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Many Textile Enterprises In The United States Suffer Economic Losses Due To Incorrect Identity Descriptions.

2010/9/14 14:40:00 96

Because

U.S.A

Textile and garment industry is dispersed and globalized, and the business activities and roles of the American textile and garment industry have changed, which has affected their organizational identity.

The changing identity of these companies has created many problems, such as how companies influence their businesses financially.

Now, a researcher at University of Missouri, USA, points out how the US textile and apparel companies should describe their own organization and how they can correspond to the industry classification of the United States Census Bureau.

Jung Ha-Brookshire, assistant professor of textiles and clothing management at the school of human environmental science, University of Missouri, found that 67% of the textile and garment companies described their identity to the public in a wrong way. Ron Natsu Brooke Hill,

Her research examined nearly 800 textile and apparel companies on the website to determine how each company identified itself.

She examined four different business categories: textile enterprises, textile manufacturers.

Garment manufacturer

And textile and clothing wholesalers.

Although the average erroneous description rate of the research company was 67%, Harbou Luke Hill confirmed that nearly 80% of wholesalers did not define themselves as wholesalers.

This distortion of identity does not mean that their business is trying to mislead the public, he said.

"This does not necessarily mean that these enterprises deliberately distort themselves," Harbou Luke Hill said.

"Usually, these enterprises use only the specified terminology different from the US Census Bureau, or they are really confused that they should not belong to that industry description."

Harbou Luke Hill's research also found that this identity distortion produced an important economic by-product.

Her research concluded that those companies that are consistent with the US Census Bureau have better financial performance than those who do not agree with the US Census Bureau.

Hill found that on average, employees of the same identity company had more employees, larger sales, larger production sites and higher credit scores.

"If one

Spin

And clothing manufacturers report to the United States Census Bureau that they are wholesalers, or wholesalers report that they are a clothing manufacturer, so all the economic data compiled by the government are wrong, "Harbou Luke Hill said.

"At the same time, if small businesses do not have the right identity, it will be very difficult for these small businesses to get special loans from banks for small businesses."

Harbou Luke Hill said that the identity of textile and garment companies has been a lot of confusion because the industry classification system of the US Census Bureau is out of date.

She believes that if we modify the terminology that reflects the evolving industry, this problem can be corrected.

"The industry has changed a lot, but the ruler of the government is still the ruler of the past," Harbou Luke Hill said. "The definition of the manufacturer was created in 1810, and the definition of the wholesaler was created in 1930.

Since then, industry seems to have changed a lot. "