The UK Fashion and Textiles Association compendium of UK ... · The first part assesses sectoral performance early in 2017 and the possible outlook for industry future performance

1

The UK Fashion and Textiles Association

compendium of

UK textiles and apparel manufacturing data

2

Contents Introduction ................................................................................................................................ 4

Part One: Prospects for 2017 ........................................................................................................ 5

Prospects ............................................................................................................................................. 5

Retail sales .......................................................................................................................................... 5

Monthly Total Production Value ......................................................................................................... 6

Index of Production............................................................................................................................. 6

Producer prices ................................................................................................................................... 7

Exports ................................................................................................................................................ 8

Imports ................................................................................................................................................ 9

Part Two: Annual Review of the Sector in 2016 ........................................................................... 10

Consumer Price Index ............................................................................................................. 10

Consumer Price Index by Clothing and Footwear grouping ......................................................... 10

Retail Price Index........................................................................................................................... 11

Retail Price Index by Clothing and Footwear Grouping ................................................................ 12

Retail Sales Index .......................................................................................................................... 13

Retail Sales Index by Fashion and Textiles grouping ..................................................................... 13

UK Consumer Spending .......................................................................................................... 14

UK Consumer Spending by Fashion and Textiles component ...................................................... 15

Internet Sales ................................................................................................................................ 15

Use of the Internet to Purchase Fashion Goods Online ............................................................... 16

Enterprises and employment .................................................................................................. 17

Business Numbers ......................................................................................................................... 17

Size of businesses .......................................................................................................................... 18

Location of fashion and textiles businesses .................................................................................. 19

Business Registrations ............................................................................................................ 20

Employment .......................................................................................................................... 21

Labour Force Survey...................................................................................................................... 21

Self-employment ........................................................................................................................... 21

Location of employment ............................................................................................................... 22

Fashion and Textiles Vacancies ..................................................................................................... 23

Drapers .......................................................................................................................................... 23

Fashion United .............................................................................................................................. 24

Productivity ........................................................................................................................... 25

3

Total Production Value ................................................................................................................. 25

Gross Value Added ........................................................................................................................ 26

Index of Production ....................................................................................................................... 27

Producer Prices ............................................................................................................................. 27

Output per job .............................................................................................................................. 28

Business Investment .................................................................................................................. 29

Investment ........................................................................................................................................ 29

Research and Development .............................................................................................................. 29

Exports and Imports ................................................................................................................... 31

Exports .............................................................................................................................................. 31

Exports by global region.................................................................................................................... 31

Exports by global region 2015 vs 2016 ............................................................................................. 32

Exports by top 20 individual countries ............................................................................................. 33

Imports .............................................................................................................................................. 34

Imports by global region ................................................................................................................... 34

Imports by global region 2015 vs 2016 ............................................................................................. 35

Imports by top 20 individual countries ............................................................................................. 36

4

Introduction

The following paper is designed to collate key information and indicators on the position of UK

textile and apparel manufacturing using statistics collected from a variety of official sources.

The paper is split into two parts.

The first part assesses sectoral performance early in 2017 and the possible outlook for industry

future performance for the rest of the year.

The second part of the document is a review of sectoral performance up to the end of 2016 (or 2015

depending on the availability of the data source being used). This looks at industry performance

across a range of metrics and contextualised against wider economic and industry trends.

Where possible, data is presented for textile and apparel manufacturing only. It therefore excludes

leather and accessories which are usually included as part of the wider definition of the fashion and

textiles manufacturing footprint.

It also excludes the wider definition of the sector as presented by the British Fashion Council which

includes retail, wholesale and other associated functions within the industry that has put the value

of fashion to the UK at £28 billion, employing 880,000 people

In some instances, information for textiles, clothing and leather manufacturing is used where

specific textiles and apparel only information is not available. This is indicated in the citations.

5

Part One: Prospects for 2017

On a number of indicators, 2017 has started well for fashion and textiles manufacturers and

continues the longer term trend of growth within the sector that has been apparent in recent years.

