31525 Cut - Sew Apparel Manufacturing in the US Industry Report.pdf

IBISWorld.com 1-800-330-3772 info@IBISWorld.com
INDUSTRY REPORT 31525
Cut & Sew Apparel Manufacturing in the
US
Dressed for success: Domestic demand for apparel is on the rise
Alexia Moreno Zambrano | May 2023

Cut & Sew Apparel Manufacturing in the US May 2023
2 IBISWorld.com
Contents
ABOUT THIS INDUSTRY.................................. 4
Industry Definition................................................................4
Major Players...................................................................... 4
Main Activities..................................................................... 4
Supply Chain....................................................................... 5
INDUSTRY AT A GLANCE................................6
Executive Summary............................................................ 8
INDUSTRY PERFORMANCE............................9
Key External Drivers...........................................................9
Current Performance........................................................10
INDUSTRY OUTLOOK.................................... 12
Outlook.............................................................................. 12
Industry Life Cycle.............................................................13
PRODUCTS & MARKETS............................... 15
Supply Chain..................................................................... 15
Products & Services.......................................................... 15
Demand Determinants...................................................... 16
Major Markets....................................................................17
International Trade............................................................ 18
GEOGRAPHIC BREAKDOWN........................ 20
Business Locations........................................................... 21
COMPETITIVE LANDSCAPE..........................22
Market Share Concentration............................................. 22
Key Success Factors........................................................22
Cost Structure Benchmarks............................................. 23
Basis of Competition......................................................... 25
Barriers to Entry............................................................... 26
Industry Globalization........................................................27
MAJOR COMPANIES...................................... 28
OPERATING CONDITIONS............................ 29
Capital Intensity.................................................................29
Technology & Systems......................................................30
Revenue Volatility..............................................................31
Regulation & Policy........................................................... 31
Industry Assistance........................................................... 31
KEY STATISTICS............................................ 33
Industry Data..................................................................... 33
Annual Change..................................................................33
Key Ratios......................................................................... 33
ADDITIONAL RESOURCES............................34
Additional Resources........................................................ 34
Industry Jargon..................................................................34
Glossary............................................................................ 34

3 IBISWorld.com
About IBISWorld
IBISWorld specializes in industry research with coverage on thousands of global industries. Our comprehensive data and in-depth analysis help
businesses of all types gain quick and actionable insights on industries around the world. Busy professionals can spend less time researching
and preparing for meetings, and more time focused on making strategic business decisions that benefit you, your company and your clients. We
offer research on industries in the US, Canada, Australia, New Zealand, Germany, the UK, Ireland, China and Mexico, as well as industries that
are truly global in nature.

4 IBISWorld.com
About This Industry
Industry Definition Industry manufacturers produce apparel for men, women and children from purchased fabric. Activities also include
buying raw materials, designing and preparing samples, arranging for apparel to be made from raw materials and
marketing finished apparel. This industry only includes companies that operate their own production facilities in the
United States.
Major Players There are no major players in this industry
Main Activities The primary activities of this industry are:
Manufacturing men's and boys' suits
Manufacturing men's, boys', women's and girls' shirts
Manufacturing men's, boys', women's and girls' pants, jeans, slacks and trousers
Manufacturing women's and girls' dresses
Manufacturing activewear, leisurewear and swimwear
Manufacturing nightwear
Manufacturing uniforms
Manufacturing academic cap and gown
Manufacturing costumes
The major products and services in this industry are:
Shirts, blouses and other tops
Shorts, pants and skirts
Dresses
Suits
Sports and leisure wear
Costumes
Other apparel

5 IBISWorld.com
Supply Chain
SIMILAR INDUSTRIES
Apparel Knitting Mills in the US Cut & Sew Apparel Contractors in
the US
Leather Good & Luggage
Manufacturing in the US
RELATED INTERNATIONAL INDUSTRIES
Global Apparel Manufacturing Clothing Manufacturing in the UK Men's and Boys' Wear
Manufacturing in Australia
Women's and Girls' Wear
Manufacturing in Australia
Sleepwear, Underwear and Infant
Clothing Manufacturing in
Australia
Tailoring and Clothing
Accessories Manufacturing in
Australia
Silk Fabric and Clothing
Manufacturing
Apparel Manufacturing in China
Men's & Boys' Apparel
Manufacturing in Canada
Women's, Girls' & Infants' Apparel
Manufacturing in Canada
Clothing Manufacturing in Ireland

6 IBISWorld.com
Industry at a Glance
Key Statistics
$5.7bn
Revenue
Annual Growth
2018–2023
-3.1%
Annual Growth
2023–2028
0.7%
Annual Growth
2018–2028
$217.0m
Profit
Annual Growth
2018–2023
-7.2%
Annual Growth
2018–2023
3.8%
Profit Margin
Annual Growth
2018–2023
-0.9pp
Annual Growth
2018–2023
1,544
Businesses
Annual Growth
2018–2023
-3.2%
Annual Growth
2023–2028
-1.6%
Annual Growth
2018–2028
32,854
Employment
Annual Growth
2018–2023
-2.1%
Annual Growth
2023–2028
-0.3%
Annual Growth
2018–2028
$1.2bn
Wages
Annual Growth
2018–2023
-4.6%
Annual Growth
2023–2028
-0.1%
Annual Growth
2018–2028
Key External Drivers % = 2018–23 Annual Growth
7.2%
World price of cotton
-5.4%
Consumer confidence index
2.2%
Consumer spending
2.0%
Trade-weighted index
2.5pp
Import penetration into the
manufacturing sector
Industry Structure
POSITIVE IMPACT
Capital Intensity
Low
Concentration
Low
Technology Change
Low
MIXED IMPACT
Industry Assistance
Medium / Decreasing
Regulation & Policy
Medium / Steady
Barriers to Entry
Medium / Increasing
NEGATIVE IMPACT
Life Cycle
Decline
Revenue Volatility
High
Industry Globalization
High / Increasing
Competition
High / Steady
Key Trends
 Although the value of the dollar has dropped, the lower
operating costs overseas will continue to give foreign
producers a competitive advantage
 Although productions have since reopened, revenue
generated by the arts has struggled to bounce back
 Sustainable fashion has become popular among US
consumers as they become more troubled surrounding the
environmental footprint of apparel manufacturers
 As international economic conditions continue to stabilize,
the value of the US dollar will continue to drop
 Manufacturers remaining in the industry will focus more on
producing niche and higher-value products to boost their
profitability and remain competitive
 As companies increasingly require workers to return to the
office, demand for formal wear will grow, boosting apparel
sales
 The pandemic took a major toll on industry performance, as
formal wear fell in popularity and costume production slowed
down significantly

