Philip Waldman, President, Walco Manufacturing of Florida, Inc.

93

Initially, one may consider local producers of such textile

materials. With the apparel industry largely concentrated within

Dade County, one might logically inquire whether arry significant pro­

duction of textiles is currently available in that area. Publication

of inf'ormation by the Dade County Development Department1 might lead

one to believe that local industries supplying raw materials to the

Florida apparel manufacturers have already shown signs of substantial

development. For example, one may quote that source as follows:

In 1954 only nine firms with 111 employees were active in the textile products field here. Today 29 firms, employing 488 workers in 331,600 square feet of plant space are producing textile products in Dade County. Production­wise, increases are shown of 222 percent in number of plants and 339.6 percent in number of employees.

Also included in this group are the highly impor­tant service functions to the apparel industry--fabric dyeing and textile printing. 2

Table 11 of this report depicts the extent of textile mill

production (S.I.C. 22) referred to above.

The data presented in this table should not be interpreted to

indicate that there currently exists a supply of locally manufactured

textiles that could be used in the production of women's apparel in

Florida. The firms noted as producing "narrow fabrics and at.lier small

wares; cotton, wool, silk and man-made fiber" in the Miami area,

1An agency of the Metropolitan Miami Government of Dade County.

2Metropolitan Miami Memo, Vol. II, No. 8 (April, 1961), p. 4.

TABLE 11

TEXTILE MILL PROOOCTIONa WITHIN DADE COUNTY, F1,0RIDA, 1961

Subgroup No. Firms No. Employees

Narrow fabrics and other small ware mills; cotton, wool, silk and man-made fiber 1 25

Knitting mills 5 20:3

Dyeing and finishing textiles, except wool fabrics and knit goods :3 28

Floor covering mills 4 9 :3

Miscellaneous textile goode 16 159

Totals 29 488

Source: Metropolitan Miami Memo, Vol. II, No. 8 (April, 1961), p. 4.

8 Standard Industrial Classification Major Group 22.

Sq. Ft. Plant

15,000

43,950

48,600

119,800

104,250

:331, 600

95

in 1960, 1961, and currently, in early 1962, produce woven plastic

webbing for aluminum furniture. Dyeing and finishing textiles, except

wool fabrics and knit goods,primarily refer to services performed for

rug renovation or dry cleaning establishments, while the production of

floor coverings obTiously has no application to the women's apparel

industry.

Knitting mills are found in this area, but these establish­

ments are perhaps better considered as producers of finished apparel

for women, since they are engaged primarily in the production of

women's and children's sweaters. (The author has included such fi.I'ms

as apparel manufacturers in Table 4 of this report.)

Included in the classification "miscellaneous textile goods"

are a relatively few fi.nns engaged in the performance of "services"

for the needle trade, such as occasional printing, silk screening,

or flocking operations on textiles used in the production of apparel,

especially sportswear. Primarily, however, such firms are catering

not merely to women's apparel industries, but rather to the produc­

tion of such items as flag.s, banners, posters, window displays, boys1

tee shirts, and home turnishings such as draperies, table coverings,

and the like. Only a single firm, previously noted as producing its

own terry cloth, can be said to produce a significant supply of textiles

wit.hill this misceJ.1.aneous classification, and it must be further noted

that this firm does not sell this cl.oth in Wlfinished form as a raw

96

material for further production. 1

It is readily apparent that no significant production of raw

materials, textiles, or findings is found within the state of Florida.

Interviews within the industry consistently affirm the fact that the

Florida manufacturers of women's apparel are forced to depend upon

supplies of needed materials which are produced in other states. 2

Lack of proximity to major sources of supply poses a defin-

ite problem for t.11e Florida manufacturer. The textiles which he

obtains from distant suppliers, for example, must be transported to

this area. However, this s.11ipping is not regarded as a significant

disadvantage. Not only are adequate transportation facilities by

truck, rail, and air available, but the high ratio of value to weight

and bulk permits suc...11 transportation to be realized with reasonable

economy. O:f far greater signi.ficance, however, is the problem of main­

taining adequate market contact with the suppliers of these materials.

This problem of contact with distant sources of supply is not

as great as might initially be presumed, however, and as the industry

expands, this problem will diminish still further in significance.

At the present ti.me, for example, women's apparel manufacturers in

1For sjJnilar clarification of Table 11, see Florida State Chamber of Commerce, Directo§t of Florida Industries, 1959-1960 Edition, 1961 Edition, and 192 Supplement (Jacksonville: Florida State Chamber of Commerce).

2The author notes that Chemstrand Corporation, which employs 1,000 persons in Pensacola, does produce nylon yarn. The specialized nature of this production, however, prevents the consideration of Chemstrand as a signif'icant source of apparel raw materials in the context under consideration here.

97

Dade County find their problem of source of supply considerably eased

by the activities of salesmen who represent suppliers of t.~ese raw

materials.

In addition to the personal contact of sales representatives

covering the Florida territory, the Florida Textile Club, a salesmen's

trade organization 'Which has been active in the Miami area for over

seven years, conducts annual trade showings of fabrics and related

items in Miami Beach, Florida. In 1961, for example, the second such

showing was held for the Florida manufacturers at the Eden Roe Hotel,

by members of the Florida Textile Club. The buyers' guide published

by this same trade organization lists an active membership of over

45 salesmen, who represent well in excess of 200 northern suppliers of

fabrics and findings for the needle trade. 1 While it is readily appar­

ent that the suppliers of these raw materials are predominantly located

in New York City, the disadvantage of a Florida manufacturer's location

relative to his source of supply is materially reduced by the selling

activities of these suppliers' agents, especially within Dade County.

Just as the suppliers of raw materials seek to locate near the

manufacturers in New York City, so the representatives of these sup­

pliers favor resident locations in Dade County. In this context, it is

also apparent that the manufacturers of women's apparel in Florida

would favor locating in Dade County, so that they could enjoy the

1see Florida Textile Club, Buyers' Guide, 7th Edition (Miami: Florida Textile Club, 1962).

98

obvious advantages of such proximity to the resident salesmen of their

sources of supply. For example, the growing tendency for the New

York suppliers to maintain a stock of textiles at Miami facilitates

faster delivery of these products, and increases the desirability of

Dade County as a location for apparel manufacturing activities.

The Florida Market Area

That the rapidly expanding population of Florida, especially

the concentration of activity along the "Florida Gold Coast," should

provide a valuable retail market for the local manufacturer is readily

apparent. In this context, the Dade County location itself seems to

reflect a centralization of manufacturing activity within a metropol­

itan area advantageously located to service a "local" market area.

The women's apparel manufacturers who have located here, how­

ever, would hasten to emphasize the fact that theirs is a national

market, and not simply a local one. Their production and styling are

not intended simply to fulfill a specialized need associated with the

Florida area, for indeed, it might well be argued that the only

specialized needs which exist in the broad range of fashion are

properly associated with the season of the year--that is, with

climatic conditions.

The extent of geographic distribution of Miami-made textile

products may be reflected by percentages of sales to various areas.

In 1961, it was noted that the South F1.orida area accounted for

99

33.7 per cent of industry sales; the balance of Florida, 17.1 per cent;

other states, 46.2 per cent; and foreign sales accounted for 3.0 per

cent. 1

While the ability to market women's apparel to areas far

removed from their original site of production is characteristic of

the industry, one might yet inquire if the Florida physical environ­

ment affords any special advantage that would facilitate this distri­

bution. Two such advantages may be noted: both are a direct reflec­

tion of Florida's climatic conditions and are regarded as highly sig­

nificant by local manufacturers.

First, local manufacturers frequently note that their ability

to compete nationally is materially enhanced by the ability to "pretest"

summer styles locally during the Florida tourist season, in advance of

their national introduction the following spring. With retail estab­

lishments in Florida resort areas providing a ready market for cruise

and sportswear lines during the winter months, consumer reaction to

the styling of such products may be of great assistance as a means of

predicting accurately the national reaction to similar items in the

spring and summer months which follow. 2

1Metropolitan Miami Memo, Vol. II, No. 5 ( January, 1961), p. 4.

2'lhat Florida provides a valuable area for pretesting resort and cruise wear is becoming readily apparent, not only to the local manufacturers, who capitalize most extensively upon this advantage of location, but to their competitors as well. Bathing suit manufacurers, as, for example, Rose Marie Reid of California, utilize the Florida

100

Second, Florida's climatic conditions, and the needs of the

local market, have caused the Florida manufacturer to specialize in

"resortwear11 and "spring and summer" apparel. In addition to being

able to enjoy a degree of isolation from competition in Florida while

northern finns are producing winter apparel, the Florida producer is

in a position to continue to furnish late delivery of summer goods to

retailers located in northern states during the mont..11.s of July and

August, when regular sources of supply are already shifting to winter

production and discontinuing such items. Tb.us an increasing reliance

is placed upon the Florida resource, as it is proven to be a more spec­

ialized and reliable source of sununer goods.

In view of these circumstances, it is readily apparent that

local manufacturers would value highly the advantages of t..11.eir local

market, which facilitate both the reliable pretesting of spring and

summer apparel styles, and permits a recurring competitive advantage in

both northern and local markets.

area for this same purpose. This manufacturer of women's bathing suits ('Which retail at ,$12.95 to $50.00) uses the winter sales fig­ures in Florida to determine t..11.eir best sellers among items intended for swmner wear nationally. It is further reported t..11.at this Cali­fornia finn sells more "better" suits in Miami than in any other single city in the country (as reported by Mrs. Dorothy Kempner, Women's Sportswear Buyer, Burdine 1 s Main Store, Miami, Florida).

CHAPTER VI

THE ORIGINS OF APP AREL DESIGN AND FASHION CREATION

In the preceding chapter, the author has presented the maj or

attributes of the physical enviromnent in which women's apparel manu­

facturing is developing in Florida. This presentation has attempted

to reflect the considerations of the local industry itself, especially

where they present a contrast between the physical environment which

exists in Florida and that which characterizes the industry in general.

But the complete examination of the present and potential

growth of the women's apparel industry in F1.orida necessitates that

the environment be interpreted to include far more than the physical

requirements themselves. The author believes that while basic phys­

ical requirements must obviously be met within any area where indus­

trialization is to develop, there are other essential elements of a

less obvious nature which must be considered as well.

It would appear essential to examine the requirements of the

apparel industry which are nonphysical in nature--that is, the addi­

tional requirements which must be met in order to permit manufac­

turers to function successfully within the system of fashion creation

in America.

The understanding of the fashion process and the requirements

which it imposes upon manufacturers is essential to the examination

101

102

of the Florida location as a site for women's apparel production.

Only with such initial understanding of the fashion process can one

hope to relate the Florida manufacturer's role to the totality of the

national industry within which he must function.

Importance of Style

'.Ihe importance of style, which guides innovation in the world

of fashion, cannot be overemphasized. Style applies to every sphere of

social existence-it is a characteristic of the entire social order

of man. In women's apparel manufacturing, however, its significance

is paramount.

Recognition of the controlling influence of style in this con­

text has long been found throughout bot.li the industry itself and the

literature pertaining to it. In the latter, one may quote one author~

ity as follows:

Style, in the dress industry, is the factor of overshadowing importance. It is more than a description of the product--it is the very essence of the industry. It detennines the industry's geographical concentration; it dictates the structural scheme of jobber-contractor arrangements by which materials are transformed into dresses; it determines the size of the producing units and has more than a little to say about whether they shall compete or combine; it is largely responsible for the hig.~ rate of business mortality; it influences the capital investment and the nature of the financial organization; it decreases the existing "state of t.lie industrial arts" and fixes limits beyond which the machine process may not go; it dominates conditions in the workroom and the relationship of worker to employer. It ordains 'When there sh.all be unemployment and for

how long; it presides over merchandising practices and creates a market with laws all its own; it is not with­out significance in shaping t.~e character of trade asso­ciation and labor union. Finally, style, like a magnet, exercises a selective influence upon t.~ose who enter the industry.l

A further examination of this control 'Which style exercises in the

fashion process is desirable.

Style, Fashion, and the Fashion Cycle

103

Broadly conceived, style is a characteristic and distinctive

mode of expression; while this definition is here applied to apparel,

it may similarly be applied to any medium. 2

The short recurring cycle in apparel is associated with sea­

sonal change; the change in climatic conditions facilitates the

introduction of new styles in apparel. The new seasonal introduc­

tion will represent a change or departure from previously accepted

styl.ing.

