To evaluate the results of the literature study, a questionnaire was formulated and empirically tested among selected experts in the textile industry in South Africa. Reviewing factors in both the literature review and expert opinions support the assertion that the textile industry is under threat. This study was conducted during a time when industry performance was declining and many of the views and opinions of those experts consulted may have been biased.
Fig.4.2 An illustration of the response rate for statement 1 38 Fig.4.3 An illustration of the response rate for statement 2 40 Fig.4.4 An illustration of the response rate for statement 4 43 Fig.4.5 An illustration of the response rate for statement 5 44 Fig. 4.6 An illustration of the response rate for proposition 6 47 Fig.4.7 An illustration of the response rate for proposition 7 49 Fig.4.8 An illustration of the response rate for proposition 8 50 Fig.4.9 An illustration of the response rate for proposition 9 55 Fig.4.10 A Illustration of the response rate for proposition 11 57 Fig.4.11 An illustration of the response rate for proposition 14 60 Fig.4.12 An illustration of the response rate for proposition 15 62 Fig.4.13 An illustration of the response rate for proposition 17 65 Fig.4.14 An illustration of the response rate for proposition 18 67 Fig.4.15 An illustration of the response rate for proposition 22 72 Fig.4.16 An illustration of the response rate for proposition 28 79. The third part is the summary that defines the purpose of the study and lists factors that were investigated .
CHAPTERI-BACKGROUNDTOTHESTUDY 1.1 INTRODUCTION
THE STATEMENT OF THE RESEARCH PROBLEM
In a comparative study of the textile industries in Turkey and the United Kingdom, valuable information was obtained that could be a useful tool for the South African textile industry (Maree, 1995, p.104). The purpose of the IRP was to conduct research on companies in different sectors to determine how they were coping with increased competition and the liberalization of the South African trade regime. Bennett believes that the Department of Trade and Industry's belief “that South African textile companies are equipped to compete.
The report finds that a real depreciation of the rand boosts exports and economic growth, but has a negative impact on consumer prices. The report supports the belief that an accelerated tariff reform program will hit textiles, one of South Africa's most protected industries, hard.
SUMMARY
LITERATURE SURVEY
- INTRODUCTION
- mSTORY
- IMPORTS AND EXPORTS
- TARIFF AND CONTROL STRUCTURE
The figure below Fig.2(a) is a graphical illustration of the increase in textile imports from the East for the period. Cheaper prices in low-income market segments are necessary to meet the needs of the poorest. The strength of the rand, cheap imports and high labor costs are threatening the sustainability and performance of textile firms in South Africa.
This proves that, regardless of the threats mentioned, cotton is still an important factor in the textile industry. To be eligible for export to the US, one of the conditions is that the raw material used in the manufacture of textiles must come from SADC countries.
COTTON SUPPLY AND USE
- LABOUR
- DEMAND
- CURRENCY FLUCTUATIONS
- RESEARCH METHODOLOGY
- RESEARCH DESIGN
- METHOD AND SAMPLING
- PROCESSING OF DATA
- QUESTIONNAIRE
- Section A - General
- EMPIRICAL FINDINGS
- INTRODUCTION
- DESCRIPTION OF THE SAMPLE
- ANALYSIS AND T ADULATION OF THE RESPONSES
When the economy of the country is healthy, then the textile industry gets a large share of the available disposable income. The purpose of the research, as previously outlined, is to determine whether or not the textile industry in South Africa will be able to sustain itself in the foreseeable future. The textile industry currently provides work as well as looking after the clothing and textile needs of the South African consumers.
Based on the literature review in the previous two chapters, it appears that the South African textile industry is threatened at both macro and micro levels. To evaluate the findings of the literature review, a questionnaire based on these findings will be empirically tested among selected experts in the textile industry. After receiving the questionnaires from the respondents, the answers will be analyzed and tabulated.
Thus the researcher will be better equipped to make substantive recommendations and conclusions on the status of the textile industry in South Africa. The literature survey highlighted several clearly identifiable problem areas related to the textile industry in South Africa that created the opportunity to design the questionnaire using the Dendogram technique. Expert comments/input are therefore vital in formulating the effects of tariffs and regulations on the South African textile industry.
