Time to quit buying Levi's Jeans? *Levi Strauss to close ALL North American plants -- eliminating 2,000 more jobs.

[dahunan]

Levi Strauss Shuts All U.S. Plants

San Francisco, Sept. 25, 2003


(AP) Levi Strauss & Co. will close its last manufacturing plants in the United States and Canada, eliminating nearly 2,000 jobs, the struggling jeans maker said Thursday.

The company will close two sewing and finishing plants in San Antonio by year's end and lay off 800 workers. It will also shutter its three remaining plants north of the border that employ 1,180 people. The company will contract with foreign plants to make up for the closings.

The move will allow the company to focus more on product design, marketing and sales of its jeans, said Julie Klee, general manager of Levi Strauss & Co. in Canada.

"The closures are an absolutely necessary part of ensuring the long-term competitiveness of our business," Klee said.

San Francisco-based Levi Strauss, which just turned 150 years old, became one of America's iconic brands in the 1950s and '60s as Levis became a wardrobe staple of baby boomers.

But the company has struggled in recent years to connect with younger consumers. Sales peaked at $7.1 billion in 1996 but have fallen for six straight years to $4.1 billion. In 2002, Levi's U.S.-based parent company closed six U.S. manufacturing plants, eliminating 3,600 jobs.

In an effort to bounce back, the company has designed more clothes to appeal to teenagers and young adults, and cut costs to lower the prices of its jeans. The company also entered the discount jeans market earlier this summer with a new brand called Signature that is sold in Wal-Mart stores.

Levi Strauss is one of several clothing companies nationwide that has been shutting down U.S. plants and moving production to other countries with cheaper labor in recent years.

http://www.cbsnews.com/stories/2003/09/25/national/main575172.shtml

 

[BaliBabyDoc]

I'm sure they will keep their custom-jean operation in SF. US tourists will need it to spend their tax cut.

 

[burnedout]

Yeah, this sux. From what I heard, the plant in San Antonio is closing shop.

On a side note, I remember when the Levi's plant in Knoxville, TN was booming a little over a decade ago. One gal I knew who worked there stated they had good benefits.

Seems we are going to hell in a hand basket.

 

[BaliBabyDoc]

Not all of us . . . it looks like elected and unelected Federal employment is not only stable employment but Congress gets a pay raise every year. I know some bankruptcy lawyers that are rolling in dough.

 

[CADsortaGUY]

Originally posted by: BaliBabyDoc
Not all of us . . . it looks like elected and unelected Federal employment is not only stable employment but Congress gets a pay raise every year. I know some bankruptcy lawyers that are rolling in dough.

True, True

CkG

 

[Gaard]

Real men wear Wrangler anyways.

 

[Gonad the Barbarian]

Originally posted by: Gaard
Real men wear Wrangler anyways.

They're closing down plants too.

 

[Mean MrMustard]

From the company's perspective, why wouldn't you manufacture elsewhere if it was cheaper? It's about global economics.

In my Management 452 class last semester, we had to compete as corporations (a group) using comupter simulation software of pretty every aspect of economics a corporation itself has control over. Every single group (mine included) that had manufacturing in N.A. failed miserably to those groups who moved all manuf. to Asia or S.A.

 

[BaliBabyDoc]

We don't need no stinkin' manufacturing or textile jobs. We should just close down the borders and then poor Americans will have the jobs they need picking cauliflower in the Central Valley, MS cotton, and FL oranges. I can use a middle manager right now to go cut my lawn.

 

[charrison]

Originally posted by: dahunan
Levi Strauss Shuts All U.S. Plants

San Francisco, Sept. 25, 2003


(AP) Levi Strauss & Co. will close its last manufacturing plants in the United States and Canada, eliminating nearly 2,000 jobs, the struggling jeans maker said Thursday.

The company will close two sewing and finishing plants in San Antonio by year's end and lay off 800 workers. It will also shutter its three remaining plants north of the border that employ 1,180 people. The company will contract with foreign plants to make up for the closings.

The move will allow the company to focus more on product design, marketing and sales of its jeans, said Julie Klee, general manager of Levi Strauss & Co. in Canada.

"The closures are an absolutely necessary part of ensuring the long-term competitiveness of our business," Klee said.

San Francisco-based Levi Strauss, which just turned 150 years old, became one of America's iconic brands in the 1950s and '60s as Levis became a wardrobe staple of baby boomers.

But the company has struggled in recent years to connect with younger consumers. Sales peaked at $7.1 billion in 1996 but have fallen for six straight years to $4.1 billion. In 2002, Levi's U.S.-based parent company closed six U.S. manufacturing plants, eliminating 3,600 jobs.

In an effort to bounce back, the company has designed more clothes to appeal to teenagers and young adults, and cut costs to lower the prices of its jeans. The company also entered the discount jeans market earlier this summer with a new brand called Signature that is sold in Wal-Mart stores.

Levi Strauss is one of several clothing companies nationwide that has been shutting down U.S. plants and moving production to other countries with cheaper labor in recent years.

http://www.cbsnews.com/stories/2003/09/25/national/main575172.shtml

From what I have read, they were forced to move out of the country, because everyone else had moved out of the country.

 

[LunarRay]

Well if they keep moving all the work to mexico we'll solve our illegal immigration from mexico problem.. they will be busy carrying all those clothes up north to us and then go back for the next load..