1Helen Everett Meil'clejohn, "Dresses--The Impact of Fashion on a Business," in Walton Hamilton (ed.), Price and Price Policies (New York: McGraw-Hill Book Company, Inc., 1958), p. 30'3. ·

2 Ibid., p. 304. In the apparel trade, this use of style indi-

cates therijiiodal theme" or "silhouette." Style is also loosely used to indicate any single design (item) which the manufacturer adds to his offering. Thus, style has two meanings: a manufacturer shows many styles (items), but they may, in reality, all be variations of the same style (modal theme or silhouette).

104

The term "high-style" as applied to women's apparel denotes

an expression or design which is not typical or commonplace. It is

associated with the radically new, rather than with the old or the

previously accepted; it possesses this quality of being both different

and timely. Thus the latest seasonal introductions of style, which

will presage that which is subsequently to follow, are in a sense

radical departures from existing fashion and not yet representative

of new fashion. The initial introduction of the season's high style

is in the form of expensive garments of all classifications (from

evening dresses to sports and leisure apparel), which, if the inno­

vator is successful, will preview the silhouette which will dominate

the style of apparel for the coming season.

Let us now turn our attention to fashion itself. Broadly

conceived, fas.~ion is an accepted style.1

Once the original high-style garments become accepted, t.~ey

become high fashion. It should be noted here that "acceptance" or

success of high style is not tantamount to mass acceptance. Rather,

such acceptance is dependent upon the exclusive nature of the original

garment. Both the "exclusive" quality of the gannent and the high

price which is associated with it are incompatible wit.~ mass acceptance.

1Paul H. Nystrom, The Economics of Fashion ( New York: Ronald Press, 1928), pp. 3--4. Just as style has a double meaning, so fashion is noted as having two popular uses in t.~e trade. Fashion refers to the accepted mode of expression (the "silhouette"), and also to an individual accepted design (item) in a manufacturer's line. Thus, while two items may both reflect the same fashion (accepted silhouette), one may be considered a fashion number, and the other may be a "lemon" or a "dog," as poor numbers are called in the trade.

105

T'ne transition from high-fashion introduction to forms of

style more compatible with the needs of mass production and mass

distribution soon follows. This process by which the original high­

fashion design filters throughout the apparel industry is associated

with the art of "copying do'Wil."l

Thus, the prevailing styles which are acceptable to the mass

market in the medium-to-low price garments are a direct reflection of

original high-style apparel. Similarly, fashion for the masses is a

reflection of high fashion successfully introduced earlier in the

season. Such mass acceptance is associated with the completion of the

seasonal fashion cycle, and the innovators will again introduce new

collections of high-style apparel, and the process will repeat itself.

Having briefly outlined the general manner in which styles are

set within t...lie apparel industry, one might logically inquire how this

role of style innovation is delegated wi t...liin the industry. 'lhe answer

to this question can best be obtained by inquiring initially who

currently performs this function for the industry, and why they are

successful in that function.

111 Copying do'WI111 is the act of adapting a higher priced and more highly styled garment to the need for a less expensive item. Simplification of design and craftsmanship and use of less expensive fabric contribute to this objective. The late Edna Woolman Chase, while Editor-in-Chief of Vogue, allegedly is quoted as saying, "Fashion permeates down,~ up."

106

Influence of Parisian Style Innovation

The leadership of the dressmaking houses of Paris is unques­

tioned within the industry. Moreover, Parisian leadership in the

setting of style within all classifications of apparel is recognized

as being of long standing.

Many writers from varied fields note the supremacy of Paris

in this context, and suggest explanations for this phenomenon.

Alfred Marshall,in claiming superiority for certain classes

of English fabrics at the turn of the century, may be quoted as follows:

But in other directions, France is supreme. Some Englis.11 manuf acturera ldlo hold their own against the world would ••• be driven out of the market if they had to depend on English patterns. This is partly due to the fact that Paris having the lead in fashions, as the result of an inherited quick and subtle taste in women's dress, a Parisian design is likely to be in harmony with coming fashions and to sell better than a design of equal intrinsic worth from elsewhere.1

In the late 1920 1 s Paul Nystrom wrote:

The long history of Paris as the capital city of fas.liion has developed a tremendous prestige as well as a habit of thinking in the minds of most fashion-wise people in the world. 'Whenever the word fashion is mentioned, almost instantly Paris comes to mind as its associate term. It is almost as if Paris and fashion were synon-ymous. Paris with its many attractions as a resort draws buyers and stylists as a magnet attracts filings.

1Alfred ~arshall, Princ1tles of Economics, 8th Edition (New York: Macmillan and Co., L d., 1959), p. l79.

.•• Manufacturers, importers and retail dealers in the United States have, in many instances and for many years, advertised their allegiance and indebtedness to the style genius of Paris. • • • Among the most expert and exclu­sive of New York designers and dressmakers, some of whom are great creators in their own right, one finds complete subservience to Paris leadership •••• They have con­cluded t..½at Paris prestige means more to insure business success than t..'le promotion of their own artistic skill. • . • The fashion periodicals likewise subserve Paris prestige •

• • • Probably most manufacturers and retailers in the United States have admired, purchased, and offered to their customers Paris productions, which, if they had come from any other city in the world, would not have received even more than passing notice •••• The selling power of Paris prestige is such among .Americans that not a few of the new styles coming from Paris have been the results of ideas developed else-where but taken to Paris to be launched there as Parisian fashions .1

A more recent quotation -from a fashion authority reads:

The supremacy of the Parisians in the creation of women's apparel ••• was founded not only on their un­paralleled artistry with cloth and needle, but on an intellectual, social, and political background of far greater significance.2

107

In commenting upon the fact that style is a reflection of the

prevailing social milieu, another fashion authority noted:

Yet to state the thesis that dresses are faith­ful reflectors of the life of an age is not to explain the minor caprices of fashion. To discover precisely

1Nystrom, pp. 176-177.

2Bernice G. Chambers, Fashion Fundamentals (New York: Prentice-Hall, Inc., 1947), p. 131.

how and where a given fashion is born we should have to find our way to one of the great dressmaking houses of Paris •••• It is still held that the French genius for design is supreme., and it c~ot be denied that Paris decrees the basic silhouette.

An authority within the industry recently emphasized:

Paris is the undisputed hub of fashion innova­tion in the world today. Without the genius of the Parisian designers, America's apparel ma,,ufacturers and retailers would be cast upon a sea of indecision., and style innovation--the heart of the industry--would become an even more dangerous and costly undertaking. 2

Acceptors of the Haute Couture

Ih attempting to analyze the success of the Parisian Haute

Couture., one may first note that their successful style innovations

possess the attribute of acceptability to three major groups. These

three groups are: (1) the private clientele of the Haute Couture;

(2) the manufacturers and retailers who attend the style showings;

and (3) prominent fashion editors. A brief examination of these

three groups who facilitate the success of the Haute Couture., and

hence initiate their role in the fashion cycle., may be desirable.

1Meiklejohn., P• 308.

108

2This quotation and much of the following analysis of the success of the Haute Couture were obtained during personal interviews with Martin 0. Kahn. Mr. Kahn., as Fashion Coordinator of the R. H. Macy Company in New york City., personally attended the Paris fashion showings twice yearly for over 20 years., and actively participated in the marketing mechanism which introduces style innovations into this country.

Private Clientele

The personal patrons and customers of the Haute Couture, a

small group of prominent women, include the independently wealthy

109

and the politically prominent. Their social position necessitates

that they be fashion leaders--the Parisian dressmaker s supply t.~eir

apparel needs, and several times yearly announce a list of the world's

best-dressed women. Theirs is a complementary association, refiecting

the necessary interaction between the world of fashion and the realm

of social prominence.1 The social prominence of these customers

places a needed stamp of approval upon the Couture 'Which they patronize.

Manufacturers and Retailers

Many .American retailers and manufacturers are invited to attend

the Parisian showings. This attendance ( which requires an initial

minimum payment or "guarantee" to the Haute Couture of roughly $1,500)

is the first step in introducing Parisian designs into this country.

The .American manufacturers and retailers are buying for adaptation;

that is, they select high-style garments to be copied and produced

in quantity in .Americs. 2 This process of adaptation is discussed in

greater detail at the conclusion of this chapter.

1The Duchess of Windsor exemplifies the international clien­tele of the Haute Couture, and allegedly purchases suits from Coco Chanel, daydresses from Dior, cocktail dresses and suits from Balenciaga, and evening dresses from Lanvin-Castillo.

2Typical manufacturers attending the Paris showings would include Seymour Fox and Ben Zuckerman of New York City. These manu­facturers are generally accompanied by their designers. Examples of

no

The Fashion Editors

Fashion reporting is a separate but essential ingredient in

the promotion of style. Fashion editors of leading American publica­

tions are invited to attend the Paris showings (with the exception of

Balenciaga and Givenchy, which they cannot see until the originals

are shipped to the retail stores, approximately one month after the

initial s.~owing); they will report "the general trend for the coming

season" when they return to America.1

Prerequisites for Acceptable Style Innovation

Having noted that French designs enjoy ready acceptance as

high fashion and determine the basic silhouette for the apparel indus­

try in .America, it is desirable to examine what determines this accept­

ability. That is, what are the criteria which must be met in order that

that high degree of acceptability be forthcoming? Several observa­

tions are made in this context.

First, the high-style apparel innovation must fulfill the needs

of the .American apparel retailers and manufacturers who patronize the

retail buyers would include such New York firms as Macy's, Ohrbach 1 s, Saks Fifth .Avenue, Bonwit Teller, and Lord and Taylor.

1writers attending the Couture showings in Paris would include, for example, fashion editors of Vogue, Harper's Bazaar, Women's Wear ~, The New York Herald Tribune, and The New York Times.

Haute Couture. These buyers are primarily influenced by t."1.e record

of success 'Which the innovator enjoys and, more important, by the

successful promotions which these innovations have enjoyed in

.America over the years. Since prior dealings with a given designer

have proven profitable, the "importers" of these designs will natur­

ally purchase with considerable preference new styles from these

same Parisian suppliers.

Second, these high-style innovations must also fulfill the

needs of t."1.e socially prominent "fashionable" women; that is, t.'i-J.ey

must be socially and personally acceptable.

111

Criteria one and two merely indicate that the French designers

consistently are able to meet the needs of their customers. The ques­

tion yet remains unanswered--'What are the abstract qualities of t."1.e

innovation which permit the satisfaction of the needs of these two

important groups of buyers? An additional requirement is obviously

needed.

The third requirement met by the Haute Couture of Paris is

that the designs must be different from the preceding styles, yet

must be perfectly adaptable to the current psychological and phys­

ical needs which characterize the life and times of their clientele.

One cannot overemphasize the fact that style innovation

within the women's apparel industry is, of necessity, a function

geared to t."1.e fulfillment of basic human needs.

112

Initially, it is necessary to avoid the prevalent but erro­

neous misconceptions regarding fashion generation. If, as is some­

times erroneously assumed, fashion, or design acceptance, is the mere

result of advertising expenditure, then the successful manufacturer or

designer may be likened to a dictator who,because of promotional

e£forts and accepted trade practice, may arbitrarily set coming fash­

ion at will, and the American public is subjected to an almost

tyrannical industry whose sole function is to stimulate unwanted

expenditure through the forced obsolescence of this year's apparel.

Success or failure of an innovator would, then, in any location, be

it Paris, France, or Pleasantville, U.S.A., be the result of brute

economic force within the industry. Fortunately, this is not the case.

It can be readily noted that many styles of apparel are not

accepted by the consuming public, despite considerable promotional

effort.

As an authority on the economics of fashion pointed out:

It is not easy, as many businessmen have found to their sorrow, by any means of sales promotion to control or turn fashion movements from their destined direction. Some of t.'1-:le most pathetic as well as greatest losses in the history of American business have been due to the efforts of business to stop the trends of fashion, or turn them backward or otherwise change them in some funda­mental way. 1

1 Nystrom, p. 10.

There have been numerous attempts by advertising and other methods of sales promotion to start new fashions which have landed in dismal failures •.•• Advertising men and business managers who pride themselves on their ability in sales promotion and on their ability to influ­ence consumer demand may not like this statement, but there seems to be very little to indicate that any impor­tant trend of fashion has ever been changed by any fonn of sales promotion.1

The very element of -risk would seem to indicate that the designer,

ll3

in attempting to create new but acceptable styling, is in reality at­

tempting to fill the valid psychological need for innovation evidenced

by the American women who select these styles.

