| SIC Codes: | 2353 2341 2371 2381 3021 3142 3143 3144 3149 2369 2339 2337 2335 2331 2326 2325 2323 2322 2321 2311 2254 2253 2252 2251 |
| NAICS Codes: | 315110 315190 315210 315220 315240 315280 315990 316210 |
Companies in this industry manufacture garments made from purchased fabric and from fabric they produce themselves. Major companies include Levi Strauss, PVH, Ralph Lauren, VF Corporation, and Warnaco (all based in the US), along with Armani (Italy) and Youngor Group (China).
Demand is largely determined by consumer tastes and the comparative costs of manufacture in the US and overseas. The profitability of individual companies depends on efficient operations and the ability to secure contracts with clothing marketers. Small companies can compete effectively with large ones by specializing in a particular type of apparel manufacture. There are few economies of scale in manufacture, because of the high labor content of most apparel. The US industry is fragmented: the 50 largest companies generate less than 40 percent of revenue.
Because of the different skills and equipment needed to produce different types of clothes, manufacturers usually specialize in one type. Women's cut and sew apparel contractors, which provide contract cutting and sewing services on materials owned by apparel manufacturers, account for about 15 percent of industry revenue. Women's blouse and shirt manufacturing and women's dress manufacturing each account for about 10 percent of industry revenue.
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