Close, Thomas
GRG 356T
April 30, 2009
Gildan: Better Value Through Better Exploitation?
Gildan Activewear Inc. is an internationally known clothing company.
Headquartered in Montreal, Quebec, this Canadian company is increasingly known for
the shirts, sweatshirts, active attire, and socks that they produce. The company boasts
itself as a vertically integrated business that employs over 20,000 people. Therefore,
Gildan claims that it owns and manages the entire process required to make and sell its
products.
Gildan maintains an active presence internationally and is seeking to expand
beyond its current level of operations. Over the past several years, Gildan has been solely
operated out of Montreal even though their products are no longer produced within
Canada. Over the past decade, the company has consolidated in an effort to cut operating
costs and maintain production levels. Since production costs were too high, Gildan has
relocated much of its productions facilities from Canada and the United States to
Honduras and the Caribbean. Although some sock manufacturing and yarn spinning
facilities are maintained in the United States, much of the production labor occurs in
Honduras, Nicaragua, Haiti, and the Dominican Republic.
Gildan Activewear primarily markets and sales it’s clothing in the United States,
Canada, and western Europe. In an effort to expand sales, the company operates regional
sales and marketing offices and distribution centers in Mexico and China as well. Within
these markets, Gildan sells its undecorated t-shirts, sport shirts and fleece in bulk to