7 IBISWorld.com
Products & Services Segmentation
Major Players
There are no major players in this industry
SWOT
STRENGTHS
Low Customer Class Concentration
Low Product/Service Concentration
Low Capital Requirements
WEAKNESSES
Medium & Decreasing Level of Assistance
High Competition
Decline Life Cycle Stage
High Volatility
High Imports
Low Profit vs. Sector Average
Low Revenue per Employee
OPPORTUNITIES
High Revenue Growth (2023-2028)
THREATS
Very Low Revenue Growth (2005-2023)
Low Revenue Growth (2018-2023)
Low Outlier Growth
Low Performance Drivers

8 IBISWorld.com
Executive Summary Dressed for success: Domestic demand for apparel is on the rise
Cut and sew apparel manufacturers produce apparel from purchased fabrics. The industry is in a state of long-term
decline, as low levels of domestic product innovation and a falling number of manufacturers have caused revenue to
drop. Many producers have offshored manufacturing capabilities to countries with lower wage requirements, further
enhancing import penetration and harming domestic producers. The intense price competition from imports
produced in developing countries where labor costs are substantially lower has pushed domestic manufacturers to
compete based on quality, shifting their product mix from low-cost apparel to premium clothing. The high import
competition and growing price pressures from the downstream retail sector have historically constrained profit.
These trends have led revenue to drop at a CAGR of 3.1% to $5.7 billion over the past five years, including a 1.1%
dip in 2023 alone.
The pandemic took a major toll on industry performance, as formal wear fell in popularity and costume production
slowed down significantly. Similarly, the pandemic led to large losses, particularly among traditional retailers. The
pandemic enhanced the switch in consumer preferences toward online shopping, a trend likely to continue over the
coming years. Similarly, cotton price volatility negatively impacted clothing manufacturers, as significant price
increases forced them to either raise prices or take profit cuts.
Imports will continue to threaten domestic producers over the coming years. A weakening US dollar will make
domestic apparel comparatively more affordable, boosting demand for US-produced clothing. Formal wear sales will
expand as more companies require workers to return to the office. Similarly, domestic producers will benefit from
consumers growing environmentally aware, boosting demand for ethically produced clothing. As a result, revenue
will grow at a CAGR of 0.7% to $5.9 billion over the next five years.

9 IBISWorld.com
Industry Performance
Key External
Drivers
The trade-weighted index (TWI) measures the strength of the US dollar relative to the currencies of its trading
partners. As the US dollar appreciates, imports become more competitive and increasingly satisfy domestic demand.
Additionally, US exports become more expensive abroad, reducing foreign demand. The TWI is expected to contract
in 2023, posing a potential threat to the industry.
Consumer spending
Consumer spending measures the total amount Americans spend on goods and services. Growth in consumer
spending stimulates rising apparel sales, boosting industry revenue. Consumer spending is expected to rise in 2023.
The Consumer Confidence Index measures the sentiment potential customers have about their financial well-being
and the economy's overall health. Consumers who feel confident about their finances and the economy's health are
more likely to spend more on luxury and discretionary items, driving apparel sales. The Consumer Confidence Index
is expected to expand in 2023, representing a potential opportunity for the industry.
Import penetration into the manufacturing sector
Import penetration measures the extent to which imports satisfy domestic demand for a product. Growing import
penetration indicates that imported goods are replacing domestically manufactured clothing. Import penetration into
the manufacturing sector is expected to increase in 2023, posing a potential threat to the industry.
World price of cotton
Cotton is a key input in many apparel manufacturing processes, so fluctuations in the price of cotton significantly
impact manufacturers' profitability. When the world price of cotton increases, purchasing costs rise, forcing
companies to absorb the cost in the form of lower profit or pass price increases onto consumers, harming demand
from price-sensitive customers. The world price of cotton is expected to decrease in 2023.

10 IBISWorld.com
Current
Performance
Cut and sew apparel manufacturing revenue is expected to fall at a CAGR
of 3.1% to reach $5.7 billion in the next five years, including a 1.1% dip in
2023, with profit set to reach 3.8%.
Growing imports negatively impact manufacturers
 The pandemic, the Ukraine War, Brexit and other international conflicts have led to the dollar's appreciation.
 A strong US dollar makes imported apparel more affordable for domestic consumers. When combined with
lower operating costs overseas, foreign producers can offer lower prices, harming US manufacturers.
 Imports fulfill more than 90.0% of domestic demand, demonstrating the presence of foreign manufacturers
within the domestic market.
 Although the value of the dollar has dropped, the lower operating costs overseas will continue to give
foreign producers a competitive advantage, maintaining competition high.
Input price increases hinder revenue
 Cotton, a major input for apparel production, faced some volatility over recent years.
 During the initial hit of the pandemic, cotton prices dropped as falling demand created downward pressure
on cotton production. However, as manufacturing activity resumed, cotton prices skyrocketed.
 Dropping consumer confidence has harmed apparel sales, pushing cotton prices down. But prices remain
far above pre-pandemic levels, making apparel more expensive.
The pandemic changed consumer trends
 In 2020, the government put in place social distancing requirements to limit the spread of the virus.
 These regulations forced many traditional retailers to pause or limit operations, lowering foot traffic and
harming sales.
 Although revenue started to grow as stores reopened, it was unable to reach pre-pandemic levels, with
consumers purchasing more imported apparel.
Social distancing regulations limit costume manufacturing
 The pandemic severely impacted art productions like those on Broadway and Hollywood. Many considered
these locations to be superspreaders, harming new and existing productions.
 The pause in art productions harmed costume manufacturers, as Broadway and Hollywood generate a large
portion of costume revenue.
 Although these productions have since reopened, revenue generated by the arts has struggled to bounce
back.

