Cut & Sew Apparel Contractors in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: April 2024
NAICS 31521Revenue
$2.0bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
26,401
Businesses
11,125
Wages
$XXX.Xm
Cut & Sew Apparel Contractors in the US industry analysis
The industry encompasses apparel contractors that cut and sew apparel and accessories using materials owned by others. For decades, increased competition from low-cost foreign apparel manufacturers has diminished demand for services rendered by contractors. To remain competitive, contractors have increasingly abandoned lower-value products in favor of premium segments, opting to compete on the basis of quality rather than price. Also, contractors have benefited from rising disposable income while entering 2023, which has bolstered demand for domestically produced apparel. Despite beneficial demand trends, the industry has still experienced declining revenue due to increased import penetration, rising input costs and the effects of the COVID-19 pandemic. As a result, revenue has decreased at a CAGR of 5.0% through the end of 2023 to reach $2.0 billion, including an expected decrease of 1.3% in 2023. Moving forward, given the significant price advantage of foreign manufacturers and tepid consumer demand for apparel, industry demand is expected to continue its decline.
Trends and Insights
- Demand for the services provided by contractors has decreased due to greater competition from low-cost foreign apparel manufacturers.
- The industry produces a wide range of products, including clothing such as t-shirts, pants, dresses, and jackets. They may also specialize in sportswear or formalwear. Additionally, they produce industrial textiles for applications like automotive interiors and upholstery.
- The major industries that hire its services, such as the manufacturing of men's and boys' apparel and women's and girls' apparel, are reflected in this industry's regional distribution.
- One of the primary factors contributing to the decline in the industry is the increasing import competition from manufacturers located in developing countries, where labor costs are often much lower than in the United States.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 5.0 % over the past five years, to reach an estimated $2.0bn in 2024.
Trends and Insights
Import competition has been increasing
- Similar to other domestic apparel and textile industries, domestic apparel manufacturing has seen less demand and more import competition, which has largely slowed revenue development.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Contractors are trying to revitalize the industry
- Contractors will probably continue to concentrate on niche and regional markets that are less price-sensitive and showing growth as outsourcing continues to erode potential industry revenue.
Biggest companies in the Cut & Sew Apparel Contractors in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Codet Inc. | 1.1 | 0.0 | 3.2 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Men's and boys' work clothes, coats and jackets, Men's and boys' sweaters and pants and Women's and girls' coats, jackets and pants. Men's and boys' work clothes, coats and jackets is the largest segment of the Cut & Sew Apparel Contractors in the US.
Trends and Insights
The biggest product category in this industry is clothing for women and girls
- The production of women's and girls' clothing is also declining due to a rise in import rivalry, which could eventually impact this product category. Imported apparel has accounted for an increasing share of domestic demand through the end of 2023.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Men's & Boys' Apparel Manufacturing in the US
- Women’s, Girls’ and Infants’ Apparel Manufacturing in the US
- Costume & Team Uniform Manufacturing in the US
Complementors
- Leather Good & Luggage Manufacturing in the US
International industries
- Textile Mills in Canada
- Cut and Sewn Textile Product Manufacturing in Australia
- Cut & Sew Textile Materials Apparel Manufacturing in Mexico
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Cutting material owned by others for men's and boys' apparelSewing material owned by others for men's and boys' apparelCutting material owned by others for women's, girls' and infants' apparelSewing material owned by others for women's, girls' and infants' apparelCompanies
Codet Inc.Purchase this report to view all 1 major companies in this industry.
Related Terms
PREMIUM DENIMOUTSOURCINGVERTICAL INTEGRATIONIndustry Code
NAICS 31521 - Cut & Sew Apparel Contractors in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Demand for the services provided by contractors has decreased due to greater competition from low-cost foreign apparel manufacturers.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The industry produces a wide range of products, including clothing such as t-shirts, pants, dresses, and jackets. They may also specialize in sportswear or formalwear. Additi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The major industries that hire its services, such as the manufacturing of men's and boys' apparel and women's and girls' apparel, are reflected in this industry's regional dis...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
One of the primary factors contributing to the decline in the industry is the increasing import competition from manufacturers located in developing countries, where labor cos...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Many small- and medium-sized businesses work in the industry and no one company dominates the market. These businesses' propensity for specializing in particular product grou...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Codet Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Codet Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
For the apparel and footwear sector, the Occupational Safety and Health Administration (OSHA) has published standards that apply to business owners.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The type of clothing produced, the blend of labor and technology and the structure and size of the business all affect the cost structure of individual operators within the in...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cut & Sew Apparel Contractors in the US industry in United States in 2024?
The market size of the Cut & Sew Apparel Contractors in the US industry in United States is $2.0bn in 2024.
How many businesses are there in the Cut & Sew Apparel Contractors in the US industry in 2024?
There are 11,125 businesses in the Cut & Sew Apparel Contractors in the US industry in United States, which has declined at a CAGR of 7.9 % between 2019 and 2024.
Has the Cut & Sew Apparel Contractors in the US industry in United States grown or declined over the past 5 years?
The market size of the Cut & Sew Apparel Contractors in the US industry in United States has been declining at a CAGR of 5.0 % between 2019 and 2024.
What is the forecast growth of the Cut & Sew Apparel Contractors in the US industry in United States over the next 5 years?
Over the next five years, the Cut & Sew Apparel Contractors in the US industry in United States is expected to decline.
What are the biggest companies in the Cut & Sew Apparel Contractors in the US market in United States?
The biggest company operating in the Cut & Sew Apparel Contractors market in United States is Codet Inc.
What does the Cut & Sew Apparel Contractors in the US in United States include?
Cutting material owned by others for men's and boys' apparel and Sewing material owned by others for men's and boys' apparel are part of the Cut & Sew Apparel Contractors in the US industry.
Which companies have the highest market share in the Cut & Sew Apparel Contractors in the US in United States?
The company holding the most market share in United States is Codet Inc..
How competitive is the Cut & Sew Apparel Contractors in the US industry in United States?
The level of competition is high and steady in the Cut & Sew Apparel Contractors in the US industry in United States.
