Supply chain bottlenecks and COVID disruptions failed to dent apparel demand from US brands and retailers in 2021 as the country’s garment imports rose 27.42 per cent during the year. This came as a huge relief for exporters whose shipments had declined 16.37 per cent in 2020 following store lockdowns and factory closures, reveals the Commerce Department’s Office of Textiles & Apparel (OTEXA) stats.
China’s imports share rises
In December 2021, US’ apparel imports rose by 33.7 per cent to 2.51 billion square meter equivalent (SME) compared to December 2020. As per Sourcing Journal, apparel imports from China increased 31.45 per cent to 11.13 billion, (SME) increasing the nation’s imports share to 37.8 per cent from 36.6 per cent in 2020. The second largest exporter was Vietnam whose shipments rose 15.52 per cent year over year to 4.38 million SME in 2021. In December 2021, Vietnam’s shipments increased by 7.8 per cent to 340.73 million SME.
US imports from Bangladesh surged 37.85 per cent to 2.8 million SME during the year and by 76.7 per cent to 273.98 million (SME) in December 2021. Imports from the country were impacted by labor strife and production inefficiencies. Excessive inventory and waste in textile and apparel factories also hampered exports from the country, shows a study by the Bangladesh University of Textiles.
Exports from Asian countries dominate
Asian countries like Pakistan and India emerged the largest apparel suppliers to the US in 2021. India’s exports increased 41.69 per cent to 1.28 billion SME while Pakistan’s shipments surged by 41.89 per cent to 895 million SME during the year. In December 2021, India’s exports rose 62.7 per cent to 115.14 million SME while Pakistan’s surged 31.1 per cent to 86.41 million SME.
Exports from Indonesia and Cambodia witnessed a modest increase of 20.14 percent to 1.11 billion SME and 10.34 per cent to 1.24 billion SME, respectively. Indonesia’s imports in December increased 52.7 per cent to 91.25 million SME while Cambodia’s declined 5.9 per cent to 87.52 million SME.
Other countries that emerged amongst top 10 apparel exporters to the US included Western Hemisphere producers Honduras, Mexico and El Salvador. US imports from Honduras increased 28.13 per cent to 872 million SME during the year. Similarly, shipments from Mexico increased 21.52 per cent to 826 million SME and from El Salvador it rose 33.23 per cent to 656 million SME.
More companies take to nearshoring
As per a survey of 38 apparel companies by McKinsey & Co, 71 per cent revealed plans to increase nearshoring while 13 per cent plan to increase over 10 per cent. Around 24 per cent companies said they plan to focus on reshoring as a part of their sourcing strategy.
Central America emerged the most favored destination for these companies. Around 80 per cent of North American apparel firms said they plan to increase sourcing from the region in future.
