Sectoral

Employment
Development
Learning
Project

The Garment
Industry
Development
Corporation

A Case Study
of a Sectoral
Employment
Development
Approach
Copyright 1999 by the Economic Opportunities Program of the Aspen Institute

Published in the United States of America

1999 by the Aspen Institute

All Rights Reserved

Printed in the United States of America

ISBN: 0-89843-274-X

Graphic Design by Karl Olmsted Associates

The Garment Industry
Development Corporation

A Case Study
of a Sectoral Employment
Development Approach

Maureen Conway
with
Suzanne Loker

November 1999

Economic Opportunities Program

The Aspen Institute
One Dupont Circle, NW
Suite 700
Washington, DC 20036
The Sectoral Studies
The following case study is one of a series of six Sectoral Studies to be published
by the Sectoral Employment Development Learning Project, a project of the
Economic Opportunities program of the Aspen Institute. The purpose of these
studies is to provide an in-depth look at individual sectoral employment devel-
opment programs and their interaction within distinct economic and industry
contexts. The information set forth through the Sectoral Studies should offer
insight to policy makers and practitioners on the specific issues involved in oper-
ating a sectoral approach.
Although each of these research efforts will be distinct in that it will
explore a particular program in a particular industry and regional context, each
will answer the same key research questions and use a common research format.
The methodology followed relies on primary data collection through a series of
interviews with program staff, local employers, and other key actors, such as
union representatives, public officials, and industry association leaders. The
information gathered is supplemented by the analysis of internal program docu-
ments and financial statements, and a limited use of secondary source materials.

The Sectoral Studies are made possible through the support of

the Mott, Ford, and Annie E. Casey Foundations.

Acknowledgements
The authors would like to acknowledge the contributions of the third member of
our research team, Jeff Thompson, who provided thoughtful comments and tire-
less oversight of the logistics of the research process. The research team members
also extend our heartfelt thanks to Linda Dworak of GIDC for her invaluable par-
ticipation in the research process, openly sharing both the successes and difficul-
ties her organization has experienced, as well as her thoughtful insights regard-
ing the workings of the garment industry. We also thank Peggy Clark, Elaine
Edgcomb, and Amy Kays for their insightful comments on drafts of this work
and Erind Pajo for his background research on industry trends and assistance
with the editing of the industry section. Finally, we must thank the entire staff at
GIDC for patiently answering our many questions, and we thank the organiza-
tion for providing the photographs used in this case study.
 C O N T E N T S

OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
APPAREL INDUSTRY CONTEXT . . . . . . . . . . . . . . . . . . . .5
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
The Role of Labor in Apparel Production . . . . . . . . . .6
The U.S. Apparel Industry . . . . . . . . . . . . . . . . . . .9
Globalization . . . . . . . . . . . . . . . . . . . . . . . . . . .12
New Technology and Teamwork . . . . . . . . . . . . . . .13
Apparel Industry in New York . . . . . . . . . . . . . . . .15
GIDC’S STRATEGY . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Historical Development . . . . . . . . . . . . . . . . . . . .17
GIDC Today . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Organizational Features . . . . . . . . . . . . . . . . . . . .19
MAKING A SECTOR FOCUS OPERATIONAL . . . . . . . . . . . .25
Connecting with Industry . . . . . . . . . . . . . . . . . . .25
Leveraging Resources through Partnerships . . . . . . .32
THE TRAINING STRATEGY . . . . . . . . . . . . . . . . . . . . . .33
Displaced Worker Training . . . . . . . . . . . . . . . . . .33
Employed Workers Training . . . . . . . . . . . . . . . . .43
COSTS AND OUTCOMES . . . . . . . . . . . . . . . . . . . . . . .48
Outcome Measures . . . . . . . . . . . . . . . . . . . . . . .48
Training Costs . . . . . . . . . . . . . . . . . . . . . . . . . .50
LESSONS AND CHALLENGES . . . . . . . . . . . . . . . . . . . . .53
Working in a Declining Industry . . . . . . . . . . . . . .53
Working on the Supply and Demand
Sides of the Labor Market . . . . . . . . . . . . . . . . . . .54
Attracting Public Resources . . . . . . . . . . . . . . . . .54
Creating Systemic Change in a
Fragmented Industry . . . . . . . . . . . . . . . . . . . . . .55
Implications of Becoming an Industry Actor . . . . . . .55
Defining a “Good” Job . . . . . . . . . . . . . . . . . . . . .56
 O V E R V I E W

he Garment Industry Development Corporation (GIDC) was

T founded in 1984 by a tri-partite collaboration among the local

union, industry associations, and local government. The purpose
of the organization was to support the garment industry which had been
steadily losing jobs, yet remained the largest source of manufacturing jobs
in New York City and an important employer of low-income residents
with limited language skills. The organization has changed considerably
over the years, developing an array of programs intended to advance the
industry while at the same time improving the employment prospects of
low-income individuals within the industry. This approach, in which an
organization addresses both the competitiveness of an industry and the
quality of the opportunities for the urban poor presented by that industry,
is one of the hallmarks of a sectoral initiative. The box below highlights
the definition of a sectoral initiative1 that is used in the context of this case
study and outlines how GIDC fits this definition.

GIDC as a Sectoral Initiative

• Targets a particular occupation or set of occupations
within an industry.
GIDC clearly targets the garment industry. Within that industry,
GIDC works with a range of occupations, including cutting,
pressing, machine maintenance and repair, and sewing. GIDC
has a special program uniquely designed for sewing machine
operators, and this occupation, which employs the largest num-
ber of people in the industry, is given particular attention within
GIDC’s operations.
• Intervenes by becoming a valued actor with the industry
that employs that occupation.
GIDC intervenes in the garment industry on multiple levels,
providing not only training services for workers, but also tech-
nical and marketing assistance to businesses. GIDC has helped
many firms make their operations more efficient and also has
linked firms to new markets and sources of revenue. By helping
to upgrade the quality of the workforce, while at the same time
providing services that improve the overall operation of busi-
nesses, GIDC has become a valued actor in New York City’s
garment industry.

Page 2
 • Exists for the primary purpose of assisting low-income
people to obtain decent employment.
The population that GIDC targets in its training programs is
clearly low-income. A recent survey of participants in
GIDC’s training programs showed that their median personal
earnings were $9,898 in the year before they came to the
training program.2 GIDC seeks to upgrade the skills of these
workers in order to help them obtain full-time employment
with benefits.
• Eventually creates systemic change within that occupation’s
labor market.
GIDC seeks to create systemic change in a variety of ways.
By linking firms to new markets, GIDC hopes to protect New
York City’s large base of jobs in the industry. GIDC also
attempts to introduce new technologies and production
processes to the industry in order to increase local firms’ effi-
ciency and competitiveness. The organization has successful-
ly influenced public officials’ views of the garment industry,
convincing New York City, state, and federal officials of the
importance of the industry and the possibility for the indus-
try to be competitive within New York City.

In order to provide the background to understanding GIDC as a

sectoral initiative, the case study begins by outlining the key features of
the industry environment in which GIDC operates. In particular, the
case study explores some of the factors that have influenced the indus-
try’s competitiveness in the United States, important features of the
industry’s structure and dynamics, and how the labor market functions
for low-income workers.
In the second section, an overview of the organization’s pro-
grams is provided. This section also discusses the important historical
events that led to the organization’s current configuration, and provides

1
For an explanation of this definition see: Peggy Clark and Steven L. Dawson, Jobs and
the Urban Poor: Privately Initiated Sectoral Strategies, The Aspen Institute:
Washington, DC, November, 1995.
2
Unpublished data from a survey of GIDC participants conducted as part of the Sectoral
Employment Development Learning Project (SEDLP).

Page 3
 OVERVIEW

detailed information on the present organizational structure.

Information on some of the key relationships the organization has
formed in order to achieve its goals is also presented in this section.
In the third section, the method by which the organization puts
its sectoral strategy into effect is discussed. The key leverage points
through which GIDC seeks to create a sectoral impact are analyzed here.
The fourth section provides a detailed account of GIDC’s train-
ing strategy. GIDC offers training opportunities for both unemployed
and incumbent workers. For both of these programs, the methodology
and content of the training provided as well as techniques used for
outreach, recruitment, evaluation, and post-training placement are
discussed.
The fifth section provides information on the costs of GIDC’s
programs and their outcomes. The costs discussion focuses on the
training programs, noting the costs per participant as well as describing
the major cost components of those programs. The outcome information
looks at how GIDC analyzes such information across all its program
areas, and some of the potential challenges in effectively gauging
program outcomes.
The final section discusses the challenges faced and lessons
learned by the organization. The key themes that emerged through the
case study research are highlighted and discussed here.

Page 4
 APPAREL INDUSTRY
CONTEXT

Introduction
he garment industry provides significant numbers of jobs in the

T U.S. In 1996, there were 835,000 apparel workers in the United

States, 70 percent of whom were sewing machine operators.3 In
New York City, the garment industry employs more than 70,000 individ-
uals, accounting for one-third of the city’s manufacturing employment.
Although the garment industry has had declining levels of employment
over the last two decades, the large size of the industry has continued to
allow numerous job openings to arise from the need to replace people
who retire or leave the occupation for other reasons. To unskilled immi-
grants, the garment industry represents one of a very few entry points
into the U.S. labor market and, therefore, a major source of economic
opportunity for New York City’s urban poor.
The situation in the U.S. apparel manufacturing industry has
undergone tremendous change over the last 25 years. Changes in
import restrictions and international trade agreements have allowed U.S.
manufacturers to shift more production overseas and have loosened
U.S. restrictions on apparel imports and facilitated the shift to offshore
production among U.S. apparel manufacturers. U.S. apparel import
ratios, which represent the ratio of imports to domestically produced
goods, have been increasing in every category since 1973. In 1996,
imports accounted for about 40 percent of the apparel sold in the United
States, and analysts expected that, by 1999, imports would account for
46 percent of the domestically consumed apparel.4 In addition, while
tremendous consolidation has taken place among fashion retailers,
apparel producers have generally remained small and fragmented and
thus in a weak competitive position.
In addition to increased foreign competition, apparel producers
are facing demand for more styles more times per year in smaller lot
sizes and with shorter production cycles. This development, while
presenting new challenges to the industry, may lead to a source of
competitive advantage for U.S. producers who, because of their proximi-
ty to retailers, can provide quicker turnaround times. In addition, by
adopting new technologies and production methods, U.S. producers can
improve the quality of the garments they make and reduce their costs
3
U.S. Bureau of Labor Statistics, 1998-99 Occupational Outlook Handbook.
http://www.bls.gov/oco/ocos233.htm. Accessed August 5, 1999.
4
Daily News Record, August 27, 1997, Vol. 27, No. 103, p. 15. Available from Statistical
Universe Online Service. Bethesda, MD: Congressional Information Service.

Page 5
 APPAREL INDUSTRY
CONTEXT

while at the same time increasing the speed with which they fulfill
orders. In the words of one expert:
“As the domestic retail-apparel-textile channel
reduces lead times to market, particularly with fashion
In 1996,
and fashion-basic products, the comparative advantage
there were of imports declines, despite lower wage costs and tariff
reduction...The domestic apparel sector for some prod-
835,000
ucts is not necessarily doomed by comparatively higher
apparel direct labor costs. In fact, a resurgence in certain sectors
may be expected because of the innovative policies
workers in
some manufacturers are now pursuing.”5
the United
States, 70 The Role of Labor in Apparel Production
pparel production jobs include everything from accepting fabric
percent of
whom were A delivery, cutting, sewing, and finishing, to shipping to the retail-
er. Unskilled work that can be learned on the job includes
receiving and shipping positions and fabric and apparel inspection
sewing positions. Sewing machine operator positions, which employ the largest
numbers of workers, are semi-skilled positions that generally require
machine
either training or prior experience. Floor supervisors and sample mak-
operators. ers are traditionally selected from the sewing machine operators as a
form of advancement to recognize expertise and leadership. Mechanics
are either trained or hired with prior experience. Designers, managers,
production engineers and logistics specialists are generally required to
have higher education degrees in their specialty area.
There are several potential career paths for apparel production
workers. A sewing machine operator can learn multiple sewing opera-
tions and become a sample maker or a floor manager. Floor managers
can move up to higher levels of managerial responsibility. In New York
City, however, the typical small and family-owned apparel production
shops offer limited advancement opportunities to employees. On the
other hand, there is a significant amount of entrepreneurship in the
industry; becoming a shop owner is another avenue for advancement
open to New York City apparel workers. For pattern makers, learning
the computer-assisted design (CAD) system can be a path to broadening
opportunities. Generally, sewing machine operators do not become

5
Frederick H. Abernathy, et al. “The Information-Integrated Channel: A Study of the
U.S. Apparel Industry in Transition,” Brookings Papers on Economic Activity,
Microeconomics. Washington, DC: The Brookings Institution. 1995. pp.228-229.

