Bye, bye America: Levi Strauss shuts last of its North American plants in Texas

indianexpress.com ^ | Saturday, September 27, 2003 | LESLIE EARNEST

[Destro]

Saturday, September 27, 2003

Bye, bye America
Levi Strauss shuts last of its North American plants in Texas

LESLIE EARNEST

SAN ANTONIO, SEPTEMBER 26: Levi Strauss & Co., maker of a jeans brand so all-American that it became ingrained in the nation’s identity, said on Thursday that it will close the last of its North American manufacturing plants, laying off almost 2,000 workers.

The announcement came two weeks after the San Francisco-based company, which is struggling to cut costs and stay competitive, said it would lay off seven per cent of its US workforce. Levi now says it will shutter two plants in San Antonio, Texas by the year’s end, displacing 800 workers and marking the end of US operations.

It will also discontinue its Canadian operations in March, erasing 1,190 jobs in Alberta and Ontario. Its goal is to focus resources in other areas, including development and marketing. ‘‘We’re in an industry where few apparel brands own and operate manufacturing facilities in North America,’’ Chief Executive Phil Marineau said. ‘‘In fact, we are one of the last companies to do so.’’ Last year, 96 per cent of apparel purchased in the US was made in other countries, up from 93 per cent in 2001. Through June this year, US apparel imports increased 16.7 per cent, with much of it coming from Mexico, Central America and China.

Over the past seven years, Levi has closed dozens of plants in North America and Europe and slashed thousands of jobs. Last year, it posted sales of $4.2 billion. The jobs lost at Levi plants in North America are likely to shift to Latin America and Asia, Levi spokeswoman Linda Butler said. Levi now works with about 500 contractors, producing apparel in 50 countries.

Levi is simply adapting to a reality that many other US apparel makers have had to face, Burke said. ‘‘What you’re seeing with Levi is just the economic reality of our industry,’’ Burke said. ‘‘American consumers, when shopping look at price and quality, and not necessarily to where the product is made.’’ But experts say few, if any, brands are as linked to the US landscape as the Levis.

Levis has been a symbol of US spirit since prospectors rushed into California 150 years ago, wearing Levi jeans with copper rivets. ‘‘As the miners went into the Sierra Nevadas to pan for gold, Levi stood the test,’’ said Peter Sealey, adjunct professor of marketing at the University of California. ‘‘That created the company’s image and history.’’

To many consumers, Levi was a symbol of ‘‘confidence, sex, youth, rebellion, freedom, originality and authenticity,’’ said Alex Wipperfuth, partner at Plan B, a marketing company. ‘‘Those are the dimensions of Americana, according to Levi,’’ he said.

‘‘I think the key issue is, will any of those fall away once people realise Levi is not produced in the US anymore?’’ (LAT-WP)

[Napoleon Solo]

Just think...another bunch of "Consultants" about to take on the unemployment lines. What a free trade country we are. The quest for the mighty buck lining the shareholders pocket at the expense of the workers takes out another manufacturer in the USA.

[Revolting cat!]

who??

See. You'll be sorry you asked! And I stand corrected - it's 476!

[Revolting cat!]

I stand corrected again.

[Bonaparte]

That's a great Pat Buchanan impersonation, but the point is that this company is failing because of horrible management. Not because of some brave and noble effort to keep jobs in America.

[Napoleon Solo]

Remember that great retailer, retail killer, Wal-Mart? Just a few years ago they spouted Buy American like crazy. Well old Sam is probably spinning in his grave with what they have done and will continue to do to this countries manufacturing base. Unless he really set the tide in motion. All I know is that there is little room for more consultants from dead industry running around in the USA like chicken little. Nobody cares any longer about the American Middle Class. What they fail to realize is that when the middle class goes, so does the American mystique. Next the Islamofacist sleeper cells are awakened and voila, anarchy. Sound too severe, just watch.

[StopGlobalWhining]

It's probably at leats 10 years since I last bought Levi's, or one of their subsidiaries, pieces of clothing. They were one of the first major companies to provide benefits for same sex couples, and I think they were the first to withdraw company sponsorship of the Boy Scouts.

I'm happy they went under.

I buy all my gas from EXXON/Mobil. As far as I am aware, they are the only top 10 global company to refuse to provide married couple equivalent benefits to homosexual employees.

Good for them!

[Last Dakotan]

Do Americans produce anything anymore besides crappy movies and ciggerettes?

Porn

Nice future for our kids we're leaving them.....

[mpreston]

Levi's early customers grew up, matured and became more conservative. Levi Straus rested on its laurels, became politically active and went liberal. The romance is over. Add to this a lower quality product and we have Levi Straus struggling to stay alive.

[Ciexyz]

I buy a lot from mail-order catalogues and the prices are cheap, cheap, cheap, they undercut the mall prices and the items are all made overseas. Sorry, but the bottom line is "price" (and quality too, of course.)
http://www.lanebryant.com
http://www.roamans.com
http://www.blair.com

[Bonaparte]

Here's another recent article for you about Levi Strauss's massive tax evasion and what they had to pay IRS to get them off their back. Note the last sentence:

...Levi's income and revenue has been dropping steadily since the mid-1990s.

[Chewbacca]

"And, by the way, Levi Strauss was the last holdout to try to keep its manufacturing in the U.S. "

Last I knew Dickie Jeans were still made in the USA.
I bought five pairs last year for my Brother-In-Law and shipped them overseas to England for him while he and my sister are stationed there.

[LaraCroft]

Amazing. They sell a pair of jeans for 45 bucks and 'can't make a profit' in the US.

[Destro]

So to correct the failing the solution is offshore? No Pat thing here. What is your point? You want Levis NOT to make jeans in the USA?

[Destro]

They did not go under--where are you getting this from? They are moving off shore to save money on expenses.

[Destro]

Levis is making a profit--they just want to make more of a profit.

[Bonaparte]

"What is your point? You want Levis NOT to make jeans in the USA?"

I don't care what Levis does.

And my point is just as I stated: Bad management has been destroying the company for the past 6 years and shows no signs of learning from past mistakes.

I could make other points as well.

[bc2]

just curious, how much do you think the percentage of American made clothing would increase if it was easier to make clothing from industrial hemp? 4% to 8% or 10%?

[bc2]

Americans still make the best damned rock & roll on the planet... (and pizza according to the last 2 days of the NY State message board!!!)

[Destro]

Well it appears that Levis has good management now and did the right thing closing production on the States. They must have been bad managers not to have thought about relocating production overseas and thus saving a fortune in production costs.

[Destro]

Well, it appears that Levis has good management now and did the right thing closing production in the States. They must have been bad managers not to have thought about relocating production overseas and thus saving a fortune in production costs.

Typo free version.