Explanation of fashion innovation as a means of fulfilling

a basic consumer need is frequently evidenced in marketing literature.

The following quotation provides an interesting illustration of theory

on this point:

Fashion is custom in t.~e guise of departure from custom. Most nonnal individuals consciously or uncon­sciously have the itch to break away in some measure from a too literal loyalty to accepted custom. 'Ibey are not fundamentally in revolt from custom but they wish some­how to legitimize their personal deviation without laying themselves open to the charge of insensitiveness to good taste or good manners. Fashion is the discreet solution of the subtle conflict. The slight changes from the established in dress or other fonns of behavior seem for the moment to give victory to the individual, while the fact that one's fellows revolt in the same direction gives one a feeling of adventurous safety. '!be personal note which is at the hidden core of fashion becomes super­personalized.

1Ibid., p. 13.

'Whether fashion is felt as a sort of socially legitimized caprice or is merely a new and unintelligible fonn of social tyranny depends on the individual or class. It is probable that those most concerned with the setting and testing of fashions are the individuals who realize most keenly the problem of reconciling individual freedom with social conformity wllic.li is implicit in the very fact of fashion. It is perhaps not too much to sg:y that moat people .are at least partly sensitive to this aspect of fashion and are secretly grateful for it. A large minor­ity of people, however, are insensitive to the psycho­logical complexity of fashion and suoorl.t to it to the extent that they do merely because they realize that not to fall in with it would be to declare themselves members of a past generation of dull people who cannot keep up with their neighbors. These latter reasons for being fashionable are secondary; they are sullen surrenders to bastard custom.

• • • The average consumer is chronically dis­tressed to discover how rapidly his accumulated property in wear depreciated by becoming outmoded. He complains bitterly and ridicules the new fashions when they appear. In the end he succumbs, a victim to symbolisms of behav­ior which he does not fully comprehend. What he will never admit is that he is more the creator than the victim of his difficulties.l

114

In addition tot.lie possible psyc.liological needs of apparel

purchasers, the successful designer must also meet the physical require­

ments of these consumers. 'Ihe need for practicality of design must

not be overlooked. Style acceptance requires t.liat design be adapted to

fit social custom and insure compatibility with current habits. 2

1Edward Sapir, "Fashion," in J. H. Westing (ed.), Readings in Marketing (New York: Prentice-Hall, Inc., 1953), pp. 58-39, 45.

2For example, if it is socially acceptable for women to drive t.lieir own cars, apparel must be designed accordingly. When it was no longer expedient for wealthy women to travel with abundant luggage, multi­purpose styles were required. Parisian designers attempt to fulfill the needs for all types of apparel, including resortwear and leisure apparel.

115

Similarly, the successful designer must be sensitive to the complete

range of living habits and their current requirements, as well as being

aware of scientific advancements in textiles which may be utilized

to better fulfill t.~ese needs.

Relationship between Site of Production and Style Innovation

While the designer's function is to fulfill the needs and

desires of his customers, what explains why this is the province of

the Parisian Haute Couture? Is this pr:iJllarily the result of established

trade practice within the induetry--a formula for style introduction

which has long proven successful, and hence is resistant to change, or

is there evidence that this function cannot be performed elsewhere

wit.~ equal success?

There are many reasons to believe that the nonphysical

Parisian enviromnant itself is directly conducive to fashion innova­

tion, and that no other location could afford the apparel designer the

same degree of success. 'lhat there was a strange quality conducive

to designing associated with Paris was noted by Alfred Marshall,

who wrote, "French designers .find it best to live in Paris: if they

stay for long out of contact with the central movements o.f fashion

they seem to fall far behindhand. 111

1 Marshall, p. 179.

116

The very pennanence of the function performed by these design­

ers, in a highly competitive field, indicates a degree of economic

superiority associated with the Haute Couture in Paris, France.

Historic Importance of Parisian Fashions

Even prior to World War I, the Parisian designers dominated

in fashion innovation. In this context, one may quote Nystrom as

follows:

Paris is the leading historic style center of the world. For several hundred years Paris has been produc­ing style goods. This does not mean that it has always occupied the present position of pre-eminence, but it has actually led the world for most of the time during the last 500 years.

In the latter part of the seventeenth century, Louis llV set out to develop the production of artistic textiles and other goods contributing to apparel, by government encouragement,and his prime minister, Colbert, is quoted as saying in a public address that "French fashions are to France what the mines of Peru are to Spain."

The example set by Louis nv in encouragement of the style industries was followed by his successors, Louis XV and XVI, so that do'Wil. to the period of the French Revolution in 1789 France, and particularly Paris, remained the chief center of style goods production for · the world.

There was a brief period of decline in French fashion rule during the revolution in 1789 and the directorate that followed, but on the accession of Napoleon Bonaparte to control, the government under Napoleon's direction again set out to develop French genius and talent in the production of style goods. 'While most of the other nations and their rulers in Europe hated and feared Napoleon, they could do but little to check their subj ects from looking to France for fashion inspiration ••••

117

Following the defeat of Napoleon, France again lost nruoh of her fashion prestige and other European centers such as Vienna, London and Berlin tried hard to take the leading position in fashion creation and influence •••• When Louis Napoleon and Eugenie became rulers of France in the early 50 1 s ••• French fashion prestige again rose to the top ••• [and] Paris again emerged as the leading capital city of the world of fashion.

Since 1870, there have been many efforts and minor threats to wrest the fashion supremacy from Paris. Vienna has made several _bids. London has had its ambi­tions, and for two or three years prior to the World War, .America tried to swing away from Paris influence, but without success.l

It is difficult to see how established trade practice alone could

account for the maintenance of a position 'Which, in the face of fierce

competition, and the more recent interruption associated with two

world wars, constantly manages to reassert itself.

The recognition of success within the Parisian environment has,

in fact, been so strong that when other European designers enjoy

reasonable success in their own countries, they then seek relocation

in Paris. 2

1Nystrom, pp. 169-170.

2Donna Simmonetta, Fabiani, and Pucci had Couture Salons in Rome, showing semiannually in Florence at the Pitti Palace, with all Italian Couture. After enjoying considerable success, they have since established themselves in Paris, and no longer show in Florence. For further details on the question, "Why did they leave Rome and Florence where t.½.ey were the biggest fish, to sw:iJll in the dangerous waters of the Seine?," see Women's Wear Daily, May 17, 1962. See also Robert Alden, "French Are Welcoming New Italian Designers," The New York T:illles, May 12, 1962.

Explanation for Parisian Supremacy

While the historic significance of Parisian fashion innova­

tion is obviously an asset which contributes to current supremacy,

118

in and of itself this fact does not explain why the Haute Couture has

been successful in the perfonnance of this function over such an ex­

tended period of time. In a highly competitive field, it would seem

that continuing trade acceptance is properly considered to be a

recognition of success, and not an explanation for it. The author

offers the following explanation for Parisian supremacy.

It should be remembered that the designer who innovates apparel

styling is an artist as well as a businessman. His task is to create

apparel which is unusual, yet pleasing to his customers. As previously

noted, these attributes of this product are not enoug.11. To be accept­

able, styles must be a reflection of the times, a typification of the

entire realJll of current social activity; only in this way can they

fulfill the needs which social psychology indicates are fundamental

to the fickle demand for fashion. 'lhe amount of skill which the

successful designer must possess should not be underestimated. In

all probability, the application of the tenn "genius" to the consist­

ently successful fashion designer is not an overstatement; indeed,

the consistent use of that term by scholars and businessmen alike

would seem to indicate that its choice was both deliberate and appro-

•priate.

'I"ne successful artist in any medium must offer expression

through the selection of an appropriate theme. In some fields of

119

creative art, a single theme may consistently identify its creator.

In the field of women's apparel, however, the demands of both busi­

ness and consumers require that the themes selected be constantly

changed,for the very attributes which make a garment acceptable this

year will render it commonplace and unacceptable next year.

The selection of a theme, and the expression of it in terms

o.f apparel design, require inspiration. Inspiration is to be found

in both the physical surroundings in 'Which one works and in the inter­

personal contacts which the same surroundings both attract and af.ford.

To examine the Parisian milieu is to discover sources o.f inspiration

which -are perhaps unequalled anywhere else in t.>ie world.

Geographically, Paris possesses an ideal location relevant to

the .fashionable resorts of Europe, providing the opportunity to inno­

vate not only .fashionable day and evening apparel, but sportswear and

leisurewear as well. Not only do many travelers to t.11e Riviera or the

Mediterranean resorts go through Paris, but in addition, Paris itself'

is considered to be one of the greatest resort cities in the world.

There are those who suspect that Dr. Nystrom was guilty of an under­

state.ment when he wrote:

The French people have been noted as a leisure-loving, fine-mannered, light-hearted race, who like a good time and desire to see others enjoy themselves. Amusements and man­ners t.'lat might be banned in a more intolerant or Puritanic atmosphere are permitted or at least condoned among the Latins.l

1 Nystrom, p. 167.

120

Not only does a resort environment appeal to the personal satisfactions

of the artistic, but it also insures a supply of wealthy customers,

whic.'1 permits profitable business activities as well.

Nor is Paris found lacking in the more cultural sources of

artistic inspiration. For example, Paris contains some of the best

art collections in t..'le world, such as those found in the Louvre,

Luxembourgh, and Cluny. Parisian libraries afford a rich source of

material relevant to art and culture, and the art schools of Paris

are among the oldest and most respected in t..'le world. Paris has many

theatres which,in addition to providing attraction and inspiration

for persons from all over the world, also afford excellent business

opportunities in the field of costume design, which has long been asso­

ciated with the dressmakers of Paris. While it is not within the pur­

view of this report to trace in great detail all of the silll:il.ar inspir­

ational advantages of the Parisian environment, it seems readily

apparent that t..'lis atmosphere affords an unparalleled opportunity

for the location of highly styled apparel designing and manufacturing

activities.

In this same context, it seems equally apparent that t..lie under­

lying psychological needs which prompt the consuming public to purchase

new styles of garments are further served by some association 'Whic...'l

the famous Parisian source of supply or design affords to the wearer

of these garments. A Parisian design will perhaps always possess an

indefinable glamor by association, which would be entirely lacking in

a similar garment designed in the United States.

121

It should not be concluded that all of the advantages of Paris

are of a less than tangible nature. On t.l:le contrary, it should be

pointed out that only in Paris does the government afford protection

against design piracy. 1 Fashion creation has always been a major

industry in France, and government activities have consistently en­

deavored to aid the industry. As a result of this fact, as well as

the considerable success that Paris has enjoyed in this field, one

finds an abundance of the most highly skilled craftsmen, fabric

designers, textile manufacturers, and allied industries congregated

in the same geographic area. In Paris, for example, many of the em­

ployees -who perform apparel manufacturing operations began their

apprenticeship when they were still in their teens, and have com­

pleted extensive schooling in the elements of designing, cutting,

sewing, and fitting.

In conclusion, the author attributes the consistent success of

the Parisian designers to their genuine abilities and talents both as

businessmen and designers, which are materially enhanced by the unique

combination of advantages which the Parisian environment affords them.

4Jnder French law since 1909 it has been possible to register designs and secure the formality of protection. Laws in America which pennit the copyright of designs do not apply to finished ap­parel and, if they should be made applicable, would be contrary to the process of fashion permeation as it now occurs within the industry. (See Sylvan tlotshal, "Why Retailers Should Support Laws to Protect Fashion De signs, " Stores, June, 19 61, p • 15. )

122

When all of the circumstances associated with their success are con­

sidered, it seems less difficult to understand why, as Marshall

noted, if they were to leave Paris, they would soon "fall far behind­

hand."

Translation of French Innovations into .American Fashions

There are many manufacturers and "designers" of apparel who

do not create the high-style items which set the style or silhouette

for the succeeding season.

The success of any apparel manufacturer is a reflection of his

ability to fulfill the needs of his customers. The needs of apparel

purchasers in .America vary, as do the items featured by the various

manufacturers themselves.

A tracing of the introduction of a Parisian innovation into

the United States, and the effect which that garment might have on

production in .America, follows. 1

Consider, for example, a lady's corduroy suit shown by

Givenchy in Paris in February of 1962. This suit--in wide-ribbed,

near-white corduroy, with a black leather striped belt over a black

silk shantung blouse--might have been purchased by either an American

1Tb.is example of fashion introduction is based upon personal interviews wit..'1 Martin O. Kahn. Also note Carrie Donovan, "A Top Buyer Influences Fashion Look," The New York Times, May 10, 1962, p. 42; this article discusses Sydney Gittlerfs role in style innova­tion associated with the purchase of Parisian suits and coats for Ohrbach 1 s to "copy down."

retail store or an American manufacturer, as noted earlier in this

chapter. For this example, let us assume that this item was pur­

chased by Hector Escobosa, of I. Magnin.