2016 was an interesting year for the fashion and textiles sector with a number of events such as the

introduction of the national living wage; the result of the EU referendum and subsequent lowering

of the value of sterling, impacting both import and export values; and the continued turmoil on the

high-street all considerations amongst a number of variables.

Prospects

Retail sales

Retail sales of textiles, clothing and footwear goods in specific stores began the year in positive

fashion with the index rising in January and February 2017 and stabilising in March. This is in

contrast to wider non-food store sales that saw a small fall in January and large declines in March.

Value and volume of sales in textiles, clothing and footwear stores also remain higher in the index

than they did in the corresponding months of 2016.

Figure 1: UK Retail Sales Index for textiles, clothing and footwear. Current prices 2013 = 100

Source: Office for National Statistics

90

95

100

105

110

115

120

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2016 2017

Value Textile, clothing and footwear stores Value Predominantly non-food stores

Volume Textile, clothing and footwear stores Volume Predominantly non-food stores

6

Monthly Total Production Value

Data from the ONS’s monthly Turnover and Orders in Production and Services Industries (TOPSI)

survey1 further demonstrates growth within the sector over the first quarter of 2017. Having dipped

in December 2016 as per the pattern usually observed during the Christmas period, the production

value gains in January and February and particularly March have been encouraging. Indeed, March’s

figures show both textiles and apparel turnover and orders in production figures well above the

corresponding month in 2016.

Figure 2: Turnover and Orders in Production and Services Industries Survey (£m)


Index of Production

The latest Index of Production for textiles and apparel manufacturing also paint a positive picture

with both textiles and apparel making significant gains since November. Whilst both measures

remain below the all manufacturing benchmark, both textiles and apparel have made significant

improvements to again approach parity.

1 The TOPSI offers a monthly snapshot of turnover. This is in contrast to the Annual Business Survey which is a more comprehensive survey of business activity on an annual basis and based on a separate sample. Therefore the figures in the TOPSI are indicative only.

£371.9£386.1£421.7£404.7£392.9£413.6£422.5£427.4£473.6£465.7£495.0£397.8£420.0£462.8£540.1

£225.2£228.2£227.6£242.4£209.7£255.1£251.7£269.5

£285.6£248.1£240.4

£207.6£219.9£224.1

£280.8

£0

£100

£200

£300

£400

£500

£600

£700

£800

£900


2016 2017

Manufacture of textiles Manufacture of wearing apparel

7

Figure 3: Index of Production (2013 = 100)


Producer prices

2017 has seen increases in production costs for both textiles and wearing apparel manufacturers.

The increase has been more pronounced for textiles manufacturers who have seen costs increase by

two and a half points on the index.

Figure 4: Producer Prices (2010 = 100)


80

85

90

95

100

105

110


2016 2017

Textiles Wearing Apparel All Manufacturing

108

109

110

111

112

113

114

115

116


2016 2017

Textiles Apparel

8

Exports

UK exports of textiles have enjoyed a successful start to 2017, with the value of exports in March

2017 being higher than in any month of 2016. Both European and non-EU exports recorded

increases.

Apparel exports are also above the levels seen in the corresponding months of 2016. European

markets have been particularly buoyant, compensating for the small fall in non-EU market exports.

Figure 5: Textiles Exports from the UK

Source: HMRC

Figure 6: Apparel Exports from the UK

Source: HMRC

£156 £164 £173 £165 £159 £168 £157 £146 £172 £163 £173£133

£173 £174 £189

£56 £71 £77 £77 £76 £72 £77 £75£73 £83 £77

£81£58 £71

£84

£0

£50

£100

£150

£200

£250

£300

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

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May

Jun

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July

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gust

Sep

tem

be

r

Oct

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No

vem

be

r

De

cem

ber

Jan

uar

y

Feb

ruar

y

Mar

ch

2016 2017

£m

EU Non-EU

£371 £370 £369 £339 £360 £385 £389 £416 £444 £471 £468 £397 £436 £413 £471

£124 £129 £139 £139 £100 £100 £121 £118 £122 £122 £125£129 £106 £107

£123

£0

£100

£200

£300

£400

£500

£600

£700

Jan

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y

Feb

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Mar

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Ap

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Sep

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No

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Feb

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y

Mar

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2016 2017

£m

EU Non-EU

9

Imports

Import figures for the first two months of 2017 show an interesting pattern with fluctuating demand

although this is on a quarterly basis consistent with 2016s figures and demonstrates an increase in

imports for textiles over January, February and March 2017. It is a similar pattern for apparel too

with imports over the quarter also higher in value but with fluctuating demand. In both cases,

February’s import total was below the comparison figure for 2017.

