Cost of Employee Uniforms Offset Rising Cotton Prices

Tuesday 22nd of November 2011 05:21:30 AM

Cotton fields have been hit hard over the last year by a series of natural disasters. The Pakistan flood wiped out crops in the area. Pakistan is the fourth largest cotton supplier to the world so any crop damage creates a noticeable shortage right away. China has also experienced a series of floods in addition to periodic earthquakes.

But natural disasters aren’t the only reasons why cotton prices are going up. As pressure is put on countries to eliminate child labor and raise the wages of adult workers, the end result has been an increase in labor expenses which then flow to the final selling price. In a perfect storm set of conditions, the economic recovery is increasing demand and emerging economies are increasing domestic demand for cotton. This is leading to export restrictions that did not exist before. Countries like India and China are trying to insure there is enough cotton supply for their own residents.

As a result of this perfect storm, shoppers are already seeing the price of clothing go up while businesses attempt to control costs for uniforms. Cotton is a popular fiber because it wears well, works to keep the body cool in hot weather, and can be washed over and over again. Cotton is also friendly to the environment and uses less natural resources to produce than manmade fibers. That is appealing to those consumers and businesses that want to reduce their carbon footprint.

One large clothing company in the United Kingdom is warning its customers now that cotton prices are going to continue to rise. Of course, one way for businesses to keep expenses down is to buy promotional clothing online. Internet shopping invariably nets savings. As cotton prices reach a 15 year high companies are going to have to shop smarter in order to contain costs and remain competitive. The same is true for consumers. Anyone who knows they will need new t-shirts should buy now in advance of continuing rising cotton prices.

Image by Tibor Fazakas, www.sxc.hu/