Page 6
pattern makers, and it is even more unlikely that they would become
cutters, a position that traditionally has required a great deal of physical
strength. While new technology, where it is adopted, is changing the
level of strength required, the occupation remains distinct from sewing
and continues to be dominated by male employees.
The following diagram shows the paths typically available to
sewing machine operators. It should be noted that the vast majority of
sewing machine operators remain sewing machine operators, but they
may improve their skills, enabling them to work more regularly and
earn higher wages. In addition, English language skills are shown as
leading to opportunities outside of the garment industry, but they also
lead to expanded opportunities within the garment industry. Many of
the better paid sample maker positions require English language skills.
For a number of GIDC participants, their experience in the Super Sewers
class is their first attempt at learning English, and several that we inter-
viewed commented that their experience in Super Sewers has encour-
aged them to continue English language lessons.

Entrepreneur Supervisor

Sewing Machine Operator

Sample Maker English Proficiency

Exit Garment Industry

The manufacturing sector of the U.S. apparel industry lost more

than 432,000 production employees between 1970 and 1994; 147,000 of
them were lost between 1990 and 1994.6 These labor trends are
explained by the increase in apparel imports and the growing depen-
dence of U.S. and international apparel firms on outward processing
trade: shifting production to countries with low wage rates.
6
American Apparel Manufacturers Association. Focus: An Economic Profile of the Apparel
Industry. Arlington, VA: AAMA, 1997.

Page 7
 APPAREL INDUSTRY
CONTEXT

New York City also has experienced losses in apparel employ-

ment, having lost more than 29,000 jobs in apparel and other textile
products between 1989 and 1998. New York City’s share of national
employment in apparel and other textile products was about the same in
“Workers 1998 as in 1989, at roughly 9.3 percent, although this share had dipped
as low as 8.0 percent in 1984. However, in New York City’s most impor-
[sewing tant segment of the industry, women’s and misses’ outerwear, the city’s
machine share of national employment has grown steadily over the last 10 years,
growing from 17.3 percent in 1989 to 22.1 percent in 1998.7 Thus, rela-
operators] tive to the rest of the country, New York City has retained more jobs in
have to be this particular industry segment.
Sewing machine operators, the dominant occupation among
multi- apparel production workers, are typically paid a piece-rate wage. In
talented to be New York City’s union firms, sewers receive a minimum hourly wage of
$6.40 per hour, but skilled workers can earn more through the piece rate
able to work system. In addition, union workers receive health insurance and other
steadily.” benefits. Increasing competition within the industry, however, has put
tremendous pressure on union firms. May Chen, associate manager of
— Robert Jordan, the Union of Needletrades, Industrial and Textile Employees (UNITE)
international vice Local 23-25, the largest local in New York City, states that UNITE has
lost significant membership in recent years. She estimates that the union
president and had about 28,000 members six years ago, roughly 10,000 members more
manager-secretary than they have now.8 Today, New York City’s unionized apparel shops
are concentrated in Chinatown, with non-union shops being dominant
of UNITE Local 62-32 in Brooklyn, Queens, and Midtown.
Traditionally, apparel manufacturers would produce using a
bundle system. In this system, sewing machine operators would be
responsible for one operation, such as side-seams or pocket setting, and
would perform that task repeatedly. Thus, even experienced machine
operators may only be able to perform a limited range of sewing opera-
tions. One sewing machine operator we interviewed commented that,
despite 30 years of experience, she did not know all the sewing opera-
tions needed to make a lined jacket prior to GIDC’s Super Sewers
course. Frequent fashion changes leave workers who can perform only

7
Percentages derived using Bureau of Labor Statistics Data series for National
Employment, Hours, and Earnings and State and Area Employment, Hours, and
Earnings. http://stats.bls.gov/sahome.html
8
Interview with May Chen, Associate Manager of Local 23-25, at UNITE offices, 275 7th
Avenue, NY, NY. Tuesday, February 23, 1999.

Page 8
a limited number of sewing operations vulnerable to layoffs and periods
of unemployment. Robert Jordan, international vice president and
manager-secretary of UNITE Local 62-32, notes that “workers [sewing
machine operators] have to be multi-talented to be able to work
steadily.”

The U.S. Apparel Industry

he apparel industry is the middle piece of the softgoods supply

T chain, depending upon fiber and fabric production for raw mate-
rials, and upon the retail sector for marketing to the consumer.
The industry is segmented by product category — men’s, women’s, and
children’s, and suits, dresses, and underwear and lingerie. Trade associ-
ations and union locals generally follow these segmentations. With
about 24,000 shops in 1996, the apparel manufacturing sector produced
more than $45 billion of apparel and imported another $40 billion. It
shipped more than $78 billion of apparel, contributing almost $40 billion
value-added manufacturing dollars to the U.S. GNP.9 With more than
three-quarters of a million people, it employs approximately 6 percent of
all manufacturing production workers. U.S. apparel manufacturing is
concentrated in California, New York, North Carolina, Pennsylvania,
Tennessee, and Georgia.
With the large size of textile and retail firms compared to appar-
el firms, the relative power among these actors can be predicted. Textile
firms dictate fabric design choices, length of time for textile production,
and minimum order sizes that are often large. Retailers dictate the order
size, price, and shipping and delivery requirements. The small apparel
firms are essentially “price takers.” That is, due to their limited negoti-
ating power with the textile and retail firms, apparel contractors have
little influence over the price they receive for a job. GIDC staff note that,
in this context, a firm’s ability to cost a job becomes critical; firms need
to recognize and refuse jobs on which they would lose money. Linda
Dworak, GIDC’s acting executive director, developed the following dia-
gram to illustrate the relationships between the key actors in this indus-
try, also noting the important trends that have influenced industry
dynamics.

9
U.S. Department of Commerce, Bureau of the Census. Available from Statistical
Universe Online Service. Bethesda, MD: Congressional Information Service.

Page 9
 APPAREL INDUSTRY
CONTEXT

,
licy Co
e Po n s u Fa s h i
d re mp on/
Tra ho n tion
US Off-Spetitio Tre
m n
Co ds
C O N S U M E R S
tic Fo
es re
m RETAIL ig
n
o
D Retail Consolidation — in US, 5 companies control 48% of total sales
Suppliers: textile trimmers

M A N U F A C T U R E R S TRADE
ASSOCIATIONS
Union Union Non-Union Non-Union
Inside
Shop Cutter, graders, designers, sample makers, etc.
80,000 jobs in design, sales and promotion

C O N T R A C T O R S UNITE
l
labe
ate
Priv 85,000 production employees

Wo Tech r
abo
rk O n o l
rga gy, n of L s
niz sio a r d
atio Er o S t a n d
n
Due to
Traditionally, an apparel manufacturer used to perform design,
their limited
pattern making, cutting, sewing and finishing, as well as inspection, and
negotiating often took orders and delivered directly to the retailers. Some apparel
manufacturers would contract out some of the processes — such as
power with
assembly or cutting — to smaller shops that specialized in that one
the textile and process. Sometimes, jobbers served a brokering role between manufac-
turers and contractors and wholesalers or retailers without actually
retail firms,
performing any of the production processes. After decades of change,
apparel however, many of today’s apparel manufacturers with their own labels
do not actually cut and sew any of their goods. Instead, serving more
contractors
of the traditional jobber role, they contract out many or all production
have little processes. These contractors may in turn subcontract pieces of large jobs
to other firms in order to get a job finished in time. As Linda Dworak,
influence over
training director and acting executive director of GIDC states, “There is
the price they so much subcontracting going on at this point that sometimes it’s not
clear where the product is actually being made anymore.” UNITE
receive for
officials in New York City have developed the following diagram to
a job. illustrate potential contracting relationships in the local market.

Page 10
 MARKER-MAKING
CONTRACTORS
REPAIR FABRIC SUPPLIERS
Marking
CONTRACTORS Converters
Grading
Overseas Textile Makers

CONTRACT JOBBER
Design CONTRACT
WAREHOUSING/ DUPLICATE (SAMPLE)
DISTRIBUTION Finance
Licensing MAKERS
CENTER
Sample-Making
Fabric & Trim Sourcing
Contractor Management CUTTING
PERIPHERAL SEWING • Domestic CONTRACTORS
CONTRACTORS • Imported
Active Sales
Inactive/Backup Shipping
APPAREL SERVICES
CONTRACTORS
CORE SEWING TRIM SUPPLIERS Pleating
Belts Embroidery
CONTRACTORS
Buckles Other Services
Buttons
Zippers
Other Items

At the other end of the spectrum, the retail industry has consoli-
dated in the last decade, and new retail strategies are driving changes in
the apparel industry. Many large companies engage in “lean-retailing”
practices, in which retailers seek to hold inventories low while working
closely with suppliers to insure rapid replenishment of items that sell
well. Furthermore, stores have moved beyond the traditional four sea-
sons and now have eight or more seasons for introducing new apparel
items. Thus, producers need to achieve faster turnaround times and
adjust rapidly to frequent style changes. In addition, the growth of
chain specialty stores, such as The Gap and Ann Taylor, and the
increased proportion of private label apparel found in department stores
has created new dynamics between retailers and contractors. In produc-
ing their own labels, retailers often circumvent the manufacturer and go
straight to a lead contractor or agent with a production order, preferably
in a “full-package” arrangement; that is, retailers look for a firm that has
the capacity to purchase the fabric, make patterns, cut, sew, finish,
inspect, and ship or, more likely, the capacity to subcontract these
services and take responsibility for the delivery of a final product.

Page 11
 APPAREL INDUSTRY
CONTEXT

“...[in] Mexico, These full-package arrangements allow retailers to shop for private label
garments with one stop. Most U.S. contractors, however, are set up to
you can have
offer only assembly operations and not full-package services. In addi-
the garment tion, manufacturers have traditionally negotiated with the union and
paid contractors for benefit plans for the workers through “jobber agree-
produced and
ments.” Retailers do not pay these costs and contractors do not have the
shipped to the resources to cover this gap.

warehouse—
Globalization
only about ver the past two decades, a variety of trade agreements have

a week
difference from
O opened U.S. apparel markets to increased overseas competition.
These trends are better understood in the frame of international
trade agreements. Since 1963, the Tariff Schedule of the Unites States
charged “re-entry” duty only on the value-added or assembly portion of
us...the reason
apparel items for firms that assembled outside of the United States of at
why we still least partly U.S.-made and cut components. The 1986 Item 807A added
quota allowances or “guaranteed access” to firms assembling apparel in
can survive is
Caribbean countries when fabric for the apparel was both made and cut
we have a in the United States, causing much apparel assembly to be shifted to the
Caribbean Basin, with its advantageous geographic proximity.10
quicker
The 1988 U.S.-Mexico maquiladora agreement and the 1989
turnaround Canadian Free Trade Agreement set the foundation for the 1994 North
American Free Trade Agreement (NAFTA), which allows apparel
time; we have
produced in Canada or Mexico to be imported duty-free to the U.S.
better quality.” The General Agreement on Tariffs and Trade (GATT) started
gradually phasing out protectionist policies toward apparel on a multi-
—Wing Ma Wong,
national basis. The World Trade Organization (WTO), created in 1995,
a Chinatown will take over GATT functions and oversee the dramatic restructuring
and delimiting of the textile and apparel arrangements that have pro-
apparel contractor
tected the industries from “market disruption” for all these years. In
particular, WTO’s Agreement on Textiles and Clothing will eliminate
quotas and reduce tariffs for apparel products that are traded among
participating countries. This agreement should be fully phased in
by 2005.
These agreements, particularly NAFTA, were cited as concerns
by New York City’s apparel producers. Wing Ma Wong, a ladies sports-
wear sewing contractor, notes that most production overseas is indirect
10
Dickerson, K.G. Textiles and Apparel in a Global Economy. Englewood Cliffs, NJ:
Prentice Hall, 1995.

Page 12
competition because of the longer shipping times, but that Mexican pro-
ducers are direct competition, since there is only one week’s difference
in shipping time. He states, “...[in] Mexico, you can have the garment
produced and shipped to the warehouse — only about a week difference
from us, that’s all. The reason why we still can survive is we have a
quicker turnaround time; we have a better quality than the Mexicans.”