Now this is what I call... like about time some one did something to eliminate this illegal problem..

But, it may not work too well because I've heard a number of times... "I'm so not going to buy levi anymore" that I feel the Korean workers will be on overtime filling the gap..

 

[BaliBabyDoc]

Thank goodness America loves to shop at Walmart where they can buy Chinese and Mexican produced goods that used to be made in America.

 

[LunarRay]

Originally posted by: BaliBabyDoc
Thank goodness America loves to shop at Walmart where they can buy Chinese and Mexican produced goods that used to be made in America.

See everyone misses the important part... that the Walmart family has donated some $ made off us MerryKins to the effort to preserve the endangered cobra in India. We wouldn't have done this... and it is a worthy cause. Consider that the wait on the technical service telephone line for the korean made computer parts would or could increase if these folks were out there feeding the starving cobras..

 

[Zebo]

I only wear carhardt... farmed and made in USA since 1889.

 

[Chris A]

It is sad to see any jobs go. I started to think about all the things we used to make but no longer do.. TV's VCR's DVD players...

 

[KGB1]

What's the real reason behind them leaving? I'm sure over the course of the decade their sales have been suffering but what really breaks down a company?

Workers.. American workers are not competative as the ones elsewhere. Workers here demand (or prefer) health care, raises, maternity leave, workers comp from employer, executivs whom get paid exuberant amounts of my money, whole normal workers are usually paid 1/5th of these people

If I were a factory owner.. I'd shut down my plant too and move to a place where its cheaper to produce. Plus there are incentives/tax breaks in the other nations to open up factories and bring jobs to them.

 

[LunarRay]

All what you say, KGB, is true. I'd, however, let them sell their clothes where they are made by putting tariff's so high that no one would out source anymore. We then would be back at making stuff here. Cost more but not more than it ought to when everything was made here. We make more today and want the cheapo clothes and everything else. Well, the companies want profits and they ought to make profits. When all things are in equilibrium ... fair wages, profits and us buying US made we will be at full employment and the pennies per hour folks will have to deal with their own problems.

 

[0roo0roo]

if the jean prices stay where they are... hell no. no more justification for their high prices.

 

[sandorski]

Is it the workers fault? Ok, sure, the workers make the Product more expensive, but they also make a decent enough wage to buy the Product as well as other Products. The "Workers" make up a significant portion of the Middle Class who buy big ticket items such as Houses, Household Appliances, and cars. As Workers jobs are shipped out, so is their ability to maintain their economic status. As their economic status decreases so does the economic status of those who previously sold Product to them decrease and down the line it goes.

Now, we can't really blame the Consumer for wanting the best price, though they are the primary reason, that's just good Capitalist Bottomline thinking. Nor is this situation necessarily bad, as long as some new Industry is about spring up to re-employ those Workers. If something new doesn't come along though, the US will be in for some hard times.

 

[LunarRay]

Well.. one would think that if we still made stuff here we could sell it to the folks who now earn pennies making our former stuff there to sell to us here cheaper. It would have to be cheaper cuz we won't have the $ to pay for it.
Bush says he will create jobs. I guess he means sales man jobs selling foreign made goods to other sales men. The average wage is falling and our manufacturing is just about gone so we have farmers, ranchers and sales men.
Bush must think the 2m telephone folks who won't call me anymore after Oct 7th assuming the courts allow it are gonna go to India to work or Mexico or maybe China or Korea... You don't think he means he's creating jobs overseas, do ya?

 

[ReiAyanami]

oh man, wait till u see who countries made your computer!! :Q


in theory even if all the jobs went away, none of us (in USA) should starve as the government literally still pays farmers NOT to grow excess crops. we have enough food production power to supply 30-50% more of our populations. oh, but who shall pick the crops...

 

[Wolfdog]

These companies are selling out america. It won't be long until there are only two wealth classes in america. The lower class and the extremely wealthy. American workers are very productive and can match or beat anything else from any other country. They are doing this since they can pay those workers basically nothing. It is past time for our government to step in and impose fines and levy some major burdens on these companies. Making it downright unprofitable to move thier businesses. It seems though that those in power don't care. The more people out of work, the less they can buy, so profits of retail chains in the US will decline. Pretty soon everyone will work at McDonalds, but wait they are mechanizing thier chains. So I guess panhandeling will pay the bills?

 

[colonel]

Real men wear Wrangler anyways.

Noap, I m a real men and I wear Lee.

 

[dmcowen674]

Originally posted by: Wolfdog
These companies are selling out america. It won't be long until there are only two wealth classes in america. The lower class and the extremely wealthy. American workers are very productive and can match or beat anything else from any other country. They are doing this since they can pay those workers basically nothing. It is past time for our government to step in and impose fines and levy some major burdens on these companies. Making it downright unprofitable to move thier businesses. It seems though that those in power don't care. The more people out of work, the less they can buy, so profits of retail chains in the US will decline. Pretty soon everyone will work at McDonalds, but wait they are mechanizing thier chains. So I guess panhandeling will pay the bills?

Here is a brand new poster that clearly sees the writing on the wall too.

 

[rbV5]

Look around, nobody is buying levi jeans, and haven't been for years. I guess they could just go out of business instead.