Tactical and Service Clothing Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

Increased government consumption, which declined over the previous five-year period, is expected to drive revenue growth over the next five years. For these reasons, industry research firm IBISWorld has updated a report on the Tactical and Service Clothing Manufacturing industry in its growing industry report collection.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInShare on PinterestEmail a friend
Revenue growth will slow, as defense spending winds down and outsourcing intensifies.

New York, NY (PRWEB) June 30, 2014

The Tactical and Service Clothing Manufacturing industry depended heavily on funding of defense and domestic protective services. Military personnel, firefighters, police officers and emergency medical technicians (EMTs) require apparel made of highly functional and protective fabric (i.e. fire-resistant, waterproof and puncture-protective). Therefore, demand for industry products is closely linked to activity in these downstream industries. “However, over the past five years, there has been a substantial slowdown in federal spending on defense and overall government consumption,” according to IBISWorld Industry Analyst Zeeshan Haider. Consequently, industry revenue has been unable to keep pace with its historical growth trend and is expected to grow at an annualized rate of 0.5% to $262.7 million over the five years to 2014. However, strong demand from resurging markets, such as chemical manufacturing and oil and natural gas extraction, is expected to boost revenue 4.5% in 2014.

Despite rising revenue, profitability for industry operators has declined. In 2010 and 2011, the skyrocketing prices of cotton and synthetic fibers like nylon and neoprene put a damper on margins. “These inputs constitute the largest share of industry expenses, so an increase in their prices can be detrimental,” says Haider. To cut costs and improve profitability, many participants have sent manufacturing activities to operators in low labor-cost countries (a process known as outsourcing). This trend has limited the need for domestic employment, which has barely increased over the past five years.

This industry is expected to make a strong recovery over the five years to 2019. Increased government consumption, which declined over the previous five-year period, is expected to drive revenue growth over the next five years. Additionally, reshoring of chemical, fertilizer and pesticide manufacturing jobs to the United States is expected to create another avenue for this industry to grow. These two markets require high-quality service apparel, which will boost demand for industry items.

For more information, visit IBISWorld’s Tactical and Service Clothing Manufacturing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry primarily manufactures tactical apparel for the personal, military and service (e.g. police and fire service) markets. Tactical apparel describes clothing with specialized functions such as fire protection, puncture resistance, high visibility and water repellence. The industry does not include manufacturers of safety equipment such as body armor and bulletproof vests.

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.


Contact

  • Gavin Smith
    IBISWorld 2
    +1 (310) 866-5042
    Email