Blog: Rising costs drive sourcing search
Leonie Barrie | 20 August 2013
Apparel sourcing costs in the US are set to rise at a low single-digit rate in 2014, with key concerns including rising labour, compliance and energy costs, a new survey suggests.
Indeed, changes in China, where several decades of apparel price deflation have come to an end, continue to drive discussions about new sources for apparel production.
Pressure to improve the sustainability of China's textile sector in line with goals set by the new administration is another cause for concern, a conference hosted by leading apparel group Esquel was told last week.
But time and time again we've heard that no single country can replace China, the world's biggest clothing maker with a 38% share of the garment export market.
And David Birnbaum points out that garment sourcing involves much more than finding the place with the lowest labour rates. A benchmark study comparing garment exporting industries in Bangladesh and China illustrates why China wins every time in almost every category.
Pressures on sourcing are also on display in Turkey, where some 12,000 textile and clothing workers have gone on strike over wages. The strike covers around 30 major manufacturers where workers are seeking better pay and conditions.
Fashion retailer H&M is also looking to expand its supply chain to new countries that can support its growth. H&M, which sources around 80% of its products in Asia, says it may begin to source clothing from Ethiopia this autumn.
And the renewal of the African Growth and Opportunity Act (AGOA) before its expiry in 2015 dominated the US-Sub-Saharan Africa Trade and Economic Co-operation Forum. While helping boost trade over the past dozen years, governments on both sides of the Atlantic recognise it has also fallen short of its aims and aspirations.
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Chad, Jordan, Oman and Rwanda have become the latest countries to ratify the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA), meaning it has now reached the pre-determined number o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
The American Apparel & Footwear Association (AAFA) has entered into a partnership agreement with the East Africa Trade and Investment Hub to ensure best-in-class manufacturing of goods destined for th...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
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