New Technology and Teamwork

ince the late 1970s, the U.S. apparel industry has concentrated on

S automating production processes, particularly assembly, in order

to reduce labor costs. Manufacturing of pockets and collars, for
example, was successfully automated, allowing a single operator for
several machines and decreasing both production time and errors. But,
due to the limp and slippery nature of certain fabrics and the contouring
process in such operations as setting sleeves and curved seams, not
every assembly task could be effectively automated. Such fabrics and
contoured shapes are found primarily in women’s clothing, the domi-
nant segment in New York City. Thus, little automation has occurred in
New York shops.
Recognizing that automation was only one dimension of com-
petitiveness, the industry turned its attention to reorganizing production
processes. Traditionally, garments are produced in a progressive bundle
system (PBS), in which bundles pass from operation to operation in a
sewing factory. In this system, there is a significant amount of work-in-
process inventory and throughput times (i.e., the time to complete a
garment from start to finish) are long. There exist, however, two alter-
natives to PBS that reduce production time. Unit production systems
(UPS) automate the movement of pieces from operation to operation,
recording the location, operator number, and process time in a computer
system. By moving each piece as it is finished instead of waiting for the
entire bundle to be finished, work-in-process inventories and through-
put times are reduced. Such technology is expensive, however, and the
small shops typical of New York City do not produce the volume of
business necessary to support such an investment.
Modular organization of manufacturing is the second alterna-
tive to PBS. In this system workers are organized in teams and manage
the production of completed garments. The team is rewarded for com-
pleting garments quickly and maintaining quality standards. Such

Page 13
 APPAREL INDUSTRY
CONTEXT

systems have been found to reduce production time and improve quali-
ty. Unlike a UPS, a modular approach does not require a significant
capital investment, but rather an investment in training workers to
produce in a new way. Modular organization decreases the need for
Modular supervisors, but requires workers with decision-making skills and a
variety of production competencies — new expectations for most piece-
organization work operators. While the capital requirements of modular systems
decreases the make them an accessible innovation for small producers, the traditional
mind set of many apparel producers is a barrier to their widespread
need for adoption. Spreading understanding of the benefits of such systems also
supervisors, can be difficult because of the lack of sophistication of many apparel
firms. For example, one firm that agreed to adopt the system for part of
but requires its production did notice that production was much faster in the modu-
workers with lar unit, but the firm owner could not state exactly how much faster
production occurred, nor could he describe the effect of the system on
decision- quality or estimate a bottom-line impact.
making skills New technology also is important to more efficient production.
New, more technologically advanced machines that, for example, reduce
and a variety waste in cutting or improve the quality of products sewn, are available
of production and can improve the production efficiency of small shops. Richard
Feldman, owner of Feldman Manufacturing Corp., noted the improve-
competencies ment in cutting quality and the reduced scrap costs that he experienced
— new following his purchase of a Gerber cutter. One barrier to small firms
investing in this new equipment, however, is a lack of confidence in the
expectations ability of workers to use it properly. According to Charles Wang, execu-
for most tive director of the Greater Blouse, Skirt and Undergarment Association,
apparel producers “need to put machines to good use to get the most
piece-work out of your investment...members (apparel contractors) want to see that
operators. workers can use machinery.”
Advanced technology and quick response strategies are
competitive advantages that the U.S. apparel industry can exploit.
Unfortunately, small- and medium-sized apparel manufacturing firms,
the type found in New York City, have not adopted technology as fast as
large firms. Cost, need for technical support, and workers’ technical lit-
eracy have been identified as factors in this non-adoption. By providing
both worker training and information on the benefits of new technology,
GIDC has the capacity to address these issues and facilitate the adoption
of new technologies and processes.

Page 14
Apparel Industry in New York
New York is known for its fashion influence in apparel
through design innovation, presence of retail buying offices, and
major retail facilities. Proximity to designers and retail buyers, low
entry barriers for new firms, the industry’s high labor needs, and the
entry level nature of many jobs make apparel manufacturing an
important industry to the economy of New York. New York is the
number two state in apparel manufacturing, based both on number
of employees and annual gross state product. In 1996, New York
employed 86,600 apparel manufacturing workers, about 85 percent of
whom work in New York City’s five boroughs. Average earnings for
production workers were $294 per week. The largest manufacturing
sector in the city, apparel constitutes about one-third of all of New
York City’s manufacturing. In New York State, the industry con-
tributed more than $4.6 billion in value-added manufacturing and
$9.6 billion in shipments to the 1996 New York state annual gross
product.11
New York City’s apparel manufacturing and contracting is
largely women’s and children’s apparel, while there are major men’s
wear producers in upstate New York. In New York City, most appar-
el production is completed by small contractors employing fewer
than 40 workers. There is a large concentration of contractors in
Chinatown, some in mid-town Manhattan and the boroughs, espe-
cially Queens and the Bronx. Matched with the proximity to the
New York City fashion designers and innovators, their flexibility
allows them to adapt quickly to fashion change. In addition, their
location allows for shorter shipping times, which translate into lower
costs and an important competitive advantage, given the move to
more fashion seasons.
The apparel industry has traditionally provided an opportu-
nity for immigrant workers to not only work but to establish their
own businesses as apparel production contractors. Start-up costs are
minimal, with possible equipment rental and little required invento-
ry. Mrs. Yuk Ching Wong, president of the Greater Blouse, Skirt and

11
U.S. Bureau of the Census, 1996.

Page 15
 APPAREL INDUSTRY
CONTEXT

The largest Undergarment Association and owner of several contracting shops,

estimates that start-up costs for space and equipment are now approx-
manufacturing
imately $30,000, given the large amount of used equipment available;
sector in the and much of this cost can be financed. If one chose to buy all new
equipment, she estimates start up costs would be close to $100,000.
city, apparel
Labor is the main requirement for success, and immigrant owners
constitutes enjoy an advantage in accessing and training immigrant workers for
entry-level production jobs as “the social structures of the ethnic com-
about one-third
munity provided a mechanism of connecting organizations to individ-
of all of New uals and stabilizing these relationships.”12 Low economies of scale,
small markets, and short production time reorders are conditions
York City’s
under which small and immigrant-owned U.S. apparel contracting
manufacturing. firms appear to be competitive.

12
Waldinger, R.D. Through the Eye of the Needle: Immigrants and Enterprise in New York’s
Garment Trades. New York, NY: NYU Press, 1986. p.15.

Page 16
 GIDC’S STRATEGY

he Garment Industry Development Corporation (GIDC) is a non-

T profit organization founded through a collaborative effort involv-

ing industry, labor, and government officials for the purpose of
strengthening the garment industry in New York City, and thereby
retaining the city’s fashion and apparel-related jobs. In order to achieve
its mission, GIDC has, over the years, developed training programs for
both employed and unemployed workers, technical assistance programs
to improve the efficiency of apparel contractors and to introduce them to
the benefits of new technology, a market development program that
assists manufacturers in export development, and a sourcing program
that helps manufacturers locate appropriate apparel production shops in
New York City.

Historical Development
he impetus for founding the organization came from the results of

T a report commissioned by Local 23-25 of the International Ladies

Garment Workers Union13 (ILGWU), in collaboration with the
New York Skirt and Sportswear Association, an industry group. Local
23-25 of the ILGWU covered the Chinatown district, the heart of
women’s apparel production in New York City. The report found that
there were numerous pressures on the local industry, and GIDC was
founded to meet the needs of the small entrepreneurs and other indus-
try actors in order to help firms remain profitable and retain jobs, partic-
ularly union jobs, which were at risk. Thus GIDC was designed to meet
needs identified by both employer and employee organizations. Given
the importance of the garment industry to the local economy in New
York City, GIDC also received support from the city government. Upon
its founding, GIDC’s board was structured to give each of these three
groups equal representation.
One of the major issues identified in the initial report leading to
GIDC’s founding was the fact that escalating real estate prices were
putting pressure on Chinatown’s garment producers. Thus, in the
beginning, GIDC concentrated on real estate issues, and the city sup-
ported this effort with changes in zoning regulations in Chinatown.
Although GIDC had some initial successes in this area, the organiza-
tion’s management found that interventions in real estate consumed a
13
In 1995, the ILGWU merged with the Amalgamated Clothing and Textile Workers
Union to form the Union of Needletrades, Industrial and Textile Employees, known as
UNITE.

Page 17
 GIDC’S STRATEGY

great deal of resources but had limited industry impact. At this point,
GIDC changed programmatic direction, and also found a new executive
director, Adam Friedman. Under Friedman’s leadership, GIDC intro-
duced new training initiatives, notably the Super Sewers program, a
core piece of GIDC’s current training efforts, and the Sewing Machine
Maintenance and Repair training program, the longest-running training
GIDC was program at GIDC. The latter offering was a part-time evening training
program, that was, during the two years after its introduction, followed
designed to by an array of other specialized part-time offerings for employed work-
meet needs ers, which collectively became known as the Apparel Skills Courses.
This collection of courses continues to change in response to emerging
identified by industry needs. In contrast to the Apparel Skills Courses, the Super
both employer Sewers program is a full-time training program for displaced apparel
industry workers.
and employee In the early 1990s, just before he left the organization, Friedman
organizations. began to search for funding to support the development of new pro-
grams in the areas of business technical assistance and market develop-
ment. Bruce Herman, the executive director hired in 1991, aggressively
pursued this new direction and, under his leadership, GIDC developed
its Fashion Exports New York (FENY) program, which assists New York
City manufacturers in marketing their products overseas, and the
Training and Technology Extension Services (TTES), which provides an
array of technical assistance services. Also in 1991, in conjunction with
UNITE, GIDC established JobNet, a centralized job referral system that
helps apparel producers locate employees with the production skills
they require and assists the unemployed in finding work. More recently,
GIDC conducted a fund-raising campaign to support the development
of a storefront facility in the heart of Chinatown. In April 1998, GIDC
inaugurated its Fashion Industry Modernization Center (FIMC), a 9,500-
square-foot training and technology demonstration facility that houses
state-of-the-art production equipment, including sewing, pressing, and
cutting machinery, as well as a 20-station computer lab with Computer
Assisted Design (CAD) facilities. Another recent addition to GIDC’s
programming is the new Sourcing Center, established in fall 1998. The
goal of this program is to help manufacturers and others find apparel
contractors who can meet their particular needs. GIDC is now in the
process of refining its database of contractors in order to most effectively
promote employers with “good” labor practices. A current challenge is

Page 18
to reach agreement among the stakeholders in GIDC, namely unions
and industry groups, regarding what should be the standard for “good”
labor practices. Verification of these chosen labor standards may prove
difficult.
As GIDC’s service offerings have grown over the years, so too
has its constituency. In the early years, GIDC concentrated solely on the
segment of the industry that was located in Chinatown. As the organi-
zation grew, however, it began to reach out to garment producers in
other parts of the city and in other industry segments. Thus, other
industry groups beyond the New York Skirt and Sportswear Association
became GIDC board members as GIDC sought to provide assistance to
other segments of the industry. An important backer supporting GIDC’s
growth was Jay Mazur. At GIDC’s founding, Mazur was the head of
ILGWU Local 23-25. His influence within the union circles has risen
over the years, and he is now president of UNITE. Under Mazur’s lead-
ership, UNITE has been a key ally in lobbying government officials, par-
ticularly at the New York State level, for support, and the union has con-
sistently provided funds to GIDC directly.

GIDC Today
he box on the next page shows GIDC’s primary program areas.

T As the box indicates, GIDC provides training for workers, with

the Super Sewers program serving displaced workers and the
Apparel Skills Courses serving incumbent workers. In addition, GIDC
offers technical assistance to New York City firms through the TTES
program, assists manufacturers in tapping export markets through
FENY, and helps manufacturers and others find local contractors
through the Sourcing Center. The training programs are described in
greater detail in “The Training Strategy” section. More information on
the Technical Assistance and Marketing programs can be found in the
section titled “Making a Sector Focus Operational.”

Organizational Features
Staffing
GIDC currently employs 14 full-time staff people, including the execu-
tive director, the director and marketing assistant for FENY, the manag-
er, technician, and administrative assistant for the FIMC, three full-time

Page 19
 GIDC’S STRATEGY

GIDC Programs
Training
• Super Sewers
• Apparel Skills Training Courses

Technical Assistance
• Technology Training Extension Service (TTES)

By locating Market Development

• Fashion Exports New York (FENY)
their facilities
• Sourcing Center
in the heart of
the garment
district and in professionals who work in the TTES program as well as with some of
Chinatown, the Apparel Skills Courses, two training program managers who work
primarily on the Super Sewers program but who also assist with the
GIDC management of some of the Apparel Skills Courses, an office manager,
encourages and two support staff who work in the main office. GIDC also ordinari-
ly employs a director of education and training, but, at the time of the
closer case study, this person was acting as the executive director, since the
interaction prior executive director had recently left. In general, GIDC has a bal-
ance of Spanish and Chinese speakers on staff so that staff members can
between the speak to clients in their native languages.
organization In addition to full-time staff, GIDC employs several key consul-
tants. The trainer and training assistants for the Super Sewers program
and its key are on contract, working close to full-time when the program is in ses-
constituencies. sion, but not between sessions. The majority of the trainers for the
Apparel Skills Courses are also on contract, as GIDC hires instructors
with expertise specific to the various course offerings. The job place-
ment counselors, who work with Super Sewers participants and other
unemployed individuals referred by UNITE, also are consultants to
GIDC, with each of the three working roughly one day per week. The
coordinator for the Sourcing Center also is a consultant, and currently
works half-time.