123

All purchases from t.~e Haute Couture arrive simultaneously in

America and are cleared through customs, generally under bond. 1 Thus

Macy's, I. Magnin, Bergdorf Goodman, Saks Fifth Avenue, and other

retailers would all receive the shipments in New York on the same day,

generally about March 5.

I. Magnin, working in close association with a "favored"

New York manufacturer whom we may assume to be Seymour Fox, would

contract to have "line-for-line" copies of the suit produced.

LMagnin would probably insist t.~at imported French corduroy be used,

resulting in an exact duplication of the original garment. Such a

duplication would conceivably retail for $225 (cost to I. Magnin,

$150), whereas the French original, after cost, duty, and mark-up,

would have had to retail for appro.x:1.mately $2,000. Seymour Fox might

arrange for delivery of the duplication by early April, which would be

in time for I. Magnin 1 s promotion during that month. The item could

be pictured in Vogue about April 15, where, in reality, it did appear. 2

· 1such i terns must be returned to France within six months in order to avoid an import duty, which in the case of embroidered goods may amount to 90 per cent of value. Thus, few French garments are actually retailed in this country. An "original" French creation selling for $1,000 in Paris would thus cost about $1,900 with import duty, and would have to retail for about $3,950 in America.

2vogue, April 15, 1962, p. 94.

124

Seymour Fox would now manufacture t.lie same style garment as

a "manufacturer's adaptation," having changed the fabric to linen,

permitting the garment to sell for $150 retail ($79.75 cost). The suit

would be offered to I. Magnin and to any other retail account purchas­

ing from this manufacturer, for delivery about May 1.

If, during this time, this same garment appears to be well

received at the retail level, it will be duplicated, or "lrnocked off,"

by other apparel manufacturers. They will begin production of the

garment in spun rayon or cotto!l,pennitting the suit to retail from

$25 to ~60, By ear:cy June, the same style will appear on the whole­

sale collections of most suit houses, for delivery by mid-July. The

item, then intended for late summer, as well as fall or winter, would

appear in a wide range of fabrics, including tweed and heavy wool, in

all price ranges from below $25 to approximately $250 retail.

The jacket itself could be adapted by some manufacturers, to

be worn over a s:iJnple classic dress. The skirt style could be

copied by a skirt house, and the blouse by yet another manufacturer,

and produced in all fabrics, colors, and price ranges.

If, after one year, this suit style's adaptations still sell

"across the board" ($25 to about $250), the basic style would become

lmown as a "classic. 111 If this occurs, the style becomes 'What is

1Some fashions, especial:cy in "high-end" (expensive) goods, may only enjoy significant consumer acceptance for six weeks.

125

called a plateau fashion. That is, certain styles enjoy consistent

acceptance over long periods of time, and are hence not subjected to

major additional adaptations. Plateau or classic fashions are sub­

ject to mild adaptation to conform to climatic or calendar variations.

Manufacturers who are not directly instrumental in high-style

or high-fashion innovation nevertheless perform significant roles within

the apparel industry. Those most closely allied to the successful

innovations tend to produce high-end, high-fashion goods; those who

are associated with this styling at a later date produce successively

less expensive apparel; and those who concentrate upon plateau or

classic fashion manufacturing produce a wide range of moderately expen­

sive to low-end goods. These latter items, while their styling is not

characteristic of the timely fashion creations, nevertheless account

for a substantial and consistent sales volume in the United States.

CHAPTER VII

THE FASHION ENVIRONMENT FOR APPAREL MANUFAC'IDRING IN FLORIDA

The importance of style and the nonphysical requirements of

the women's apparel industry have been noted as exercising a dominant

influence upon the nature of the successful manufacturing activities

that are likely to become associated with a given area.

The purpose in this chapter is to examine the nature of the

nonphysical fashion environment in Florida, and to relate these find­

ings to the national industry within l!lb.ich the Florida producers must

compete.

Initially, the relationship which labor cost in Florida bears

to the intangible quality of style, and the prices which style goods

can command in the market, are examined. The view of the local indus­

try with respect to the nonphysical advantages of their Florida loca­

tion is also presented. Finally, the aut..~or evaluates objectively

t..lie advantages which exist in the Florida environment, with particular

emphasis upon the possibility of high-fashion innovation occurring there.

As in the preceding chapters, the author has relied heavily upon

the assistance of persons actively engaged within the fashion industry.

Sue.~ assistance was particularly essential in the establishment of the

nonphysical advantages which are most highly valued by the local pro­

ducers themselves.

126

Wages and Production Costs in Florida

127

As noted in Chapter IV of this report, the wages per hour of

employment are considerably lower in Florida than typically prevails

throughout the heavily unionized industry. The local manufacturers

may well be expected to consider such lower wages as an advantage of

their physical environment. Indeed, this appears to be a common

belief among the members of t.~e local industry, despite the fact that

some manufacturers claim that, in terms of physical productivity,

wage costs are higher here than in the North. 1

While such lower wages per hour of employment might appear

to be an initial advantage of the physical location in Florida, the

importance of the style element of items produced appears to be of

overshadowing significance. In other words, even if the lower wages

~ associated with lower wage costs, what might appear to be a tan­

gible advantage of labor cost of the physical environment may well

vanish entirely when it is related to the nonphysical environment in

'Which labor must be applied. Neither lower wages nor lower wage

costs can be interpreted as definitely indicating the existence of a

competitive advantage in the final sale of the style items produced.

The value of the production workers' services to the apparel manufac­

turer is largely determined by t.~e price at which the finished items

1As revealed in personal interviews with members of the industry, and confirmed by Mrs. Belle Bermann, Executive Director of the Florida Fashion Council, Miami, Florida.

128

are wholesaled. In other words, it should be remembered that in the

manufacturing of fashion commodities, absolute costs of production

are considerably less significant than is commonly assumed. In fact,

the fashion element itself is not compatible with pure competition.

In this context, the author is reminded of the comments of

two apparel buyers, representing two large New York retailers, who were

interviewed at the Florida Fashion Council trade showing in Miami

Beach. 1 These buyers commented t.ii.at while they were always willing

to look at the lines of Florida manufacturers, they did not often buy

from them. Comments explaining this centered upon t."1e belief t.ii.at

local goods being shown were "not competitively priced with s:iJnilar

style goods in New York City," where they believed they could obtain

11 better service with lower shipping costs." They also noted that the

local items had 11 no real plus," that is, they were "not really new. 11

Neither timing, nor style, nor price afforded them an opportunity to

purchase t."1ese i terns. They commented further that if an i tern has no

substantial advantage in style, quality, or workmanship, it must be

priced lower t."1an its competition if it is to enjoy success in the

New York market.

Certainly this interview seems to suggest t."1at the lower dollar

wages paid in Florida are not currently effective in affording a

1February, 1962, Deauville Hotel, Miami Beach. The buyers interviewed requested that their identities be withheld from publica­tion. One store in question specializes in high-fashion apparel, the other handles both "high-end" and medium price ranges of women's apparel.

substantial competitive advantage in the final sale of the items

produced.

The reduced :ilnportance of initial cost which is character­

istic of fashion commodities becomes progressively more apparent

as one considers items which have a higher degree of fashionability

associated with their styling. Perhaps the underlying explanation

for this occurrence is sociological in origin. In this context,

Edward Sapir may be quoted as discussing the successful fashion

producer as follows:

His business is not so much to :ilnpose fashion as to coax people to accept what they have themselves unconsciously suggested. This causes the profits of fashion production to be out of all proportion to the actual cost of manufacturing fashionable goods. The producer and his designer assistant c~pitalize the curiosity and vanity of their customers but they must also be protected against the losses of a risky busi­ness.l

129

The "cost" of fashion production for the ult:ilnate consumer

includes a high compensation for the initial designer or producer.

Irrespective of one's conclusions regarding the "sociological" ex­

planation for this phenomenon, the relatively minor role of initial

production costs in relationship to selling prices is well recognized

throughout the fashion industry. Style, not initial cost of produc­

tion, is the differentiating factor associated with selling price.

1Edward Sapir, "Fashion," in J. H. Westing (ed.), Readinfs in Marketing (New York: Prentice-Hall, Inc., 1955), pp. 58-39,3.

130

One authority within the industry refers to price as an

"elusive factor" of the fashion field, emphasizing that it is nearly

impossible to fix either the wholesale or retail price on an item of

fashion merchandise on the basis of labor and material involved. It

is the intangibles, 11 fashion 11 and "label acceptance," which cause the

differential in mark-up.

For example, it is conceded by production men, manufacturers,

designers, and buyers alike that unless they lmow the manufacturer of

each garment, they cannot place a true acceptance price on two pieces

of physically identical merchandise.

One dress, using three yards of material costing $1.00 per

yard, incorporating $2.00 for findings (including belt and trim),

might have a labor cost of $3.75. In this instance, we may consider

the labor charge to have been "settled" in New York City through

negotiation, as explained in Chapter V of this report. 1

Continuing with this hypothetical example, let us assume that

plant overhead allocation can be made, which indicates an additional

cost of $2.00. The resultant garment would thus represent a total

investment of $10.75.

The selling price of such an item will probably be set by the

manufacturer within the wholesale range of $14.75 to $17.75. The ex­

act price will depend upon an appraisal of style appeal and the nature

1Actually, the "settled" price might vary slightly with the -wholesale selling price alternatives noted in this example.

151

of retailers' acceptance of the vendor's quality. 1

In view of the nature of pricing which is illustrated here,

several observations may be made relating to the Florida manufac­

turer of women's apparel. It is apparent that if either styling is

poorer or vendor acceptance is less pronounced, a manufacturer enjoys

less effective pricing freedom within the available range of possible

alternatives.

Therefore, even if a Florida manufacturer enjoys a labor cost

advantage, it may be offset, at least as far as the firm's profits are

concerned, by any reduction in the quality of styling or vendor ac­

ceptance which was or may be associated with the Florida site of pro­

duction. The value contributed by the physical productivity of the

worker who is engaged in the production of a style good is directly

related to the price which the finished item can command in the

wholesale market. 2

1Point noted and hypothetical price illustration based upon author's personal interview with Martin 0. Kahn, Miami, Florida.

2iu.storically, authorities have noted that the productivity of the apparel worker is intimately associated with geographic loca­tion. Helen Everett Meiklejohn, ("Dresses--The Impact of Fashion on Business," in Walton Hamilton [ed.], Price and Price Policies [New York: McGraw-Hill Book Co., Inc., 1938], pp. 358-59), notes that in New York such productivity is high, but decreases as one moves westward, or turns to New England. While Miss Maiklejohn admits that factors affecting productirlty cannot be weighed objectively, she notes that volume ~oduction may be an important factor. A New York operator ;J-io out more dresses of a given style may be more productive through time than an equally skilled worker employed in Chicago or St. Louis. The author finds such analysis to be in­complete, however, as it fails to consider the relationship between

While there is little doubt that costs can be viewed as

highly significant, it is equally obvious that such costs must be

related to the nonphysical business environment before one can

determine, even in a general context, the nature of the apparel

manufacturer's ability to compete from a given site of production.

Such nonphysical factors of the Florida environment are considered

in the sections of this chapter which follow.

Other .Advantages Noted by Florida Women's Apparel Manufacturers

152

The success or failure of an individual manufacturing estab­

lishment may be largely viewed as a direct result of individual

abilities and talents. Fashion apparel production is certainly no

exception to that observation; not only does such manufacturing require

a knowledge of production techniques, but in addition, it requires

that the firm possess persons with considerable designing talent and

marketing abilities as well. When one considers that the women's

apparel industry in Florida is characterized by small finns, it becomes

obvious that these combined abilities nrust often rest with one person,

or at least with a comparatively few persona, within the individual

firms. While the precise relationship between the Florida location

and given individual abilities to succeed is difficult to speculate

physical productivity and value added by the worker's services. That is, the value of all physical productivity is related to the price which the differentiated product can command in a given market.

upon, yet it is possible to generalize about the advantages which

are felt to be common to the entire industry as a result of a

133

Florida location. To obtain such information, the author has recorded

the advantages noted by many of those firms which are currently oper­

ating in Florida. The author is particularly indebted to the members

of the Florida Fashion Council 'Who were interviewed at the market

trade showing of February, 1962, held in the Deauville Hotel, Miami

Beach, Florida.1 Advantages noted may be grouped into the following

categories.

