2010 Was a year of Rising Cotton Prices

Over this past year we’ve seen a lot of things… from the giant BP Oil Spill to the movie that changed the way we think about 3-D, Avatar.  Technology has made giant leaps forward with the IPad revolutionizing personal computing and GroupOn changing the way that we look at coupons.  Who would have thought that the IPhone would ever see competition with another touch screen phone… enter the Androids!

The World Cup in Africa made the entire world aware of the most annoying instrument in the world, the Vuvuzela while internet sensation Justin Bieber captured the hearts of teenage girls worldwide… click here to see the video that put him on the map.

It seemed like 2010 was a year that brought the rise of a lot of things… including the rise of of cotton prices.  Cotton has typically not been affected by inflation in the same manner as other raw consumables, but with all-time high prices in China, the world market is being shaken. “The price increase is mainly due to the imbalance in supply and demand. During the global financial crisis the market shrank. Now the market is booming but cotton supply hasn’t increased” says Zhang Chengze, a researcher from China National Textile and Apparel Council.

It isn’t just hitting the Chinese market, it’s hitting the States too.  On November 4th, 2010, the Wall Street Journal featured an article titled “Unable to Stretch Further, Apparel Makers Raise Prices” by ELIZABETH HOLMES And RACHEL DODES, which detailed the affect on the US industry. “Hanesbrands said last week its cotton costs for year will be about 69 cents per pound, up from 55 cents last year. For the fourth quarter, it will be about 79 cents, producing $26 million in extra expense,” says the article.

Seeing these changes, we can be sure that 2011 will be a year of transition for the custom apparel industry.  Will rising cotton prices continue?  That is a great question, but all we know is that the current changes have changed the way that we look at our pricing.  To stay competitive we have looked at our pricing over and over, double checking and changing pricing formulas to make sure that we are competitive on a national level to serve our customer base to constantly remain your trusted custom apparel provider with Hassle Free Ordering.

If you had questions or concerns on the rising cotton prices, you can do a simple google search, or you can just contact us and we can give you the scoop, but either way, you can rest assured that we are trying our hardest to keep prices down for you.

Thanks for a great 2010 and we’ll look forward to an even better 2011!