Page 20
 EXECUTIVE DIRECTOR

Office Manager &

Receptionist
Clerical Assistant

Manager,
Director of Field
Sourcing Director,
Training & Engineer,
Center FENY
Education TTES
(Consultant)

Vocational Training
Training Field Manager, Program Marketing
Agents (2), FIMC Managers Assistant
TTES (2)

Super Sewers
Technician Instructor (1)
Consultant
Administrative Super Sewers
Assistant Assistants (2)
(Consultants)
AST Instructors
(Consultants)

Location
GIDC has three physical locations in which it operates. The primary
office space is located in a building in Manhattan’s fashion district on
7th Avenue. Teaching space for the Super Sewers program and some of
the evening Apparel Skills courses is located in the High School of
Fashion Industries, about three blocks from the main offices. In addition
to being in the heart of the fashion industry, these facilities are close to
the Fashion Institute of Technology, whose facilities GIDC has used for
some of its evening Apparel Skills courses. Finally, as mentioned above,
GIDC recently opened a new facility in Chinatown, about two miles
from the main office, providing a storefront facility in the neighborhood
that is home to one of GIDC’s primary constituencies. By locating their

Page 21
 GIDC’S STRATEGY

facilities in the heart of the garment district and in Chinatown, GIDC

encourages closer interaction between the organization and its key
constituencies.
While the placement of these facilities gives GIDC a physical
presence in strategic locations for work with New York City’s garment
industry, it also means that GIDC staff work in physically distinct loca-
tions. Further, many GIDC staff are often not at any of these facilities,
but working on site at a particular client’s place of business. In order to
“…GIDC does keep staff members aware of each others’ activities, GIDC holds staff
meetings roughly every three weeks. In addition, staff seem to have
very well in
developed good working relationships with each other, and information
elevating is often spread through informal contact. For example, in doing on-site
technical assistance, a staff member may see that workers could use
sewing skills
more training in the handling of soft fabrics, and call the trainer of the
[of production Super Sewers program to discuss the possibility of a greater emphasis in
this area. By operating in the areas of worker training, business techni-
workers]...it
cal assistance, and market development, GIDC gains broad exposure to
meets a real the apparel industry at all levels.

need in the
Key Organizational Relationships
New York While a tripartite group comprising industry, union, and local govern-
ment representatives joined forces to found GIDC, the union has had the
market.”
most consistent involvement in the organization over time. May Chen,
—Joan Volpe, associate manager of UNITE Local 23-25, notes that the collaboration
between GIDC and UNITE occurs at two levels, the board level and the
coordinator of Non-
staff level. She says, “we deal with [GIDC] staff all the time — a lot of
Credit Programs at FIT cross-referrals...a lot of day-to-day dealing with GIDC staff.” For exam-
ple, most participants in the Super Sewers program are UNITE members
and many of them were referred to GIDC by UNITE. UNITE staff con-
duct the health and safety training component of the Super Sewers pro-
gram. GIDC also distributes, through UNITE offices, flyers announcing
upcoming Apparel Skills Courses. GIDC’s job counselors not only assist
Super Sewers participants in finding employment, but also help other
UNITE members who have recently lost their jobs. Similarly, GIDC staff
often will refer trainees in need of assistance with child care or other
matters to UNITE staff who can assist them. On the technical assistance
side, UNITE identifies and refers many firms to GIDC for various types
of assistance. GIDC’s technical assistance often is requested for shops

Page 22
that UNITE has just helped organize, since having the union presence
can, in some cases, increase labor costs to the extent that the business is
at risk. GIDC can help the business realize production efficiencies to
help offset the higher labor costs, and thus retain the firm and attendant
jobs in New York City. UNITE provides funds to GIDC for some pro-
grams and also has been an important ally in GIDC’s efforts to lobby
state officials for support. GIDC’s main offices are located in a UNITE-
owned building, which also houses many union offices. At the FIMC,
GIDC has dedicated a space to Local 23-25 for social workers and union
representatives to meet with workers. Thus, over the years a tight rela-
tionship has formed between UNITE and GIDC, and they play comple-
mentary roles as they seek to develop and retain “good” apparel jobs in
New York City.
While not as close a relationship as that with UNITE, GIDC’s
relationship with the Fashion Institute of Technology (FIT) also has been
important. FIT has the facilities and personnel for training people in the
areas in which GIDC is interested in providing training, but there is no
sense of competition between the two organizations since they serve
very different clientele. As Joan Volpe, coordinator of Non-Credit
Programs at FIT, states, “There is a real need for the programs GIDC is
running. The college [FIT] provides management and executive labor to
the market place...GIDC does very well in elevating sewing skills [of
production workers]...it meets a real need in the New York market.”
FIT has been an important source of instructors for GIDC, with most of
the people GIDC hires to teach the Apparel Skills courses having had
teaching experience at FIT; one of GIDC’s technical assistance staff
people had been a professor at the college. As mentioned above, GIDC
has made arrangements to use some of FIT’s facilities for its courses,
and the college is conveniently located near GIDC’s main offices. Since
many GIDC instructors had prior experience at FIT, there is an under-
standing of the types of resources that could be available through the
college, and these are tapped on an as-needed basis. For example, in
beginning its technical assistance efforts, GIDC conducted an intensive
survey of 75 contractors and 25 manufacturers to assess their needs and
determine the types of services that GIDC should offer. This survey was
designed and conducted by consultants hired from among the FIT staff.
FIT has always had a seat on GIDC’s board and has sought to play a
supportive role in GIDC’s efforts; the key to actually implementing this

Page 23
 GIDC’S STRATEGY

support, however, has been the on-going interaction between GIDC staff
and FIT personnel.
GIDC’s relationship with the New York City government and
Some industry with industry groups has not been as influential as its relationship with
the union. The city has been an important funder of many of GIDC’s
groups have initiatives, but has not sought to significantly influence the organiza-
served as a tion’s programmatic direction. The industry groups tend to be rather
fragmented, reflecting the nature of the industry they serve, with three
helpful point or four organizations representing Chinatown firms alone. These
of contact groups are formed primarily to negotiate with the union on behalf of
their members, and the level of their involvement with GIDC’s activities
through which varies considerably. Some industry groups have served as a helpful
GIDC can reach point of contact through which GIDC can reach out to firms, without
becoming actively involved in shaping the types of services that GIDC
out to firms. provides to local businesses. Others, particularly those based in
Chinatown, have become close partners of GIDC, providing useful
information on the needs of member firms and advocating for services
on their behalf.

Page 24
 MAKING A SECTOR
FOCUS OPERATIONAL

y operating a range of services, GIDC not only helps low-income

B workers to find good jobs, but also works with industry to create
and maintain good jobs. GIDC encourages firms to embrace a
“high road” competitive model, in which firms invest and innovate to
improve the efficiency of their firms and the productivity of their work-
ers. As gains from greater productivity are realized, they are shared
with workers, encouraging them to continue to be as productive as pos-
sible. In the garment industry, however, there are numerous “low road”
competitors. For these employers, labor is merely a cost, not an asset,
and maintaining safe, healthful working conditions is not necessarily a
priority. Some of these employers do not recognize the true costs of
poor quality, time spent on re-work, and high worker turnover, but can
easily see the cost of providing a decent job. “High road” firms also have
to compete with “sweatshops,” which operate outside the law and disre-
gard regulations on wages and working conditions. These firms can
close and re-open quickly and are not registered, so it is difficult for reg-
ulators to stop them. GIDC works with legally registered firms and tries
to help them change their business model to a “high road” strategy that
can be competitive in the current environment of the apparel industry.

“If employers want to get engaged with us [GIDC], they have to accept
that we will push them, pull them, move them on to the high road, as
we call it, and we’ll do everything we can to block the low road.” —
Bruce Herman, former president, GIDC

Connecting with Industry

istorically, GIDC has engaged with industry through the provi-

H sion of direct services and the involvement of industry in the

management and operations of the organization. GIDC offers
garment firms a number of key services that it has created over the years
based on its deepening knowledge of the industry and the core compe-
tencies the organization has developed. GIDC also has developed a web
of relationships with other organizations in order to effectively leverage
the impact of its efforts by engaging in complementary activities or
encouraging partner organizations to consider alternative approaches to
industry problems. In addition, GIDC has worked extensively to raise
public sector awareness of the industry’s importance and attracting
public sector resources to assist the industry.

Page 25
 MAKING A SECTOR FOCUS
OPERATIONAL

Direct Service Provision

An effective way of engaging industry is to offer a product or service
that meets a recognized need of target firms. GIDC has always done
this. The organization began by focusing on real estate pressures affect-
ing constituent firms and built an industrial condominium to provide
low-cost space. GIDC then moved into technical and marketing assis-
tance. Today GIDC operates TTES, FENY, and the Sourcing Center to
provide firms with needed assistance.

FENY has Technology Training and Extension Service (TTES)

GIDC’s technical assistance program focuses on facilitating
facilitated high-quality production and shorter turnaround time, as well as enhanc-
more than $35 ing production efficiencies. In particular, GIDC’s TTES conducts needs
assessments for firms and offers services that include management con-
million in first sulting, engineering assistance, and statistical quality control training.
contracts for The TTES staff also conduct employer-specific on-site training for work-
ers to address a defined production problem, as well as a train-the-train-
New York City er program designed to help firms institutionalize a training process for
firms, a big workers. Although GIDC had facilitated access to technical assistance
earlier, the TTES program was officially launched in 1995 and provided
bottom-line intensive services to 15 firms in fiscal year 1998. Since its inception,
benefit for TTES has provided customized technical assistance services to more
than 75 firms.
firms.
Fashion Exports New York (FENY)
A critical issue for apparel manufacturers in New York City is
the increasing use of private label products in U.S. retail outlets and the
intensified competition from foreign manufacturers for U.S. retail mar-
kets. Thus, a great need exists to look at new market opportunities in
order to maintain apparel production and employment in the city.
While lowered trade barriers have opened up U.S. markets to foreign
competition, they also allow U.S. manufacturers to more easily access
foreign markets. Given that exports are a non-traditional market for
U.S. firms, GIDC set up Fashion Exports New York to help them tap this
potential source of revenue.
New York is world-renowned as a fashion center, and FENY
helps New York firms capitalize on the cachet of their made-in-New
York label. FENY assists by arranging meetings between New York

Page 26
manufacturers and international buyers and by facilitating sales and
negotiations. FENY also organizes group exhibitions of New York
apparel at international trade shows. FENY has worked with more than
120 apparel firms, including bridal-, career-, sports-, swim-, intimate-,
evening-, men’s-, and children’s-wear manufacturers. Through its data-
base, FENY is able to provide international buyers and agents with
information on 544 New York firms. Since 1991, FENY has facilitated
more than $35 million in first contracts for New York City firms, a big
bottom-line benefit for firms. Further, this number only reflects the
value of the contracts directly facilitated by GIDC, and does not include
the value to the firm of an ongoing relationship with an overseas buyer.
In addition, FENY has a joint project with the Fashion Center
Business Improvement District (FCBID) called New York Fashion
International (NYFI). The purpose of this initiative is to increase the
ability of New York manufacturers to pursue export strategies and to
raise the profile of New York City as a world fashion capital. NYFI pro-
vides export assistance to New York manufacturers and educates inter-
national buyers in how to shop the New York market. For example,
NYFI facilitates the participation of New York manufacturers in trade
shows, and works to disseminate information on New York apparel
offerings to potential overseas customers. Thanks to government sup-
port, FENY and NYFI can offer their services free of charge or well
below cost. Both NYFI and FENY are supported by the U.S. Department
of Commerce.