Product Identification

Location within the Florida tourist area permits an associa­

tion of production with resort or sports apparel. High up on the

list of advantages cited by women's apparel manufacturers in Florida

is their ability to create an individual identity for their products;

for example, they note the growing tendency for Florida manufacturing

of women's apparel to be characterized by the bolder, and less con­

ventional, use of color. It is frankly admitted within the industry

that the ability to gain in national reputation is at least a partial

result of greater specialization upon resort and sportswear, where

1The Florida Fashion Council is a trade organization of Florida manufacturers, wi t.11 a membership of about 60 finns. For reasons of competitive security, the manufacturers interviewed requested that their names be withheld from publication. The author is particularly indebted to Mrs. Belle Bermann, Executive Director of the Florida Fashion Council, Miami, Florida, who cooperated both by supplying valuable information and by arranging interviews.

154

less conventional treatment of color is more readily facilitated.

As colorful sportswear became associated wit.~ the area the reputation

for color was extended to other items of apparel as well, including

dresses, skirts, and blouses.

Advantages of Specialization

As noted in the case of a reputation for color and product

identification, the Florida manufacturer enjoys his greatest advan­

tage in the production of apparel for spring and summer wear. Year­

round specialization on production of spring and summer wear can,

it is claimed, be expected to create unusual talents and developments

in the production of these commodities.

In addition, as noted in Chapter V of this report, such year­

round production of spring and summer apparel affords the Florida

industry an ideal local market for spring and summer wear during

the months 'When northern manufacturers are concerned with producing

fall and winter goods, as well as permitting both early and late

delivery of such goods to northern retailers.

Advantages of a Fashionable Location

The salability of style goods, at both a retail and wholesale

level, is materially enhanced by association with a glamorous or

"fashionable" site of production. Just as the Haute Couture utilizes

the environment of Paris, so the Florida producer seeks to exploit the

intangible advantages of his resort location.

135

One may note that the Miami manufactursra consider themselves

in direct competition, not with New York, but rather with California.

The glamor of Hollywood and the motion picture industry is clearly

pitted against the glamor of the Gold Coast, upon which the local

apparel producers seek to capitalize.1 The author has personally noted

the tendency for the northern buyer to exhibit curiosity regarding the

availability of any fashion commodity produced in one of the most

glamorous and fashionable of the American resort areas. '!'he very

trademark of the Florida manufacturer of women's apparel is most

frequently designed to emphasize the association with the Miami area;

the Florida Fashion Council itself utilizes as a trademark a string

tag reading "Styled and Made by a Member of the Florida Fashion

Council, 11 and depicting a scenic view of the Miami skyline. 2

½'he "glamorous association" of fashion design with both "Hollywood stars 11 and Miami Beach is not without its critics, how­ever. Miss Jessica Brodt recently launched a terse but aprotos attack upon this association, by defining: "Inelegance ••• iz Taylor, Judy Garland, Marilyn Monroe •.• most Hollywood stars . [are] badly dressed because 'They don't understand fashion.' Most un-chic city: Miami Beach, the 'fashion basement.'" (Jessica Brodt, "Eye on Advertising," Women's Wear Daily, May 15, 1962, p. 16.)

2Florida Fashion Council, Directory of Manufacturers, 1961-1962 Edition (Mismi: Florida Fashion Council, 1962), cover page.

156

Trade Associations and Collective Action

It is noted that the Florida apparel manufacturers located

within Dade County exhibit a common determination to advance collec­

tively their competitive position. Despite the intense rivalry which

characterizes the individual firms, collectively through such trade

organizations as the Florida Fashion Council they evidence a remark­

able unity of purpose. This collectivity of action and trade organ­

ization membership is associated entirely with the Dade County loca­

tion, and is reported to be a substantial advantage of that location.

In this same context, joint selling effort may also be noted

as contributing to 8Uccessful manufacturing in Florida. Over 1,000

retailers attended the market week showings of the Florida Fashion

Council held at the Deauville Hotel, Miami Beach, in February of 1962,

and only about 20 retail buyers were from the Florida area. 1

A Tax Advantage of Florida Purchases

The out-of-state buyer is frequently not solely or even pri­

marily interested in the Florida resource for its own sake, but is

rather seeking a means of securing a legitimate expense deduction for

a buying trip that was made to coincide with travel to and residence

~eported by Mrs. Belle Bermann, Executive Director, Florida Fashion Council, February, 1962. The Florida retailer places orders with these manufacturers at the September trade showing, for delivery within the holiday season; the local retailers within the state tend to rely upon direct salesman contact throughout the remainder of the year.

137

in the F1.orida Gold Coast area, generally Miami Beach. The fact that

such trade showings are also held in February and March , st the height

of the Florida tourist season, hardly can be interpreted as simply co­

incidental.1

Ability to Innovate High Style

As indicated in the preceding chapters, the issue of style

innovation is extremely important within the industry as it now func­

tions. No other single factor approaches the importance of innovation

as a key factor in the determination of the role which a manufacturer

(or a geographic area) will play in the scheme of national fashion

creation.

The Florida manufacturers unanimously maintain not only that

they~ innovate new fashion styles, but further, that they are in an

enviable position to conduct such innovation. The innovation itself,

it is claimed, would be specialized--that is, it would involve spring

and summer styles within all apparel classifications. The ability

1It should not be inferred, however, that such organized trade show.i..ngs of Florida apparel are limited to the Miami Beach area. On the contrary, the F1.orida Fashion Council holds trade shmdngs in New York City in January and March. Emphasis is once again placed upon the specialization of the Florida apparel manufacturer in the produc­tion of spring and summer goods--these dates correspond with the retail buyers' journeys to New York City in search of spring and 8UIIID1er apparel. In addition, the Florida Fashion Council assists in supplying fashion items for a state-sponsored exhibit in Rockefeller Plaza. This Florida showcase thus assists in promoting both the local fashion industry and Florida tourism.

158

to fulfill this function, not only within the F1.orida area, but for

the entire United States, is naturally an issue of great significance.

The advantage which affords such ability to innovate is a

combined reflection of the physical and the nonphysical F1.orida en­

vironment; that is, it is a reflection of specialization in resort

apparel production made possible by the glamorous tourist environment

and ideal physical climatic conditions in this area.

Since spring and summer fashions are not completely reflected

by northern designers or northern style shows until March, the F1.orida

producer, who will conceivably show his styles the preceding winter

in the local market ('Which includes an admittedly remarkable cross­

section of .American resortwear conswners) is clearly in a position to

both innovate and pretest his latest style creations.

Thus, the F1.orida women's apparel manufacturers assert that

they are capable of assuming a dominant position as a high-style

fashion center creating resort and summer apparel. This assertion is

well worthy of examination in considerably greater detail.

The Florida Apparel Manufacturer as an Innovator of Fashion

The nature of women's apparel manufacturing in F1.orida will be

determined by the manufacturers' ability to compete in the production

of various types of apparel. Developments will be channeled to the

areas of greatest relative advantage, not simply in tenns of cost of

production, but rather in terms of style competition and label accept-

ance.

159

The author believes that it would be in error to assume that,

even in the instance of sales to local retail establishments, the

Florida apparel manufacturer can isolate himself from the national

fashion scene. The needs of the women's apparel market are basically

similar in all areas of the United States. These areas are all sub,iect

to the same media of fashion communication; they are all in contact

with the selling activities of the same fashion producers. While it

may be noted that climatic conditions in southern Florida necessitate

a retail concentration upon spring and summer and resort wear during

the entire year, thus affording a substantial market for the special­

ized manufacturer of this apparel, it is equally apparent that the

Florida market has long been the scene of intense competitive selling

activities by a vast number of out-of-state manufacturers.

Northern retailers who maintain branch stores in Florida re­

sort areas readily not_e that their northern suppliers are well rep­

resented by active selling efforts within this state; in fact, they

emphasize that few areas of the country are as actively covered

by sales representatives as is the Florida territory. 1

The competitive market 'Which the Florida producer faces is

thus both national and local. The answer to how these producers will

meet this competition--that is, what types of products they can

1As reported to the author by Nat David, of David's Fifth Avenue (New York City), Worth Avenue (Palm Beach), and Lincoln Road (Miami Beach). This generalization regarding women's apparel also applies to women's fashion items in general.

effectively produce--is to be explained largely through the examin­

ation of the manner in which fashions are determined in the United

States.

140

In the preceding section of this chapter, the author noted

th.at the local producers maintain that they are, in fact, innovators

of new styles, and that these new styles become fashionable. That

this issue of style innovation is one of particular significance

should be emphasized and explained . .Any manufacturer who cannot

effectively design or introduce new styles into the fashion market

can never successf'ully become an important source of highly styled

fashion apparel. Aily' area wich cannot successfully be utilized by

these same manufacturers to produce highly styled fashion apparel

can never attain a national reputation as a highly styled fashion­

producing center.

What are the implications of this situation for the Florida

producer? Or, phrased another way, if the Florida producers cannot

successfully be style leaders, how does this affect the nature of

their competitive activities? The ans-war to this latter question

would be obvious to anyone actively engaged in the fashion industry.

Under these circumstances, the producer must turn his attention to

manufacturing items which have a lower fashion element reflected in

their design--that is, produce basic or less highly styled women's

apparel--or, which is tantamount to the same course of action, he

must follow rather than~' in the design of style goods. This

does not mean that the producer cannot successfully engage in

141

manufacturing and designing operations, but it profoundly limits and

affects the nature of the products which he can produce. For this

reason, the issue of 'Whether the Florida producer can effectively

become a fashion innovator is highly significant, if not crucial,

factor in the development of these manu:facturing activities in the

state of Florida.

To resolve this issue, one must reconsider the nature of cur­

rent practice within the industry, as explained in the preceding

chapter. It should be remembered that the fulfillment of the spring

and summer fashion needs in the United States is initially begun

through the link between New York City and Paris, Fr ance, in February

of each year. The Parisian selections of .American manu:facturers and

retailers arrive in New York about March 5th. Only on or about this

date, than, does the actual design appear in America; only at this

t:iJne can the line-for-line copies of French originals be begun in

New York City. The March advertising campaigns of spring styles in

New York constitute the complete disclosure of the latest fashions;

at this point, the smallest manufacturer may avail h:iJnself of th.is

information, and the final race to copy-down the latest fashions

begins, permeating down into the production of least expensive ap­

parel of s:iJnilar styling, which will be delivered at the retail level

in t:iJne for summer promotion.

This latter stage of fashion development may now be related

to the Florida environment. The retail buyers throughout the United

142

States are actively seeking the current summer styles in March, on

their buying trips to New York City. Only at such time may the

Parisian influence be found to exist among the favored New York

manufacturers 'Who have gained advance knowledge of the coming trend

through direct participation in the French market, or through deal­

ings with retail buyers 'Who delivered orders for duplication of their

personal selections of the French "originals." What does the Florida

manufacturer have to offer in term.a of the new "look" or "silhouette"

'Which the .American retail buyer is so avidly seeking?

It should be remembered that the Florida Fashion Council show­

ings are held in New York City in January (before coordination with

French design is possible) and in mid-March.

It occurs to the author that the Florida manufacturer's inno­

vation, which was developed and tested the previous winter in Miami,

could hardly be expected to reflect the Parisian trend, 'Which was set

in February and completely publicized in New York the last Sunday in

March.

Now, might it not be argued that the Florida designer could

chance to produce the French silhouette which dominates the attention

of the New York industry, which, in turn, dominates the fashion indus­

try in .America as a whole? Since the Haute Couture in Pari~, typified

by the internationally famous names of Dior, Balenciaga, Chanel, and

Givenchy, tend to reflect a certain unanimity of current style expres­

sion within all classifications of apparel, might not the Florida

designer be able to anticipate this same trend in spring and summer

apparel in America?

143

Indeed, the author finds no evidence to deny that such a com­

ing trend is said to exist; authorities on fashion almost unanimously

believe that next season's styles must be, by definition, an expres­

sion of concurrent consumer demand, or they will be doomed to failure,

being "unacceptable," hence unfashionable in America.

Evan Edward Sapir, acting as a sociologist rather than as a

participant in the creation of fashion, may be quoted on this same

point:

The importance of understanding fashion histor­ically should be obvious enough when it is recognized that the very essence of fashion is that it be valued as a variation in an understood sequence, as a depar­ture from the immediately preceding mode.l

But the issue remains, ~ the Florida designer and manu­

facturer be expected to evidence the apparent skill of a Dior or

a Balenciaga?

