U.S. Apparel, Footwear Trade Associations Move to Merge
When finalized, the combined AAMA-FIA would represent roughly 700 companies whose combined industries account for more than $225 billion in annual retail sales in the United States. Because it entails bylaw changes, the entire membership of both associations will have an opportunity to vote on the agreement. The poll is expected to conclude this summer, and membership support for the agreement is overwhelmingly positive.
"This agreement will enhance the value of membership for both footwear and apparel companies," said FIA Chairman John Larsen, who also is president emeritus of New Balance Athletic Shoe, Inc. "By creating the American Apparel and Footwear Association, we'll enable two previously distinct organizations to collaborate effectively on concerns ranging from trade policy to government contracting."
AAMA Chairman Jim Jacobsen, who's also vice chairman of the Kellwood Co., added his endorsement of the merger saying, "This agreement will enable apparel and footwear companies to work smarter and more cost effectively by pooling our resources in support of common goals. We'll achieve management synergies by working together on issues, and we'll reduce costs by eliminating redundancies through a team effort." Jacobsen said. "I'm delighted at the prospect of this agreement coming to fruition. In combining these two great organizations, we have truly found a perfect fit."
The merger of the FIA and AAMA would take effect once the memberships of both organizations finalize the move. Larry Martin, the current president of AAMA, would then become president of the new AAFA.
Under the proposed merger, former FIA members would become part of the FIA Division of the AAFA. The board of directors that would govern the AAFA will include FIA Division members.
Fawn Evenson, who is now president of the FIA, would become president of the FIA Division, which would maintain separate officers and programs within the AAFA. FIA Division members also could pursue common interests with apparel members by participating on any of the 21 committees that have operated under the AAMA. These committees focus on issues ranging from financial management, to information systems, to supply chain management.
The merger agreement also would apply to member firms of both organizations that supply goods and services to apparel and footwear companies.
Submitted by the American Apparel Manufacturers Association