The Sourcing Center

The Sourcing Center acts as a liaison between retailers, private
label manufacturers, brand name manufacturers, and contractors to
develop new markets for New York City producers. The Sourcing
Center acts as a facilitator to businesses looking to source production in
New York by helping them to identify qualified manufacturers and con-
tractors. A first step in launching the Sourcing Center is the develop-
ment of a database. GIDC’s intention is to develop a database of “good”
companies to which it can refer manufacturers or others looking for
apparel producers in the city. The initiative seeks to capitalize on
GIDC’s knowledge of the capabilities of contractors in New York City.
For example, an Internet start-up company producing custom-fit jeans
was looking for a production contractor who could handle the process

Page 27
 MAKING A SECTOR FOCUS
OPERATIONAL

Another of mass customization. The company relies on a unique software that

allows customers to send in their measurements from which a pattern is
issue that
produced for a garment tailored specifically for that person. Thus, a
GIDC is producer must be able to take orders in which no two items are exactly
alike, rather than producing typical lots of 100 or more. GIDC was able
addressing
to help this company locate a contractor in Chinatown who could meet
in the the required specifications. While the contractor currently only pro-
duces about 100 pieces per week for this company, the company hopes
context of
to grow that number to about 6 million pieces per year.
this project While the idea of the Sourcing Center is to make it easier for
buyers to find producers in the city, contractors initially feared that it
is the
may encourage their specific customers to start going to other firms.
definition Another issue that GIDC is addressing in the context of this project is
the definition of a “good” firm. UNITE would like for only union shops
of a
to be included, while manufacturers and contractors would prefer a less
“good” firm. restrictive set of criteria, since they would like to avoid anything that
might raise their costs and worsen their competitive position with over-
seas producers. GIDC is trying to negotiate an agreement on what
“good” labor practices should mean for the purposes of the database.
This issue is further complicated by the problem of verifying the agreed-
upon criteria. Finally, GIDC would like to ensure that participating
firms are capable, so that manufacturers will continue to use the data-
base to find reliable contractors.

GIDC as Information Broker

From the beginning, GIDC has relied on studies as well as day-to-day
interaction with firms to systematically assess needs. The original real
estate focus came out of the study that led to the formation of GIDC.
The technical assistance and new market development were called for
by the report Keeping New York in Fashion, which GIDC commissioned in
1989. In addition, GIDC conducted its own intensive survey of 100 New
York City firms to assess specific areas in which they should offer tech-
nical assistance. The results of this study also influenced the develop-
ment of new Apparel Skills Training courses. Because GIDC operates
where the interests of labor and industry meet and because it has the
support of the public sector, it is in a unique position to pull together
information on trends in the industry and disseminate it back to inter-
ested industry actors. GIDC has had the resources and ability to draw

Page 28
on other sources of information, to synthesize the information, and to
apply it as the organization exercises leadership within the industry. In
addition, the process of gathering and analyzing information leads to
opportunities to expand industry networks and partnerships. For exam-
ple, in the survey of 100 firms mentioned above, GIDC staff estimate
that about half had no prior contact with the organization, so it was also
an opportunity for GIDC to reach out to these firms, and for the firms to
learn more about the types of services GIDC offers. Similarly, doing
research jointly with FIT or FCBID not only has been efficient, but also
has helped strengthen GIDC’s relationships with these organizations.
The role of the information broker is particularly important for
an industry such as the apparel industry, where firms are typically small
and management is thin. Such firms often do not have the resources to
engage in a sophisticated analysis of industry trends. In the area of
marketing, for example, GIDC, in collaboration with the FCBID, has been
able to engage in a sophisticated analysis of export opportunities and
then share that information with New York firms. It is difficult to imag-
ine an individual firm having the resources to undertake such an effort.
GIDC’s role as an information broker also helps to catalyze
change in production techniques as well as in marketing. Mr. Feldman
(see box on next page) notes that the garment industry is an old indus-
try with a lot of tradition and change only comes incrementally. By
providing information on new technologies and new production
techniques, GIDC can educate owners and convince them to begin to
modernize their operations.
Ideas such as modular production, investments in new equip-
ment, and a sourcing center to link manufacturers and contractors are all
ideas that have met with resistance. The Sourcing Center, for example,
encountered resistance because contractors feared that their current
customers would find new suppliers through the system. They did not
see that the system might bring them additional business. This fear is
reflective of the nature of contractors to wait for their long-standing cus-
tomers to come to them with an order, rather than going out and seek-
ing new business. The Sourcing Center requires contractors to think in a
new way about their relationships with clients. They need to determine
what their strengths are and why a client should choose to buy from
them rather than from a competitor. Investments in new equipment are
a breakaway from the traditional mode of business, and modular manu-

Page 29
 MAKING A SECTOR FOCUS
OPERATIONAL

Feldman Manufacturing Corp.

Feldman Manufacturing is a Queens-based producer of
swimwear and specialty lycra products with more than 80
employees. GIDC worked with this firm to introduce modular
manufacturing, providing training to a group of volunteer
GIDC employees working in a sewing module. Workers had to under-
continues to stand all aspects of production and also needed to understand
their new decision-making and quality control roles. In addition,
encourage a new pay system had to be devised to provide appropriate
firms to incentives to work as a team. The result has been a marked
decrease in turnaround time for production, an important
think about
competitive advantage. In addition, workers seem to be proud of
doing their enhanced role in the production process. Richard Feldman,
business in owner and manager of Feldman Manufacturing, says that he
never would have instituted modular manufacturing without
new ways. GIDC’s encouragement and support.
In addition, GIDC worked with Feldman Manufacturing on
the purchase of a new Gerber cutter, providing information on
the benefits of this new technology. After its adoption, Richard
Feldman noted the improved quality achieved by the cutting
department and the reduced amount of waste. These results had
an important impact on the bottom line for Feldman
manufacturing.

facturing is an even greater change. Modular production requires

investing in worker training and placing more responsibility with
sewing machine operators. It also necessitates a team-oriented incentive
pay system, rather than the individual-oriented piece-rate system.
GIDC continues to encourage firms to think about doing business in
new ways. For example, after being listed on GIDC’s Web site, Majestic
Shapes, a manufacturer of shoulder pads, saw the benefits of the
Internet and decided to create its own site. GIDC advertised the site in
its newsletter to encourage more firms to think about this type of
promotion.

Page 30
 The fear of change among contractors is compounded by their
poor experience in recent years. The opening up of overseas sourcing,
particularly in Mexico, has seriously hurt many contractor businesses.
Both Wing Ma Wong and Mrs. Yuk Ching Wong, two Chinatown con-
tractors, say that this is the worst year they have ever had. Under such
conditions, investments in new equipment or trying new methods of
production seem particularly risky to shop owners. Despite this difficult
environment, GIDC has had some success in promoting new techniques
among firms. For example, when we spoke to Charles Wang, executive
director of the Greater Blouse and a representative of contractors, he
expressed a desire to see GIDC spend more resources on the Sourcing
Center. So contractors have seen the benefit of that initiative. Feldman
(see box on facing page) is another example of encouraging change.
GIDC draws attention to the success of firms that innovate through its
newsletter as well as through informal discussions with clients. In this
way, more firms may be convinced to follow suit.

Involving Industry in GIDC Operations

In addition to providing direct services to industry, GIDC has involved
industry participants in its operations. GIDC has always had industry
representation on its board of directors, with one-third of the seats being
held by representatives of industry associations. GIDC also receives
financial support from industry through the Council for American
Fashion Industrial Development Fund. Through the collective bargain-
ing agreement, manufacturers have agreed to pay one-tenth of 1 percent
of payroll into this fund, which the union then manages. The majority
of GIDC’s employees and consultants have industry experience, a key
factor in keeping program offerings relevant to industry needs. For
example, all GIDC training instructors have industry experience and
most of them work only part-time for GIDC while continuing their other
work. Thus, the industry experience of the training staff is current, and
influences changes in curricula, discussions of new courses, and other
substantive training issues.

Page 31
 MAKING A SECTOR FOCUS
OPERATIONAL

Leveraging Resources
Through Partnerships
y building partnerships with other organizations, GIDC has been

GIDC
recognized
B able to leverage access to financial, human, and information
resources and to create services that GIDC could not provide on
its own. A good example of this is GIDC’s role in the creation of the
Fashion Center Business Improvement District (FCBID), founded in
the 1993. GIDC recognized the importance of the impression that the physi-
cal environment makes on buyers, but at the same time realized that
importance
GIDC itself was not well positioned to effectively address this problem.
of the GIDC therefore worked toward the formation of the FCBID, and cur-
rently sits on its board in an advisory capacity.14 Since it is a business
impression
improvement district, the FCBID works on, among other things, street
that the services and improvements, and the area is now felt to be safer and
more welcoming for buyers and other fashion industry actors. GIDC’s
physical
work with the FCBID has facilitated a greater level of service for buyers,
environment particularly foreign buyers. In collaboration with FCBID, GIDC con-
tributed to the production of a resource guide that helps foreign buyers
makes on
navigate the New York market. In addition, while GIDC was prohibited
buyers and from spending its funds to support the travel expenses of firm represen-
tatives attending foreign trade shows, by collaborating with FCBID
worked to
through the New York Fashion International (NYFI) initiative, GIDC
create the could connect manufacturers with a source of support for this initiative,
a critical component to its success. Other examples of GIDC’s strategic
FCBID,
partnerships include its relationship with FIT, a valuable source of infor-
a business mation and human resources, and its relationship with the union, which,
among other things, provided critical lobbying assistance that led to sig-
improvement
nificant state contributions to GIDC’s budget. These relationships are
district. described in the section titled “GIDC’s Strategy.”

14
Since FCBID is a business improvement district, only representatives of businesses
who contribute to the operations of the BID are eligible to be official board members.

Page 32
 T H E T R A I N I N G
S T R A T E G Y

ne of the distinguishing features of GIDC’s training strategy is

O that the organization targets workers at all levels of the industry

with which it works, providing training services for occupations
ranging from sewing machine operators to factory owners and man-
agers. With this strategy, GIDC seeks not only to assist immigrant work-
ers in finding employment in the garment industry, one of the very few
opportunities available to immigrants with limited language skills, but
also to aid the industry in remaining competitive in order to retain and
hopefully expand employment opportunities in the New York City area.
GIDC’s training divides into two main program areas: (1) the Super
Sewers program, a full-time, eight-week training course for displaced
workers, and (2) Apparel Skills Courses, an array of seminars and
evening courses designed to serve the training needs of factory supervi-
sors, managers, and owners, as well as particular occupational special-
ties such as marker making and pressing. In addition, through its tech-
nical assistance programs GIDC provides on-site training in sewing fac-
tories to meet specific needs and has developed a “train-the-trainer”
program to encourage sewing contractors to institutionalize training as
an integral part of their operations.

Displaced Worker Training

Participants
he Super Sewers program, established in 1988, serves dislocated

T sewing machine operators. The participants in this program all

have worked in sewing factories, but the level of their sewing
competence can vary widely since it is common practice among sewing
factories to assign a worker to one specific operation, such as setting a
pocket or making a side seam, for the duration of that worker’s employ-
ment. Thus, some Super Sewers participants, including those who have
worked many years in the industry, have experience in only a narrow
range of sewing operations, limiting their prospects for finding employ-
ment and remaining employed.
Almost all Super Sewers participants are immigrants, primarily
Chinese or Latino, with limited English language skills. Close to 90 per-
cent of participants are women. The average age of participants is 45
and the median level of education is 10th grade. Participants have to
prove that they are displaced workers, generally by showing receipt of

Page 33
 THE TRAINING STRATEGY

unemployment benefits, and most participants are receiving unemploy-

ment benefits during training. Some, however, have exhausted their
benefits, and for them GIDC provides a small stipend to cover travel
Mrs. Quan
costs and lunch. Participants are predominantly union members, but
came to GIDC non-union members are also eligible for the program.

“to learn
more sewing Quan Li Na
skills so that
Quan Li Na emigrated to the U.S. from Hong Kong in 1981 at
it will be age 21. Since then, she has been working as a garment worker
easier for me and during that time she has been laid off 10 times and has quit
jobs 3 times. In her last job, she estimates that she earned $200
to find jobs.”
per week for a 40-hour week. Mrs. Quan lives with her
husband, who she says earns $10,000 per year, their three
children, and her 72-year old mother. Prior to starting the
Super Sewers program at GIDC, Mrs. Quan had been
unemployed for two months. She heard about GIDC on the
radio and came, “to learn more sewing skills so that it will be
easier for me to find jobs.” When asked what job she hoped for,
Mrs. Quan said, “I have a family to take care of and that does
not allow me to work a long-hours job....I just hope that I can
get any sewing job and start earning money again.” After
completing the Super Sewers program, GIDC helped Mrs. Quan
secure a union job that provides health insurance and pays
$6.40/hour as a base wage.

Outreach
UNITE is a major source of referrals to the Super Sewers program. In
addition, GIDC recruits participants through flyers posted in Chinese
and Hispanic neighborhoods and through ads in the Chinese and
Spanish language newspapers. Technically, participants in the program
are referred to GIDC through the Worker Career Center (WCC), the one-
stop employment services shop in Manhattan. But GIDC participants
learn of the program through the outreach mentioned above, and then

Page 34
GIDC staff help clients register at the WCC so that they may become eli-
gible for the program. To date, GIDC has had little problem recruiting
candidates for the Super Sewers program. The organization offers four
cycles of Super Sewers each year, alternating between Chinese and
Spanish language, and each cycle enrolls 35 participants. Due to recent
changes in funding, however, this number will decline.

