Abstract
The US is the world’s largest textiles 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$154.9bn in nominal
terms. Broadly speaking
this was twice the value of the comparable figure
in China, the world number two. The US industry faces
an exceptionally
difficult two years in 2009 and 2010 as a result of the 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 T&C 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 again 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$14.72bn, with
imports
contracting by 19.1% to US$93.77bn. As a result, the US will register a trade
deficit of
US$79.04bn.
| 
View Cart
