The 25 largest apparel companies in Orange County notched a slight gain in local employment in the past 12 months but are heading into an uncertain holiday season and 2002.
Apparel makers, which design and produce bathing suits to business wear, saw local employment inch up by 163 jobs to 9,291,a 2% change, according to this week’s Business Journal list. The growth rate was down from the 10% posted by the companies on last year’s list.
The apparel companies grew their overall workforces at a slightly faster rate: companywide employment expanded by 567 jobs, or 4%, to 13,342.
But the next 12 months stand to be divergent for apparel companies, according to Frank Kaufman, a partner at Moss Adams LLP’s Irvine office, which provides accounting services for many of OC’s apparel companies.
The recently concluded back-to-school season was off this year vs. last, Kaufman said. And the Sept. 11 terrorist attacks “shut down retail for two weeks,” causing inventory to back up and retailers to put off orders, he said.
“Management at most well-run apparel manufacturers are being conservative in their projections and are cutting overhead,” Kaufman said. “There is very little talk about the holiday season.”
Kaufman said he is looking for an upswing in mid-January, when manufacturers start shipping their spring lines.
Lisa Bhathal, a vice president at Tustin-based Raj Manufacturing Inc., said department stores across the country “are giving us plans that are flat or a 10% to 15% decrease.”
Others say there are bright spots. Among them is Bill Holford, director of marketing at Irvine-based Rusty, whose clothes are made by No. 7 Irvine-based C & C; Partners.
“There are aggressive retailers that are doing everything possible to bolster their business in light of what’s going on,” he said.
The list includes big names such as Huntington Beach-based Quiksilver Inc. and Irvine-based Billabong USA, along with lower-profile players such as Anaheim-based Alstyle Apparel & Activewear/A & G; Inc. Many of the companies are privately owned and declined to disclose revenue.
Irvine-based St. John Knits Inc. again leads the pack with 3,038 OC workers, unchanged from a year ago. The upscale women’s clothing maker counts a large local presence because it makes products in OC, unlike others on the list that contract out production. Companywide, St. John Knits counts 4,500 workers, up 2%.
The family-run company, which made news last week with word that Chief Executive John Mullins is leaving after five months, counted $370 million in sales for the 12 months ended July, a 13% increase from the prior period.
St. John continues to expand its retail operation. It runs 23 St. John boutiques and has plans to open two more in Troy, Mich., and Houston by the end of the year. The company also operates 10 outlets stores and four home furnishing stores.
At No. 2 is Alstyle Apparel & Activewear/A & G;, which makes T-shirts, sweat shirts, pants and shirts for Old Navy and Nike. The company has 1,800 OC workers,a 6% increase from a year ago. Alstyle’s companywide staff count was down by 10% or 195 employees.
No. 3 Oakley Inc. of Foothill Ranch has seen double-digit growth across the board. The company counts 1,007 OC employees, up 15% from a year ago. For the 12 months ended June, the company had $425.4 million in sales, a 42% increase.
Oakley bolstered its workforce on the heels of new products, according to spokesman Gar Jackson. Oakley makes footwear, apparel and watches along with its trademark eyewear.
The company has worked to rebound from a scaling back in business with its once-biggest customer, Sunglass Hut, part of Italy’s Luxottica Group SPA. Oakley recently acquired Scottsdale, Ariz.-based Iacon Inc., which operates 40 mall stores, and boosted ties with Champs Sports Stores and Foot Locker, which now carry Oakley glasses along with shoes.
“We want our consumers to still find Oakley products at malls even if they’re not available at Sunglass Huts,” Jackson said.
No. 4 Quiksilver continued its reign as OC’s largest surfwear maker with 887 employees here, 8% or 68 more than last year. Quiksilver counted $597 million in sales for the 12 months ended July, up 22%. Companywide, Quiksilver saw a 30% gain in employees to 1,560.
No. 5 Raj Manufacturing, which designs and makes women’s and girl’s swimwear, reported a 7% growth in OC employees, going from 350 to 375 people. The Guess? brand, which Raj licenses, helped drive growth, according to Raj’s Bhathal. So did Athena Pick Your Fit, Raj’s own label, she said.
In all, 12 of the 25 companies grew OC employment, while nine reported smaller staffs. Four saw no change.
No. 6 Billabong USA, Irvine, OC’s second largest surfwear maker, showed one of the larger gains in OC employees, going from 130 to 188 people,a 45% jump. The company continues to expand, acquiring sunglass and goggle maker Von Zipper in March and skateboard products maker Element Inc. in July.
Another mover: No. 12 Irvine-based O’Neill, which counted 120 employees,50% more than last year. Expanded product lines for both O’Neill and its Lost brand fueled growth.
Companies that saw a local staff reduction include C & C; Partners, which in addition to Rusty produces Sanuk shoes. The company lost the license for Redsand, which took manufacturing in-house.
The shift caused C & C; to cut 75 people. The company now employs 180,28% less than last year.
Eight other companies reported single and double-digit drops in OC staff. They include: No. 15 Orange-based National Headwear, which dropped 38% to 100 employees; No. 15 Crazy Shirts Inc., Tustin, which is up for sale (see related story on page 11) and No. 11 Anaheim-based AST Sportswear Inc., down 29% to 120.
AST Sportswear’s chief operating officer, Abdul Rashid, said the company added new equipment that cut the need for some jobs.
Companywide, AST saw a 15% increase in staff to 195, mainly because it opened a 20,000-square-foot plant in Ensenada, which employs 75 people. The company’s Mexico headcount is expected to jump to about 200 in the next year, Rashid said.
The plant produces assembled garments for private label and AST brands. The move has helped cut costs, something that appeals to price-conscious customers, according to Rashid.
“We’re trying to target what the customers’ needs are,” he said.
AST is looking to expand in OC, too. Rashid said the company is seeking to relocate its 30,000-square-foot plant and 25,000-square-foot warehouse and headquarters. Rashid said he’s looking within Anaheim and hopes to find about 100,000 square feet of space. n