11 IBISWorld.com
Demand for sustainable fashion creates opportunities
 Sustainable fashion has become popular among US consumers as they become more troubled surrounding
the environmental footprint of apparel manufacturers.
 The growing demand for sustainable clothing has enabled producers to serve a market that is willing to pay
a premium for high-quality, sustainable pieces.
 A growing number of companies have adopted this trend, leading them to invest in domestic manufacturing
facilities. However, demand was not strong enough to offset the large revenue declines.
 The sustainable sourcing trend is only in its early stages and will grow as more consumers become aware of
where their clothes are sourced and manufactured.
Historical Performance Data
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(Units)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
Consumer
confidence
index
(Index)
2014 8,771 2,273 2,063 2,046 44,283 3,282 99,789 1,806 105,278 87.1
2015 8,427 2,235 2,027 2,011 44,758 3,110 102,065 1,812 107,382 97.1
2016 7,947 1,993 1,950 1,932 41,344 2,812 95,559 1,689 100,694 99.6
2017 7,295 2,022 2,006 1,981 41,508 2,646 93,886 1,635 98,535 121
2018 6,693 1,915 1,844 1,821 36,546 2,726 96,645 1,565 100,612 130
2019 7,015 1,944 1,807 1,783 35,655 2,753 95,716 1,533 99,977 128
2020 5,597 1,561 1,648 1,634 33,595 2,027 71,834 1,254 75,404 101
2021 5,747 1,535 1,631 1,613 33,771 2,441 88,673 1,266 91,979 112
2022 5,773 1,509 1,602 1,583 33,497 2,955 99,478 1,259 102,297 104
2023 5,711 1,486 1,564 1,544 32,854 3,046 102,095 1,237 104,760 98.8

12 IBISWorld.com
Industry Outlook
Outlook Revenue is expected to grow at a CAGR of 0.7% to $5.9 billion over the
five years to 2028, when profit is estimated to remain stable at 3.8%.
Exports will continue to threaten domestic production
 As international economic conditions continue to stabilize, the value of the US dollar will continue to drop.
 Although a weakening dollar makes imported apparel comparatively more expensive, the lower production
costs from overseas make imports a more affordable alternative to domestically produced pieces.
 Imported apparel will continue to satisfy a large portion of domestic demand, causing price competition to be
a prominent threat to domestic producers.
 Domestic manufacturers aim to combat this trend by offering high-quality apparel, appealing to a customer
base that is less price-sensitive.
High-quality products support demand
 Manufacturers remaining in the industry will focus more on producing niche and higher-value products to
boost their profitability and remain competitive.
 Demand for domestically produced apparel will likely rise as disposable income grows, enabling consumers
to increase spending on discretionary items.
 Domestic apparel producers will benefit from growing sustainability trends. As consumers become more
environmentally aware, domestic apparel sales will grow.
Rising labor costs overseas will impact industry trends
 China's labor costs have been expanding over recent years. This trend threatens foreign manufacturing
activity, as most apparel gets produced in China.
 Many domestic manufacturers offshored production to China. Rising wage costs will push producers to
investigate reshoring to another country with low labor costs.
 Wage controversies and rising freight costs have pushed several manufacturers to move production to
Mexico.
 Growing labor costs in countries like China, Bangladesh and Pakistan will cause manufacturers to look for
other alternatives.
Return-to-office plans will support revenue
 Although many companies have returned to the office since the pandemic, work-from-home capabilities are
still popular.
 As companies increasingly require workers to return to the office, demand for formal wear will grow,
boosting apparel sales.
 The growing demand is unlikely to be the same as before the pandemic, as workplace attire has been
trending toward more casual clothing.

13 IBISWorld.com
Performance Outlook Data
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(Units)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
Consumer
confidence
index (Index)
2023 5,711 1,486 1,564 1,544 32,854 3,046 102,095 1,237 104,760 98.8
2024 5,660 1,468 1,530 1,509 32,330 3,052 93,126 1,219 95,733 103
2025 5,728 1,467 1,503 1,479 32,226 3,149 82,247 1,219 84,825 111
2026 5,810 1,480 1,486 1,460 32,316 3,214 80,040 1,225 82,636 117
2027 5,866 1,486 1,468 1,439 32,336 3,266 77,548 1,228 80,148 121
2028 5,901 1,489 1,457 1,427 32,369 3,307 74,860 1,230 77,454 126
2029 5,942 1,494 1,447 1,416 32,419 3,337 74,336 1,234 76,941 126
Industry Life Cycle The life cycle stage of this industry is Decline
LIFE CYCLE REASONS
The industry's contribution to the US economy is slowing
Import penetration and outsourcing define the industry
Technological investments are low and are not expected to increase over the next five years

14 IBISWorld.com
Contribution to GDP
Apparel manufacturers are shrinking in comparison with the overall economy, mainly driven by strong competition
from foreign manufacturers and growing offshoring trends.
Market Saturation
The market is heavily saturated, with foreign manufacturers satisfying demand for trendy and affordable pieces.
Smaller manufacturers will struggle to perform within the industry and rely on strong consumer preferences.
Innovation
Innovation within the industry relies on new product design, as manufacturers continuously aim to create new trendy
designs.
Consolidation
Manufacturers looking to remain competitive are likely to merge with or acquire other manufacturers to expand their
product offerings and boost revenue.
Technology & Systems
Technological advancements are limited, as the industry relies heavily on labor. Most large-scale manufacturing has
moved offshore or overseas, discouraging the remaining domestic producers from scaling up their operations.