Screening
Since Super Sewers had always received Job Training Partnership Act
(JTPA) Title III funds, candidates were required to show that they were
receiving, or had recently received, unemployment benefits and that
they are legal residents of the United States. The remaining factor for
which GIDC screens participants is that they have some sewing experi-
ence. It is desirable for participants to have a basic competency since,
otherwise, it is very difficult for them to keep up with the intensive
eight-week program, although, as mentioned above, the level of skill
among participants varies greatly. The Super Sewers program offers
two levels of training, referred to as “intermediate” and “advanced,”
and on average about one-third of the participants in a cycle will be
placed in the advanced class. GIDC’s screening generally begins with a
telephone conversation about the participant’s background, and if that
goes well, the applicant is invited to come in for an interview and to fill
out an application.

Staffing
GIDC has two training managers, one a Chinese speaker and the other a
Spanish speaker. These staff people conduct outreach and recruitment
for their respective cycles, interview prospective applicants, oversee the
training, monitor placement and retention, and provide data to funders
and others regarding training results. Throughout the process, they
provide informal support and counseling to participants, and act as a
source of referrals for any needed services. This function helps ensure
that participants can continue with the training through to graduation,
and also is designed to give participants the resources they need to stay
on the job after placement.
The instructor for the Super Sewers program has been with
GIDC for seven years She works for GIDC on a contract basis, and also
runs her own custom design dress-making business. She had 13 years

Page 35
 THE TRAINING STRATEGY

of experience in the garment industry prior to working for GIDC. Since

GIDC offers four eight-week cycles of training, the instructor has the
opportunity to become involved in special projects between sessions,
and has visited numerous Chinatown sewing shops in the course of
these projects. Through her own business, communication with GIDC’s
technical assistance staff, and involvement in special projects, the
instructor for the Super Sewers class maintains considerable involve-
The primary ment with the industry and is, therefore, aware of changes in production
techniques and trends in demand.
aim of the The instructors for English as a Second Language (ESL) training
Super Sewers are provided by the Consortium for Worker Education (CWE), a training
and education organization that primarily serves the 35 different unions
program is to that are its members, including UNITE, as well as operating some train-
provide ing programs for the city. In the Super Sewers program, the instructor
with primary responsibility for the ESL program is a permanent employ-
participants ee of UNITE and conducts other ESL training for the union. Although
with a broader he is not a certified ESL instructor, he has many years of experience in
teaching English, particularly workplace English. The other instructor is
skill base so a certified ESL instructor who is an employee of CWE and has many
that they are years of experience teaching English language in the United States and
abroad. The instructors for the health and safety component are UNITE
qualified for a staff members.
greater range
Facilities
of sewing jobs. The Super Sewers training takes place in two classrooms in the High
School of Fashion Industry that are dedicated to GIDC for this training
program. These rooms are equipped with single-needle lockstitch
sewing machines as well as equipment used to perform specialized
operations, such as merrow, overedge, and button hole machines. While
students are primarily trained on the single-needle lockstitch machines,
the most common machine in sewing factories, they also gain some
familiarity and comfort with the more specialized equipment. In addi-
tion, since all fabrics handle differently, GIDC purchases a variety of fab-
rics for student projects so that participants learn the distinguishing
properties of different types of fabric. These materials are cut to order
and distributed to students for sewing projects. At the end of the train-
ing program, students are allowed to keep all garments that they have
made during the training.

Page 36
Content and Methodology
The primary aim of the Super Sewers program is to provide participants
with a broader skill base so that they are qualified for a greater range of
sewing jobs, enabling them to remain employed for longer periods of
time or to advance to better paying jobs in the industry. The Super
Sewers program includes training in sewing skills, conducted for four
hours each morning, and English language training, conducted for two
hours, four afternoons per week. The remaining weekly afternoon ses-
sion is generally dedicated to health and safety training. Thus, the
entire cycle involves 240 hours of training.

Components of Super Sewers Training

Hours
• Sewing skills 160

• English Language Skills 64

• Health and Safety 16

Total Training 240

Sewing Skills
The sewing component is designed to teach whole garment construction
with an emphasis on mastering quality sewing techniques and improv-
ing sewing speed. Each day the technical training instructor conducts a
session of formal instruction in English, detailing the technique for
accomplishing a particular sewing operation, such as creating a tailored
sleeve placket or a double welt pocket. Prior to the presentation, each
student receives a handout with a written summary and diagrams illus-
trating the day’s lesson, and during the lecture the teaching assistant
provides translation for the students. The instructor stresses the key
English terms used during each lesson and students are encouraged to
repeat these words in order to reinforce their learning of workplace

Page 37
 THE TRAINING STRATEGY

Roughly three
quarters of the
class time in
technical
training
involves
students
actually
working at
their
Sewing skills training at GIDC’s Fashion Industry
machines on Modernization Center.
assigned
projects. English. The instructor has completed samples and sample-in-process
pieces prepared to use as visual aids during the presentation. Many
students take notes and the instructor encourages students to ask ques-
tions. Occasionally a student may have learned a different way to do a
particular operation, and this will be discussed with the whole class.
Sometimes, for reasons of quality or efficiency, students may be encour-
aged to avoid using methods that they have learned in the sewing fac-
tory, but occasionally a student may have learned a technique that is a
valid alternative to the one presented, in which case the instructor will
encourage the students to practice both techniques. Following the
formal presentation, the teaching assistant will provide a demonstration
for those students who do not yet feel ready to do the operation on their
own. Students are given materials to do 10 repetitions of the operation
presented. So, for example, if the operation presented was setting a par-
ticular type of pocket, the students will have enough pre-cut pieces of
fabric to practice this operation 10 times. Lessons are cumulative in that
they combine to allow a student to create a whole garment by the end of
the week. As the weeks progress, the assigned garment calls for more
complex sewing skills. The same teaching approach is used in both the
intermediate and advanced sewing classes.

Page 38
 Assessment: The instructor and teaching assistant assess stu-
dent performance on a continuous basis, as roughly three quarters of the
class time in technical training involves students actually working at
their machines on assigned projects. The instructor and assistant circu-
late among them, observing their work and answering questions or
offering assistance as needed. The instructor teaches both the advanced
and the intermediate classes, but each classroom has a dedicated teach-
ing assistant. At the end of a training cycle, the instructor and assistant
compile a formal assessment of each student’s skills for the job place-
ment officer.
While the basic eight-week format of Super Sewers has not
changed since its inception, the content is adjusted frequently, according
to perceived industry needs. Minor modifications in the content are the
responsibility of the instructor. For example, in discussions with the
technical assistance staff she may discover that shops are demanding
people with greater skills in working with soft fabrics or that a particu-
lar way of setting a zipper is very much in demand. Thus, exercises
may be modified accordingly. In addition, every year all the staff
involved in the Super Sewers program meet to go over the curriculum
in a more formal way in order to determine if more substantive changes
are needed. For example, a few years ago staff determined that a modu-
lar training component should be included within the Super Sewers
curriculum. The Super Sewers curriculum now contains this modular
training, in which cross-training, problem solving, teamwork and critical
thinking are emphasized. As GIDC has encouraged the adoption of
modular production among some of its technical assistance clients, it has
also incorporated this element into its training of workers so that they
will be prepared for this type of production.

ESL
The basic ESL curricula is established by CWE, and the instructors work
with the other Super Sewers trainers and staff and with materials
provided by the Department of Employment in order to ensure that the
specific areas covered in the Super Sewers ESL training component are
as relevant as possible for garment workers.
The English language training covers basic grammar concepts
and emphasizes vocabulary and phrases relevant for garment industry
work. Basic reading and writing also are reviewed. Students are

Page 39
 THE TRAINING STRATEGY

Participants assessed for their language capability at the beginning of the program
and are placed in one of two classes according to their ability. While an
interviewed all eight-week training, involving 64 hours of language instruction, is quite
commented short in terms of the level of language improvement that can feasibly be
accomplished, it is hoped that by the end of training participants will be
that learning able to read a “spec sheet,” which is the written information provided to
the English a contractor by a manufacturer giving instructions regarding the assem-
bly of the garments, and that they will be able to recognize and use basic
language terms relevant to their work.
was a very Students are highly motivated to participate in the English lan-
guage training. English language skills are needed to become a sample
important maker or to get work in the factories that produce high-priced garments,
component where the pay is better. GIDC staff provide a list of all available ESL
classes in New York City for students at the end of the training in order
of the to encourage them to continue language studies. While GIDC does not
Super Sewers formally track how many students do continue, the ESL teachers com-
mented that they have seen their former GIDC students in other non-
program. GIDC classes that they teach. The small number of participants inter-
viewed for the purposes of this study all commented that learning the
English language was a very important component, if not the most
important component, of the Super Sewers program, and many com-
mented that their experience in the Super Sewers program encouraged
them to continue studying English. GIDC staff report having heard sim-
ilar comments from students.
Assessment: The ESL instructors do not do a post-test to assess
the degree of language improvement achieved by students in the class,
although teachers do give short written quizzes every week on the spe-
cific items covered. These tests generally involve matching words, or
words and pictures, and some fill in the blank, and are self-corrected by
the student. Students are encouraged to take responsibility for their
language learning, to ask questions when they have difficulty and to
discuss matters with the teacher if they feel the class is too difficult or
too easy for them.

Health and Safety

Health and safety training is provided by UNITE and conducted by
union staff members. This component of the Super Sewers program
educates workers on topics such as fire safety, worker compensation

Page 40
laws, ergonomics, and chemicals in fabric. By the end of training, par-
ticipants should have a greater understanding of how to protect their
health and avoid injury at the workplace and of their rights regarding a
healthy work environment.

Evaluation
At the end of the training cycle, the GIDC Training Manager administers
an evaluation of the training, requesting students’ numerical evaluations
and comments on the sewing skills, English language and health and
safety components. All students fill out these evaluation forms.
Unfortunately, the results of these surveys are not entered into a data-
base for analysis.

Placement
At the completion of the Super Sewers program, a dossier outlining the
accomplishments of each trainee is provided to one of the placement
officers, and each student has a brief face-to-face interview with the
placement officer. GIDC has three placement officers, all of whom are
retired union officials with experience in different segments of the
industry. They work one or two days per week for GIDC, collectively
providing a total of four days of time. In addition to providing place-
ment services for GIDC students, the placement officers often receive
frequent requests from UNITE to assist other laid off workers seeking
jobs. Thus, the GIDC placement officers actually place far more people
than GIDC trains. The downside of this arrangement is that these out-
side requests can distract the placement officers from focusing on the
specific needs of GIDC trainees and ensuring that they are placed in a
timely manner. On the other hand, the volume of people that the place-
ment officers work with raises the likelihood that they will know some-
one with the right skills who is available when an employer needs them,
encouraging employers to continue to call GIDC’s placement officers
when they are looking for employees.
Since Super Sewers was set up as a JTPA program, trainees
needed to be placed within 90 days of graduation, and the participants
were supposed to remain in the same job in which they were placed for
at least 90 days to satisfy the retention requirement in JTPA funding.
While historically GIDC has not had problems with placement, the
organization has always struggled with retention. GIDC staff feel that

Page 41
 THE TRAINING STRATEGY

Since its this is because of the nature of the garment industry. Given the indus-
try’s frequent spikes in activity and the highly specialized nature of
inception,
many contractors, it is not uncommon for operators to move from shop
GIDC’s Super to shop, depending upon who has work. Thus, at 90 days after place-
ment, a participant may be working for a different employer than the
Sewers
one with which she was originally placed, or she may be between jobs.
program has
Monitoring
trained more
GIDC has found that, while some participants may respond to letters,
than 1,075 accurate tracking of placement and retention requires follow-up phone
calls. In addition, the Super Sewers program offers trainees a modest
dislocated
bonus when they report their placement, and a second bonus at the 90-
sewing day retention mark. This incentive system also helps increase the rate of
reporting. For staff, however, the reliance on phone calls means that
machine
much of their work needs to be done in the evening after regular busi-
operators. ness hours, when it is possible to reach graduates by phone.
Since its inception, GIDC’s Super Sewers program has trained
more than 1,075 dislocated sewing machine operators. As the program
passes its 10-year mark, however, new challenges are emerging.
Placement, which had historically been around 80 percent, has become
more difficult lately. While a decline in the level of industry employ-
ment may explain part of this, probably the most important factor for
GIDC is the decline in the number of union sewing shops. While indus-
try employment seems to have stabilized in the last year or so, the num-
ber of union-affiliated sewing shops has continued to decline. Given
GIDC’s natural link to union shops and the fact that those shops offer
better benefits and working conditions than most non-union shops,
these employers are the main source GIDC looks to in placing trainees.
GIDC staff state that while there are always sewing jobs available, the
jobs available at non-union shops generally offer very low pay and no
benefits. GIDC is now seeking a full-time placement officer to re-direct
its placement strategy and to computerize its placement system.
Perhaps the most immediate challenge the Super Sewers pro-
gram faces is funding. GIDC recently lost JTPA support for the pro-
gram, since New York City revised its guidelines and now requires that
JTPA programs place participants in jobs paying at least $11.00 per hour.
For GIDC and other training providers who work with populations that

Page 42
face special barriers to employment, this requirement presents an im-
possible task. Even when the value of health benefits, estimated as 29
percent of wages, is added in, the total wage rate for a typical GIDC
placement only moves from $7 to $8 per hour to about $9 to $10.30 per
hour (the union minimum wage is $6.40 per hour, but since most shops
operate on a piece rate system, trained operators can often earn more).
It is possible however, that an exception in the JTPA requirements will
be made for organizations working with hard-to-place populations, at
which point GIDC may once again become eligible for support. In the
meantime, GIDC has sufficient resources to continue the program
through July 1999, while staff seek out other funding sources. During
this period, GIDC also plans to re-examine the program, which has been
shaped in a number of ways by JTPA requirements, and to consider
other options for meeting the needs of displaced garment industry
production workers.