If this be the requirement of a high-style fashion house in

.America--being noted for the ability to successfully anticipate the

coming trend in women's apparel and being capable of convincing the

retail buyers of the country's leading fashion stores that this is

the case--then the author can but express concern that such talent

should be found in Florida.

1Sapir, p. 40.

144

Indeed, there is great question that this function can be

performed anywhere in America. The writer is relatively unimpressed

by the articles on the "new importance" of fashions originating in

this country. 1 Indeed, it would ~eem that the yearly appearance of

fashion articles heralding the fact that~ is the time 'When American

designers are coming into their own may well indicate that the contrary

is true.

In any event, if one does attribute considerable importance to

.American innovation, he must recognize that the innovators he is con­

sidering are conspicuously associated with metropolitan New York City •

.American designers with the stature typified by Normal Norell, James

. ' Galanos, or Pauline Trigere are as closely associated with the New

York environment as the French designers are associated with Paris.

The author suggests that association with New York is essential to the

successful performance of ma,jor designing activities in .America. 2

The author would point out the fact that the source of F1.orida's

raw materials used in the production of women's fashion apparel is in

New York, over 1,500 miles distant. The leading manufacturers and

designers in America are clustered about the same area, in which ar e

1 See, for example, "The New Importance of American Fashion," Vogue, March 1, 1962, p. 86.

"2:cn this context, see, for example, Women's Wear Daily, May 4, 1962, p. 1, illustratfon of fashion design inspired by the Picasso exhibits. A tour of nine New York galleries served to "inspire" the sketches of New York designers working in different areas of the fashion field.

145

located the country's most famous retail outlets for fashion apparel.

The nation's leading fashion writers for the media of mass communica­

tion are similarly congregated. Surely the likelihood that New York

might possess the necessary degree of designing talent and inspiration

which could conceivably rival the Haute Couture of Paris would be far

greater than the likelihood that such qualities would be found in

Florida, where comparable interpersonal and environmental stimulation

appears to be lacking.

CHAPTER VIII

SUMMA.RY AND CONCLUSIONS

Summary

Nature of the Women's Apparel Manufacturing Industry in Florida

In the course of this study the author has found that the

women's apparel manufacturing establishments located in Florida are

relatively small, and highly competitive. Their activities are not

new in Florida; some firms 'Which are still active in such apparel

production have been in existence for over t-wenty years. The most

significant gains in this industry, however, occurred in the years

following 1947, and have been characterized by both rapid develop­

ment and strength of growth. Employment in women's apparel manufac­

turing establishments in Florida increased over 400 per cent during

the 1947-1958 period, while such employment nationally increased by

only a little over 20 per cent; moreover, growth in women's apparel

manufacturing activities in Florida has continued to evidence con­

siderable strength up to the present time. In 1947 there were only

48 women's apparel manufacturing establishments located in the state

of Florida, employing a total of only 669 persons. By 1962, there

were almost 200 such establishments in Florida, employing almost

7,000 persons.

146

147

One of the moat apparent characteristics of women's apparel

manufacturing activities in F1.orida is the extent of their geographic

concentration, 'Which has prevailed over an extended period of time.

In 1962, Dade county contained 78 per cent of all women's apparel

manufacturing establishments in F1.orida, and employed 62 per cent of

all workers. In 1962, five counties in F1.orida--Dade, Broward,

Hillsborough, Pinellas, and Duval--contained 90 per cent of all

establishments, and employed 79 per cent of all workers.

Collectively, the employment position of all five of the

counties mentioned has shown a slight percentage decline relative to

the entire women's apparel industry in Florida; that is, since 1960

there has been a considerable increase in employment by women's

apparel manufacturing firms scattered throughout the state. In 1960

only 13 per cent of all employment occurred in other than the five

counties noted, but by 1962 such employment had increased to 21 per

cent of total employment within the industry. This change in em­

ployment relationships was caused by the entry into the state of a

few large firms producing other than highly styled apparel.

Three Major Classifications of Women's Apparel Manufacturing Establishments

There are three major classifications of women's apparel

manufacturing establishments in Florida: women's, misses', and

juniors' outerwear; women's, misses', children's, and infants' under­

garments; and girls', children's, and infants' outerwear.

148

Women's, Misses', and Juniors' Outerwear

The first of these three classifications, women's outerwear

production, is of primary importance within the women's apparel in­

dustry in Florida. In 1958, firms primarily engaged in women's outer­

wear production constituted 81 per cent of all establishments, and

employed 75 per cent of all workers within the industry. In 1961

total employment within firms producing women's outerwear was 5,172

persons in Metropolitan Miami alone, or about 75 per cent of the

women's apparel workers in Dade County.

The production of women's dresses is by far the most important

segment of all women's outerwear manufacturing in Florida. Establish­

ments primarily engaged in this production employed approximately 70

per cent of all workers engaged in the production of women's outerwear

in 1958. The second most important specialized segment of women's

outerwear production includes manufacturers primarily engaged in the

production of women's outerwear, bathing suits, shorts, slacks, and

similar leisure apparel, who employed approximately 20 per cent of

all workers engaged in the production of women's outerwear in 1958.

The remaining two segments (firms primarily engaged in the production

of blouses, waists, and shirts, and firms primarily engaged in the pro­

duction of suits, skirts, and eoata) are considerably less important

in FloridaJ in 1968 their combined employment was less than 10 per

cant of total employment by finns primarily engaged in women's outer­

wear production.

149

Girls', Children's, and Infants• Outerwear

That segment of women's apparel production mich includes

the manu.facturing of girls', children's, and infants' outerwear is

the second most important major classification of the entire women's

apparel manu.facturing industry in Florida. Firms primarily engaged

in this production, employed 19 per cent of all persons working with­

in the industry in 1958. The manufacturing of this classification of

apparel showed its moat rapid development after 1954; the extent of

increased activity was not matched by any comparable increase in such

activities within the national industry. By 1962, there were about

25 firms engaged in the production of children's dresses, sportswear,

and beachwear in Florida. These firms employed approximately 900

persons.

Women's, Misses', Childrens' and Infants' Undergarments

The production of women's undergaments is the least important

of the three major classifications of women's apparel production in

Florida. In 1958, firms primarily engaged in the production of

women's undergarments employed only 8 per cent of all workers within

the industry. The firms engaged in this production are highly spe­

cialized, however, and are substantially larger than is generally

typical within the women's apparel industry. In 1962 there were about

12 firms engaged in the production of women's undergarments in Florida,

and these firms employed approximately 500 workers.

General Nature of the Physical Environment for Women's Apparel Manufacturing

150

The physical requirements of the women's apparel manufacturing

industry as it currently functions in America are relatively modest.

The vast majority of firms engaged in this production are small estab­

lishments, employing considerably less than 100 persons. There is

but modest need for plant space, and the necessary investment in

machinery is not large. The type of product manufactured, being highly

differentiated as a style item, does not readily lend itself to exten­

sive mechanization or the techniques of true mass production. As a

consequence, the individual manufacturer needs little initial capital

investment, and hence financing is almost invariably accomplished with

private funds supplied by the manufacturer. Sources of working capital

are primarily a part of the owner's original investment and reinvested

retained income, although liberal terms of sale are conducive to an

improved cash flow within the finn. Factoring of accounts receivable

is a common practice among large firms, and in addition, some commer­

cial bank loans may also be employed.

An ample supply of labor is an obvious requirement, but the

production involves many tasks which are routinized and easily learned.

The high degree of centralization which characteirizes this industry is

associated with an ample supply of capable workers in those areas.

Almost all workers and firms within the industry are unionized, and the

vast majority at workers are compensated on a piece-rate basis. It is

conunon to find the appropriate piece rates being based upon the

selling price of the garments being produced.

151

The successful operations of apparel manufacturing firms are

closely associated with a local supply of raw materials. Such close

proximity permits rapid delivery of needed goods, minimizes transpor­

tation costs, improves inventory positions, and is generally regarded

as conducive to successful manufacturing operations. Further,

contact with suppliers of raw materials aids in the facilitation of

successful designing or styling activities.

The marketing considerations of women's apparel producers are

also influential in dictating that the industry be highly ce~tralized

and associated with metropolitan areas. Such centralization as has

developed in New York City, for example, readily is conducive to buyer

contacts, and also affords the opportunity to pretest style acceptance.

Physical Environment for Women's Apparel Manuf'acturing in Florida

Capital requirements are initially small for the Florida

manufacturer, as well as for his northern competitors. The absence

of an abundant supply of contractors, however, may force some new firms

to perform more operations within their own plants than would have been

necessary in nort..~ern locations. The Florida firms rely heavily upon

private capital, and many firms have no record of connnercial loan

activity. Factoring of accounts receivable is a coillllon practice in

Florida, as -well as within the national industry. The Florida

manufacturers are characterized by their generally prompt payment

record; the general consensus among their suppliers is that these

finns are sound financial ventures.

152

Machinery used for women's apparel manufacturing in Florida

does not present any contrast with that 'Which is used in other loca­

tions. Both the cost of shipping such equipment and subsequent con­

siderations relative to maintenance of these capital goods were re­

ported as having been of but slight concern to the members of the

apparel manufacturing industry seeking relocation in Florida. Phys­

ical accommodations themselves are of recent construction, and are

well suited to the needs of the firms in question. There is reason to

believe that accommodations in Florida present certain advantages

relative to northern accoillllOdations, such as providing parking for

employees and buyers, affording greater flexibility of shipping and

receiving, and, in some cases, facilitating superior ease in rout-

ing the flow of manufactured goods within the physical plants them­

selves.

The labor requirement of these establishments is readily

met, especially within the Dade County area. Attractive climatic

conditions cause large numbers of persons formerly associated with

the northern industry to seek residence in Florida, and contribute

to the supply of available workers, especially vi.thin the Dade

County area. In addition, the influx of Cuban refugees has greatly

augmented the supply of available workers in the same area.

The Florida women's apparel industry is not highly union­

ized. Current union membership has been reported as being as high

as 2,500 workers, but the weight of the evidence currently avail-

153

able indicates that probably no more than 1,500 persons are actually

union members. Manufacturing establishments may employ both union­

ized workers and nonunion members, as Florida has a "Right-to-Work"

law prohibiting private contracts which restrict such employment

privileges. Approximately 25 manufacturers, out of a total of about

200, are under contracts with the union. These unionized establish­

ments are primarily smaller firms, and are under considerable pressure

to employ only unionized workers.

No wages paid by the Florida industry may be below prescribed

legal minimum wages, although the general level of dollar wages paid

is below that which prevails in the northern industry. Wages paid

in both unionized and nonunionized firms are largely detennined by

the application of piece rates, and current evidence indicates that

the general level of dollar wages paid in unionized establishments

is somewhat higher than those paid in nonunionized establishments.

The method of wage computation used in both types of establishments

tends to equalize dollar wages, but a considerable amount of varia­

tion in wage costs exists between and among unionized and nonunionized

firms.

A considerable amount of friction exists between the Inter­

national Ladies' Garment Workers' Union and the Florida apparel

154

manufacturers. There is no doubt that the manufacturers are almost

unanimously opposed to unionization, and that they consider the

absence of unionization to be a substantial advantage of the Florida

environment. Opposition to unionization is based upon a multitude

of considerations, but the level of dollar wages is a basic issue

involved in the current opposition.

The absence of a supply of locally produced raw materials is

a problem confronting the Florida manufacturers. It is readily ap­

parent that no significant production of raw materials, textiles,or

findings is found within the state of Florida, and the industry is

forced to depend upon supplies of needed materials which are pro­

duced in other states. A trade organization of suppliers of textiles

exists in Dade County, however, and some local inventory of textiles

is maintained there by northern 8Uppliers.

The Florida location, especially in the Dade County metropol­

itan area, affords access to a valuable local retail market. The

manufacturers who have located there, however, hasten to emphasize

the fact that theirs is a national market and not simply a local one.

Manufacturers of textile products located in the Miami area are

reported to sell 55.7 per cent of their output in South Florida,

17.1 per cent in the balance of Florida, 46.2 per cent in other states,

and 3.0 per cent outside of the United States.

The F1.orida manufacturers note that their location provides

a valuable local market in which to pretest spring and summer apparel

styles, and also affords a recurring competitive advantage in both

northern and local markets, when the national industry has shifted

to the production of fall and winter goods.