15 IBISWorld.com
Products & Markets
Supply Chain Key Buying Industries
1st Tier
Women's & Children's Apparel Wholesaling in the US
Men's & Boys' Apparel Wholesaling in the US
Piece Goods, Notions & Other Apparel Wholesaling in
the US
Clothing & Clothing Accessories Wholesaling in the US
2nd Tier
Men's Clothing Stores in the US
Women's Clothing Stores in the US
Children's & Infants' Clothing Stores in the US
Family Clothing Stores in the US
Lingerie, Swimwear & Bridal Stores in the US
Department Stores in the US
Warehouse Clubs & Supercenters in the US
Key Selling Industries
1st Tier
Apparel Knitting Mills in the US
Industrial Machinery & Equipment Wholesaling in the US
Industrial Building Construction in the US
Synthetic Fiber Manufacturing in the US
Dye & Pigment Manufacturing in the US
Textile Mills in the US
2nd Tier
Cotton Farming in the US
Sheep Farming in the US
Crop Services in the US
Printing, Paper, Food, Textile & Other Machinery
Manufacturing in the US
Products & Services
Dresses maintain a dominant share
 This segment includes dresses made from purchased fabrics.
 Domestically manufactured dresses are often high quality and carry a price premium, leading them to
account for the largest share of revenue.
 The premium materials and design patterns used to make dresses are not as available in less expensive
overseas factories, enabling this segment to somewhat resist the offshoring trend.
Blouses and shirts remain popular
 The blouses and shirts segment includes men's and women's t-shirts, sweaters and other tops made from
purchased fabrics.
 Blouses and shirts represent a large portion of apparel volume, incentivizing manufacturers to outsource
production and offer lower prices to boost sales.
 Blouses and shirts manufactured domestically are often of higher quality and use high-cost materials and
techniques, resulting in a higher price tag.
Fewer shifting trends limits demand for shorts, pants and skirts
 The shorts, pants and skirts product segment includes jeans, slacks, shorts and skirts made from purchased
fabrics.
 Shorts, pants and skirts are typically purchased less frequently than tops, leading to a lesser revenue share.

16 IBISWorld.com
 Environmental changes directly impact bottoms sales, creating seasonal demand that relies on temperature
changes.
 This clothing is less subjective to changing fashion trends, enabling higher automation than other product
segments.
Suit coats and jackets falling out of preference
 This segment includes tailored suits, coats and jackets, focusing more on formal wear than casual.
 Fashion trends have not been kind to this segment, as consumer preferences have been falling out of line
with suits, coats and jackets. As workwear becomes more casual, the need for these products falls.
 Work-from-home capabilities pushed consumers away from formal wear, as consumers were not required to
dress up in formal attire, leading to a drop in suit sales.
 As workers return to the office, demand for suits is likely to expand slightly. However, many companies have
adopted a more casual dress code, causing the segment to shrink.
Sports and leisure wear grows amid the pandemic
 The sports and leisure wear segment includes sports and leisure wear, sports uniforms and swimwear made
from purchased fabrics.
 The 2020 pandemic led to growing work-from-home trends, pushing many consumers away from formal and
leisure wear.
 As consumers continue to grow health-conscious, demand for sportswear continues to grow.
 Many consumers prioritize comfort over looks, boosting sales of more comfortable apparel and supporting
demand for leisure and sportswear.
Art programs rebound with the economic reopening
 This segment includes dancewear, holiday costumes and theatrical costumes. Companies produce custom,
sometimes high-quality, costumes for theater programs.
 Parents' investment in children's theater participation drives sales for this segment. Similarly, professional
theater productions and other types of recordings impact costume sales.
 The pandemic forced theaters to cancel shows, decimating sales for costume manufacturers. The reopening
in 2021 brought back many plays and helped accelerate revenue growth.
 Falling consumer confidence negatively affects demand for shows and extracurricular activities, which are
often considered discretionary.
Other products generate a significant portion of revenue
 Other apparel includes outerwear, underwear, nightwear, infant clothing and uniforms made from purchased
fabrics.
 Domestic production of non-luxury products in these categories has consistently declined, as manufacturers
have consistently sent such production overseas to low-cost producers.
 Tailored items and other luxury products within these categories have increased their share of revenue over
the past five years as they are less susceptible to competition from lower value-added imports.
Demand
Determinants
Clothing retailers and wholesalers are the largest purchasers of apparel.
General economic indicators influence demand for inventory from these markets. Increased consumer spending and
confidence result in greater clothing sales. A decline in these factors leads to falling demand for apparel. Apparel
companies producing less popular garments have a poorer reputation among retailers, causing them to be reluctant
to make future orders with the manufacturer. Poor sales caused by poor design or economic conditions lead to lower
demand for domestic manufacturers.
Quality, fashion and brand strength also impact sales. Product quality can vary considerably between companies
and within price brackets. Fashion swings and trends also impact sales, resulting in unprofitable production runs by
manufacturers producing trendy clothing, as they have less power to change clothing styles quickly and often.
Product innovation and design continue to have a direct impact on clothing sales. Technical or design developments
can drum up new demand in niche segments, such as undergarments or costumes. Seasonal factors also play a
role in sales, as consumers purchase apparel designed for certain weather conditions based on the time of year.
This variation does not change much from year to year as consumers generally purchase winter clothes at the same
time every year.
Other factors impacting demand for costumes and uniforms include household income levels, sports participation

17 IBISWorld.com
rate and prices of imported apparel. Growing disposable income enables consumers to spend more generously on
high-value garments like leather and fur apparel, positively impacting revenue. Additional income also enables
consumers to spend on discretionary services, raising interest in entertainment like theatrical performances and
bolstering sales for theatrical costumes.
Major Markets
Clothing stores benefit from a somewhat steady demand
 This segment includes clothing retailers that operate as a brick-and-mortar location, including manufacturer-
owned retail outlets, family clothing stores and specialty stores.
 Manufacturer-owned stores have increased their share of total industry revenue over recent years due to
the cost savings benefits of in-house distribution, enabling manufacturers to sell merchandise at lower
prices.
 As consumers increasingly shop online, demand from brick-and-mortar stores has been pressured.
 Many downstream buyers still prefer to buy clothes from traditional retail stores, enabling them to try clothes
on and ensure they fit their preferences.
Wholesalers support smaller companies
 This segment includes wholesalers who buy from manufacturers and sell to retailers at a markup to help
with distribution.
 Wholesalers have seen growth during the period, as larger companies have benefited from acquisitions of
smaller companies, expanding the size and scope of wholesalers.
 Smaller companies, which comprise most of the industry, rely more on wholesalers, as these companies
often cannot afford in-house wholesaling operations.
 Manufacturers still rely on costume and academic gown wholesalers to satisfy bulk orders.
E-commerce continues to expand
 E-commerce solutions are expanding rapidly, a trend enhanced by the pandemic and social distancing
requirements.
 Traditional retailers were forced to pause or slow operations, reducing foot traffic and harming sales.
 Many consumers prefer to buy clothing online, as websites provide significant product information and
customer reviews, enabling downstream buyers to shop around for the best prices and products.
 Although e-commerce is growing, many consumers prefer to purchase clothes at traditional retailers, which
allows them to try on clothes and ensure they fit correctly.
Department and discount stores remain small
 Department and discount stores are rapidly falling in popularity, particularly as e-commerce attract more
customers.
 The pandemic directly hit these types of stores, as social distancing guidelines prevented consumers from
shopping at traditional retailers and became more accustomed to online shopping.
 Changes in consumer preferences will continue to harm department stores as consumers continue to
migrate their shopping needs to online platforms.

