The North American apparel and footwear industry is likely to lose $9 and $17 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) in 2022 due to supply chain disruptions. As an analysis by Chicago-based global management consultancy firm Kearney says, the industry experienced significant supply disruptions in 2021, frustrating companies' efforts to meet rebounding consumer demand.

North America's apparel and footwear industry also endured a variety of unanticipated cost increases in 2021, including the rise in cotton prices by 40 per cent, trans-Pacific container shipping costs by 300 per cent, air freight costs by 50 per cent, and over the road (OTR) freight by 20 per cent. Labor shortages also drove up logistics, warehousing and retail wages leading to industry-wide spikes in the cost of goods sold (COGS) and general and administrative (G&A) expense. The analysis recommends reduction in supply chain complexity, fresh sourcing strategies and more rigorous alignment of inventory management with merchandising for companies in this sector.