Apparel Manufacturer Insights and 5 Key Strategies for Growth in 2023
To measure the key priorities, top challenges and best strategies of apparel manufacturers, including technology and transformation, Aptean surveyed North American producers of fashion and clothing; footwear; textiles and fabrics; and home goods. Respondents were seasoned organizations, with at least a decade of experience in the industry
In Aptean's 2023 Fashion and Apparel Manufacturing Report for North America, we provide insights and guidance to help fashion and apparel manufacturers confront business challenges head on, strengthen supply chain operations, protect profit margins and leverage technology for greater automation and efficiency. Below are some highlights:
2023 Key Priorities:
Drive for Future Growth
Apparel manufacturers have moved away from pandemic-related struggles and are driving toward future-oriented, transformative initiatives. Over the past three years, they have already reduced waste, cut costs and improved safety. No longer in survival mode, they can once again invest in growth and competitiveness initiatives.
Today, fashion brands are more likely to be focusing on employer issues, brand/customer experience and Environmental Social and Governance (ESG) initiatives. When asked to name the top strategies they will focus on in 2023, apparel manufacturers honed in on growth, workforce and customer experience priorities.
Focus on growth
Brands providing an exceptional customer experience will be able to support the new customer acquisition that 38% cited as a key priority. About one-third of manufacturers intend to improve customer satisfaction and 30% will focus more on innovation and new product development. To protect profit margins, 32% are optimizing product pricing for current market conditions.
Competition for talent
Maintaining a skilled, experienced workforce helps brands achieve growth. The second-ranked key priority was employee retention. Concerns centered around retaining existing employees (34%) rather than recruiting for high-performing teams (18%). Manufacturers are setting a high priority on retaining employees familiar with the specific operations of their lines, equipment and products.
Sustainability and resilience
Finally, manufacturers are interested in improving sustainability and business resilience. To that end, 32% of manufacturers want to improve operational efficiency and integration and 28% are prioritizing improvements in supply chain resilience. Improved supply chains will be able to support more scalability and growth. Nearly one quarter of apparel businesses plan to focus on meeting ESG targets such as using more recycled materials, reducing fabric waste and decreasing energy use.
For more findings from the survey, including the 5 key strategies fashion and apparel companies will use to drive growth in 2023, view the full report here.
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