With the local retail-clothing, textile, footwear and leather (R-CTFL) sector accounting for about 14% of South Africa’s manufacturing employment, nonprofit company the Localisation Support Fund (LSF) has implemented interventions to help increase local manufacturing revenue and capacityin the sector.

During a roundtable on August 21, the LSF presented findings on recent technical interventions to help improve manufacturing efficiency within the R-CTFL sector.

The presentations unpacked learnings from two case studies – Green Thread Manufacturing and KARMA Clothing – whereby the LSF implemented interventions aimed at driving efficiency and capacity improvement initiatives, production line optimisation, Standard Minute Value (SMV) reduction and process reviews for the two businesses.

The LSF pointed out that the South African R-CTFL value chain generated an estimated R74-billion in gross value-add or 1.7% of the country’s GDP.

LSF executive head Thami Moatshe said the aim of the interventions at Green Thread Manufacturing and KARMA Clothing was to enhance local participation across the sector.

While Green Thread had experienced various challenges, such as issues around line balancing, through this project and other interventions, Green Thread is now making a profit for the first time in four years.

Additionally, Moatshe noted that the LSF helped KARMA Clothing optimise its factory layout to improve efficiency and turnaround times.

During her presentation, Moatshe also discussed some of the challenges facing the local sector.

She explained that the LSF aimed to partner with South African R-CTFL value chain Master Plan 2030 role-players – led by the Department of Trade, Industry and Competition – to help reduce imports, increase local production and improve local procurement in the sector.

The masterplan aims to increase employment in the sector to about 330 000 by 2030 through focused action to increase the share of locally manufactured clothing and footwear to 65% of total retail sales and grow the procurement by local retailers of locally manufactured R-CTFL products to at least R69-billion.

Meanwhile, consulting firm BMA principal consultant Sean Mercer unpacked some of the key learnings from these interventions.

He explained that there was a technical skills gap on a macro industry level, noting that skills were key to driving its competitiveness.

He also noted that the methodologies employed could be applicable across industries and sectors, stating that there was an opportunity to expand and replicate this work in other manufacturing sectors.