The United States Fashion Industry Association (USFIA) produces an annual Fashion Industry Benchmarking Study, in conjunction with Dr. Sheng Lu, Associate Professor in the University of Delaware's Department of Fashion & Apparel Studies. This annual survey of executives from leading fashion brands, retailers, importers, and wholesalers covers the business outlook, sourcing practices, utilization of Free Trade Agreements and preference programs, and views on trade policy.
USFIA Fashion Industry Benchmarking Study for 2020
In July 2020, we released the seventh-annual Fashion Industry Benchmarking Study.
Another key finding this year are the severe supply chain disruptions to U.S. fashion companies. 100% of respondents reported “supply chain disruption” as the most significant impact of COVID-19 on their business operations. These disruptions are not concentrated in one area of the supply chain. Many respondents saw disruptions with garment factories that make their products struggling with a labor shortage, contracted garment factories short of textile raw materials or facing a substantial cost increase in shipping and logistics, and barriers to conducting regular factory audits because of COVID-19. “Securing textile raw materials and production capacity has been highly challenged due to the need to implement extended payment terms, etc.” said one respondent.
Despite all the COVID-19 related disruptions, sourcing executives are continuing the trend seen in past years that as production moves out of China, the main beneficiaries are Asian suppliers. This year there is some evidence that reshoring for Made-in-USA production may increase in the next two years.