The apparel brands and fashion companies will continue to buy readymade garment products (RMG) from Bangladesh, which remains a popular sourcing destination with high growth potential, though not quite as high as last year. Similarly the brands will also retain China as their major outsource for fashion wear, according to the Washington-based US Fashion Industry Association (USFIA) on Friday. “US fashion companies are not moving away from China, and Bangladesh remains a popular sourcing destination with high growth potential, though not quite as high as last year,” USFIA said in a statement in its website. The USFIA benchmarking study for 2015 says the American fashion fraternity remains optimistic about the five-year outlook for the US fashion industry, said the statement. This optimism seems it will lead to job growth in the industry. More than half of respondents expect to hire more employees in the next five years, including sourcing specialists, fashion designers, supply chain/logistics specialists, buyers and merchandisers, and market analysts. The study found that like last year, they are most concerned about increasing production or sourcing costs, but they expect increases to be more modest this year. A hundred per cent of respondents reported sourcing from China, and 50 per cent from Bangladesh in 2015. The country is regarded as one of the top five sourcing destinations with the highest growth potential. The study found that companies continue to diversify their sourcing, though free trade agreements (FTAs) and preference programs remain underutilized. The results further show that abandoning the strict “yarn-forward” Rule of Origin and reducing documentation requirements could lead to more companies taking advantage of trade agreements. FTAs and preference programs remain underutilised. The top FTAs and preference programs among respondents-CAFTA-DR, NAFTA, and the U.S.-Jordan FTA-are utilized by more than 50 percent of respondents. The fourth-ranked program, AGOA, is utilized by 37 per cent of respondents. The US fashion industry is a critical stakeholder in the Trans-Pacific Partnership (TPP), as close to 80 per cent of respondents expect implementation will impact their business practices. However, the restrictive rules in the agreement limit the potential.