Figure 7: Textiles imports into the UK

Source: HMRC (based on SITC 65)

Figure 8: Apparel imports into the UK

Source: HMRC (based on SITC 84)

£185 £205 £222 £217 £203 £215 £213 £194 £217 £213 £220 £178 £212 £201 £227

£255 £245 £236 £240 £229 £234 £230 £252 £257 £234 £254£243

£286£230

£264

£0

£100

£200

£300

£400

£500

£600

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

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May

Jun

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Sep

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Oct

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Mar

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2016 2017

£m

EU Non-EU

£399 £410 £407 £382 £390 £439 £457 £486 £503 £521 £555 £512 £474 £466 £502

£1,177£1,119£1,161£1,180£911 £983 £1,116

£1,245£1,385£1,311£1,105£1,031£1,210£885

£1,216

£0£200£400£600£800

£1,000£1,200£1,400£1,600£1,800£2,000

Jan

uar

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Feb

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2016 2017

£m

EU Non-EU

10

Part Two: Annual Review of the Sector in 2016

Consumer Price Index

On an annual scale, clothing and footwear prices as represented by the consumer price index have

risen slightly on 2015. This is in-line with the overall CPI index. In comparison, the all goods

component has seen prices decline slightly between 2015 and 2016 On the whole, prices in the

clothing and footwear sector have performed constantly over the past few years following large

declines to 2010 as outsourcing and availability of more cost effective sources of fashion and textiles

goods were prevalent. In comparison, both the overall CPI and all goods indices have risen during

this period.

Figure 9: Consumer Price Index (2015=100)


Consumer Price Index by Clothing and Footwear grouping

Looking at the price of goods by constituent parts of the clothing and footwear grouping, prices have

remained stable on the CPI measure for both garments and other clothing and accessories over a

number of years. The main difference has been in the cleaning repair and hire of clothing that has

seen steady increases in these costs, rising over 20% since 2006. The price of garments fell rapidly

by over 20% in the same period although this fall occurred between 2006 and 2009.

60

70

80

90

100

110

120

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CPI (overall index) All goods Clothing and footwear

11

Figure 10: Consumer Price Index by Clothing and Footwear grouping (2015=100)


Retail Price Index

The retail price index measures the change in cost of retail goods and services. The retail price index

measure shows clothing and footwear goods have seen a steady increase in consumer prices from

2009 onwards, rising by 71 per cent to 2016 in this period. However, between 2015 and 2016 there

was relative stability and retail prices of clothing and footwear goods increased 6 per cent on the

index.

In comparison, all goods and all items have seen less sharp increases. All goods increased by 20 per

cent between 2009 and 2016 and over the last year remained stable with no change.

Figure 11: Consumer Price Index by Clothing and Footwear item (1987=100)


60

70

80

90

100

110

120

130

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Garments Other clothing and clothing accessories

Cleaning, repair and hire of clothing

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ALL ITEMS All goods Clothing and footwear

12

Retail Price Index by Clothing and Footwear Grouping

Looking at the retail price index by the various fashion and textiles goods that make up the clothing

and footwear indicator, all goods have seen similar retail price increases since 2009. In terms of

percentage increases, women’s outwear has increased 106 per cent albeit from a lower base and

men’s outerwear 73 percent.

Figure 12: Retail Price Index by Clothing and Footwear item (1987=100)


0

50

100

150

200

250

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Men's outerwear Women's outerwear Childrens' outerwear

Other clothing Footwear

13

Retail Sales Index

Using the retail sales index, 2016 was challenging year for textile, clothing, footwear and leather

retailers, with the sales index falling 2 per cent over the year for both value and volume of sales.

