Apparel Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,100 apparel manufacturers in the US transform fabrics into clothing and accessories. The companies described in this report are known as “cut-and-sew” apparel manufacturers, and produce items such as dresses, suits, shirts, and pants. “Cut-and-sew” manufacturers differ from apparel knitting mills, which produce knit products, such as hosiery, socks, and underwear. Apparel firms design and market apparel, but may outsource their entire manufacturing operations to firms outside the US.
Demand Driven by Trends
The apparel market is driven by constantly evolving fashion trends and fads, many of which can be short-lived.
Complications from Foreign Production
Apparel companies that rely on foreign firms for any part of production are more vulnerable to remote management problems, increases in transportation expenses, and trade-related issues.
Industry size & Structure
A typical apparel manufacturer employs about 12 workers and generates $1-2 million annually.
- The apparel manufacturing industry consists of about 4,000 companies that employ about 48,100 workers and generate $7.4 billion annually.
- The industry is fragmented - the 20 largest companies account for 22% of industry sales.
- Most large apparel companies, such as VF Corporation, PVH Corp., Levi Strauss, and Ralph Lauren, outsource the production of garments to low-cost manufacturers located abroad. Gildan, a large Canadian apparel manufacturer, owns American Apparel, Comfort Colors, and other brands, with manufacturing facilities in the US and overseas.
Industry Forecast
Apparel Manufacturers Industry Growth
Recent Developments
Mar 28, 2025 - Domestic Manufacturers’ Business Complicated by Tariffs
- According to Sourcing Journal, US-based apparel manufacturers face higher prices on foreign-made inputs, loss of business in sectors affected by duties, and waning goodwill from non-US customers thanks to new tariffs levied on China, Mexico, and China by the Trump administration. On a positive note, Mitch Gambert, CEO of Gambert Shirtmakers, said he has seen about a 20% increase in interest from brands and retailers looking for domestic sourcing. However, costs in key areas have increased due to tariffs. Gambert is paying an additional $5,400 on each order of 5,000 buttons sourced from China. When a Canadian fabric wholesaler implemented a 33% surcharge on all shipments, Gambert had to cut 50 fabric options from the portfolio and cancel already-placed orders. US apparel manufacturers are also concerned with higher costs for machinery, most of which are sourced from Asia or Europe.
- Consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty, according to a report in CFO Dive. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer confidence fell in March 2025. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.”
- A new global luxury market forecast from McKinsey projects that apparel, including ready-to-wear and footwear, will grow between 2% and 4% between 2025 and 2027, according to Fashion Dive. The “State of Luxury: Fashion” report found that the US is expected to outpace other regions in luxury market growth, with the market expected to grow between 4% and 6% compared to lower projections for Europe and China. The personal luxury goods market, which includes fashion, leather goods, watches, and jewelry, has grown in recent years, with 5% growth each year between 2019 and 2023, mostly propelled by price increases.
- Apparel costs are expected to increase according to a new study by the National Retail Federation (NRF) of the estimated impact of President Donald Trump’s tariff proposals. The study looked at the effect of tariffs on prices of major consumer product categories including apparel, toys, furniture, household appliances, footwear and travel goods. Trump has proposed a universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the NRF study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.8 billion to $14.2 billion more for toys, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
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