Do You Know These Key Facts about American Apparel & Textile Industry

American Apparel & Textile

The global apparel and textile industry is experiencing ups and down for last couple of years. There is no doubt that the American apparel and textile market has significant importance in the world’s textile industry. And the global textile facts and figures are usually determined by the contribution of this huge and well-served industry. If we look up the main input of American apparel and textile industry in global prospects. Then we come to know that it is contributing in almost every textile sector (man-made fibre to finished apparel). This industry is not only catering the needs of its local entities but it is also contributing a healthy role in global export market.

The overall global apparel and textile has become most globalized and economical sector after crossing the milestone of $726 billion in year 2016. As there are more than around 120 million people who are directly and indirectly involve with this progressive industry. So from global point of view, it has become the most important and famous industry in the world.

American Apparel & Textile Overview:

In 2016, the American apparel and textile industry were standing on fourth number in largest textile exporter’s country list. And the countries where they are exporting to its products (fibre, yarn, fabric etc.) is more than 200 in numbers. Out of which, 34 countries are those which are importing their products more than $100 million worth. If we closely review only fiber, yarn, fabric, and other non-apparel textile products export net worth of year 2017 then it was around US$ 28.6 billion. And the main portion in above figure was from fabric sector. As it was gain around $8.9 billion from the shipments to different countries. Further, the total net worth export value was 9% higher than the previous year 2016.

Whereas, the total net US shipment worth of fiber, textile and apparel was $77.9 billion in year 2017. And it was around $3.5 billion higher than the previous year of 2016. The main contribution in above figure was from yarn and fabric sector of American apparel and textile industry. As they were score around $31.5 billion in whole year which was around 40% in total contribution of the industry.

Not only is this, the American apparel and textile contribution in local supplies also remarkable. As this industry is solely supplying more than 8,000 different textile products to its military. And most of these supplied products are highly innovative and smart products in functions. As per US Government data study, the American apparel and textile is employing 5,50,500 workers. And further to that study, the one textile job normally supports three other jobs too. If we further break down the US textile market into apparel. As per Statista research study, we can see the following product vise break up:

American apparel

American Apparel and Textile Import:

The American textile and apparel market is no more as aggressive as it was a decade ago. As most of the local consumer apparel demand is normally cover by import from different cheaper countries. There are more than 150 countries which are directly or indirectly exporting apparel to US market. Out of which, China is standing on number one position with total share of 33.74% of US market. After China, Vietnam (14.32%) and Bangladesh (6.32%) were top exporting countries 2017. If we break down the US textile import volume into product vise then the major portion belongs to apparel (around 76%). After apparel, the made-up textile is accounted for 17%, fabric (6%) and yarn (around 1%).

US-China New Tariff Policy:

The American apparel and textile scenario has been totally changed after the recent announcement of President Donald Trump towards US China trade tariff policy. As per the recent heavy tariff on Chinese goods, the American apparel and textile demand shifted to other supplying countries. Since the China is a largest supplier of apparel and textile to US, is now facing slump in the current year. Here, one thing is interesting that most of textile products are not included into the 1102 new tariff products list. But there are some textiles machinery and equipments like injection molders or rolling machine spare parts which are in the list. But the Chinese apparel export figures are getting down gradually after the announcement of Donald Trump.

Furthermore, a positive jump has also been recorded in other export countries towards US exports. And out of these countries, Pakistan could get around 39% increases in last few months and was on top of list. Whereas, Vietnam, Bangladesh, India and Mexico were also get beneficial from this. As per the US Government, this entire new tariff list will support the local-industry. And it will also encourage consumer to go for made in USA goods. But despite of increasing 60% textile labor productivity since year 2000, the US mills are far-enough to meet its local needs/demands. In fact, Chinese goods have substantial importance in American textile/non-textile market.

If the recent tariff issue doesn’t resolve amicably then chances are that Chinese product could have abnormal price structure. And this thing could hurt the buying power of ordinary consumer. Furthermore, in-reaction to US new policy, the Chinese Government is also going to revise its tariff policy of US goods. So due to this us china trade war, the trade and economy situation of both countries would be badly effect.

American Apparel and Textiles:  Smart Approach

There is no doubt in this thing that American apparel and textile has a leading role in smart textile research and development sector. Their research and development experts introduced various smart and innovative gadgets, fibers and fabrics into the market. It includes antimicrobial fabrics, electronic textile which gauge heart or pulse rate, conductive and cool fabrics which has antistatic and temperature control properties. And currently these innovative products are successfully using in different industries like military and healthcare sector etc.

American Apparel and Textiles:  Sustainable Approach

In last few years, the American apparel and textile industry investment trend is particularly increasing in recycling and eco-friendly products. From 2006 to 2016, there is US$20 billion has been invested into new plants and equipment of the apparel and textile industry. The main focus of this investment is to enhance the recent plants and equipments with respect to new trends and environment demands. And the main attention is to reuse the pre and post-consumer textile waste in a best possible way.

In 2017, Cotton USA Sustainability Task Force was also established to meet the 2025 sustainability goals for cotton. And this association’s main goals are reducing the amount to soil (up to 13%) to produce one pound cotton fiber. Secondly, reducing soil loss by 50% and adding new soil development. They are also trying to increase to increase the water efficiency up to 18% along with that reducing energy for seed production around 15%. Lastly, they are also aiming to reduce greenhouse emission up to 39% and further trying to increase soil carbon up to 30%.

If we look up the implementation of the above narrated goals into US Cotton industry? Then we found a progress and productive outcome against above target and measures. This doesn’t stop here, the American apparel and textile industry’s continuous efforts towards supply chain transparency is also admirable. You would find most of the renowned American brands which are continuously displaying its transparency reports to its consumer review.

Author: admin

Fakhar is a textile professional with more than 15 years of experience in the fields of Marketing, Merchandising, Sourcing, Liaison, Training & Development, Industrial Relations. Being a keen observer, he constantly tracks the textile innovations and other notable events. And whatever he thinks, is interesting and informative, share the same along with his own understanding and opinion. He loves book reading, cricket and chess.

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