Western Australia’s smaller clothing manufacturers are facing supply problems from China as larger US and European importers capitalise on the easing of trade restrictions.
A January agreement reached at the World Trade Organisation for the lifting of global quotas and tariffs in the textile industry has prompted a 55 per cent increase in US imports of Chinese manufactured textiles, according to US trade data.
But these larger orders have squeezed smaller orders from WA out, as the Chinese give precedence to the bigger players, local industry figures have told WA Business News.
And the problem is affecting the industry Australia wide, with a major South Australian women’s fashion retail label cancelling a knitwear shipment after unexpected delays.
Geoff Barrymore, managing director of WA-based children’s clothing manufacturer Barrymores, said he had noticed that orders from China had become much less reliable since January this year. Established for 25 years, Barrymores’ clothing orders ranged from about 1,200 to 180,000 items each, he said.
“Many larger US and European orders have come in and the Chinese aren’t accepting as many smaller orders,” said Mr Barrymore, who has considered sourcing the company’s orders from Thailand instead.
Designers associated with the Textiles, Clothing and Footwear Resource Centre WA have also experienced significant delays in receiving orders from China, according to centre manager Carol Hanlon. She said many orders are being delayed as they are small in comparison to US and European orders.