General Considerations of Apparel Design and Fashion Creation

155

In the production of fashion commodities, the style of the

items themselves assumes paramount importance. Only styles which

are acceptable become fashionable, and hence the success or failure

of manufacturers is greatly influenced by the quality of the styling

which is incorporated into the garments they produce.

The original reflection of com:ing fashions occurs seasonally

in the fonn of highly styled, high-priced garments, which, through the

process of "copying do'WI111 and adaptation, serve to innuence styling

throughout the industry.

The development of highly styled garments is termed innovation.

As innovators of highly styled apparel, the Parisian designers are

widely accepted as supreme within the industry. In the functioning

of the industry, their success is initially associated with the ac­

ceptance of their innovations by three major groups: their private

clientele, manufacturers and retailers, and fashion editors. Essen­

tially, however, the Parisian designers' 81.lccess ia contingent upon

their consistent ability to satisfy both the basic needs of their

retail clientele and the needB of the business interests within the

industry who look to them for sources of innovation. For the latter

group this requires that the innovations lend themselves (through

adaptation) to the fulfillment of the needs of the mass market for

womens' apparel. No amount of advertising or sales promotion alone

can create fashion; the basic styles themselves must be consistent

with market requirements. The element of risk associated with

design innovation provides further evidence that the fashion inno­

vator is successfully fulfilling the valid psychological needs of

apparel consumers.

There is a definite relationship between the performance of

successful design innovation and the geographic area in which it

occurs. To explain this fact, one must analyze the advantages of

the Parisian environment which has been associated with the success­

ful fulfillment of this .function for the past 300 years.

The reputation -which has resulted from previous success is

an obvious advantage of the Parisian environment. In addition, it

156

is not found to be lacking in either the physical requirements for

successful apparel design and production, or the nonphysical require­

ments which provide adequate inspiration for the artistic temperament

associated with successful innovation. Designers who are not asso­

ciated with Paris seem to have difficulty in creating, maintaining,

or increasing a national reputation as successful fashion innovators.

For the American industry, Parisian designs enter the United

States through the initial contact between American retailers and

l57

manufacturers and the Haute Couture. Garments are purchased in

accordance with the seasonal needs of the fashion cycle, and are

subsequently copied in this country, to meet the varying require­

ments of the mass market for woman's apparel. Styles which continue

to be purchased at varying prices after the fashion cycle has run its

course become known as classic styles or plateau fashions. Their

production will continue for extended periods of time, in a com­

plete range of prices and fabrics.

Fashion Environment for Apparel Manufacturing in F1.orida

The author has found that manufacturers consider the lower

level of dollar wages which prevailsin the Florida women's apparel

manufacturing industry to be an advantage of their physical environ­

ment, despite the fact that some manufacturers claim wage costs are

higher here than in New York City. Both dollar wages and wage costs,

however, must be related to the nonphysical environment in which the

manufacturer functions, before they may be interpreted as indicating

the presence of a competitive advantage in the final sale of the

item produced. The value of the production workers• services is

largely detennined by the price at which finished items are whole­

saled. In the manufacturing of fashion commodities, absolute costs

of production are considerably leas significant than is commonly

assumed. There is reason to believe that lower dollar wages paid

in Florida are not currently effective in affording a substantial

competitive advantage in the final sale of the items produced.

158

Toe author has found that the Florida women's apparel manu­

facturers believe that they enjoy an advantage of specialization,

which may be expected to create unusual talents in the production

of spring and summer resort apparel. Further, they believe the

salability of their apparel is materially enhanced by its asso­

ciation with the glamor of the Florida Gold Coast resort area.

Women's apparel manufacturers located in the Dade County

area exhibit great unity of collective selling action, and have

organized trade organizations to further their business objectives.

Further, such trade organization is said to be an advantage of loca­

tion, at least in Dade County as opposed to other areas in Florida.

Trade showings in the Miami Beach area afford northern buyers the

opportunity to obtain tax deductions for business trips that coin­

cide with their travel to Florida.

One of the most important advantages which the manufacturers

claim is associated with the Florida location, is the ability to

utilize this geographic site for the innovation of spring and swmner

fashions in America. This advantage is said to be a partial result

of the glamorous association of Florida~made apparel with the resort

atmosphere in which it is produced. This association is believed

to increase the fashionability of the items innovated here, mater­

ially increasing the likelihood of their mass acceptance throughout

159

the country. The ability to pretest spring and summer fashions prior

to their national introduction, in the Florida resort areas which

contain a cross section of the northern population, is an additional

circumstance which causes the local industry to maintain that the

ability to innovate fashions is a valid advantage of their environ­

ment.

Conclusions

Future Development of the Women I s Apparel Industry in Florida

It should be remembered that the women's apparel manufactur­

ing industry in Florida is in its infancy. In reference to total

national production, the Florida activities are relatively insignif­

icant. On the basis of currently available statistics depicting

growth during this period of early development (which covers a rel­

atively short period of time), it is difficult to forecast with a

high degree of certainty what the future rate of growth will be.

However, barring a radical alteration of present conditions, there is

every reason to believe that this growth will continue well into the

foreseeable future.

'!he extent of such growth depends largely upon the continu­

ance of certain current conditions in Florida relative to the national

industry. These conditions are discussed in greater detail in the

pages which follow. One may note, initially, however, that the

160

apparent success of established firms currently active in this state

will tend to encourage northern manu.factu.rers to seek similar reloca­

tion; the sustained growth of individual firms operating in South

Florida can be expected to provide the northern producers with con­

siderable evidence of the feasibility of similar courses of action.

T'ne influx in the last few years of additional firms of relatively

large size may well represent a substantial trend in this direction.

Several generalizations regarding the geographic location of

both present and future firms within Florida can be substantiated.

Both the general nature of the apparel industry in the United States

and the developments within Florida demonstrate the same principle:

the producers of apparel with substantial style importance seek con­

centrated geographic locations, closely associated with relatively

important metropolitan areas. In Florida, this circumstance can

be noted as haVlllg occurred in the Metropolitan Miami area. Dade

County and neighboring Broward County will continue to be the favored

locations for the production of more highly styled apparel in

Florida; the author can foresee no change in the nature of this trend

toward geographic concentration.

In the production of women's apparel where the style element

is less important (as in the case of undergarments, uniforms, or

hosiery), the location of manu.factu.ring establishments becomes more

difficult to predict. Such items do not require a high degree of

physical proximity to a metropolitan area where more highly styled

161

apparel is produced. Increasing activity in women's apparel manu­

facturing located throught Florida (in other than Dade or Broward

Counties) will probably involve the production of less highly styled

apparel, and may well constitute a relocation of northern plants of

relatively large size. The author believes that while it would be

difficult to speculate upon the extent to 'Which such plants will

locate throughout Florida, the several occurrences of this nature

since 1960 might prove to be the beginning of a trend in this

direction.

Relationship of Florida to the National Industry

The women's apparel industry in Florida is inextricably linked

to the national industry. Local manufacturers are in direct compe­

tition within the national industry, and are not in any sense attempt­

ing to limit their marketing activities to their own state; on the

contrary, they are seeking to utilize their Florida location to pro­

vide a competitive advantage which will enable them to cultivate

retail accounts located throughout the country. And in fulfilling

their i'unctions of production and marketing, they are subject to in­

tense external competition, not only in other states, but within

their home state as well.

The national industry performs its functions in strict accord­

ance with certain established principles of fashion creation, tailored

162

both to yield a profit to the industry, and also to fulfill definite

needs which exist among their customers. It cannot be successfully

denied that the business of fashion is itself governed by the same

rules of economics that apply to all business endeavors. That the

general area of fas...lrl.on as it occurs in .America appears to the casual

observer to be somewhat nebulous, or even arbitrary, is not to be

taken as evidence that a sound explanation in terms of consumer

need is nonexistent. Only by accepting the premise that the fashion

industry is organized along lines which will facilitate the genuine

fulfillment of consumer needs can one proceed to explain and predict

the business success which can be realized in the performance of such

functions from a given geographic area.

· In the case of the women I s apparel manufacturing industry,

the required analysis and appraisal of any geographic area may be

approached by focusing attention upon two distinct but interrelated

attributes of the manufacturing environment. First, one can consider

the basic economic requirements of such a location. In th.is context,

one would consider the availability of physical requirements which

would facilitate successful development. Second, one must consider

the nonphysical requirements which affect the success of apparel

manufacturing activities being performed within a given geographic

area. While it may be true that physical requirements largely deter­

mine success or failure in most lines of manufacturing endeavor, the

fashion industry may well be unique in that the utilities which are

163

created are largely less tangible in form, and hence, are more thor­

oughly influenced by nonphysical competitive relationships within

the functioning industry itself.

The requirements for style or fashion innovation involve a

high degree of interrelationship within the entire industry which

cannot be explained in tenns of physical requirements alone. Apparel

design and style innovation may be likened to an art--as such, the

value (and success) of apparel manufacturing is largely determined by

the business and social conditions under which the product is intro­

duced for consumption.

Observations on Florida's Physical Environment

While the physical needs of the women's apparel manufacturing

industry are relatively modest, when one focuses attention upon the

physical environment in which the Florida manufacturer must function,

several observations may be made.

Generalzy speaking the physical requirements of the industry

can be met within the state of Florida; at least no major physical

needs of production go unsatisfied for the manufacturers who have

located here.

Speaking in relative terms, ho-wever, one may observe that a

major disadvantage exists with respect to raw materials. Textiles

and findings must be shipped to this state from northern suppliers,

164

and both added expense and loss of market contact impose a hardship

upon local manufacturers. They are, of course, readily aware of this

difficulty, and have taken steps to overcome it as much as possible.

Further, the growt.li of the industry here, through time, tends to

reduce this difficulty, as the establishment of a growing market for

these raw materials in F1.orida is naturally associated with greater

efforts on the part of suppliers to fulfill these needs.

In regard to Florida as a geographic location, the author

concludes that the climatic conditions afford a very real and defin­

ite advantage to the local manufacturer who is in competition with

the northern industry. These conditions make it all but mandatory

that the local manufacturer produce only spring and summer apparel.

Such specialization, while it largely denies the ability to sell to

northern markets in late fall and w.inter, permits concentrated- selling

efforts to local retailers during winter months when northern compe­

tition for the Florida market is reduced, but F1.orida business is at

its greatest yearly level of activity. In addition, the special­

ization -which is associated -with local climatic conditions also

permits some degree of pretesting of apparel styles prior to national

introduction the following spring and summer, as well as permitting

both early and late delivery of these goods to northern markets, at

a time when northern production is concentrated upon heavier gannents.

One of the most significant problems of physical enviromnent

confronting the growing industry concerns the unionization of the

165

local manufacturers. The author believes that the most highly prized

advantage desired by the manufacturers is the absence of unionization

in F1.orida. The author believes the freedom from wage rate computa­

tions which automatically increase payments to workers in relation­

ship to the price of the garments produced, such as exist in New York

City, affords the possibility for more reasonable profits, especially

where high and medium priced goods are being produced by small, low

volume manufacturers.

It has been noted that relatively low levels of dollar wages

prevail in Florida, but that some manufacturers believe wage costs

are perhaps higher here than in the North. Even if one accepts the

contention that workers produce less physical output per hour of

employment in Florida, possibly due to low volume of operations en­

gaged in by the manufacturers, this should not be interpreted as

indicating that the manufacturers are incorrect in valuing highly

the currant low levels of dollar wages. Indeed, it appears that the

relatively low level of wages is both desirable for and essential to

the nature of current manufacturing operations.

It has also been noted that absolute costs of production

are relatively less significant in the production of style goods

than they are in the production of other types of products, since the

value of the workers' services to the manufacturing firm is largely

determined by the price which the style goods can command in the

competitive market. While it may well be true that any dollar wage

166

or dollar cost advantages which the Florida manu.facturer currently

possesses do not therefore translate themselves into ab-oolute market

advantages relevant to similar northern goods, this should also not

be taken as an indication that the manu.facturers are incorrect in

valuing highly the current low level of wages. Again the author con­

cludes that the relatively low level of wages is both desirable for

and essential to the nature of present manufacturing operations.

The author would emphasize that women I s apparel manufacturing is an

infant industry in Florida, with an impressive record of early

growth. While in many types of production it cannot readily compete

on a price basis with suppliers selling to either Florida retailers

or retailers located throughout the country, the industry is obviously

competitive in some types of apparel, or substantial growth would not

have been realized.

