1. Production Description: In this project idea military supplies refer to uniforms of military personnel, belts, tents, bangs and other clothing items used by members of the defense forces. Most military uniforms are made from cotton or polyester fabrics. These include jackets, shirts and trousers. In addition, belts, tents, bags, bullet pockets, etc. are made from thickly woven cotton or synthetic fabrics. These military supplies constitute a substantial portion of the military budget in any country.
2. Rational: The ordinary uniforms of the country’s military and police personnel are produced by local garment factories and the fabrics are also manufactured by domestic textile factories. So far the Amhara Region does not have any share in the production of military uniforms though the Region has textile factories which can produce the fabrics. Military uniforms and other domestic purchases for the military are made using public funds through the budgetary process. In developed countries, spending by the government (especially which involves large sums of money) is done by considering regional distribution of the expenditures. The objective is to distribute the purchases to regions, states or provinces so that each entity gets its fair share of the money. For example, if fabrics for military uniforms are bough from one region, the tailoring of these uniforms is done by factories located in another region. In this way, the tax money collected from different regions is distributed back to the different regions through purchases by the government.
The Amhara Region should get its share of federal government spending by establishing factories which produce military supplies such as uniforms, food rating, etc. this project idea is to establish garment factories which will produce military uniforms.
3. Market Potential: Government Purchases of goods and service are determined by government decision on the basis of government revenue and borrowing. Thus the market for producing military uniforms is determined by the authority responsible for this task. If this authority orders that a certain portion of the military uniforms should be produced in the Amhara Region, then the envisaged plant will have a market.
4. Source of raw Materials: Cotton and polyester fabrics can be obtained from domestic factories or they can be imported if preferred by the government.
5. Process and Technology: The process of a garment factory is simple. Fabrics are put on long tables; designs are made on papers and these papers and put on the fabrics. Power operated scissors cut the fabrics according to the designs. The pieces are then sent or transferred to the tailoring department. There, different parts of a given cloth are tailored though division of tasks. Finally, the clothes are ironed and packed. Main machines needed include different types sewing machines, tables, irons, powered scissors, etc.
6. Estimated Investment: For a plant that will produce 200,000 pieces of uniforms, the investment will be
§ Building /shade 300 m2 at Birr 2000/m2 Br. 600,000
§ Machinery 500,000
§ Working Capital 200,000
1,300,000
7. Benefits: Brings financial resources to be region,
8. Location: Bahir Dar