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SGMA slams OIA anew
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Posted on Mar 13 2000
The Saipan Garment Manufacturers Association on Friday questioned recent statements made by Office of Insular Affairs official Richard W. Miller refuting SGMA’s claims that revenues from the sector declined in 1999 from year ago.
SGMA earlier projected that sales for 1999 will drop by 30-40 percent compared to 1998 figures. The association’s projected loss is way higher than figures from the U.S. Department of Commerce which indicated that actual shipments into the mainland from Saipan dipped by no more than three percent.
SGMA executive director Richard A. Pierce said he could not see a logical reason why Mr. Miller would refute the Saipan garment manufacturers’ projected revenue losses, adding that the criticism was expected from an OIA official.
“I don’t understand why it is of any consequence to OIA whether we lose three percent of or 30 percent. Everyone knows that if it weren’t for them (OIA) wishing it (losses) were 100%, they wouldn’t even be commenting on our statements,” Mr. Pierce said.
SGMA expected sales to dip between 20 percent and 30 percent in 1999 as a result of the law suits, current market trends which are primarily linked to Asian economy, and the threat of federal takeover of CNMI immigration and minimum wage controls.
“The market almost made up for the losses we experienced from our buyers’ hesitation and reluctance due to the litigation, by literally forcing their orders into the CNMI because the valuable quota in our areas of production had been exhausted in Asian countries. We made a miraculous comeback at the end of 1999,” Mr. Pierce said.
Estimates for the industries’ future sales indicate that sales will drastically fall during the second quarter of 2000. With strong winter line orders and another lucky finish in 2000, estimates range from an overall 15%-20% reduction in sales in the year 2000.