The author associates unionization with an increased level

of dollar wages, and believes that union activities in Florida have

already demonstrated that this is a valid association. The author

concludes that the absence of unionization in F1.orida is an important,

if not decisive, factor affecting manu.facturing here, for the

follow.ing reasons:

First, prospective manufacturers may not be aware of any

difficulties relevant to productivity which could offset the advan­

tage of lower wages. Second, assuming lower productivity does exist,

then t..½e wage advantage becomes even more essential to the survival

167

and development of the marginal manufacturer. Third, if lower phys­

ical productivity is associated with a multitude of difficulties com­

mon only to the infant industry, productivity may increase through

time, provided that wage levels are not increased to the point 'Where

they inhibit the maturation of the local industry. Fourth, if the

quality of styling and/or trade acceptance is currently less than that

possessed by northern competition, this may also vanish with the

maturation of the infant industry, provided that its current devel­

opment is not impeded by unionization.

Even if one were to assume (contrary to current evidence)

that future unionization in Florida would neither increase current

wages nor impose detrimental conditions upon manufacturing, the

fact would still remain that such unionization would be detrimental

to the growth of the local industry if prospective manufacturers

who were considering a Florida location believed that these assump­

tions were incorrect. In this latter context, it becomes urri.Jnportant

whet.lier manufacturers -were right or wrong in their appraisal of

unionization; the fact remains that unionization would destroy one

of Florida's major advantages of its physical environment. Since

it appears that one of the major reasons 'Why a New York manuf'ac­

turer would favor locating here would be to escape 'What he considers

to be the intolerable conditions presently associated with union­

ization, it seems highly advantageous to afford t...liese manufacturers

that freedom of choice. It is difficult to see how any union activities

which claim to be in the interest of local labor would, in reality,

be serving that end, if, by their efforts, they impose conditions

which prevent the very development of the industry that seeks to

employ them.

Florida as a Site for Fashion Innovation

While the Florida manufacturers unanimously maintain that

the ability to conduct fashion innovation definitely exists within

this state, the author reaches a contrary conclusion.

168

The reasons why the Florida producer should desire to be an

innovator seem clear enough. First, such innovation would permit

operation in the high end of the industrial production, where the

compensation for the services of the successful manufacturer is the

greatest. Second, such high-end operation is not associated with

intense price competition on individual garments and styles. In this

case, one may note that cost of production (hence reduced labor

productivity) becomes considerably less significant. Such operations

are not, and cannot be, high-volume operations; they are rather asso­

ciated with the smaller, inside shop. Third, lack of unionization

permits freedom from wage scales based upon the selling price of the

gannent. Thus, the advantage of nonunionization is greatest in the

production of high-priced, high-style apparel production. Fourth,

the association of fashion innovation with a given geographic loc~tion

lends considerable stature to all phases of the industry operating

in the same area. Fifth, it seems apparent that tourism and the

glamor of Florida as a resort area can be of some assistance in

introducing and marketing new styles of apparel.

169

Unfortunately, the author must conclude that the nature of

fashion innovation as it exists today is not conducive to the devel­

opment of this function in Florida. In the strictest sense of the

term, fashion innovation occurs primarily in Paris, and not in

America. The innovation which does occur in this country is more

readily achieved in New York City than in any other geographic area.

The Nature of Future Production

Accepting the premise that Florida cannot currently assume

a dominant position in America as an innovator of high fashion, 'What

role will these apparel manufacturers be able to assume within the

national industry?

First, they will continue to specialize in the production of

light-weight spring and summer goods. Second, their specialization

will emphasize resort apparel, capitalizing still further upon the

association with the Florida tourist industry. Third, the production

of women's outerwear will continue to be of dominant importance within

the Florida industry. Fourth, the production of children's apparel,

women's and children's undergarments, and other items with reduced

style importance, will continue to be less centralized geographically

170

than other types of women's apparel. Fifth, the majority of smaller

manufacturers of style goods will attempt to avoid producing apparel

which cannot compete on a price basis with larger-volume operations

located in New York--that is, they will seek to produce moderate to

high-end goods (retail $8.75 to $14.00; $19.00 to $39.00; and some

high-end, $49.00 to $89.55) and will avoid "budget apparel" ($6.75

and under). Sixth, in seeking to produce moderate to high-end goods,

the industry will not necessarily be producing items associated with

radical fashion innovation. An elaboration upon this is desirable.

While the highest-priced lines of apparel in America are closely

allied with true innovation, the Florida manufacturer will rather seek

to establish a reputation for quality apparel of a less radical style

content, even in his most expensive garments. He will almost invar­

iably be concentrating upon the classic styles and plateau fashions,

seeking the moderate to high end of a mass market for conservative and

proven styling. Seventh, successful innovations, if they occur in

Florida, will be an exception to the intended pattern of production,

and will be widely copied throughout the industry, both nationally and

locally. Such innovation will probably occur in less expensive sports­

wear or beachwear, and will not have any influence upon the styling of

other garments. Elaboration on this conclusion is desirable. There is

less risk involved in innovating a startling creation if the item is low

in price; there is also greater likelihood of gaining acceptance for

a nonconf'orming style of garment at the consumer level if it is

inexpensive, associated with a resort area, and obviously intended

171

for leisure or beachwear. The inclusion of such items may serve to

lend interest to a line of inexpensive leisure apparel, but would tend

to detract from the prestige of a line of expensive, but conservative,

apparel.

It is essential to the individual manufacturers operating within

Florida that they recognize the nature of the role they can assume

within the national industry. Only by accepting this role in its true

perspective can they make optimum utilization of the advantages this

state affords.

Recommendations for Further Study

The Women' s Apparel Industry

Florida enjoys at present a small but growing industry, the

production of women's apparel. It might be desirable to examine what

additional study could be undertaken that might prove beneficial to

the continued development of these manufacturing activities.

further study should be directed toward detennining what

assistance could be offered through advertising and promotion of the

sale of apparel produced in Florida on a national basis. The assist­

ance which has been offered by the state of Calilornia to promote such

industry there should be investigated to determine the feasibility of

similar action being taken by the state of F1.orida.

172

The author would further recommend that the considerable

success enjoyed in the production of women's apparel in California

should be investigated, and contrasted with similar developments in

Florida. Florida manufacturers consider themselves to be in compe­

tition with California; the nature of this competition, and the condi­

tions which gave it birth, are well worthy of furt.11.er investigation.

Other Fashion Industries in Florida

Associated with women's apparel manufacturing, one finds the

"companion" industries, generally referred to as the production of

women's accessories.

In Florida these industries include: the production of woman's

handbags and the production of costume jewelry.

Factors conducive to the production of women's apparel are

similarly favorable to the production of fashion accessories; further­

more, the marketing of these goods is unified. 1

The author believes that it would be highly desirable to inves­

tigate the current and future development of the women's accessory

industries in Florida. Not only does their current existence

1Establisbm.ents frequently retail all of these fashion connnod­ities (apparel and accessories), and multiple-line wholesale distribu­tion is commonplace among the manufacturers' agents and salesmen involved. Even trade showings and organizations frequently reflect the close association of these allied products.

173

complement the successful development of the apparel industry, but

in addition, they may themselves prove to be of considerable signif­

icance in the development of the Florida economy.

PUBLISHED WORKS CITED

Public Documents

Bureau of the Budget, Technical Committee on Industrial Classification. Standard Industrial Classification Manual, 1957.

Metropolitan Miami Memo. Vol. II, No. 5 (January, 1961); No. 8 (April, 1961).

U. S., Bureau of the Census. U. S. Census of Manufactures: 1947, III.

U. s., Bureau of the Census. U.S. Census of Manufactures: 1954, III.

U. s., Bureau of the Census. U.S. Census of Manufactures: 1958, Florida, Area Report MC 58(3)-9.

U.S., Bureau of the Census. U. S. Census of Manufactures: 1958, Industry Report MC 58(2)-23B; Industry Report MC 58(2)-25C; Industry Report MC 58(2)-23D.

U.S., Department of Labor, Bureau of Labor Statistics. Occupational Wage Surv~, Miami, Florida, December 1960. Bulletin . 1285-35.

Books

Chambers, Bernice G. Fashion Fundamentals. New York: Prentice-Hall, 1950.

Curtis, Freida Steinman. Careers in the World of Fashion. New York: Women's Press, 19

Fried, Eleanor L. Is the Fashion Business Your Business? New York: Fairchild Publications, Inc., 1958.

Marshall, Alfred. Principles of Economics. 8th Edition. New York: Macmillan and Co., Ltd., l959.

174

Nystrom, Paul H. Economics of Fashion. New York: Ronald Press Company, 1928.

Steiner, W. H., and Shapiro, Eli. Money and Banking. 3rd Edition. New York: Henry Holts, 1955.

Wingate, John W., and Brisco, Norris A. Buying for Retail Stores. New York: Prentice-Hall, Inc., 1949.

Young, Agnes Brooks. Recurring Cycles of Fashion, 1760-1957. New York: Harper Brothers, 1937.

Articles and Periodicals

175

Alden, Robert. "French Are Welcoming New Italian Designers," The New York Timas, May 12, 1962.

Brodt, Jessica. "Eye on Fashion," Women's Wear Daily, May 15, 1962.

Donovan, Carrie. "A Top Buyer Influences Fashion Look," The New York Times, May 10, 1962.

Gillespie, Karen R. "Apparel and Accessories for Women, Misses, and Children," Small Business Bulletin, No. 50 (Bibliography). Washington: Small Business Administration, May, 1961, p . 1.

Gotshal, Sylvan. "Why Retailers Should Support Laws to Protect Fashion Designs," Stores, June, 1961, pp. 14-16.

Green, Juanita. "What Miami Faces with the Regugee Tide," The Miami Herald, May 23, 1962.

Meiklejohn, Helen Everett. "Dresses--The Im.pact of Fashion on a Business," in Walton Hamilton (ed.), Price and Price Policies. New York: McGraw-Hill Book Company, Inc., 1938, pp. 300-565.

Sapir, Edward. "Fashion, 11 in J. H. We sting (ed.) , Readings in Market­ing. New York: Prentice-Hall, Inc., 1953, pp. 57-45.

Vogue. April 15, 1962.

Women's Wear Daily. May 4, 1962; May 17, 1962.

176

Other Sources

Florida State Chamber of Commerce. Directory of F1.orida Industries. 1956-1957 Edition; 1958 SupplementJ 1959-1960 Edition; 1961 Edition; 1962 Supplement. Jacksonville: Florida State Chamber of Commerce.

F1.orida Textile Club. Buyers' Guide. 7th Edition. Miamis Florida Textile Club, 1962.

Foulke, Roy A. "Terms of Sale Generally Used in 90 Lines of Business Activity." New York: Dun and Bradstreet, Inc., December, 1957.

Phelps, Clyde. The Role of Factoring in Modern Business Finance. Baltimore: Educational Division, Commercial Credit Company, 1956.

BIOGRAPHICAL SKETCH

Barry Jay Hersker was born in Philadelphia, Pennsylvania,

on June 28, 1933. He attended public schools in Pennsylvania, Florida,

and Maryland, and graduated from Chestertown High School, Chesterto-wn,

Maryland, in June,1951.

He entered the University of Miami at Coral Gables, Florida,

in 1951, and received a Bachelor of Business Administration degree

in June, 1955. While a student at this in~titution he was elected to

Phi Eta Sigma and Phi Kappa Phi honorary scholastic fraternities.

He enrolled in the Graduate School of the University of Miami in 1955,

and worked as a teaching assistant in the Department of Marketing and

the Department of Economics until he received his Master of Business

Administration degree in June, 1957.

Mr. Hersker was appointed to the faculty of the University of

Miami in September, 1957, and served as Instructor of Marketing until

September, 1959. During that time he became a member of Artus,

national economics fraternity, and Delta Sigma Pi, national business

fraternity.

Mr. Hersker has served as a management consultant with the

Cannan Jewelry Company, Inc., of Miami, Florida, since 1957. This

firm manufactures and wholesales women's costume jewelry and acces­

sories, distributing throughout the United States. In September,

1959, Mr. Hersker became vice-president of that firm, and supervised

the sales force until September, 1960, 'When he began his doctoral

studies at the University of Florida.

177

This dissertation was prepared under the direction of the

chairman of the candidate's supervisory committee and has been

approved by all members of that committee. It was submitted to the

Dean of the College of Business Administration and to the Graduate

Council, and was approved as partial fulfillment of the requirements

for the degree of Doctor of Philosophy.

August ll, 1962

Supervisory Committee:

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Administration

Dean, Graduate School

L,