Women's & Girls' Apparel Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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This industry is experiencing major contractions as most major manufacturers move production offshore to countries with cheaper labor costs. Significant import penetration will continue to impede revenue growth, as consumers demand low-cost apparel. However, developed countries such as the United Kingdom and Japan will seek out high-quality American products, allowing industry exports to experience modest growth. For these reasons, industry research firm IBISWorld has added a report on the Women's & Girls' Apparel Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Imports dominate the US apparel market with almost 90.0% of demand in 2012

Import competition has pushed the Women's and Girls' Apparel Manufacturing industry into a state of decline, with revenue estimated to drop at an average annual rate of 4.2% over the five years to 2012 to $8.6 billion. “With most apparel production moved to low-cost overseas manufacturers,” says IBISWorld industry analyst Nikoleta Panteva, “domestic companies satisfy a small part of total demand.” Import values' share of domestic demand has climbed from 82.8% in 2007 to 86.2% in 2012. Price pressures from a consolidating downstream retail sector, along with weak economic conditions worldwide, have driven many operators out of the industry. The number of firms has shrunk from 1,361 in 2007 to 1,175 in 2012. Those still in business in 2012 are reaping the benefits of growing profit margins. A shifting product mix, from low-cost apparel to high-quality, higher-priced clothing, has also helped keep profit from plummeting.

In an effort to cut costs and retain profit, operators have reduced employment, which has declined at an average annual rate of 3.0% over the five-year period. However, workers still employed have made higher average annual salaries, currently $49,200, up from $39,800 in 2007. According to Panteva, “This growth highlights the industry's focus on higher-quality manufacturing, which requires more skilled workers.” Major players VF Corporation, Hanesbrands Inc. and Kellwood Company account for under a quarter of the industry’s total revenue, making the Women’s and Girls’ Apparel Manufacturing industry fairly fragmented.

Over the next five years, revenue trends are not expected to turn around. After dropping an estimated 3.3% in 2012 due to intense import competition amid skyrocketing cotton prices, revenue is forecast to continue falling. Over the five years to 2017, IBISWorld projects that sales will decline on average annually. While profit margins are forecast to grow slightly as an increasing number of domestic manufacturers take on a more high-end focus, imports will still pose a threat to the US industry. However, developed countries such as the United Kingdom and Japan will continue to seek out high-quality American products, allowing industry exports to grow. For more information, visit IBISWorld’s Women's & Girls' Apparel Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry manufactures women's and girls' apparel from purchased fabric. Women's and girls' clothing jobbers, which perform entrepreneurial functions involved in apparel manufacture, are included in this industry and complete tasks like buying raw materials, designing and preparing samples, arranging for apparel to be made from their raw materials and marketing finished apparel.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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