18 IBISWorld.com
International Trade Exports in this industry are High and Increasing
Imports in this industry are High and Steady
Imports
Lower operating costs overseas lead to strong price-competition
 Many manufacturers base operations in countries with lower labor costs and fewer environmental
regulations to reduce operating expenses.
 Lower labor costs overseas have lured many US apparel producers, leading them to offshore manufacturing
capabilities and harming domestic production.
 Growing economic uncertainty pushes downstream consumers toward more affordable products, further
supporting import penetration into the domestic market.
Demand for high-quality products push consumers toward European apparel
 Although US manufacturers have increasingly focused on developing high-quality products, European
producers have a well-established reputation in the international market.
 A strong US dollar makes imported products more affordable for domestic consumers, encouraging them to
purchase apparel with a strong reputation.
 As domestic production continues, manufacturers will focus on developing premium products. However, this
trend will take some time to be fully adopted by domestic and foreign consumers.
Exports
Trade agreements support domestic producers
 Trade protection for US exports under the United States-Mexico-Canada Agreement (USMCA) has aided
demand for apparel in the industry's two largest foreign markets, Canada and Mexico.
 The USMCA supports free trade between the three participating countries with certain manufacturing
parameters.
 The US will try to expand exports to other countries by focusing on wealthy economies.
 Apparel produced by skilled US labor will yield high prices that barely compete in the domestic market,
meaning prices must fall to expand exports. US producers can also focus on
An appreciating dollar harms exports
 Domestic apparel does not have a strong footing abroad. Many overseas consumers prefer to buy premium
apparel from European manufacturers or other affordable clothing.
 An appreciating US dollar makes domestic apparel comparatively more expensive abroad. Since domestic
manufacturers don't have an international reputation, higher prices deter foreign consumers from buying US
apparel.

19 IBISWorld.com
 The bulk of exports go to neighboring countries, as transportation and tariff costs are lower. However, higher
exporting costs to other countries and a strong US dollar increase prices.

20 IBISWorld.com
Geographic Breakdown

21 IBISWorld.com
Business Locations The West remains dominant
 Los Angeles and San Francisco are among the largest manufacturing centers in the US because of their
large populations and proximity to major trade ports and Mexico.
 The large population in California and the fashion-oriented nature of Los Angeles gives manufacturers
access to a broader labor pool, attracting more manufacturers.
 The West has various large universities and prominent arts programs, attracting costume and uniform
manufacturers. Sports teams, bands and graduation ceremonies provide consistent revenue.
 Hollywood generates consistent demand for high-quality costumes for shows and other media shootings,
supporting apparel manufacturing in the region.
Manufacturing hubs attract apparel makers to the Mid-Atlantic
 Traditional manufacturing hubs New York and New Jersey drive the industry establishment density in this
region.
 Manufacturers located in these areas have the advantage of lower transportation costs, faster deliveries and
access to downstream markets, including final consumers.
 New York City is also known for its fashion scene, so small high-end companies may choose to set up shop
in the state to stay competitive and achieve high customer visibility.
 Similar to the West, New York City focuses on the arts. Broadway leads to strong demand for costumes,
attracting more apparel producers.
Population drives popularity in the Southeast
 The Southeast is home to the largest portion of the US population, making it an attractive location for
manufacturers.
 Many states in this region are major export hubs, such as Florida, making it a strategic location for
manufacturers.

22 IBISWorld.com
Competitive Landscape
Market Share
Concentration
Concentration in this industry is Low
Prominent import competition limits market share
 Imports have created significant disruptions in the domestic apparel industry.
 Apparel manufacturers based in countries with lower wage requirements and fewer environmental
regulations can offer lower prices, boosting price competition.
 Consumers looking for high-quality, luxurious apparel are more likely to gravitate toward European
producers, as they have a well-established reputation.
 An appreciating US dollar makes imported apparel comparatively more affordable for domestic consumers,
encouraging consumers to purchase these products and move away from domestic apparel.
Offshoring trends harm US producers
 Domestic producers are increasingly looking to lower their production costs to become more price
competitive.
 Design and development capabilities continue to happen domestically, but many US manufacturers have
offshored manufacturing capabilities to countries with fewer regulations and lower wages.
 By reducing operating costs, domestic producers can better compete with lower-priced imports, enabling
them to become more competitive.
Key Success
Factors
IBISWorld identifies over 200 Key Success Factors for a business. The most important for this industry are:
Ability to alter goods and services produced in favor of market conditions:
Companies that can change the quality and quantity of manufactured products and adapt to changes in fashion
trends can gain an advantage in the market.
Access to a highly skilled workforce:
Changes in downstream demand can alter workflows and production requirements. Apparel producers with a
workforce that can adapt to these changes can provide the market with new products in a shorter period of time.
Access to economies of scale:
Companies must produce apparel items at the lowest marginal cost to offer the lowest possible prices to
downstream wholesalers, retailers and consumers.
Having contacts within key markets:
Companies must provide specialized products for niche markets. Such products include private labels, branded
clothing and apparel for specialty markets.
Having a good reputation:
Companies can gain an advantage in the market by providing high-quality garments and having a good reputation
among consumers.

23 IBISWorld.com
Cost Structure
Benchmarks
Profit
Falling demand leads to contracting profit
 Strong competition from foreign manufacturers have led to
dropping profit for domestic producers, as consumers are
encouraged to buy more affordable products.
 Rising economic uncertainty has also had a negative impact on
profit. During times of lower disposable income and higher
uncertainty, consumers tend to buy more affordable products,
harming US manufacturers.
 Cotton price increases led to manufacturers raising the price of
apparel. The price-competitive nature of the industry resulted in
a smaller average profit margin.
 These trends have led profit to drop from an estimated 4.7% of
revenue in 2018 to 3.8% in 2023.
Wages
Wage costs drop amid offshoring trends
 Apparel manufacturers rely heavily on labor, making it difficult
for domestic companies to compete with companies in
developing countries with low labor costs.
 Tasks like cutting and sewing fabrics are difficult to automate,
solidifying the importance of workers in the industry.
 As apparel manufacturers continue offshoring production
capabilities, wage costs will continue to fall.
 Wage costs have dropped from accounting for an estimated
23.4% of revenue in 2018 to 21.7% in 2023.

