David Burgess, Chairman of The Schoolwear Association, says that current supply chain problems mean it’s never been more important for suppliers to commit to their school uniform requirements – the earlier, the better.
The Schoolwear Association has great insight into the issues that its members and indeed other suppliers of clothing are currently experiencing. Between them our members supply approximately 75% of schools in the UK so we know what issues are affecting them and how they feel about it.
It is clear that the supply chain is one factor that many are worrying about. This problem is not solely restricted to schoolwear; we know that almost every sector has similar concerns. Textiles and therefore schoolwear is being affected by significant increases in raw material and energy prices, in addition availability of yarns and fabrics is less secure than in previous years and these are the essential building blocks of a stable and consistent manufacturing base.
Many of the textile manufacturing countries are experiencing significant cost of living increases which are driving up labour costs. Both India and China are experiencing booming domestic markets which have taken some of the emphasis off their export efforts. Sources of supply to Europe are becoming more costly and indeed are diminishing as this concentration on the domestic market increases.
A strong supply chain is essential for a healthy market and with the anomalies of our seasonal “back to school” trading our suppliers need to make sure that they commit to their requirements early in order to secure timely deliveries.
Retailers and schools will need to make sure that they have their needs covered for the season and we are seeing encouraging signs that this is happening, as most appreciate that this year, suppliers are facing difficult trading conditions.
The increase in the price of cotton has come as no surprise to our members. We have been monitoring prices and communicating them for some time now. Cotton prices are in the region of 50% up on this time last year. In addition, polyester and acrylic prices are also overheating as we see substitution of fibres happening in the face of price hikes in cotton.
Freight charges have also seen huge increases in comparison to 2009 levels which has to be factored into the cost of garments arriving into the UK.
This will no doubt affect our industry, particularly as inflation rises and the full impact of the increase in VAT is felt in the coming year. Suppliers to the industry, however, are doing all they can to minimise the effects and early booking is one way of helping to secure the textile pipeline.
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