Clothes prices to rise as cotton hits 15 year high

This is but one of the headlines in recent press, highlighting the problems facing the clothing and textile markets worldwide and it is not only cost, but capacity that is affecting the industry.

The past decade has seen a trend of low cost clothing flooding the country and this has not been just in the retail sector but also the corporate markets and as many in the corporate market will testify, this has been the undoing of several firms over this past 12 months. Corporate clothing buyers have come to expect cheap prices for their clothing and there have been several companies scrambling to supply at these low prices with low margins. The events over the past 12 months in terms of soaring costs and a lack of manufacturing capacity have squeezed many companies past the point of operating and they have had no choice but to go into administration.

This has obviously left many customers uneasy as to the continuity of their supply routes and has also left many unpaid suppliers in a very difficult position and on the verge of administration through no fault of their own.

What is going to happen?

It is my opinion that over the coming few months and certainly over the next 12 months, we will see a more level playing field in terms of prices within the UK Corporate Clothing Industry, as companies can no longer afford to charge the absolute minimum margins. With the issues seen this year, minimal margins are simply a recipe for disaster as any profits are swallowed by the rising costs and companies are ending up supplying contracts at losses. Prices will increase on average between 5 and 8% but the pain does not stop there as the issue of capacity is now starting to bite the UK industry.

A recent report has quoted; the shortage of workers, more lucrative domestic market and in increase in demand as the reasons that many UK firms are being pushed to the back of the queue when it comes to placing manufacturing orders and as a result, the UK corporate wear industry is becoming starved of garments to supply into the market place. We are entering a period of reversal! Some years ago sourcing was moved further a field into Asia from Europe and now Europe is looking more and more like a sensible option for manufacturing. The costs may be higher but there is certainly a greater degree of flexibility, shorter lead times and smaller order volumes required and of course skilled staff.

Corprotex is well placed in these turbulent times as we have sourcing routes which are in use in Asia but we have never left Europe and have certainly never left the UK where manufacturing is concerned. We are very proud of supporting the UK garment manufacturing industry and doing our part in keeping this industry alive in the UK. The routes we have, enable us to offer our customers excellent continuity in supply and a very flexible manufacturing solution. Although the costs will no doubt rise this year we are simply doing what we have to so that we can continue to supply our customers with the quality garments and service which they have come to expect and by increasing our prices we are ensuring that we will still be here in 12 months with the ability to continue to supply our customers and also so that we can keep supporting the European and UK garment manufacturing indstries.

Please see the two links below from the Daily Telegraph and SKY news, where they have given a very concise summary of the problems facing the UK’s textile industry.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8014354/Price-of-clothes-set-to-rise-as-cotton-hits-15-year-high.html

http://news.sky.com/skynews/Home/Business/Cotton-Price-Cost-Hike-Could-Mean-End-Of-Cheap-Clothing-As-Bargain-Chains-Raise-Shop-Prices/Article/201009415743868?chooseNews=Popular_stories