Employed Workers Training

or employed workers in the garment industry, including special-

F ized operators, supervisors, managers and owners, GIDC offers an

array of seminars and training programs through its Apparel Skills
Courses. Topics vary according to demand as well as changes in
GIDC’s capacity to offer a course. Current course offerings include:
Manual Pattern Making, Manual Marker Making, Computerized
Marking/Grading,15 Sewing Machine Maintenance and Repair, Sample
Cutting, Production Cutting, Pressing Skills, Supervisory Skills,
Introduction to Windows 95, Basic Excel, and Excel for Factory
Management. These courses are offered in the evenings and classes
meet once or twice a week over a period of one to four months. Thus,
total training hours per course varies from roughly 12 hours to 53 hours.
In addition to regular courses, GIDC offers occasional management sem-
inars on topics such as labor law compliance and profit maximization.

15
Marker making is the technique through which patterns are adjusted to different sizes.
Pattern grading involves the layout of the pattern on material and should be done to
maximize the number of garments that can be made from the material while, at the
same time, taking into account properties of the material such as pattern or nap.

Page 43
 THE TRAINING STRATEGY

The FIMC Development of Course Offerings

The Apparel Skills Courses began in 1988, with the introduction of
gives GIDC a
Sewing Machine Maintenance and Repair, the longest-running training
storefront course offered by GIDC. Other vocational courses were quickly added
to the Apparel Skills offerings. In 1991-1992, GIDC, in collaboration
presence in
with researchers from FIT, administered an intensive 10-page survey of
Chinatown, 25 manufacturers and 75 sewing contractors in order to better assess
their needs. The results of this survey led, among other things, to the
raising GIDC’s
identification of additional subjects that would be useful to address
profile in the through the Apparel Skills Courses. The information generated
through the results of this survey and through ongoing technical assis-
community
tance work have formed the basis for identifying and developing new
and serving as course offerings.
Curricula for the courses are developed by individuals who are
a means of
experts in the field. When GIDC staff decide that they should offer a
promoting its new course in a particular area, they work through their industry con-
nections to find someone who is an expert in the area and who also has
programs.
previous teaching experience. GIDC may supply the person with an
outline of the general topics they expect the course to cover, and then
the instructor will develop a full course and instructional materials.
Courses generally are taught through a combination of formal lectures
and hands-on exercises. Since GIDC has several industry experts on
staff, a staff person may also develop a class in house and teach it for
several cycles to refine the methodology and then hire someone new to
teach the course. These staff experts are primarily employed in GIDC’s
technical assistance activities. GIDC does not employ full-time trainers,
but hires people on contract for specific course offerings. In general,
GIDC tries to have trainers with whom they are unfamiliar begin by
conducting courses for which the materials and curricula are fully devel-
oped. As GIDC gains confidence in them, they may be asked to take
more responsibility for course content or the development of new cours-
es. Given GIDC’s long-standing relationship with FIT, it is not surpris-
ing that many of their training instructors have teaching experience
there, but New York has other educational establishments that serve the
apparel industry, such as Parson’s School of Design and the High School
of Fashion Industries. GIDC has hired people from these institutions
as well.

Page 44
Facilities
The opening of the Fashion Industry Modernization Center in
Chinatown in 1997 greatly expanded GIDC’s capacity for offering
evening classes because of the increased availability of classroom space.
The FIMC is equipped with the latest in production equipment, allow-
ing students to be trained on the newest technology. Since the equip-
ment is easily visible to everyone coming into and out of the center, hav-
ing the equipment in the FIMC exposes management to new technology,
even if their particular course may not involve using the equipment.
The use of the equipment was donated to GIDC, providing a marketing
benefit to the manufacturers as well as contributing to GIDC’s goals of
encouraging greater efficiency in production through training and the
use of new technology. GIDC also offers some Apparel Skills Courses in
the High School of Fashion Industries, using the space that is used by
the Super Sewers during the day.

Outreach
The FIMC gives GIDC a storefront presence in Chinatown, raising
GIDC’s profile in the community and serving as a means of promoting
its programs. In addition, GIDC recruits students to its Apparel Skills
Courses by sending flyers to sewing contractors and to UNITE, by
advertising in Chinese and Spanish language newspapers, and by con-
tacting former GIDC students who may have an interest in a particular
class. For example, students who did well in the Super Sewers class
may have an interest in taking pattern making in order to increase their
chances of becoming a sample maker. Staff also note that many students
hear about GIDC courses through word of mouth.

Screening
Individuals interested in the Apparel Skills Courses are asked to apply
to take a particular class. In reviewing applications, GIDC staff look for
someone who is in a position to use the skill being taught. For example,
supervisors are often trained in the Sewing Machine Maintenance and
Repair class, since it is their responsibility to keep things running
smoothly on the shop floor. This training has enabled companies to
avoid costly repairs and to decrease the amount of downtime of their
machines, decreasing costs and improving a factory’s ability to make on-
time deliveries consistently.

Page 45
 THE TRAINING STRATEGY

Participants
Participants are often encouraged by their employers to take a class, but
some trainees are looking to upgrade their skills so that they can gain
access to better employment. Many participants have limited English
language skills, and most classes are offered in Spanish or Chinese, or
are taught in English with interpreters available.
Class sizes vary depending on the subject matter and equipment
available. For example, in the pattern making class no more than 10
participants are accepted, but up to 15 participants are accepted in pat-
Since classes are tern grading, and up to 20 for the computer classes.

held after
working hours
Zheng Yue Wan
and are not
Zheng Yue Wan emigrated to the United States from China in 1981
obligatory for
at the age of 18 and now lives with her husband, who is currently
any participants, unemployed, and three children. Mrs. Zheng was also
unemployed when she came to GIDC to take the Computerized
GIDC has found
Marking/Grading class, but she has since been re-hired by her
attendance to be previous employer as a pattern maker and earns $18 per hour. She
a good has never quit or been fired from a job since she started working in
1981, but she has been laid off twice. She says she learned of GIDC
barometer
through friends and came to the course to improve her skills.
of class
effectiveness.
Evaluation
Classes are nearly always full at the beginning of the session and per-
haps one or two people will drop out during the session because of out-
side circumstances. If a greater number of students stops participating
in a class, it is an automatic signal for GIDC staff that the class is not
meeting the needs of participants. Staff immediately seek to discover
what is not working in the class, and work to make the remainder of the
class more worthwhile. Since classes are held after working hours and
are not obligatory for any participants, GIDC has found attendance to be

Page 46
a good barometer of class effectiveness. Instructors for these classes
mentioned that students have often commented enthusiastically to them
about things from the class that they were able to use right away in their
work. Participants also fill out evaluations of the courses, which are
used primarily to provide feedback to the instructor and suggest possi-
ble areas for course modification.

Funding
Support for the Apparel Skills Courses comes from grants from New
York State, the U.S. Department of Labor, and the Consortium for
Worker Education. While New York State has been a long-standing fun-
der of these courses, the funding from DOL and CWE is more recent,
and has facilitated the recent expansion of GIDC’s course offerings.
With the exception of the computer classes, for which a $50 registration
fee is required, the classes are free to participants. By the end of 1998,
GIDC was training more than 170 participants in the various Apparel
Skills Courses per training cycle. There are roughly four cycles per year.
Grants in support of the program have mainly required the
tracking of attendance, but no monitoring of the effect on participants’
employment prospects or other outcome measures were required or
funded. In order to learn more about participant outcomes, however,
GIDC has chosen to become a member of the SEDLP evaluation (see box
on page 2), for which the income and employment experiences of a rep-
resentative sample of 144 trainees are being tracked over time. More
monitoring of the impact of participation in Apparel Skills Courses for
participants and their firms is something GIDC hopes to institute in the
near future. In addition, GIDC plans to embark on a skills standards ini-
tiative, involving job shadowing, to more accurately assess the specific
skills that are required in various positions. With this information, they
will reassess their curricula to determine how well the instruction is
meeting the current needs of the industry.

Page 47
 C O S T S A N D
O U T C O M E S

IDC receives support from a number of different funding sources

G including federal, state, and local government agencies and

union-managed funds. These different funding sources have had
a direct impact on the specific programmatic outcomes that the organi-
zation tracks.

Outcome Measures
IDC’s most demanding funding source in terms of outcome mon-

G itoring has been JTPA, the principal financial supporter of the

Super Sewers program. As is customary with JTPA programs,
reporting on participant enrollment, graduation, placement within 90
days of graduation, and job retention at 90 days after placement is
required. Characteristics of the jobs in which participants are placed,
such as wage rates, hours worked per week, job title, and place of
employment are also required. In addition, GIDC tracks the pre-training
wages of Super Sewers participants, although this statistic is not
required by JTPA. Measures of participants’ skill improvement are not
required, and this type of assessment is performed informally by the
instructor (see section on Training Strategy).
As noted in the Training Strategy section, GIDC’s performance
with regard to placement has deteriorated recently and retention has
always been difficult. GIDC staff believe that poor retention is due in
large part to industry factors that encourage job hopping. The following
table presents results for fiscal year 1997-1998. Placement rates for this
year, however are reportedly running below 60 percent, but exact figures
are not yet available.

Super Sewers
FY 97-98 No. Percent
Participants 113
Graduates 105 93%
Placements 70 67%

Average hourly wage at placement $7.50

Page 48
 Outcome monitoring for GIDC’s other program areas tends to
be less stringent. For the Apparel Skills Courses, which are largely
funded by New York State contracts, only enrollment and completion
figures and basic demographic information on participants are needed
for reporting purposes. Information about participants pre- and post-
training employment situations is not required, but GIDC has recently
started collecting information on participants’ income levels. Currently
GIDC reports that they have a 97 percent completion rate among partici-
pants in the Apparel Skills Courses. GIDC tracks this completion rate
carefully, as this number is the primary indicator they rely on at present
for course quality. Given that the majority of course participants are
employed, often working long hours, and none are required to come to
these courses, GIDC feels that participation is an excellent indicator that
the course is of value. If GIDC staff see that a particular course is losing
participants, they jump in quickly to find out why the course is not
meeting participant expectations and to remedy the situation. GIDC is
also now reviewing these courses and developing more formal tools to
assess whether learning objectives have been met.
The on-site training provided to employers is part of GIDC’s
technical assistance activities, which are funded in part through annual
Manufacturing Extension Partnership (MEP) contracts. For MEP-funded
technical assistance, a follow-up questionnaire with the firm is required
to determine if the training, or other technical assistance activity, has
had an impact on the firm’s profitability, and whether the firm is satis-
fied with the service provided. However, MEP contracts with an inde-
pendent firm to conduct this follow-up evaluation and the information
is gathered to assess the performance of the MEP initiative, rather than
the performance of individual service providers. Thus GIDC does not
have access to information by which it might assess the impact of its
technical assistance efforts through this source. As part of individual
technical assistance efforts, GIDC staff assess that the objectives of the
technical assistance effort have been met. For example, to assess
whether the learning objectives in on-site training have been met, staff
generally conduct pre- and post-training time studies, measuring how
quickly an employee can perform a specific task. Since this type of
assessment is very firm specific, the information is not easily aggregated
to assess the impact of the technical assistance program as a whole.