However, this is still well above the levels seen in 2010.

In comparison, the non-food store retail index as a whole for both value and volume have

strengthened more greatly than textiles, clothing, footwear and leather in this period and continued

that trend in 2016, rising 3.6 per cent over the year. A number of elements may be responsible for

this on-going trend although fashion being a market leader in the move from brick to click is a major

factor.

Figure 13:: Retail Sales Index (2013=100) Value and Chained Volume at Current Prices Seasonally Adjusted


Retail Sales Index by Fashion and Textiles grouping

Examining the retail sales index by specific type of store, both textiles and footwear and leather

store sales increased in 2016 and proved buoyant. This is in comparison to the clothing index that

saw store sales fall by 3.2 per cent in 2016. This fall was responsible for the overall decline in the

sector as a whole, with clothing being its largest component.

90

95

100

105

110

115

120

2010 2011 2012 2013 2014 2015 2016

Volume Textiles, Clothing and Footwear Volume Predominantly non-food stores

Value Textiles, Clothing and Footwear Value Predominantly non-food stores

14

Figure 14: Retail Sales Index by Fashion and Textiles goods (2013=100)


UK Consumer Spending

The UK consumer spent over £75bn on clothing, footwear and household textiles in 2016. This is a

strong growth on the year and continues the upward trend, indicates a growing and continuing

consumer demand for fashion products.

Figure 15: UK retail sales of clothing, footwear and household textiles £bn (chained volume measure)


90

95

100

105

110

115

120

2010 2011 2012 2013 2014 2015 2016

Volume Textiles Volume Clothing

Volume Footwear and Leather Goods Value Textiles

Value Clothing Value Footwear and Leather Goods

£41.5£45.0

£48.6£53.5

£57.3£60.2 £60.2 £61.6

£64.3£68.2

£72.4£75.4

£0

£10

£20

£30

£40

£50

£60

£70

£80

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

£ bn

15

UK Consumer Spending by Fashion and Textiles component

Looking at consumer spending by specific item, garments, which make up by far the greatest

component, grew to £52.2bn in 2016 although this was a slowdown compared to the rises measured

in 2015. Other articles of clothing and clothing accessories also saw large levels of growth in 2016

whilst footwear was also robust. Interestingly the cleaning and hire of clothing saw falls at a

substantial level that has continued the on-going decline in consumer spending on these services

Table 1: UK retail sales by specific fashion and textiles item £bn (chained volume measure)

Clothing

materials Garments

Other articles of clothing

and clothing acc

Cleaning and hire of

clothing

Shoes and other

footwear

Repair and hire of

footwear Household Textiles

2005 £0.51 £28.32 £1.92 £1.00 £5.05 £0.05 £4.69

2006 £0.59 £30.17 £2.21 £1.03 £5.73 £0.06 £5.25

2007 £0.55 £32.54 £2.42 £1.09 £6.07 £0.05 £5.85

2008 £0.62 £36.55 £2.44 £1.20 £6.58 £0.05 £6.03

2009 £0.58 £39.87 £2.21 £1.25 £7.08 £0.07 £6.25

2010 £0.63 £41.44 £2.87 £1.15 £7.27 £0.06 £6.80

2011 £0.60 £42.90 £3.11 £0.99 £7.52 £0.05 £5.03

2012 £0.64 £43.38 £3.28 £0.97 £8.02 £0.06 £5.27

2013 £0.81 £44.60 £3.59 £0.96 £8.26 £0.05 £6.00

2014 £0.70 £47.09 £3.64 £0.97 £9.24 £0.06 £6.48

2015 £0.69 £50.20 £3.47 £0.79 £10.04 £0.05 £7.20

2016 £0.69 £52.18 £3.59 £0.75 £10.67 £0.05 £7.48


Internet Sales

An interesting area of growth where the fashion and textiles sector been one of the largest and

leading UK sectors has been in internet sales. In 2016, UK online sales via textiles, clothing and

footwear stores reached £1.43bn (please note this excludes exclusively online retailers such as ASOS

who are measured in a more generic online category). This represents year on year growth since the

start of the Office for National Statistics beginning to collect this data, and almost doubling the figure

from 2011. Having an online offering has now become crucial for the majority of fashion and textiles

retailers.

