Cut and Sew Manufacturers in the US - Industry Market Research Report

Sew what: Industry revenue will fall despite beneficial economic trends and expanding niche markets

The industry encompasses apparel contractors that cut and sew apparel and accessories using materials owned by others. For decades, increased competition from low-cost foreign apparel manufacturers has diminished demand for services rendered by industry operators. To remain competitive, operators have increasingly abandoned lower-value products in favor of premium segments, opting to compete on the basis of quality rather than price. Furthermore, industry operators have benefited from rising disposable income while entering 2023, which has bolstered demand for domestically produced apparel. Despite beneficial demand trends, the industry has still experienced declining revenue due to increased import penetration, rising input costs and the effects of the COVID-19 pandemic. As a result, revenue has decreased at a CAGR of 5.0% to $2.0 billion in 2023, including an expected decrease of 1.3% in 2023. Moving forward, given the significant price advantage of foreign manufacturers and tepid consumer demand for apparel, industry demand is expected to continue its decline.

Cut and sew manufacturers, commonly referred to as cut and sew apparel contractors, create apparel and accessories out of materials owned by the companies that contract them. The main difference between this industry and other apparel manufacturing industries is the ownership of the fabric.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.