The US is among the world's biggest clothes merchants and consumers. Indeed, the country's interest in fashion is ever booming. Generally, the fashion industry in America consists of low-cost outlets offering inexpensive clothes and other accessories- these are targeted towards a wide range of customers, particularly teenagers. Experts give varying versions regarding the value of this industry. In 2008, some analysts put the figure at $50 billion. Undoubtedly, the USA is a global fashion leader; it wears more clothing than most other countries. The industry takes advantage of consumer spending; it provides jobs and benefits to millions worldwide.
By 2015 the US Fashion Industry was worth more than $244 billion. The industry had a revenue of $154 billion and an operating profit of $14.3 billion that year. It produces more than 35,000 different products each year. The United States National Clothing and Footwear Association estimate that the value of the US apparel industry in the United States was more than $531 billion in 2016. Today, the figure is more than $473 billion; some consider this to be the largest and most advanced industries in the world.
Undoubtedly, the industry has a considerable global value. Its market size is measured in billions of dollars. The industry's positive return on capital estimated ratio is 9%. Since it's large, it has given rise to many famous brands. This industry is known for what some describe as its 'shapeless fashion.' Regardless, it has grown over the years to embrace changing trends and preferences.
Analysts estimate that the US fashion industry generates more than $500 billion in economic impact each year. This includes $482 billion in consumer spending and an additional $63 billion in business, governmental appropriation and export trade. According to recent reports from a US market research company (Research and Markets), the US fashion industry may be worth over $1 trillion. Analysts expect the industry to continue producing considerable revenue in the coming years, even as concerns about artificial intelligence and machine learning grow. The industry's worth is often calculated in terms of sales and employment. The report also indicates the US fashion industry's worth may represent 2% of the global apparel market.
Generally, analysts agree that the US fashion industry is precious. As noted, it's worth over $550 billion; there's no doubt the US is the most popular destination for global fashion brands looking for skilled labour; there's a considerable infrastructure to manufacture such products. The industry provides more than 1,600 jobs for every $1 million of wages paid to its workers. Meanwhile, according to research from Brookings Institution, the employees generate $8 billion in taxes each year.
For decades, pundits have estimated the cumulative worth at about $100 billion; it has undoubtedly become a worldwide industry with lots of potential. The country's unique qualities and culture have enabled this business to flourish into a top product. In addition, some factors make the United States attractive to international fashion brands; one is the affordability of products sold by the brands.
According to a World Bank report, the US fashion industry is worth a whopping $930 billion. This makes it the third-largest industry in terms of revenue in the world. With a projected 5 per cent annual growth rate, this number could rise substantially over the next 20 years.
The industry includes everything from clothing and accessories to manufacturing shoes, clothes, furniture and toys. It includes how many people work there. Interestingly, the number of jobs in the US fashion sector has grown by 20% over the past ten years. In 2013, the US fashion industry generated $617 billion, or 20 per cent of the country's total economic activity. The sector contributes a lot to the economy; it helps create jobs for the nation.
Undeniably, the US fashion industry is worth billions of dollars. However, some ask: what are its future prospects? In the past, the sector became unsustainable because some fast fashion companies were producing low-quality clothes- this can't be rejuvenated easily- it takes time. Thus, some industry drivers have been pushing for a boycott of fast-fashion products. Further, many stores refuse to sign contracts with these companies since they do not want to disappoint customers who have followed them for years by buying their merchandise at bargain prices. So, which way the US fashion trade? 2023 could provide better insight.