The impact of trade agreements on the textile industry is critical to the future survival of the industry in South Africa. The two proposals ask the experts to give their opinions and answer questions about the future of the textile industry in South Africa. This section was an introductory section outlining the general status of the textile industry in South Africa.
Another factor is that cotton is subsidized in a developed country like the US, making it difficult for South African cotton producers to compete. The majority of respondents seem to be of the opinion that international competition has contributed to the overall improvement of the textile industry in South Africa by forcing companies to improve productivity, quality and service. This proposal looked at niche marketing and the supply of value-added products by South African textile companies as the way forward.
Respondents were asked if this is the way for South African companies to go and the reasons for their answers. Many respondents commented on the inability of South African textile companies to compete with the East in raw material markets. So if products are well-designed and well-engineered and supported by good service, they can replace part of the commodity products.
However, it is felt that for South African textile companies to follow this route, they must be flexible and able to sustain themselves given the ever-changing trends and needs of their customers. It would appear that the majority, which is 87% of the respondents, are in favor of South African companies going the route of niche marketing and the sale of value-added products. The experts were requested to provide their opinions on the South African government's policy on textiles.
Customs barriers are being reduced without compensatory measures, as is the case in many of the competing countries. South African government policies favor SADC and overseas suppliers at the expense of South African textile companies. It has recently been easier to import all textile products cheaper and at the expense of the local suppliers.
SUMMARY
SUMMARY AND CONCLUSIONS
- INTRODUCTION
- GENERAL
- TARIFF AND REGULATIONS
- IMPORTS AND EXPORTS
- LABOUR
- TRADE AGREEMENTS
This study sought to identify the most important factors that limit or hinder the performance of the textile industry in South Africa. The majority of experts (83%) were of the opinion that price, end-use, performance and delivery factors contribute to the long-term sustainability of the textile industry in South Africa. Most experts (79%) agreed that international trade has helped to grow the textile industry in South Africa.
Experts say the long-term sustainability of South Africa's textile industry depends heavily on the following strategy. Experts are of the opinion that textile prices in South Africa are artificially high. Experts are of the opinion that the government is not doing enough to help the textile industry in South Africa.
Most experts felt that the strengthening of the Rand is a major challenge for textile exporters in South Africa. The textile industry comes alive and growth in all parts of the supply chain results. Some experts (67%) were of the opinion that imported textiles have a negative effect on the domestic textile industry.
All experts felt that high productivity will contribute to the long-term sustainability of the textile industry in South Africa. This puts pressure on the effective competition of South African textile companies against their international competitors. Cotton, according to most experts, is a critical force in the textile industry.
RECOMMENDATIONS, CAVEATS AND SUGGESTIONS FOR FURTHER RESEARCH
The subject under review is the textile industry in South Africa at Macro and Micro levels. The success of the textile industry in South Africa will depend on its ability to adopt world-class manufacturing principles and create more value-added products to be highly competitive. (The gap between supply and demand is widening in textiles around the world. The textile industry in South Africa came under pressure to comply with the government's legislative requirements and policies.
Price, end use, performance and delivery are important determinants of the success of the textile industry in South Africa. The textile industry in South Africa will be a major employer and contributor to the South African economy for the foreseeable future. After reviewing the secondary information on labor in the textile industry in South Africa, the following suggestions seemed relevant to the topic.
High productivity in the textile industry in South Africa can be achieved through modernization of capital equipment, high levels of investment and continuous training of the workforce. An accelerated tariff reform program in South Africa will severely affect the textile industry which is one of the most protected industries in South Africa. Do you agree with an accelerated tariff reform program? The SAJEU (South African Union) Agreement, which came into force on 1 January 2000, will benefit the textile industry for the foreseeable future.
Since the implementation of the AGOA agreement, the overall performance of the textile industry in South Africa has improved. In your opinion, this proposition is true. What is your view on cotton in the context of the textile industry in South Africa. In your opinion, is the future of the textile industry in South Africa threatened? If.