Figure 16: Internet Sales by Textiles, Clothing and Footwear Stores £m (chained volume measure)

Source: Office for National Statistics (weekly sales aggregated per year)

£753£900

£1,022£1,211

£1,352 £1,432

£0

£500

£1,000

£1,500

£2,000

2011 2012 2013 2014 2015 2016

£m

16

Use of the Internet to Purchase Fashion Goods Online

This increase in internet sales also correlates to the number of people using the internet to purchase

fashion and textiles goods. Whilst it slightly dipped in 2016, 54 per cent of all adults in the UK had

made purchases of fashion goods using the internet, a 12 per cent increase on 2012’s figure.

Figure 17: Online purchases 2012 to 2016

Source: Office for National Statistics. Internet access - households and individuals, 2016 Base: Adults (aged

16+) in Great Britain

42%47% 49%

55% 54%

0%

10%

20%

30%

40%

50%

60%

2012 2013 2014 2015 2016

17

Enterprises and employment

Business Numbers

As reported through HM Government’s Inter-Departmental Business Register, 2016 saw a continued

increase in textile and apparel manufacturing enterprise numbers.2 There are now 8,075

enterprises3 and this represents the third successive annual rise in registered textile and apparel

manufacturing companies. This is up from 7,190 in 2013 and shows the continued confidence in UK

fashion and textiles manufacturing as demand for British manufactured fashion and textiles goods

grows. Factors including the strength of the British brand, the shortening and sustainability of

supply chains and opportunities for niche manufacture are all considerations.

Figure 18: Textiles and apparel manufacturing enterprises 2016

Source: Inter-Departmental Business Register via NOMIS

2 The IDBR collects information based on enterprises and self-employed individuals registered for VAT and PAYE. The data therefore does not include businesses or individuals under this threshold. The ONS estimates approximately 50% of businesses in the UK are below this measure and previous work suggests a large micro-business community within UK textile and clothing manufacturing. 3 The IDBR also contains workplace information. Using this measure there are currently 8,240 workplaces

4,050 3,880 3,825 3,790 3,840 4,030 4,200

3,530 3,365 3,490 3,400 3,4603,830 3,875

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2010 2011 2012 2013 2014 2015 2016


18

Size of businesses

The IDBR also gives information on the size of businesses within the sector. Reflecting how

businesses currently operate within the sector, with the nimbleness of production and fewer large

firms due to the impact of off-shoring, employment is dominated by micro-employing firms.

However, there are a number of firms employing over 10 people and a number of 250+ employers

still operating within the UK.

Fashion and Textiles wholesalers, included within this statistic, tend to be dominated further by

micro employers.

Table 3: Fashion and textiles firms by size

Micro (0 to 9) Small (10 to 49)

Medium-sized (50 to 249) Large (250+)

Manufacture of textiles 78.2% 17.3% 3.9% 0.6%

Manufacture of wearing apparel 82.7% 15.0% 2.1% 0.1%

Manufacture of leather and related products 81.3% 13.8% 4.9% 0.8%

Fashion and Textiles wholesale 85.8% 12.3% 1.8% 0.3% Source: Inter-Departmental Business Register via NOMIS

19

Location of fashion and textiles businesses

The inter-departmental business register also gives us an indication of where businesses are located

within the UK. Textiles manufacturers are spread around various areas of the country with the

North West, East Midlands, London and South East all home to centres of production.

Manufacturing of wearing apparel business numbers are clustered around London although with the

East Midlands and North West also areas of significant business numbers. Manufacture of leather

and leather goods (which includes footwear) are predominantly located within London, the West

Midlands and East Midlands.

