|Last Quarterly Update:||2/13/2017|
|SIC Codes:||2253, 2353|
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Companies in this industry manufacture garments made from purchased fabric and from fabric they produce themselves. Major companies include Hanesbrands, Levi Strauss, PVH, Ralph Lauren, and VF Corporation (all based in the US), along with Michael Kors (based in Hong Kong) and Prada (Italy).
Global revenue from apparel manufacturing is about $520 billion, according to the Global Industry Almanac. China, the world's largest apparel manufacturer, accounts for about 40% of the world export market. The European Union, Japan, and the US are the largest importers of apparel, together accounting for more than 80% of imports.
The US apparel manufacturing industry includes about 6,900 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $12 billion.
Demand is largely determined by consumer tastes and the comparative costs of manufacture in the US and overseas. The profitability of individual companies depends on efficient operations and the ability to secure contracts with clothing marketers. Small companies can compete effectively with large ones by specializing in a particular type of apparel manufacture. There are few economies of scale in manufacture, because of the high labor content of most apparel. The US industry is fragmented: the 50 largest companies generate less than 40% of revenue.
Because of the lower costs to manufacture apparel abroad, the US imports more clothes than it makes domestically. Imports account for about 95% of the US market. The ...
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