Apparel Manufacturers NAICS 3152

Jan 21, 2026 - Slower Growth Forecast

• Sales for the US apparel manufacturers industry are projected to grow at a CAGR of 0.59% between 2025 and 2029, slower than the overall economy's anticipated growth, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the nondurable goods manufacturing industries including apparel manufacturers. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. The forecast noted that a tighter immigration policy could limit the expansion of the labor supply and job growth for nondurable goods manufacturing industries. However, labor productivity could still improve due to new technologies such as AI and 3-D printing as well as adjustments forced by the pandemic.
• The Apparel, Leather & Allied Products industry is one of 15 manufacturing industries reporting contraction in December’s Manufacturing ISM Report on Business. The Apparel, Leather & Allied Products industry reported a decline in new orders, a decrease in production, lower employment, and lower inventories in December. Additional manufacturing industries reporting contraction during the period were Wood Products; Paper Products; Textile Mills; Chemical Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Petroleum & Coal Products; Primary Metals; Miscellaneous Manufacturing; Plastics & Rubber Products; Fabricated Metal Products; Machinery; Food, Beverage & Tobacco Products; and Transportation Equipment. Overall, economic activity in the manufacturing sector contracted for the tenth consecutive month in December, with the Manufacturing PMI registering 47.9%.

• Apparel manufacturers are facing significant disruption from US tariffs, which have sharply increased costs and reshaped sourcing strategies, according to a report in the Business of Fashion (BOF). The BoF–McKinsey State of Fashion 2026 report showed that duties on apparel and footwear imports spiked from 13% to 54% in spring 2025 before easing to 36%, above historical norms. With the US importing 89% of apparel and leather goods, manufacturers are among the hardest hit. Some 76% of fashion executives say tariffs and trade disruptions will be the key factors shaping the industry in 2026. Supply chains are shifting: US imports from Cambodia rose 42% between 2019 to 2024, while imports from China fell 30%. To offset margin pressures, brands are raising prices, renegotiating supplier terms, and streamlining assortments. Manufacturers are diversifying production footprints, with expansions into Vietnam and Kenya, underscoring the need for agility in a volatile trade environment.
• Apparel prices were 0.6% higher in December 2025, compared to the previous year, according to the Consumer Price Index by the US Bureau of Labor Statistics (BLS). Prices for the category were down 1.3% from the previous month. Employment by apparel manufacturers fell 1.6% in September 2025 compared to a year ago, according to the BLS. Employment in the industry for the past decade has fallen by 39.6%, lower than the 13% growth in overall private employment. Producer inflation for cut and sew apparel manufacturers was up 1.2% in September 2025 compared to a year ago, according to producer price data released by the BLS.