As per the sixth annual Fashion Industry Benchmarking Study by the United States Fashion Industry Association’s (USFIA), nowadays sourcing executives are more cautious and less optimistic about the five-year outlook for the US fashion industry. A year ago around 84 per cent survey respondents were either optimistic about this outlook. This year that number has dropped to 64 per cent. And one-quarter of the respondents were reported to have taken a ‘neutral’ stance.

Conducted in conjunction with Dr Sheng Lu, Associate Professor in the University of Delaware Department of Fashion & Apparel Studies, the survey asked respondents about the business outlook, sourcing practices, utilisation of Free Trade Agreements and preference programmes, and views on trade policy. It surveyed executives from 39 leading fashion brands, retailers, importers and wholesalers including some of the largest brands and retailers in the country.

Another key finding of the survey was the biggest challenge faced by the fashion industry faced today being the impact of increasing production and sourcing costs. Around 84 per cent of respondents termed it as a major challenge.