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SEDC focuses on Saipan garment industry
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Posted on Apr 15 2005
The Office of the Governor’s Strategic Economic Development Council dedicated a majority of their April 11 meeting at the Senate to a Saipan garment industry update.
SEDC co-chair Marian Aldan-Pierce introduced council members to Saipan Garment Manufacturers Association executive director Richard A. Pierce, who delivered a PowerPoint analysis of industry economics, trends, and global developments affecting Saipan apparel factory operations and future prospects.
SEDC co-chair Robert H. Jones reported on a recent trip to a Dong Guan, China, factory complex, where Jones, Pierce, Lt. Gov. Diego T. Benavente, SGMA chair James C. Lin, Saipan Chamber of Commerce’s Alex Sablan, and HANMI president Lynn Knight visited a China factory complex, where several factory owners and buyers illustrated China’s overwhelming advantage in supply chain manufacturing.
Jones described the technologically complex site, which defined for the touring government and business leaders how Saipan could utilize a pre-cut assembly process in the future to rejuvenate the ailing Saipan garment industry.
Pierce started his presentation with recent New York Times and International Herald Tribune stories on how surges of Chinese textile exports have lessened Saipan factory orders.
Also presented were industry economic contributions to the local community: $69 million in taxes and fees, $50 million in local spending, 15,000 jobs in the industry and 7,500 jobs as a result of the industry, and between $111 million and $174 million in combined taxes, fees and the economic multiplier effect.
SGMA also demonstrated how competing free trade agreements have eroded Saipan factory competitiveness, how China exports and pricing structure have played into lost orders in Saipan, and how government leaders can best address retention of revenue from the industry.
SEDC demonstrated how the council members can combine with CNMI government leaders to best address the U.S. Department of Interior’s recommendations. DOI recommended “that every effort be made to avoid an abrupt or disorderly phase-out of this industry and to retain the more productive segments of the industry as long as possible.” (PR)
