Clothing manufacturers are sounding the alarm: “We’re burning through capital”

The apparel industry must break free from its obsession with the lowest unit price. It is not production costs themselves, but overproduction, excess inventory, and constant markdowns that erode the most value. This is the view of the International Apparel Federation (IAF), the global federation of apparel manufacturers, as outlined in a new manifesto for “smart, productive, and sustainable” apparel production.

Systemic inefficiency

The call marks a striking shift in direction. Whereas apparel manufacturers have for years primarily complained about price pressure and competition, the IAF now identifies the underlying business model as the structural problem. The sector produces too much, sells too little at full price, and too often shifts risks onto the weakest parties in the supply chain.