Table 4: Textiles and apparel manufacturing enterprises by geography 2016

Manufacture

of textiles

Manufacture of wearing

apparel

Manufacture of leather

and leather goods

Fashion and textiles

wholesale

North East 2.5% 1.8%

1.6% 1.6%

North West 14.4% 10.7%

8.9% 15.3%

Yorkshire and The Humber

10.6% 5.4% 5.7%

7.1%

East Midlands 12.0% 16.0%

12.2% 9.8%

West Midlands 8.2% 7.1%

13.8% 7.1%

East 7.9% 7.0%

8.9% 8.1%

London 11.3% 31.0%

23.6% 30.0%

South East 11.1% 8.0%

8.9% 9.1%

South West 7.6% 4.5%

8.9% 4.9%

Wales 4.2% 1.7%

3.3% 1.9%

Scotland 7.4% 5.7%

4.1% 3.5%

Northern Ireland 3.0% 1.2%

0.8% 1.6%

Source: Inter-Departmental Business Register via NOMIS

20

Business Registrations

The rise in textiles and apparel firm numbers between 2014 and 2015 is illustrated in the registration

information of textiles and apparel firms in 2015.4 605 textile and 590 apparel manufacturing firms

were created in 2015, a sharp increase on business creation in the recent past within the sector,

especially, textiles firms that have seen large increases, almost doubling on 2010 figures.

What is particularly interesting is the business de-registration information. Whilst apparel

manufacturing de-registrations remained consistent with previous years and represent the “risky”

nature of setting up businesses within the sector, the number of de-registrations for textile

manufacturing firms continued to fall signifying market conditions are more favourable.

Figure 19: Textile Manufacturing firm registration and de-registrations


Figure 20: Apparel Manufacturing firm registration and de-registrations


4 The previous year’s figures are traditionally published later in the year. 2015s figures are therefore unavailable.

310355 355

475440

605

450405

435370 360 340

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015

Textile Firm Births Textile Firm Deaths

375

465 440

540505

590

515 500 495 510 490 515

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015

Apparel Firm Births Apparel Firm Deaths

21

Employment

Labour Force Survey

The Labour Force Survey,5 a more contemporary measure gives us information up to the last quarter

of 2016, the latest q4 2016 showed 108,000 people were employed within textiles and apparel

manufacture (excluding self-employed), a larger figure than any quarter reported in 2015 and the

same quarter in 2014. The longer term view of the numbers shows a continuing steady growth in

employment numbers.

Figure 21: Textile and apparel manufacturing employment

Source: Labour Force Survey via the Office for National Statistics

Self-employment

An interesting figure from the Labour Force Survey concerns self-employment. 2016 shows how

self-employment continued to rise compared to 2015 numbers. This could be consistent with the

number of new companies registered and large micro-employment with the prevalence of flexible

working patterns, i.e. freelancing and more market opportunities for self-employment and going

alone with the correct skills. Numbers classified as employees has declined slightly on the

corresponding quarter for 2015.

5 Labour Force Survey is a time-series sample survey covering all people with in the UK labour market. For this analysis the focus has been on all in employment including self-employed.

68 73 70 69 66 64 60 59 65 67 64 62 61 67 66 68 67 68 71 68 66 67 60 62 70 73 74 65

38 40 43 42 39 38 37 3841 39 36 37 37 37 44 45 45 45 43 39 42 36

3647 39 41 37 43

0

20

40

60

80

100

120

q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4

2010 2011 2012 2013 2014 2015 2016


22

Figure 22: Textile and apparel manufacturing employment by self-employment

Source: Labour Force Survey via the Office for National Statistics

Location of employment

The following table based on the Business Register and Employment Survey shows the location of

fashion and textiles manufacturers and wholesaler employment within the UK. This contrasts to the

business numbers as takes into account employment in larger firms on a regional basis. As we can

see the employment within the manufacturing of textiles is mainly located around the North West

and Yorkshire and the Humber whereas wearing apparel is mainly located within London and the

East Midlands. Leather and related products are mainly located around the East Midlands and the

South West whereas fashion and textiles wholesaling is based in the North West and London.