Page 49
 COSTS AND OUTCOMES

In the FENY program GIDC staff track the value of contracts

that firms win as a result of the program’s export assistance, but this fig-
ure only reflects the immediate impact of export services, and thus the
value of subsequent contracts or of relationships that may result in
future new business for New York firms is not captured. Since 1991,
GIDC has facilitated over $35 million worth of export contracts for New
GIDC’s current York firms.
The Sourcing Center, GIDC’s newest initiative, has not yet estab-
system for
lished a system for measuring the results of its activities, but GIDC
tracking hopes to begin tracking the Center’s referrals of clients to local firms.
Right now, the manager of this initiative estimates that she works with
outcomes is a
an average of 17 to 20 businesses per month, including contractors, man-
product of ufacturers and start-up designers and others. New York City’s
Department of Business Services, which provides operating support to
rapid growth.
the organization, requires GIDC to do a bi-monthly activities report to
GIDC’s Board of Directors, on which the City is represented, as well as
quarterly newsletters and an annual report.
GIDC’s current system for tracking outcomes is a product of
rapid growth during the last several years during which time a new sys-
tem to track program outcomes was established for each new program
area, based on the requirements of the funding source for the specific
program. GIDC is now in the process of reviewing this system and
developing more formal procedures for internal assessment. In addition
they are trying to consolidate their data collection across program areas.
For example, during the last year they built one data base for all training
students and have started collecting consistent information about these
students, although the amount of information collected from the Super
Sewers participants continues to be more extensive than that required of
trainees in other programs.

Training Costs
As is standard with non-profit organizations, GIDC employs a fund
accounting system in which expenses are matched against a particular
funding source. Costs for specific programs, however, are often covered
by contributions from several funds. Thus some calculations needed to
be made to estimate the true cost of specific programs. These estimates
were made in consultation with GIDC staff.

Page 50
 While GIDC’s overall budget is close to $2 million, the focus of
this analysis is the training costs, which account for roughly one-quar-
ter of this amount. After training program costs were isolated from
other GIDC expenses, they were analyzed to determine three specific
ratios: cost per participant, cost per graduate and cost per placement.
A summary of the results of this ratio analysis is presented in the fol-
lowing table.

FY97-98
Super Sewers
Total Program Cost $337,783.00
Cost per participant* 2,989.23
Cost per graduate* 3,216.98
Cost per placement* 4,825.47

Apparel Skills Courses

Total Program Cost $186,443.00
Cost per participant* 582.63
Cost per graduate* 601.43
Cost per placement* n/a

* Cost per participant is calculated by dividing the total program cost by the number of
participants. Similarly, cost per graduate is the total program cost divided by the
number of graduates, and cost per placement is the total program cost divided by the
number of placements.

The largest cost components for GIDC’s training programs are

personnel, including trainers and program administrators, which consti-
tute over 60% of costs. For the Super Sewers program another impor-
tant cost is materials, which was roughly 13% of total costs. Other sig-
nificant costs included rent, maintenance, communication systems and
other office and miscellaneous expenses. Charges for depreciation or

Page 51
 COSTS AND OUTCOMES

amortization of capital expenditures were not considered in the calcula-

tion of the training costs. In addition, GIDC’s training programs benefit
from in-kind support, which are not included in the total cost figure. As
mentioned in the Training Strategy chapter, the Super Sewers program
relies on UNITE personnel to teach the Health and Safety section of the
training and Consortium for Worker Education trainers for the English
language segment of training. The Apparel Skills Courses have been
supported through temporary donations of equipment. In this arrange-
ment, GIDC agrees to allow companies to use their Chinatown space as
a showroom for new equipment if the companies will in turn allow
GIDC to use the equipment for training purposes in the evenings.

Intro to Windows classes in the Computer Lab at FIMC.

Computers were purchased with funding from the National
Institute for Standards and Technology (NIST) through a
partnership between GIDC and the NY Manufacturing
Extension Partnership (ITAC).

The costs per participant presented on the previous page are

average costs rather than marginal costs. Thus, for example, it is not
necessarily the case that each additional participant in the Super Sewers
program would require an additional $3,000 expenditure. The scale of a
program and whether a program is operating at or below capacity can
have a substantial impact on these calculations of average costs.

Page 52
 L E S S O N S A N D
C H A L L E N G E S

he GIDC case offers a number of interesting lessons about the

T design and implementation of a sectoral initiative, and also high-

lights some of the challenges in accomplishing the goals of a sec-
toral program.

Working in a Declining Industry

ne of the interesting issues facing GIDC is that they are trying to

O effect change in an industry that is under intense pressure from

international competition. Employment in the garment industry
has been declining, both nationally and within the New York area, for
the past 25 years. Labor costs are by far the largest cost component for a
sewing contractor, and thus competition with overseas producers,
whose labor costs may be as little as one-tenth of the cost faced by U.S.
producers, is extremely difficult. While training and new technology
may make U.S. workers more productive, they are unlikely to become 10
times as productive as overseas workers and thus downward pressure
on the wages of U.S. workers will continue. By any standard analysis,
the garment industry would not rise to the top of a list of industries to
target for jobs for the urban poor.
In considering the role played by the garment industry in New
York City, however, reasons for concern about the declining fortunes of
the garment industry are obvious. It is a major source of employment
for immigrants with limited language skills and employs tens of thou-
sands of individuals who have very few other options in the labor mar-
ket. One response to this situation might be to help people employed at
low wages in the garment industry to learn English so that they can pur-
sue other options. There are organizations that do this in New York,
and GIDC itself offers ESL as part of its training curricula and encour-
ages participants to continue learning English. For some, this is the
beginning of learning the language and gradually broadening the array
of potential employment options. For many, however, learning a lan-
guage is a long and arduous process while employment is an immediate
need. In addition, a number of the sewers we interviewed liked sewing
and felt that they did it well; sewing is their profession.
In working in the garment industry, GIDC has seen that while
there are many areas in which it is difficult to compete with overseas
firms, there are niches that offer opportunities for U.S. producers. GIDC
has helped firms find new export markets and capitalize on the cache’ of

Page 53
 LESSONS AND CHALLENGES

Changing the a made-in-New York label. This strategy is helpful to expanding the
market and stabilizing employment for some firms. GIDC has also
way managers helped firms develop the capacity to produce apparel products faster.
and owners This strategy helps firms compete for re-orders and other time-sensitive
orders that frequently arise in the fashion business. Another niche mar-
of garment ket that GIDC has just recently developed an initiative to target is public
industry firms procurement of apparel products, which includes some very large orders
such as uniforms for police. Thus while the industry when viewed as a
think about whole may not look very promising, breaking it down into its compo-
production nent markets and assessing local strengths reveals a few bright spots.

and the Working on the Supply and Demand

organization Sides of the Labor Market
By assisting U.S. firms in targeting special niches, GIDC has helped
of labor is a
retain jobs in New York City. Clearly, the facilitation of over $35 million
necessary in new business has an impact on jobs. However, as with all sectoral
initiatives, GIDC is concerned not only with numbers of jobs, but also
pre-condition
with the quality of those jobs. To improve the quality of jobs and retain
for improving firms that offer quality employment, GIDC works with management on
production processes and with workers on skill improvement. Thus
the quality
GIDC targets both the demand and supply side of the labor market.
and stability Changing the way managers and owners of garment industry
firms think about production and the organization of labor is a neces-
of garment
sary pre-condition for improving the quality and stability of garment
industry jobs. industry jobs. In order to stay in business while maintaining an ability
to provide a decent wage, employers must learn to compete differently.
They need to be aware of new technologies and processes that can
improve the efficiency of their firms and of new market opportunities
for their products. By helping employers find ways to make their busi-
nesses more efficient and profitable, GIDC unlocks their potential to
offer quality employment opportunities.

Attracting Public Resources

As with many non-profit organizations, GIDC’s ability to achieve sys-
temic impact is limited by available resources. Attracting public
resources had been challenging for GIDC because of the public percep-
tion that the garment industry is in decline in the U.S. GIDC combated
this perception by working first at the local level with the City, empha-
sizing the high level of employment in the industry and the difficulty

Page 54
of finding alternative employment options for the large population
concerned. After demonstrating some success at the local level, GIDC
worked on the state level, and with the assistance of UNITE, lobbied
for state support of its efforts. GIDC staff found gaining federal sup-
port to be a bigger challenge, since they encountered a more firmly
held belief at that level that the garment industry cannot be competi-
tive in the U.S., while at the same time the employment impact of the
garment industry, considered nationally, is not as great as at the local
or state level. By drawing on their considerable knowledge of the gar-
ment industry, GIDC was able to demonstrate the existence of viable
niches for the New York garment industry and earn federal support for
promoting their development. GIDC staff felt that working from the
local to the state to the federal level was a logical progression for pur-
suing public support for its work.

Creating Systemic Change

in a Fragmented Industry
The garment industry is very fragmented. Reaching out and demon-
strating the potential of new technologies or production processes gen-
erally means working with firms individually. While GIDC tries to get
the word our about firms that it has helped through newsletters and
other means, managers often remain unconvinced until they really see
the benefits of a new approach for themselves. In addition, many pro-
ducers are feeling very pressured by overseas competition and may be
afraid to take risks on new ways of doing things. It should be noted
that many of the owners of sewing firms are not sophisticated business
people, although they may have long experience in the garment indus-
try. In a fragmented industry that is resistant to change, creating sys-
temic change becomes particularly difficult. GIDC has had a number of
successes with individual firms, but despite these successes, new modes
of production, such as modular manufacturing, are not yet widespread.
Whether they will become widespread is unclear, but in the meantime,
GIDC does seems to maintain a highly visible presence and serve as an
information resource to the industry.

Implications of Becoming
an Industry Actor
GIDC has established a unique position for itself within New York’s gar-
ment industry, working closely with both labor and employer groups.

Page 55
 LESSONS AND CHALLENGES

GIDC explicitly This position provides GIDC with a number of advantages that help the
organization fulfill its mission, such as ready access to its two primary
seeks to client groups — small firms and workers — financial and in-kind sup-
promote port from its constituents, and credibility in attracting public resources.
GIDC also has to maintain a balancing act between its diverse con-
“good” labor stituent groups. For example, GIDC works with both sewing contrac-
practices and tors and with manufacturers. Manufacturers are threatened by the
spread of private label products in retail outlets, while for contractors,
to place the production of private label goods can provide a needed source of
individuals in business. In linking contractors with agents looking to source private
label production, GIDC could run the risk of alienating manufacturers
“good” jobs, who view that action as working against their interests. Another exam-
but defining ple involves working with UNITE. UNITE has been a valuable support-
er of GIDC and in many ways their missions are congruent — both
“good” in a would like to see greater opportunities for workers. As the number of
concrete and union firms in New York City has rapidly declined, however, GIDC has
begun to consider how it might approach non-union firms, some of
verifiable way which pay relatively high wages.
becomes
Defining a “Good” Job
difficult. A particular example of the above arises in trying to define what a
“good” job in the garment industry looks like. GIDC explicitly seeks to
promote “good” labor practices and to place individuals in “good” jobs,
but defining “good” in a concrete and verifiable way becomes difficult.
UNITE officials generally will view a good job as a union job.
Employers on the other hand, favor a looser definition that may be
based more on following the laws regarding minimum wages and work-
ing conditions. GIDC may be amenable to a looser definition, but if they
are to certify that the employers in their database are “good” employers
based on their labor practices, how can that be verified? An employer
whose facility satisfies all the worker safety requirements one day, may
not meet them the next. Negotiating a definition of a “good” employer
that is acceptable to both employer and worker representatives and that
can be used to meaningfully distinguish among employers is a challenge
for anyone involved in the garment industry.

Page 56
 In sum, GIDC must often balance the needs of its diverse con-
stituencies within the garment industry as the organization chooses its
path forward. By keeping in tune with the industry and constantly
updating and refining its understanding of industry trends, GIDC con-
tinues to provide services of value to its constituencies and to lead
industry actors toward more competitive practices. GIDC maintains a
holistic view of the industry, and thus while one may expect that worker
training is primarily for the benefit of the individuals who will then be
able to find jobs, GIDC will argue that it is also important for the firms
to have capable workers in order to adopt more efficient practices.
Similarly by facilitating export promotion and the exploitation of new
markets, GIDC not only brings more revenue to firms, but also creates
more jobs for workers. In continuing to view the industry from the mul-
tiple perspectives of the diverse actors that make up the industry, GIDC
can navigate the competing interests to find win-win initiatives that help
to push the industry as a whole forward.

Page 57
 ONE DUPONT CIRCLE, NW
SUITE 700
WASHINGTON, DC 20036

99-036