Footwear, clothing and accessories manufacturers are set to go from strength to strength in 2024, according to a new report.
Small and medium-sized firms in the sector achieved a score of 78 out of 100 in the latest Manufacturers’ Health Index, compiled quarterly by inventory software brand, Unleashed.
The index is calculated from a number of key performance metrics including sales, purchasing, and internal efficiencies that impact stocking levels and lead times across 16 manufacturing categories. A score of 50 points or more indicates that a sector is performing well against these metrics.
Of the 16 manufacturing categories analysed, clothing, footwear and accessories ranked six – above the national average of 77. It has also managed to keep its overstock levels low at £52,475, down from £77,400 in 2021.
Jarrod Adam, Head of Product at Unleashed, said: “Manufacturers in every industry category were hit by challenges from all directions in 2023 – including high inflation and rising borrowing costs.
“The UK fashion industry contributes £62 billion to the UK economy and supports 1.3 million jobs. While the cost-of-living crisis has got some people tightening their purse strings, fashion manufacturers could have fared remarkably well. High street clothing is a relatively affordable luxury compared to bigger ticket items, and demand can be bolstered by social media influencers, personalised communications and discount codes.”
Looking ahead to the coming year, Mr Adam added: “Whether manufacturers are a supplier to a household name, or trade as independent fashion brands, our analysis suggests that they are in a strong position to meet this demand because they have finely-tuned their inventory management processes. Of course, any improvements they make would put them on an even stronger footing in this highly-competitive and fast-moving sector.”
