Industry News
USFIA Benchmarking Survey: Political Uncertainty Joins Economic, Compliance, and Logistics Challenges in 2024
The United States Fashion Industry Association (USFIA) Benchmarking Survey offers some valuable insights into the current state of the fashion industry.
In 2024 sourcing executives continue to have the same top two business challenges as last year – worrying about the economy and inflation and taking steps to manage and eliminate forced labor risks in the supply chain. They also see an elevated level of concern about the impact of shipping and supply chain disruptions as well as geopolitical tensions.
There are many positive findings in this year’s Survey. The overall business outlook is improving. Companies continue to diversify sourcing. Most sourcing destinations show improved rankings for the key criteria of speed to market, flexibility, and agility. There is a new focus on Asia sourcing moving to India and sourcing executives are looking for opportunities to expand sourcing in the Western Hemisphere – especially from our Free Trade Agreement partners in CAFTA and USMCA.
USFIA President Julia K. Hughes credited Dr. Sheng Lu, Professor and Director of Graduate Studies in the University of Delaware’s Department of Fashion & Apparel Studies who analyzed the data and developed important conclusions and the industry sourcing executives who shared their views and their insights.
Top Business Challenges
• Inflation and economic outlook: The prevailing economic conditions pose significant challenges for fashion companies. • Forced labor risks: Ensuring ethical supply chains is a top priority. • Supply chain disruptions: Managing shipping delays and other disruptions remains a critical issue. • Geopolitical instability: Uncertainties in the global political landscape impact sourcing and operations. • Protectionist trade policies: The evolving trade landscape presents both opportunities and risks.Industry Outlook• Optimism for the future: Despite challenges, 75% of respondents expressed optimism about the next five years. • Diversification of sourcing: Fashion companies are actively exploring new sourcing destinations, particularly in Asia and the Western Hemisphere. • Sustainability and compliance: There's a strong focus on making sourcing more sustainable, ethical, and socially responsible. Increased resource allocation is planned for these areas.
Additional Findings
• Growing concern over protectionist trade policies: The study highlights a sharp increase in concerns about protectionist measures. • Focus on emerging sourcing destinations: Companies are exploring opportunities in countries like those in Sub-Saharan Africa.• Impact of AGOA: The African Growth and Opportunity Act (AGOA) is seen as a potential catalyst for increased sourcing from African nations.
For a deeper dive into the study, you can refer to these resources:
USFIA's official report: https://www.usfashionindustry.com/resources/research-reports/usfia-fashion-industry-benchmarking-study
Shenglu Fashion's summary: https://shenglufashion.com/2024/07/29/2024-usfia-fashion-industry-benchmarking-study-released/
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