Practices, production and income of garment sub-contractors in Lemery Batangas / by Eldrid S. Villason.

Thesis (B.S. Economics--Business Economics) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

VILLASOR, ELDRID SAAVEDRA. Practices, Production and Income of Garment Subcontractors in Lemery, Batangas. B. S. Thesis. Bachelor of Science in Economics major in Business Economics, Cavite State University, Indang, Cavite, April 2004. Adviser : Ms. Ma. Judith V. Buena.
The study was conducted to analyze the production and income of garment subcontractors in Lemery, Batangas. Specifically, the study aimed to: identify the business characteristics of garment subcontractors; determine the production practices employed by garment subcontractors; determine the volume and value of production of garment subcontractors; determine the level of income of garment subcontractors; and identify the problems encountered by garment subcontractors in the operation of the business. Complete enumeration of respondents was used in the study. Also, descriptive statistical tools such as: frequency count, mean, range, percentage and rank were used in presenting and analyzing the data gathered. Most of the garment subcontractors were middle-aged and educated since majority were college graduates. The results also emphasized the active participation of women in income generation. The initial capital of garment subcontractors ranged from P5,000 to P30,000 with an average of P11,489.92. In addition, the years in operation of the respondents ranged from 2 to 25 years with an average of 11 years and all of the respondents were sole proprietors of the garment subcontracting business. The total manpower employed by garment subcontractors ranged from 5 to 80 workers with an average of 32 workers.
Majority (73%) of the respondents resorted to borrowing from friends or relatives to finance the business; other sources include personal/family savings, loan/credit, and gifts/donation. The respondents were engaged in three types of needlework: crochet, embroidery and knitting. The average value of production per day for all types of needlework amounted to P7,937.91. The average value of production per day for crocheted garment subcontractors ranged from P4,000 to P5,000 with an average of P4,500 while for garment subcontractors engaged in knitting, the value of production per day ranged from P8,000 to P27,520 with mean value of P 5,429.61. The average value of production per day for garment subcontractors engaged in embroidery ranged from P3,200 to P7,000 with a mean value of P5,182.46 worth of embroidered garment items manufactured. The average production cost per week for all types of needlework amounted to P776.14. Further, the average value of contract entered with the parent firm amounted to P2,652,612.82 in year 2003. The average annual net income for all garment subcontractors in year 2003 amounted to P123,264.36. The average annual net income of the crocheted garment subcontractors was P66,699 while the average annual net income of embroidered garment subcontractors was P110,705.64 in year 2003. The garment subcontractors engaged in knitting earned an average annual net income of P192,388.44. Thus, knitted garment subcontractors received higher incomes than those subcontractors engaged in crochet and embroidery. The overall annual average net income of the garment subcontractors in year 2003 was P123,264.36 which would suggest that the owner of subcontracting business only
earned P10,272.03 per month. This income is very insufficient to cover their business expenses and sustain the needs of their family. The garment subcontractors identified some common problems encountered in the operation of the business. These problems were: rejected garment items; shortage of skilled manpower; unpaid loans of workers; problem of waste disposal; lack of standard job costing from contractors; and stiff competition.

Submitted to the University Library 07/18/2007 T-2877