Abstract
The US is the world' s largest textile and clothing (T&C) producer, and also
the single wealthiest and
largest consumer market for T&C products. This
means it has a major influence on the world industry.
Value added in the
US industry has been falling as more production moves offshore to take
advantage of
lower costs in China and elsewhere, but the domestic industry
remains substantial, and fashion design,
retail distribution, marketing
and research and development activities all remain vibrant. BMI estimates
total value added in the US industry in 2008 was worth US$154bn in nominal
terms. Broadly speaking
this was twice the value of the comparable figure
in China, ranked as the world' s number two. The US
industry faces an
exceptionally difficult two years in 2009 and 2010 as a result of the current
recession. In
both 2008 and 2009, for the first time since the 1940s,
annual clothing demand will have contracted,
creating challenging
conditions for the main companies in the sector.
Overall US textile and
clothing value added will fall by 7.5% in 2009, and again by 3.0% in 2010,
reflecting very difficult international economic conditions. We expect value
added to fall gain in 2011,
but much more modestly (by 1.2%). The
industry' s trade performance will also reflect the especially
difficult
international economic situation. Combined T&C exports will fall by 22.3% to
US$14.64bn,
with imports contracting by 19.2% to US$90.12bn. As a result
the US will register a T&C deficit of
US$75.48bn.
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