Cheap imports and rising input costs have hurt domestic hosiery mills.
Los Angeles, CA (PRWEB) November 27, 2013
In the five years to 2013, Hosiery Mills industry revenue is estimated to fall at an annualized rate of 6.7% to $1.5 billion. During this period, consumer preferences regarding hosiery products have hurt demand, with casual dress and bare legs becoming more acceptable in the professional environment and, thus, fewer women wearing hosiery. In 2013, revenue is expected to fall 3.8%.
The rise in offshoring activity has driven industry globalization and downstream demand from consumers, who demand quality products at low prices. “As a result, many firms have offshored a large portion of their manufacturing capabilities in an attempt to reduce costs and remain competitive,” according to IBISWorld Industry Analyst Sally Lerman. In addition to declining revenue, offshoring activity has also reduced the size of industry operations because many industry companies in the United States have shifted away from manufacturing socks and hosiery, and toward design, marketing, wholesaling and importing. In the five years to 2013, the number of industry firms is expected to fall 5.6% annually to an estimated 133 businesses, while the number of employees is anticipated to fall 8.0% to 9,651.
Over the five years to 2013, rising input prices have also adversely affected the industry. In particular, cotton and oil prices have been escalating; since 2008, the prices of the industry's two most important inputs have increased 5.0% and 0.9% per year on average, respectively. “Such high costs have forced industry firms to operate with lower margins or cut costs in other areas,” says Lerman.
In the five years to 2018, industry revenue is forecast to fall as manufacturers in the industry struggle to compete on price with low-cost producers from emerging nations, such as China and Honduras. Competition from imports is also expected to reduce the size of the overall industry over the period. To counteract this trend, firms are expected to boost demand through innovations and marketing strategies, including new fabrics, improved cutting precision through laser and ultrasonic technology and more product options.
For more information, visit IBISWorld’s Hosiery Mills in the US industry report page.
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IBISWorld industry Report Key Topics
The Hosiery Mills industry comprises establishments that primarily manufacture hosiery and sock products. In company-owned and leased facilities, producers form raw materials like cotton and polyester into hosiery and socks. Products are then sold to wholesalers and retailers for resale to consumers.
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