WASHINGTON, D.C. — July 29, 2024 — The United States Fashion Industry Association (USFIA) has released the eleventh annual Fashion Industry Benchmarking Study, a survey of executives from leading fashion brands, retailers, importers, and wholesalers, including some of the largest brands and retailers in the country.
Conducted in conjunction with Dr. Sheng Lu, Professor in the Department of Fashion and Apparel Studies at the University of Delaware, the survey asked respondents about their business outlook, sourcing practices, utilization of Free Trade Agreements and preference programs, and views on trade policy.
Key findings from the 2024 Fashion Industry Benchmarking Study include:
- The top five business challenges in 2024 are: inflation and economic outlook in the U.S., managing the forced labor risks in the supply chain, shipping delays and supply chain disruptions, managing geopolitics and other political instability related to sourcing, and the protectionist trade policy agenda in the U.S.
- 75 percent of respondents feel optimistic or somewhat optimistic about the next five years.
- U.S. fashion companies are actively exploring new sourcing opportunities, with a particular focus on emerging destinations in Asia and the Western Hemisphere.
- Making apparel sourcing more sustainable, ethical, and socially responsible remains a pivotal focus for U.S. fashion companies. 82 percent of respondents plan to allocate MORE resources toward sustainability and compliance in 2024 and nearly 95 percent of respondents also plan to either increase their operational budget or maintain it at the same level as last year to support enhanced sustainability and compliance efforts.
“We always expect greater concern about protectionist trade policy during a Presidential election year,” said Julia Hughes, president of USFIA. “However the sharp increase from 15 percent last year to 45 percent this year highlights a new level of concern from sourcing executives. Both parties advocate using tariffs as trade policy, and many of the proposals are difficult, if not impossible, to plan for. While there is optimism for the year ahead, this year’s report shows greater concern about protectionist policy and geopolitical risks by the fashion industry.”
Fashion Industry Benchmarking Study: https://www.usfashionindustry.com/pdf_files/2024/2024_USFIA_Benchmarking_Study.pdf
Posted: July 29, 2024
Source: The United States Fashion Industry Association (USFIA)