Table 5: Fashion and Textiles locations by area of industry

Manufacture of textiles

Manufacture of wearing apparel

Manufacture of leather and related products

Fashion and Textiles wholesale related activities

East 5% 3% 9% 7%

East Midlands 13% 21% 29% 10%

London 5% 38% 6% 20%

North East 5% 3% 0% 2%

North West 25% 6% 14% 25%

Scotland 9% 10% 11% 6%

South East 5% 5% 3% 7%

South West 6% 3% 21% 6%

Wales 2% 2% 1% 2%

West Midlands 5% 7% 10% 8%

Yorkshire and the Humber 19% 4% 1% 9%

Source: Business Register and Employment Survey 2015

94 97 98 92 85 84 81 76 81 79 79 80 80 81 85 87 87 89 92 90 89 84 78 81 87 88 83 82

12 16 15 1920 18 16 21

25 27 21 19 18 23 25 26 25 24 22 17 19 1918

28 22 26 28 26

0

20

40

60

80

100

120

q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4

2010 2011 2012 2013 2014 2015 2016

Employed Self-Employed

23

Fashion and Textiles Vacancies

The following section indicates the vacancies that are available within the sector as advertised by

Drapers and Fashion United. Whilst these vacancies are not a comprehensive list, they do illustrate

both the vast number and different opportunities available within the sector.

Drapers

Vacancies advertised through Drapers focus on a number of skilled and professional vacancies are

comprehensive in their categorisation. These show a buoyant job market within the sector across

manufacture, wholesale and retail and across the associated processes they include. Over 1,400

jobs were advertised via Drapers in March 2017.


