US Apparel Supply Chain: Discussion On Rising Costs

The rise in costs is likely to form a "great storm of uncertainty in pricing" in 2011, prompting the US. Ready-made clothes The supply chain will discuss the challenges facing this item in the annual meeting of Ming (2011).

Mike Todaro, general manager of American Apparel Producers' Network (AAPN), said: "the cost of rising will force manufacturers to go bankrupt". "AAPN can only do the inviting garment supply chain, from top to bottom leaders to work together to discuss together, as at the beginning of this year, 120 companies from 90 enterprises have two days of discussion on sustainable business issues."

At present, many factors of rising production costs are taking shape, including the decline in global cotton production, the shortage of cotton in the cotton exporting countries, the shortage of high-grade fine cotton yarn, and the reduction in the demand for garments during the recession, resulting in the cotton growers being converted to other crops, resulting in high cotton prices, rising grain and wage costs, and increasing the cost of raw materials including nylon, polyester and elastic rayon, and yarn supply bottlenecks and delays, and the risk of sudden cancellation of overseas contracts.

　 AAPN "This is a typical example of our garment industry once again caught in the garment supply chain," said Carlos Arias, President and chief executive officer of Guatemala jeans garment factory Denimatrix.

"In terms of supply of raw materials, the cost is rising. However, the continuous demand of consumers for cheap goods will increase the cost of making garments in the future, because the cost can not be reduced by reducing the quality and slowing down production speed, and we need to focus on the elasticity and innovation of garment production."

Another factory owner said, "our customers are frustrated at the rise in the cost of garments, but their superiors ask them to keep the cost constant or to lower the cost."

Carlos said, "enterprises may choose raw materials and labor. Use inferior materials and turn out substandard goods This is a risk in an inflationary environment "." how will we jointly analyze and cope with these problems and industrial interests of our individual manufacturers will enable us to take a different action plan. "

AAPN is scheduled to hold its annual meeting in Miami on May 1, 2011 ~3.