24 IBISWorld.com
Purchases
Purchase expenses fall as the industry recovers
 Inputs include fabrics, yarns, buttons, zippers and other
materials necessary for clothing.
 When importing fabrics and other inputs to make finished
products, tariff costs lead to higher purchase costs.
 Significant supply chain disruptions caused cotton prices to
boom, enabling manufacturers to raise prices and boost
revenue.
 Similarly to other manufacturing industries, purchase costs
account for the largest share of revenue. In 2023, purchase
costs are expected to account for 43.5% of revenue, dropping
from 44.7% in 2018.
Marketing
Marketing costs represent an estimated 0.9% of revenue in 2023.
Depreciation
Depreciation costs are expected to account for 0.6% of revenue in
2023.
Rent
Rent costs are estimated to account for 2.6% of revenue in 2023.

25 IBISWorld.com
Utilities
Utility costs are expected to represent 0.5% of revenue in 2023.
Other Costs
In 2023, other expenses are estimated to account for 26.5% of
revenue.
Basis of
Competition
Competition in this industry is High and the trend is Steady
INTERNAL COMPETITION
Most products manufactured by large apparel producers are well-known
consumer brands or made under license to specific requirements for
other companies.
For branded goods, consumer demand dictates which products are most competitive, based on price, quality,
availability and status. For apparel made under license, licensors decide which company will manufacture their
goods based on the price, quality, service and reliability the manufacturer offers. Licensors may choose to maintain
long-standing relationships with particular manufacturers to ensure consistency in production and business
relationships.
EXTERNAL COMPETITION
The industry's major source of competition for items produced comes
from imported clothing, from both less costly (particularly from China,
Southeast Asian countries, Mexico and Bangladesh) and more expensive
(from European countries such as Italy and France) markets.
The competitive strengths of domestic producers include design of apparel products, brand development and good
quality of textiles and products. US producers have strong technological competencies. This competitive advantage,
however, might be short-lived as companies in developing economies will eventually implement similar technologies.
US-based manufacturers also possess advanced advertising and promotional skills and have access to a large
consumer market.
Domestic producers are less competitive than other markets due to the higher labor costs in the US. These costs put

26 IBISWorld.com
US manufacturers at a disadvantage; more affordable imports result in downward pressure on prices, limiting
profitability and harming sales. As a result, US producers now focus primarily on high value-added activities such as
designing and marketing, while the bulk of their production gets outsourced to low-cost foreign manufacturers.
Barriers to
Entry
Barriers to Entry in this industry are Medium and the trend is Increasing
Legal
Producers face trademark and copyright violation risks,
especially early on. Companies must ensure that logos
used on uniforms follow specific trademark guidelines and
that designs don't copy other companies.
Start-up costs
Establishing a new operation will likely require high plant
and equipment acquisition costs, as well as the cost of
manual labor to perform detailed tasks.
Differentiation
Manufacturers can differentiate themselves through
quality, product offerings, marketing and customer
relationships. Competition from abroad is very high;
dealing with import penetration is a significant challenge
for manufacturers.
Labor Intensity
The labor-intense nature of the industry comes from the
reliance on workers to perform various activities, including
cutting and sewing, which require precise manual labor
and many other activities that are difficult to automate.
Barriers to Entry Checklist
Competition High
Concentration Low
Life Cycle Stage Decline
Technology Change Low
Regulation & Policy Medium
Industry Assistance Medium

27 IBISWorld.com
Industry
Globalization
Globalization in this industry is High and the trend is Increasing
Apparel manufacturers operate with a very high level of globalization. Apparel production is difficult to automate and is
highly labor-intensive. Companies seek out countries with lower wage requirements to contract work or establish offshore
production factories. With increasing pressure from shareholders for higher returns and downstream retailers pressing for
lower-priced products, manufacturing companies seek out production methods that provide the highest efficiency and
productivity while keeping costs as low as possible.
Apparel manufacturers have taken advantage of the internet to communicate product information globally. This has
internationalized supply chains in the industry, with companies designing, manufacturing, marketing and selling products
in various international locations. Product design, strategy and marketing are often done in developed countries, while
manufacturing occurs in other parts of the world.

28 IBISWorld.com
Major Companies
There are no major players in this industry.

29 IBISWorld.com
Operating Conditions
Capital
Intensity
The level of capital intensity is Low
Wage expenses account for a much larger portion of
revenue for apparel manufacturers than capital expenses.
In 2023, IBISWorld estimates that a typical operator within
this industry spends $0.02 on capital for every $1.00 spent
on labor. Workers in this industry perform detail-oriented
functions, including cutting and sewing fabric.
Manufacturers outsource many routine jobs, such as
sewing and finishing, to countries with lower wage
requirements than the United States. Domestic producers
shifted their focus to higher value-added activities, such as
designing, manufacturing and marketing premium goods.
Wages for these activities are high, which ultimately
increases the labor-to-capital ratio. Additionally, US
companies have limited their capital investments
domestically as they have continued to shift most of their
production abroad. As a result, the industry's capital
intensity has remained low over recent years.

