The comparative research Carlo Bonora Samuela Felicioni

2 Objectives The Fashion.net pilot project wants to plan and create value- added European best practices based on the ability of the training system to play an active and proactive role to foster innovative and competitive solutions within the textile and clothing sector, thus strengthening, on the one hand, the adaptability of the labour market to the work trend and, on the other hand, the skills of workers and business and institutional management to effectively lead the processes in favour of product quality.

3 Second phase The second phase of Fashion.net project focused on a study conducted by the partners and related to: 1. technological investment plans, industrial strategy plans and investment plans dedicated to research and training implemented within the project areas supporting the textile/clothing industry; 2. analysis of professional and training needs and of trainers’ professionalizing processes taking into account the interaction between the development and the competitiveness of the textile-clothing industry and the strategic contribution that the training system can ensure

4 Contents of the comparative research  Introduction  Context of reference  Some data on the textile-clothing industry at European level  Italy  Germany  France  Spain  Romania  Conclusions

5 OECD report According to the OECD report “Education at a glance: OECD indicators – 2007 Edition”, it is clear that the economies of OECD countries increasingly depend on a steady supply of workers with a good education level and that they invest 6.2% of their GDP in education, focusing more and more on the efficiency of their education systems. The spreading of education was accompanied by high investments: in the overall expenditure for education institutions in these countries increased by 42% on average.

6 OECD report The opportunities of education and training increase both for young students and for adults, but substantial differences arise among the countries with regard to the rate of attendance to informal education and continuing training courses. The report also deals, for the first time, with the problem of education efficiency and points out the existence of differences among the countries in terms of education time devoted to students (the number of hours of lesson time and of years of study on the subjects), teacher salaries and student-teacher ratio. These differences may have a negative impact on the quality of education and training within the different countries.

7 The socio-economic framework of the textile-clothing industry in the EU-25 in 2005

8 The socio-economic framework The companies, mainly SMEs, are especially concentrated in the historical, manufacturing countries such as Italy, France, Spain and Germany. Furthermore, the sector also plays a role of paramount importance in the Eastern countries with more than workers and companies. By comparing the number of employees in the textile and clothing industry within Europe, Italy is first with approximately employees, followed by Romania, Poland, Spain and Portugal. Textile products are mainly manufactured within the Western European countries, with Italy being first, followed by Spain (second), Great Britain (third), France (fourth) and Germany (sixth). Romania is fifth and is therefore the first Eastern country to be included in this list. On the other hand, clothing items are mainly manufactured within Eastern European countries. Among the first ten countries employing the highest number of workers in this sector, Romania is first, Italy second, Poland third, Bulgaria fourth, Portugal fifth, Spain sixth, France seventh, Great Britain eighth, Hungary ninth and the Czech Republic tenth. Germany is twelfth; therefore, three Eastern countries are in the top five positions.

9 The socio-economic framework  These positions can be analysed and understood after comparing the labour costs in Europe: in the Eastern countries the cost of labour is between five and twenty times lower than in the Western countries.  In this scenario, it is therefore obvious that the internationalisation process, instead of encouraging the investments in technological innovation and the measurement, has caused the relocation of production to low labour cost countries, thus creating import or free zones within the poor or developing countries.

10 The socio-economic framework  Every partner country of the FASHION project suffered from the effects of the relocation of production to those countries where labour cost was (and still is) very low  This international work distribution, while granting certain profit margins to the big companies of the textile/clothing sector, causes considerable damages to SMEs.  the sector is mainly characterized by SMEs and by very small subcontracting companies.

11 Main results  The textile-clothing sector in Europe has undergone significant transformations over the last years, due to a combination of technological changes and innovations, trends and differentiation of production costs and the increase in international competition.  In this sector, and not only, structures and forms of the new and old economy coexist. The textile-clothing industry, boasting a long history and tradition in all the partner countries, clearly shows how it is important to combine nowadays handicraft with technological skills (for example, in using new materials and fastening) and cross-sector skills (for example, market and marketing knowledge) typical of the service industry.

12 …main results Innovation indeed does not only mean conceiving new products, but also transforming and improving the range of products and services already existing, effectively managing information, adapting production and distribution methods, improving management, work organization and qualification methods of workers. This is possible by focusing more on vocational education and training of workers. The “branch’s typical phenomenon” of outsourcing is mainly linked to two aspects: on the one side with the drastic reduction of jobs connected to it, and on the other side also with the key word “transfer of knowledge”. In this way, a lot of knowledge will simply get lost or will be relocated together with the production.

13 France, Italy, Spain, Germany  According to the researches, it is clear that, especially in these Countries, the challenges of competitiveness were met by developing a process of reorganization, modernization and technological progress.  Now most of activities mainly focus on quality and design, and high value-added products.  In all the countries represented by partners, the sector is indeed experiencing a process of technical, technological and material innovation, thus innovating the work methods and the production process (flexible automation solutions, new technological models of production and production services –CAD-CAM, technical textiles and more).  Large investments are therefore needed in research and quality training.  Within the regions involved, institutions pay attention to these needs and concretely try to support enterprises.

14 Romania  A different case in point is represented by Romania. Before joining the European Union, Romania experienced for a long time the relocation of industrial productions to its territory, thanks to the investments coming from Western-European companies.  After joining the Union, many processes of labour cost adjustment were started, thus reducing the investment profits of manufacturers coming from Western-European countries.  This created a significant lack of balance on the labour market and in the development of the textile-clothing sector itself: over the last years, thousands of jobs were cut and many companies, even medium-large sized companies, shut down.

15 Training system  the training system seem to be behind the times almost everywhere. Something is changing, even if there still are many difficulties:  For example, in Germany and France, the training system has been adapted and implemented for a long time to achieve its final aim of contributing to development. Government, companies, the national education system, vocational training and social partners (at all levels) undersigned agreements and established framework programs in the field of innovation, competitiveness and acquisition of professional skills and knowledge

16 A fact shall be pointed out, since it does not comply with the objectives of the Leonardo da Vinci Program and, in any case, with the European Employment Strategies: continuing training within the textile-clothing industry is performed but often concerns highly qualified workers, while only a few investments concern low-qualified workers. There is a gap between school and university on one side and companies on the other. The role of companies in training needs to become strategically important. The use of electronics and IT throughout the manufacturing process and the development of services has resulted in changes to the job profiles of technicians and managers within the industry. There is a growing need for more and broader vocational skills, knowledge of foreign languages, mastery of IT tools and adaptability, arenewal of the teaching method/innovative teaching strategies. The importance placed on logistics and intangible assets has also created new opportunities.

17 It is necessary to act on the skills and knowledge of work, within one industry:  that is involved, more than other industrial fields, in issues related to equal opportunities for women and men. The traditional textile sector is very female-oriented. Most of women occupy low-profile professional positions.  that is undergoing a strong organizational development;  that is less “attractive” for young people, therefore characterized by older workers, also in terms of length of service  that is undergoing a significant technological development, with remarkable effects on the technical work. The use of ICTs implies the need for continuing training, skill adaptation of workers that otherwise would be at risk to lose their job. With regard to work training, vocational education and training systems need to be adapted to re-attract young people to this industry, offering at the same time skills and knowledge related to new professional profiles (required by the companies) and reformed qualifications

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