Loose stitch: Local contractors focus on high-end products as imports continue to dominate

For decades, rising competition from low-cost foreign apparel manufacturers has been trimming away at demand for services rendered by the Cut and Sew Manufacturers industry. In order to remain competitive, industry operators have increasingly abandoned lower-value products in favor of premium segments, opting to compete on the basis of quality rather than price. Furthermore, industry operators largely benefited from rising disposable income and a depreciating dollar since 2016, economic trends that tend to bolster demand for domestically produced apparel. As a result, industry revenue is expected to break from its normal decline over the five years to 2018...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
0.4%
Forecast Growth 18-23
Profit
Employment
42,575
Businesses
18,979
Market Share of Companies

Industry Threats & Opportunities

  • The overarching downward trajectory of domestic apparel manufacturing over the past several decades is expected to persist
  • The industry’s growing product segments benefit from “made in the USA” marketing
  • Solid growth in disposable income will boost demand for this industry’s products
  • Industry Report - Industry Analysis Chapter

    The Cut and Sew Manufacturers industry comprises apparel contractors that produce garments and accessories, primarily for clothing companies and retailers. Revenue generated by industry operators is entirely derived from domestic manufacturing. While the industry is adversely affected by foreign competition, revenue generated by imports is accounted for under two other industries: the Men’s and Boys’ Apparel Manufacturing industry (IBISWorld report 31522) and the Women’s and Girls’ Apparel Manufacturing industry (31523). These industries account for the bulk of demand for goods produced by cut and sew manufacturers. For decades, the growth of imports as a share of these industries’ domestic demand has driven the decline of the Cut and Sew Manufacturers industry. How...purchase to read more.

    Additional Insights for the Cut and Sew Manufacturers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cut and Sew Manufacturers Industry are

  • Ability to expand and curtail operations rapidly in line with market demand
  • Access to multiskilled and flexible workforce
  • Having a large supply contract
  • IBISWorld analysts also discuss how external factors such as Import penetration into the manufacturing sector and Demand from apparel manufacturing in the Cut and Sew Manufacturers industry impact industry performance..

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    What's in this report

    What is the Cut and Sew Manufacturers Industry?

    Cut and sew manufacturers, commonly referred to as cut and sew apparel contractors, create apparel and accessories out of materials owned by the companies that contract them. The main difference between this industry and other apparel manufacturing industries is the ownership of the fabric.

    Industry Products
  • Men's and boys' work clothes, coats and jackets
  • Men's and boys' sweaters and pants
  • Women's and girls' coats, jackets and pants
  • Women's and girls' shirts and blouses
  • Men's and boys' shirts, excluding work shirts
  • Women's, girls', and infants' dresses
  • Underwear, nightwear, uniforms and infant appare
  • Industry Activities
  • Cutting material owned by others for men's and boys' apparel
  • Sewing material owned by others for men's and boys' apparel
  • Cutting material owned by others for women's, girls' and infants' apparel
  • Sewing material owned by others for women's, girls' and infants' apparel
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Import penetration into the manufacturing sector
  • Demand from apparel manufacturing
  • Per capita disposable income
  • Trade-weighted index

  • Current Performance
  • Import competition
  • Redefining an industry
  • Profit persists and participation rises
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry restructuring
  • Imports to continue surging
  • Profit and participation
  • Table: Cut and Sew Manufacturers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cut and Sew Manufacturers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Men's & Boys' Apparel Manufacturing
  • Women’s, Girls’ and Infants’ Apparel Manufacturing
  • Costume & Team Uniform Manufacturing

  • Key Selling Industries
  • Commercial Leasing
  • Fabric, Craft & Sewing Supplies Stores
  • Furniture Stores
  • Industrial Machinery & Equipment Wholesaling
  • Real Estate Sales & Brokerage

  • Products & Services
  • Other
  • Women's and girls' shirts and blouses
  • Men's and boys' sweaters and pants
  • Women's and girls' coats, jackets and pants
  • Underwear, nightwear, uniforms and infant appare
  • Men's and boys' shirts, excluding work shirts
  • Men's and boys' work clothes, coats and jackets
  • Women's, girls', and infants' dresses
  • Chart: Cut and Sew Manufacturers Industry Products and Services Segmentation

  • Demand Determinants
  • Price
  • Shifts in fashion
  • Brand strength
  • Consumer sentiment and unemployment

  • Major Markets
  • Women's and girls' apparel companies
  • Men's and boys' apparel companies
  • Clothing retailers
  • Costume, uniform and infant apparel companies
  • Other
  • Direct orders
  • Chart: Major Market Segmentation for the Cut and Sew Manufacturers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Cut and Sew Manufacturers

  • Basis of Competition
  • Price- and quality-based competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cut and Sew Manufacturers Industry

  • Industry Globalization
    Gildan Activewear Inc.,
  • Table: Gildan Activewear Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cut and Sew Manufacturers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cut and Sew Manufacturers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Import penetration into the manufacturing sector (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Outsourcing
  • To obtain goods or services from an outside supplier instead of from an internal source.
  • Premium Denim
  • Denim marketed to promote its high-end qualities, such as superior fit, dye and fabric durability.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of backward integration (owning upstream suppliers) or forward integration (owning downstream buyers).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Cut and Sew Manufacturers can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cut and Sew Manufacturers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cut and Sew Manufacturers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cut and Sew Manufacturers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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