Men's and Boys' Apparel Manufacturing in the US Industry Market Research Report from IBISWorld has Been Updated

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The industry is declining due to competitively cheap imports severely cutting into market share, as well as high revenue volatility and increased outsourcing and offshoring to lower-cost countries. For these reasons, industry research firm IBISWorld has updated a report on the Men's and Boys' Apparel Manufacturing industry in its growing industry report collection.

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Imports and offshoring have reduced demand for domestically made apparel, hurting revenue

Import penetration has long been a threat to the Men's and Boys' Apparel Manufacturing industry and has significantly expanded its share of domestic demand over the past 10 years. Low-priced imports jumped from 70.4% of domestic demand in 2003, to 90.6% in 2008 and to an estimated 96.9% in 2013. “Additionally, domestic companies have increasingly sent their manufacturing activities offshore to countries like China that have access to low-cost labor,” says IBISWorld industry analyst Nikoleta Panteva. The intense price competition has drastically reduced industry revenue, which is expected to decrease at an average annual rate of 13.3% to $1.8 billion over the five years to 2013. With these threats projected to persist through 2013, IBISWorld expects revenue to fall an additional 4.4% for the year.

The recession created more stress for the Men's and Boys' Apparel Manufacturing industry, with downstream demand dwindling along with consumer sentiment over much of the past five years. Men's and boys' clothing retailers slashed prices but still ended up with an oversupplied inventory. “This trend trickled back to the manufacturing sector and exacerbated revenue's downward slope,” adds Panteva. “In response, industry operators implemented their own price cuts to attract customers, though this move ultimately caused profit margins to shrink significantly, especially in 2008 and 2009.” While profit is anticipated to grow slowly in 2013, many industry participants have already opted to either consolidate or move production offshore to save on costs. Over the five years to 2013, IBISWorld expects the number of industry manufacturers to decline at an average annual rate of 5.0% to 2,043. The industry has a low market share concentration and is highly fragmented. Larger firms, such as major players VF Corporation and Hanesbrands Inc., focus on higher value-added activities, like designing and marketing, to gain a competitive advantage domestically.

The next five years are not projected to be any rosier for the industry as a whole. IBISWorld estimates revenue will continue falling in the five years to 2018. As import penetration becomes more pervasive over this period, price competition will keep revenue low. Increasing consumer sentiment, however, will set the stage for domestic production of high-quality, high-value items, like premium denim. This trend is already beginning to take shape, with the jeans and trousers segment increasing its share of revenue from 8.0% in 2008 to 19.2% in 2013. For more information, visit IBISWorld’s Men's and Boys' Apparel Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Operators in this industry manufacture men's and boys' apparel from purchased fabric. Activities also include buying raw materials, designing and preparing samples, arranging for apparel to be made from their materials and marketing finished apparel. The industry includes firms that operate their own production facilities in the United States.

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 or call 1-800-330-3772.

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Gavin Smith
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