30 IBISWorld.com
Technology &
Systems
Potential Disruptive Innovation: Factors Driving Threat of Change
Level Factor Disruptive
Effect
Description
Unknown Rate of
Innovation
Unknown A ranked measure for the number of patents
assigned to an industry. A faster rate of new
patent additions to the industry increases the
likelihood of a disruptive innovation occurring.
Unknown Innovation
Concentration
Unknown A measure for the mix of patent classes
assigned to the industry. A greater
concentration of patents in one area
increases the likelihood of technological
disruption of incumbent operators.
Low Ease of Entry Unlikely A qualitative measure of barriers to entry.
Fewer barriers to entry increases the
likelihood that new entrants can disrupt
incumbents by putting new technologies to
use.
Very Low Rate of Entry Very
Unlikely
Annualized growth in the number of
enterprises in the industry, ranked against all
other industries. A greater intensity of
companies entering an industry increases the
pool of potential disruptors.
Medium Market
Concentration
Potential A ranked measure of the largest core market
for the industry. Concentrated core markets
present a low-end market or new market
entry point for disruptive technologies to
capture market share.
There are both significant barriers to entry and a low rate of new entrants in this industry. This combination of factors
dampens the threat of innovative players disrupting the industry structure.
There are currently no technological disruptions impacting apparel
manufacturers.
There is not a substantial demand to replace the industry's existing systems and core functions. Since the industry is well
established, there isn't much room to expand the customer base or revolutionize product lines. New products and
production methodology advancement are unlikely to threaten apparel manufacturers. Manufacturers are more likely to
adopt new technologies to boost efficiency. The main source of external competition stems from inexpensive imports, not
from alternative products or methods of production brought on by technological innovation. If anything, manufacturers will
seek to use technological innovations in product production to combat inexpensive imports.
The level of technology change is Low
Given the labor-intense nature of apparel manufacturing, technological
development has been more limited in the industry than in other
manufacturing industries.
The increased competition and consolidation force surviving manufacturers to seek new ways to remain competitive, such
as shifting production toward high-value apparel. The detailed features that add value to these more expensive products
are often handmade, which is a more labor-intensive process. Most industry research focuses on developing new material
components and improved production procedures for these high-end products.
Many large apparel manufacturers that would have needed to invest in technology to enable large-scale manufacturing
capabilities have shifted their production facilities offshore. The remaining manufacturers are generally smaller companies
that don't have production needs on the same scale. With large sections of the industry employing offshore labor and with
extensive uncertainty about the future of the domestic industry, remaining apparel producers are reluctant to invest capital
into new machines and choose to use existing equipment.

31 IBISWorld.com
Revenue
Volatility
The level of volatility is High
Constantly evolving fashion trends harm manufacturers
 Imported apparel has caused significant disruptions in the apparel industry. Fewer regulations and wage
requirements overseas enable foreign manufacturers to offer lower prices, resulting in significant revenue losses.
 Swings and changes in fashion trends boost volatility as trends and consumer preferences can change rapidly.
Changing trends can quickly make clothing styles outdated, lowering the value of inventory.
 Recent pressures from retailers for low-cost, high-volume products have resulted in many manufacturers changing
their product mix and volumes.
Supply chain disruptions affect volatility
 Apparel producers are subject to logistical problems, labor disputes and fluctuations in the price and availability of
raw material supplies.
 Disruptions in the textiles supply chain negatively impact domestic apparel manufacturers. These disruptions often
lead to higher cotton prices, raising operating costs.
 Companies that source from international suppliers are further subject to conditions within those countries,
including resource availability, political instability and natural disasters.
Regulation &
Policy
The level of regulation is Medium and the trend is Steady
Design Piracy Prohibition Act
Under this law, clothing designers will be subject to intellectual property rules. Designers would be prohibited to copy
other's work, including designs, patterns, cuts and other trademarks.
Fair Labor Standards Act
Apparel manufacturers must comply with the Fair Labor Standards Act (FLSA). According to the US Department of Labor,
the federal minimum wage is $7.25 per hour effective July 24, 2009. States may also have minimum wage laws that provide
greater employee protections. In this case, manufacturers must comply with both.
Flammable Fabrics Act (FFA)
The FFA is an act that addresses the flammability of clothing, fabrics, carpets and other textile products manufactured or
sold in the United States. It has stated flammability standards for clothing textiles and other types of fabric products.
Industry
Assistance
The level of industry assistance is Medium and the trend is Decreasing

32 IBISWorld.com
Public
United States Customs laws
The imported products are subject to United States Customs laws, established by the United States government, which
impose tariffs and import quota restrictions for textiles and apparel. Some of the industry's imported products are eligible for
certain duty-advantaged programs under the African Growth and Opportunity Act, the Caribbean Basin Trade Partnership
Act and the North America Free Trade Agreement.
Trade Protection
The Trump administration imposed tariffs ranging from 7.5% to 25.0% on certain Chinese-made goods, including cotton,
wool and denim. Manufacturers that include these goods in their supply chains have been negatively affected by such
tariffs. Manufacturers competing with Chinese-made goods have benefited.
Private
American Apparel & Footwear Association (AAFA)
The AAFA represents companies manufacturing apparel, footwear and other sewn products, along with these companies'
suppliers, which compete in the global market. The AAFA aims to promote and enhance its members' competitiveness,
productivity and profitability in the global market by minimizing regulatory, legal, commercial, political and trade restraints.

