Little Falls, NJ - Setember 22, 2010
Clothing manufacturers including custom t-shirt makers will raise all prices by year’s end in response to the current worldwide cotton crisis.
According to the U.S. Department of Agriculture many farmers have chosen to raise grain instead of cotton causing a further shortage in already depleted raw stock. Currently 80% of U.S. domestic cotton is exported. The 2010 worldwide cotton harvest will be the lowest based on acreage in 20 years. It is anticipated that given the current price surge more U.S. farmers will plant cotton in 2011.
In addition, China, which grows the most cotton, has undergone a significant drought. In response, its 2009 crop output fell 14.6% to 6.4 million tons.
The custom t-shirt market will be adversely impacted. Wholesale buyers of t-shirts should be prepared to raise retail costs in advance of pending price increases. "Add $2 to that $12 T-shirt next year," said Ilse Metchek, president of the California Fashion Association, a non-profit group representing the state's apparel and textile industry. And prices could be even higher than that if businesses also factor in higher labor costs overseas, she said.
Goblueheron.com President, Kevin Kelly said “prices will rise and the increased costs will be passed onto our customers. Our wholesale custom tee shirt customers must expect that this is the case now that mainstream news outlets are reporting on this story in prime time. Walmart, JC Penny, and Sears have already said that prices will increase by Christmas of this year. Our prices will still be lower than many competitors in the printed t-shirt market. We will be raising our costs to protect our margins in 2011 and this should not come as a surprise or be a matter of contention.”
Kelly added that many customers do not understand that custom tee shirt printer’s costs are defined by commodities such as cotton and petro chemical futures markets. He closed by saying that “ U.S. consumers love cotton, they will continue to buy.”
We welcome your comments and questions. Contact Us.
|