Made in Germany: for environment, jobs and health

Tomatoes that appear to be identical to one another have lost their eternal appeal to the public, who now search for tasty tomatoes grown closer to home, even if they are more expensive. Children need to learn once more that milk comes from cows and not from supermarkets. The veggie and health food

trend has become tantamount to local production. Now it's high time that the fashion sector follows in suit. But do we still have the knowledge and technological possibilities for local production? Can we make jeans in Europe, produce bags and purses and knit sweaters? And where? In this new series FashionUnited investigates garment production in six European countries: Spain, the UK, the Netherlands, Germany, Italy and France - to shed light on the production possibilities that lie within our backyard.

The

quality seal “Made in Germany” has quite a turbulent history, given that it wasn’t always the positive certificate of origin that it is today. On the contrary, it was introduced in the UK during the industrialization at the end of the 19th century to distinguish British quality products from cheap German imports and imitations.

Today, using “Made in ...” certifications of origin are still voluntary within the EU and relatively open as they also identify those goods that were partly produced elsewhere. However, the EU regulations are set to become stricter and are supposed to define a country of origin as the place where the biggest, value-added component of a product is produced. Initiatives like “Wir produzieren Deutschland” (We produce Germany), “Ja zu Deutschland” (Yes to Germany) and others make it easy for German consumers, manufacturers, distributors and service providers to identify and support those companies that produce in Germany.

Made in Germany as a quality seal

The Southern German family enterprise Trigema for example advertises with the slogan “100% Made in Germany” for quality from Germany. The company was established in 1919 and is the “largest German manufacturer of sportswear and casual fashion” according to its website. The company does everything - from fabric production, design and sewing to the dispatch of the product to the end consumer - without relying on the help of subcontractors. It also only uses yarns produced in Germany or the EU. Ecological standards are also a top priority and Trigema uses only modern washing and bleaching units to help reduce pollution. All 600 articles in the company’s product range comply with the stringent Oeko-Text Standard 100, making them free from hazardous substances and do not irritate the skin. In addition, company-owned power stations supply the production facilities with power from renewable resources.

In

view of all these efforts and Germany as a high-wage country, the question arises how it is possible to remain competitive? “Wages in Germany are not too high, provided that the workers are motivated and deployed in suitable jobs and contribute to a product that is marketable. It is the responsibility of entrepreneurs to establish the necessary business conditions,” states Trigema CEO Wolfgang Grupp.

“We are proud of our success over the last few decades, despite the huge difficulties the textile industry has faced during the last 30 years. We were not only able to keep jobs in Germany, but have also increased our staff numbers over the last few years to 1,200. I see it as my duty to involve people in the work process and to protect workplaces for the future”, says Grupp.

At the end of 2013, the German garment industry recorded exactly 160 establishments with a combined workforce of more than 27,700 people according to official figures by the German Federal Statistical Office (FSO). These are medium-sized businesses with at least 50 employees. Here’s their division by segments: mens- and womenswear (68 firms; more than 13,700 employees), undergarments (29 firms; more than 5,100 employees), other garments and accessories (23 firms; almost 2,400 employees), hosiery (14 firms; more than 4,100 employees), workwear (13 firms; more than 1,400 employees); other knitwear (10 firms; 650 employees) and leather garments (3 firms; 241 employees).

As t

he pie charts show (see below), the mens- and womenswear segment accounted for 43 percent of all companies and almost 50 percent of all employees between January and November 2013. In terms of sales, the segment generated revenues of 4.15 billion euro or 67 percent of the German fashion industry’s total revenue of 6.16 billion euro during the same time frame. The labor-intensive underwear segment made up 18 percent of all companies, 18.6 percent of all employees and 841 million euro in revenue or 13.6 percent of the total revenue. The next largest segment was hosiery with 621 million euro or 10 percent of total revenue, followed by workwear with 5 percent or 308 million euro and other garments and garment accessories (2.5 percent; 157 million euro), other knitwear (1.1 percent; 69 million euro) and leather garments (0.3 percent; 17 million euro).

Small, individual companies that have found their niche show that exceptions do prove the rule. Andrea and Frank Schürmeyer for example founded a knitwear factory in 1984 in Northern Germany that produces garments and accessories made of new and merino wool since 1998; since 2000 under the brand name Mufflon. Like Trigema, the small enterprise with 20 employees is focused on creating and keeping employment in Germany, local production and eco friendliness. “Mufflon garments are some of the few outdoor products that are produced completely in Germany. Almost 100 percent of the machinery used, materials, ingredients and workforce are from Germany or the EU”, states the company. In addition, it generates its own power with a company-owned photovoltaic system.

By segment, the official figures of the German FSO confirm that an investment in the German garment industry can be worthwhile. One segment even showed positive growth in all areas: workwear grew in terms of revenue (+8.8 percent), number of employees (+9.4 percent) and number of firms (+16.5 percent). With 11.5 percent, leather garments showed an even bigger growth in terms of revenue, but recorded a decline in employees by four percent while the number of firms remained constant. Hosiery recorded a revenue plus of 3 percent.

The biggest loser was the ‘other knitwear’ segment with a decrease of revenue by almost 52 percent from 144 million euros (January to November 2012) to 69 million euros from January to November 2013. The number of employees dropped by more than 32 percent and the number of firms by almost 12 percent. Overall, the German garment industry reported a revenue decline by 3.5 percent while the number of employees fell by 2.5 percent and the number of firms by 4.2 percent.

This trend corresponds with a survey by GermanFashion. The German fashion association asked representatives of the individual segments about their forecasts for 2014 as compared to 2013. The majority ranked the sales development for mens- and womenswear, workwear and sports/outdoor better than in 2013 while the opinion in terms of exports was divided: 46 percent said exports would be better in 2014 and 52 percent thought it would remain the same. Exactly 65 percent of the participants planned to invest in Germany, 27 percent in the EU and only 9 percent outside the EU.

Not

only medium-sized German companies are thinking of intensifying their efforts when it comes to producing domestically; even global players are rethinking their outsourcing strategies and try to become more local. In view of increased wages in China, growing trade hindrances and safety concerns, German sportswear giant Adidas for example considers a partial withdrawal from Asia. "We will move closer to our customers and will manufacture where our customers are,” confirmed Adidas research director Gerd Manz when talking to German daily Handelsblatt only a few weeks ago. The goal is to be "flexibel, local and to manufacture within a minimum amount of space" and for the long-term, to produce "much more independently of labor costs", says Manz.

Medima is a medium-sized company that produces angora undergarments. With its 130 employees, it almost exclusively manufactures in Germany and like Trigema, according to Oeko-Tex Standard 100. Thus, phthalates, formaldehyde and chloric bleaching agents are off-limits so the company can guarantee their customers ecologically compatible and functional wear.

In conclusion, one can say that not despite but because of lower wages abroad and the resulting lower quality products, the German textile and garment industry with its specialized quality products remains an import consumer goods industry in the country. German garment companies have found their niche and bank on promising, growth-oriented segments like innovate sportswear, outdoor wear, protective clothing and workwear while not forgetting about the environment and job creation in the process.

Photos: Made in Germany/German brands (Wir produzieren Deutschland) / clothes made of organic cotton (Trigema)/children’s jacket made of merino wool (Mufflon) – Medima by Sonja Kiefer (Medima)