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A Big Storm In Pricing Uncertainty In The US

2010/10/9 21:36:00 45

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The rise in the cost of garments may form a "2011".

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The "great storm of uncertainty" has prompted the US garment supply chain to discuss the challenges facing this item in the annual meeting of Ming (2011).

General manager of American Apparel Producers Network (AAPN), USA

Mike Todaro

It said, "the cost of rising will force manufacturers to go bankrupt". "What AAPN can only do is to invite the top-down leaders to work together to discuss together. It is just like 120 businessmen from 90 enterprises at the beginning of this year for two days of discussion on sustainable business issues."

At present, many factors of rising production costs are taking shape, including the decline in global cotton production, the shortage of cotton in the cotton exporting countries, the shortage of high-grade fine cotton yarn, and the reduction in the demand for garments during the recession, resulting in the cotton growers being converted to other crops, resulting in high cotton prices, rising grain and wage costs, and increasing the cost of raw materials including nylon, polyester and elastic rayon, and yarn supply bottlenecks and delays, and the risk of sudden cancellation of overseas contracts.

"This is a typical example of our garment industry once again caught in the garment supply chain," said AAPN CEO and Carlos Arias, executive director of Guatemala jeans garment factory, Denimatrix.

"In terms of supply of raw materials, the cost is rising, but consumers are right.

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In the future, the cost of making garments will increase, because the cost can not be reduced by reducing the quality and slowing down the production speed, and the elasticity and innovation of garment production should be emphasized. "

Another factory owner said, "our customers are frustrated at the rise in the cost of garments, but their superiors ask them to keep the cost constant or to lower the cost."

Carlos said, "enterprises may choose Jerry building in raw materials and labor force, which is a risk in an inflationary environment". "How will we jointly analyze and cope with these problems and industrial interests of our individual manufacturers will enable us to take a different action plan."

AAPN is scheduled to hold its annual meeting in Miami on May 1, 2011 ~3.