Although more than 1 million people in the United States are employed in the apparel manufacturing industry, the industry has been increasingly threatened by international competition, changes in consumer tastes, and demands that many domestic firms are ill-prepared to meet. The traditional apparel production system emphasized cutting costs, especially the cost of direct labor, by breaking down the production process into many separate components. In response to the increase in international competition in the late 1960s and early 1970s, apparel makers intensified this traditional strategy. However, this approach was not successful, both because of technological barriers to automation and because of changes in consumer demand for apparel that weakened some previously successful markets. As a result, some apparel makers are now trying to move to production systems that involve greater flexibility, faster production times, greater interaction with customers and suppliers, and more attention to both product and process innovation. This strategy requires a more sophisticated use of advanced microelectronic technology as well as profound changes in human resource philosophy and practice, including much more attention to the educational preparation and continuing training of the work force and a change in the orientation of management. Postsecondary textile and apparel schools are well connected to the industry and have access to information about industry needs, but community colleges are not. The industry must press for better secondary education and provide more postsecondary education, especially in technical skills. (42 references) (KC)