Industry Analysis & Industry Trends
Volatile cotton prices and recession-induced drops in consumer spending pressured the industry slightly in the past five years. However, increasing population and and disposable income growth will bolster industry revenue in the five years to come. Companies will also continue moving production to low wage cost countries to offer more competitive prices... read more
In the Global Apparel Manufacturing industry, expenditure on wages account for a much larger proportion of revenue than for capital. IBISWorld expects that a typical manufacturer in the industry dedicates $0.20 to capital for every dollar spent on labor. There are many manual steps involved in the assembly process of apparel. For example, manufacturers of high quality apparel often require products to be individually hand stitched and assembled. As a result, it is difficult to replace labor with automated processes in particular parts of production.
However, the overall level of capital investment within the industry has increased over the past five years as manufacturers of lower-value apparel have automated many processes to maximize efficiency... read more