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There has been much discussion of late concerning the future direction in the pricing of healthcare and image apparel textile products.  This is an exceedingly complex subject, fully dependent on ever changing global conditions, encompassing both supply and demand equations.  This update will discuss the following topics:

 

It is well documented that cotton prices have dropped on the futures exchanges since peaking in March 2011.  It is, however, important to note that, at this time, cotton prices on the commodity exchanges still represent an increase of over 20 percent from a year ago.  Additionally, these lower-priced cotton futures reflect fabrics that will be shipped at the very end of 2011.  This lower priced cotton will not work its way into the system in the form of finished garments until late spring of 2012.  Our company took long term positions for fabrics at higher prices in order to ensure total continuity of product to our customers throughout the cotton crisis.  Uninterrupted availability of product for our customers was our priority and it will take time for these higher price positions to work their way out of our system.

 

Download the complete report on the Global Textile Pricing Update by Alan Schwartz, President of Superior Uniform Group.