What is a major disadvantage of the US apparel industry compared to others?

Prepare for the TExES AAFCS 200 Test. Utilize flashcards and multiple-choice questions with hints and explanations. Ace your exam!

Labor cost is a significant disadvantage for the US apparel industry compared to other countries, particularly those where labor is much cheaper. In many developing nations, companies can produce garments at a fraction of the cost due to lower wages, which can lead to a competitive disadvantage for US manufacturers. This difference in labor costs can affect overall profitability and pricing strategies for US-made apparel, making it difficult for American companies to compete with imported products.

Additionally, higher labor costs in the US can limit the industry's ability to scale production and adapt to quick changes in fashion trends, which is crucial in the fast-paced apparel market. Many businesses may choose to outsource production to countries with lower labor costs, impacting domestic job growth and economic stability within the industry. This factor becomes a primary challenge for US apparel companies as they strive to balance cost, quality, and consumer demand.

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