Apparel Imports Dip, Costs Rise
U.S.companies are importing less apparel andfabric from foreign companies but paying morefor it.
Accordingto the most recent U.S. Census figures,apparel and textile imports from aroundthe world slipped 4.5 percent for the 12-monthperiod ending May 31, while costs ofthose goods inched up 4 percent.
Muchof the price jump is due to rising cotton pricesthat last year spiked to an all-time highof nearly $2.20 a pound. Since then, October cottonfuture prices have settled down to 75cents a pound. But many manufacturers are stillworking through their higher-priced cotton suppliesor keeping prices up to improve profit margins.
Forthe 12-month period, the United States imported53.57 billion-square-meter equivalents (SME)from around the world. That translatesinto $102 billion in goods.
Chinais still the largest provider of apparel andtextiles to the United States, even though Chineseshipments to the United States declined 3percent to 25.5 billion SME. However, theimport cost of that was $41 billion, a 3.2percent rise from the previous year.
Appareland textile imports from Central America—whichhas a free-trade agreement withthe United States and supplies mostly cottonT-shirts, cotton pants, underwear and socks—weredown 8.9 percent to 3 billion SMEbut up 5.4 percent in price to nearly $8 billion.
Vietnamheld steady on all fronts. The United Statessaw its apparel and textile imports fromthat country edge up almost 1 percent to 3.1billion SME, but prices slipped 9.3 percent tonearly $7.4 billion. Vietnam is now the second- largestprovider of apparel to the United States.
Onthe export front, the United States made progress.For the 12-month period ending May31, apparel and textile exports were up almost7.5 percent to $22 billion. About onethird ofthat was in fabric. Canada, Mexico and CentralAmerica received the largest share of U.S.exports.
MostU.S. exports to Mexico and Central Americawere in fabric, while fabric and apparel exportsto Canada were evenly divided. TheUnited States shipped $5.2 billion in appareland textiles to Canada, up 11.3 percent, and$5.1 billion to Mexico, up 11.85 percent. Textilesand apparel exports to Central Americasaw a small 0.80 percent increase to $3.5 billion.—Deborah Belgum
