WASHINGTON, DC — July 29, 2024 — The United States Fashion Industry Association (USFIA) released its 11th annual Fashion Industry Benchmarking Study, a survey of executives from leading fashion brands, retailers, importers and wholesalers, including the nation’s largest brands and retailers.
The survey, conducted in collaboration with Dr. Shen Lu, professor in the School of Fashion and Apparel at the University of Delaware, asked respondents about their business outlook, sourcing practices, utilization of free trade agreements and preferential programs, and their views on trade policy.
Key findings from the 2024 Fashion Industry Benchmark Study include:
The top five business challenges for 2024 are U.S. inflation and economic outlook, managing forced labor risks in the supply chain, shipping delays and supply chain disruptions, managing geopolitical and other political instability related to sourcing, and the U.S. protectionist trade policy agenda. 75% of respondents are 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 crucial focus for U.S. fashion companies. 82% of respondents plan to allocate more resources toward sustainability and compliance in 2024, and nearly 95% of respondents plan to increase their operational budgets or keep them at the same level as last year to support enhanced sustainability and compliance efforts.
“We always expect concerns about protectionist policies to increase in a presidential election year, but the jump from 15% last year to 45% this year highlights a new level of concern among sourcing executives. Both parties have pushed for the use of tariffs as a trade policy, and many of the proposals would be difficult or impossible to plan for. Despite optimism heading into next year, this year’s report shows growing concerns from the fashion industry about protectionist policies and geopolitical risks.”
-USFIA President Julia Hughes
Fashion Industry Benchmarking Study: https://www.usfashionindustry.com/pdf_files/2024/2024_USFIA_Benchmarking_Study.pdf
Posted on July 29, 2024
Source: United States Fashion Industry Association (USFIA)