33 IBISWorld.com
Key Statistics
Industry Data
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(Units)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
Consumer
confidence
index (Index)
2014 8,771 2,273 2,063 2,046 44,283 3,282 99,789 1,806 105,278 87.1
2015 8,427 2,235 2,027 2,011 44,758 3,110 102,065 1,812 107,382 97.1
2016 7,947 1,993 1,950 1,932 41,344 2,812 95,559 1,689 100,694 99.6
2017 7,295 2,022 2,006 1,981 41,508 2,646 93,886 1,635 98,535 121
2018 6,693 1,915 1,844 1,821 36,546 2,726 96,645 1,565 100,612 130
2019 7,015 1,944 1,807 1,783 35,655 2,753 95,716 1,533 99,977 128
2020 5,597 1,561 1,648 1,634 33,595 2,027 71,834 1,254 75,404 101
2021 5,747 1,535 1,631 1,613 33,771 2,441 88,673 1,266 91,979 112
2022 5,773 1,509 1,602 1,583 33,497 2,955 99,478 1,259 102,297 104
2023 5,711 1,486 1,564 1,544 32,854 3,046 102,095 1,237 104,760 98.8
2024 5,660 1,468 1,530 1,509 32,330 3,052 93,126 1,219 95,733 103
2025 5,728 1,467 1,503 1,479 32,226 3,149 82,247 1,219 84,825 111
2026 5,810 1,480 1,486 1,460 32,316 3,214 80,040 1,225 82,636 117
2027 5,866 1,486 1,468 1,439 32,336 3,266 77,548 1,228 80,148 121
2028 5,901 1,489 1,457 1,427 32,369 3,307 74,860 1,230 77,454 126
Annual Change
Year
Revenue
(%)
IVA
(%)
Establishments
(%)
Enterprises
(%)
Employment
(%)
Exports
(%)
Imports
(%)
Wages
(%)
Domestic
Demand
(%)
Consumer
confidence
index (%)
2014 -6.33 3.04 -3.11 -3.22 -4.49 -0.93 0.63 3.50 0.06 18.3
2015 -3.92 -1.67 -1.75 -1.72 1.07 -5.26 2.28 0.34 2.00 11.5
2016 -5.71 -10.8 -3.80 -3.93 -7.63 -9.58 -6.38 -6.78 -6.23 2.57
2017 -8.21 1.44 2.87 2.53 0.39 -5.92 -1.76 -3.18 -2.14 21.0
2018 -8.25 -5.28 -8.08 -8.08 -12.0 3.02 2.93 -4.33 2.11 8.04
2019 4.80 1.50 -2.01 -2.09 -2.44 1.00 -0.97 -2.03 -0.63 -1.62
2020 -20.2 -19.7 -8.80 -8.36 -5.78 -26.4 -25.0 -18.2 -24.6 -21.2
2021 2.68 -1.69 -1.04 -1.29 0.52 20.4 23.4 0.95 22.0 10.9
2022 0.46 -1.67 -1.78 -1.86 -0.82 21.0 12.2 -0.57 11.2 -7.06
2023 -1.09 -1.52 -2.38 -2.47 -1.92 3.08 2.63 -1.76 2.41 -5.10
2024 -0.90 -1.24 -2.18 -2.27 -1.60 0.21 -8.79 -1.46 -8.62 4.35
2025 1.19 -0.03 -1.77 -1.99 -0.33 3.16 -11.7 -0.02 -11.4 7.66
2026 1.43 0.83 -1.14 -1.29 0.27 2.06 -2.69 0.50 -2.58 4.95
2027 0.97 0.44 -1.22 -1.44 0.06 1.61 -3.12 0.24 -3.01 4.03
2028 0.59 0.20 -0.75 -0.84 0.10 1.25 -3.47 0.20 -3.36 3.79
Key Ratios
Year
IVA/Revenue
(%)
Imports/
Demand
(%)
Exports/
Revenue
(%)
Revenue per
Employee
($'000)
Wages/
Revenue
(%)
Employees per
estab.
(Units) Average Wage ($)
2014 25.9 94.8 37.4 198 20.6 21.5 40,772
2015 26.5 95.0 36.9 188 21.5 22.1 40,478
2016 25.1 94.9 35.4 192 21.3 21.2 40,852
2017 27.7 95.3 36.3 176 22.4 20.7 39,397
2018 28.6 96.1 40.7 183 23.4 19.8 42,809
2019 27.7 95.7 39.2 197 21.9 19.7 42,990
2020 27.9 95.3 36.2 167 22.4 20.4 37,330
2021 26.7 96.4 42.5 170 22.0 20.7 37,491
2022 26.1 97.2 51.2 172 21.8 20.9 37,585
2023 26.0 97.5 53.3 174 21.7 21.0 37,648
2024 25.9 97.3 53.9 175 21.5 21.1 37,702
2025 25.6 97.0 55.0 178 21.3 21.4 37,817
2026 25.5 96.9 55.3 180 21.1 21.7 37,904
2027 25.3 96.8 55.7 181 20.9 22.0 37,973
2028 25.2 96.7 56.0 182 20.8 22.2 38,012
Figures are inflation adjusted to 2023

34 IBISWorld.com
Additional Resources
Additional
Resources
Textile Society of America
http://www.textilesocietyofamerica.org
Textile World
http://www.textileworld.com
Fur Commission USA
http://www.furcommission.com
US Federal Trade Commission
http://www.ftc.gov
US Census Bureau
http://www.census.gov
Industry Jargon DISCOUNT RETAILER
A retail store that carries a wide range of goods at prices below those at department stores, grocery stores or
specialty retailers.
OFFSHORE
The relocation of a company's business process, such as manufacturing or accounting, from one country to another,
whether the work is outsourced or stays within the company.
OUTSOURCE
To procure goods or services under contract with an outside supplier.
WHOLESALE BYPASS
A popular trend within retail and manufacturing industries in which producers supply goods directly to stores,
eliminating the middleman.
Glossary BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for
new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than
$0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of
capital for every $1 of labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e.
year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving
only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using
the US Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived
by adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers
and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more
establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single physical location where
business is conducted or where services or industrial operations are performed. Multiple establishments under
common control make up an enterprise.
EXPORTS

35 IBISWorld.com
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top
players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing
and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale
of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)
The market value of goods and services produced by the industry minus the cost of goods and services used in
production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand:
low is less than 5%, medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an industry's life cycle by
considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments;
the amount of change the industry's products are undergoing; the rate of technological change; and the level of
customer acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-
employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as
revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of the past five years.
Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%;
and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.

IBISWorld helps you find the industry
information you need – fast.
With our trusted research covering thousands of global industries, you’ll get a quick and intelligent
overview of any industry so you can get up to speed in minutes. In every report, you’ll find
actionable insights, comprehensive data and in-depth analysis to help you make smarter, faster
business decisions. If you’re not yet a member of IBISWorld, contact us at 1-800-330-3772 or
info@ibisworld.com to learn more.
DISCLAIMER
This product has been supplied by IBISWorld Inc. (‘IBISWorld’) solely for use by its authorized licenses strictly in
accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person
with regard to the completeness or accuracy of the data or information contained herein, and it accepts no
responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage
whatsoever suffered or incurred by any other person resulting from the use of, or reliance upon, the data or
information contained herein. Copyright in this publication is owned by IBISWorld Inc. The publication is sold on
the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own
purposes. In the event that the purchaser uses or quotes from the material in this publication – in papers, reports,
or opinions prepared for any other person – it is agreed that it will be sourced to: IBISWorld Inc.
Copyright 2023 IBISWorld Inc.

31525 Cut - Sew Apparel Manufacturing in the US Industry Report.pdf

Recomendados

Recomendados

Más contenido relacionado

Similar a 31525 Cut - Sew Apparel Manufacturing in the US Industry Report.pdf

Similar a 31525 Cut - Sew Apparel Manufacturing in the US Industry Report.pdf (20)

Más de MdHasanSheikh1

Más de MdHasanSheikh1 (13)

Último

Último (20)

31525 Cut - Sew Apparel Manufacturing in the US Industry Report.pdf