A new United States Fashion Industry Association (USFIA) report has revealed rising costs are a top concern for US apparel companies in 2021.
The latest United States Fashion Industry Association (USFIA) Fashion Industry Benchmarking Study found a surge in sourcing costs is a concern for 97% of apparel executives in 2021. Plus, sourcing costs are expected to increase further this year with 37% expecting a substantial increase from 2020.
United States Fashion Industry Association president Julia Hughes explains: “The economic recovery means there are inflationary pressures throughout the economy – and the fashion industry has not escaped. After Covid-19, the biggest concern today is higher costs throughout the supply chain. The survey finds that almost everything becomes more expensive in 2021.”
Disruptions from Covid-19 have driven up production and sourcing costs and are causing shipping delays and supply chain disruptions. The report explains that many have employed strategies such as strengthening relationships with key vendors, emphasising sourcing agility and flexibility, and leveraging digital technologies to overcome these issues.