Ap

r

May

Jun

Jul

Au

g

Sep

t

Oct

No

v

De

c

Jan

Feb

Mar

Ove

r

all Ch

ang

e

Ch

ange

%

Account Management 108 64 69 68 47 51 51 55 90 60 51 62 -46 -43%

Administration and Support 40 45 52 45 49 39 28 42 45 27 32 35 -5 -13%

Allocation and Distribution 14 7 6 10 12 15 21 16 16 13 16 10 -4 -29%

Analyst 7 7 3 5 5 7 9 4 5 4 5 1 -6 -86%

Buyer 168 160 113 126 114 109 86 100 128 82 89 82 -86 -51%

Copywriter 4 2 2 4 3 4 8 4 3 1 4 0 0%

Customer Service 27 18 17 15 23 28 14 23 15 12 8 4 -23 -85%

Design 280 313 269 300 253 252 279 284 316 244 227 182 -98 -35%

Digital 35 37 42 48 45 31 34 49 37 44 23 11 -24 -69%

Ecommerce 69 40 69 55 51 47 85 63 76 48 54 28 -41 -59%

Finance 8 7 8 8 12 12 18 7 4 9 9 12 4 50%

Garment Designer 34 32 31 26 19 34 35 41 34 43 28 25 -9 -26%

Garment Technologist 102 112 78 60 62 62 77 75 83 63 75 54 -48 -47%

HR and Training 25 19 22 16 28 28 17 24 12 22 12 16 -9 -36%

Lecturer 4 1 1 2 2 1 3 1 2 2 -4 -

100%

Logistics 10 9 7 5 5 9 9 10 15 11 11 10 0 0%

Marketing 45 54 39 64 72 52 65 55 45 52 52 33 -12 -27%

Merchandiser 264 240 245 210 174 227 200 246 301 161 151 136 -128 -48%

Model 1 0 0 2 2 -1

Packaging 0 0 1 2 1 1 1 0

PR 7 5 8 7 4 4 7 7 11 8 9 3 -4 -57%

Print and Photographer 2 2 2 1 4 2 4 3 4 4 -2

Procurement 1 4 2 3 2 1 1 2 2 3 2 200%

Product Developer 22 22 25 23 40 43 42 44 26 44 29 31 9 41%

Product Manager 13 19 12 13 24 16 10 8 10 8 15 8 -5 -38%

Production 58 52 52 44 66 69 58 59 63 62 49 70 12 21%

Project Management 3 4 3 7 6 2 3 3 5 2 2 3 0 0%

24

Purchasing 6 2 3 3 7 3 7 6 3 3 1 -6

Retail Management 218 172 116 146 148 165 148 123 60 179 239 148 -70 -32%

Sales 191 176 201 133 239 219 267 373 269 226 280 206 15 8%

Sample Cutter 6 5 4 5 3 4 5 18 10 3 2 4 -2 -33%

Store Manager 82 56 48 36 62 71 49 39 21 47 57 38 -44 -54%

Supervisor 12 4 4 9 17 18 14 10 4 1 10 12 0 0%

Supply Chain 4 8 6 5 11 10 5 7 25 6 4 5 1 25%

Technical 116 105 85 122 95 114 109 104 137 83 80 85 -31 -27%

Visual Merchandising 17 18 14 14 10 18 16 12 13 9 7 10 -7 -41%

Warehouse 3 2 1 1 7 4 3 1 2 1 1 -2 -67%

Watches 6 9 8 7 17 10 16 11 7 9 4 4 -2 -33%

Web Development 5 6 5 3 2 3 3 1

2 -5

Wholesale 114 72 88 73 86 77 84 85 86 53 57 70 -44 -39%

Total 2,131 1,910 1,761 1,724 1,821 1,866 1,888 2,017 1,982 1,648 1,698 1,406 -725 -34%

Source: Drapers based on analysis taken from vacancies advertised on the final Friday of each calendar month.

Fashion United

Fashion United’s job listings are comprehensive in their scope and categorised differently to Drapers.

An analysis of the vacancies advertised through Fashion United also shows a decline in the

availability of jobs being offered through the year. Whilst Fashion United is predominantly UK based

there are a number of European opportunities offered too. What is interesting is the large decline in

retail management and in-store opportunities that is driving these numbers. This is consistent with

the performance of the physical high street fashion and textiles retailers during 2016 and the early

part of 2017.


Ap

r

May

Jun

Jul

Au

g

Sep

Oct

No

v

De

c

Jan

Feb

Mar

An

nu

al

chan

ge

An

nu

al %

Retail Management and In-Store 732 564 574 586 420 508 679 432 361 207 191 200 -532 -73%

Sales and Marketing 70 54 39 46 57 48 51 58 49 44 52 52 -18 -26%

Design and Creative 80 66 45 39 38 24 31 44 39 48 50 40 -40 -50%

Product and Supply Chain 163 141 103 76 69 54 52 60 66 89 111 101 -62 -38%

Other 101 64 48 60 44 21 29 32 23 14 18 25 -76 -75%

Internships 195 203 180 190 200 184 178 184 147 159 176 181 -14 -7%

Total 1,341 1,092 989 997 828 839 1,020 810 685 561 598 599 -742 -55%

Source: Fashion United based on analysis on the final Friday of the calendar month.

25

Productivity

Total Production Value

In line with the growth in business and employment numbers (represented by the labour force

survey measure), the total production value for textiles and apparel manufacturer saw a huge

increase in value in 2015. Both textiles and apparel manufacturers saw large gains with turnover

standing at £9.1bn for the year. This is up from £8.3bn in 2014 and a larger number than recorded in

2008, before the full impact economic downturn fed into the figures. Both the textiles and apparel

elements of the measure were above this 2008 figure, although apparel has seen impressive rises.

Indeed, 2015 was a stellar year for apparel manufacturers with total production value higher than

any other year within the recent past.

Figure 23: Textile and apparel manufacturer turnover (£m)

Source: Office for National Statistics Annual Business Survey

£5,628 £5,047 £5,304 £5,473 £5,313 £5,285 £5,336 £5,715

£2,925£2,561

£2,816 £2,834 £2,653 £2,749 £2,916£3,430

£0

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

£8,000

£9,000

£10,000

2008 2009 2010 2011 2012 2013 2014 2015

Textiles Apparel

26

Gross Value Added

The figure for 2015’s GVA for textiles and apparel manufacturers reflects the reported increase in

production values. The 2015 figures represent a large increase on 2014’s levels and again above

2008’s when GVA was higher than at any other time. 2015’s reported GVA currently stands at

£3.3bn, a £600 million increase on 2014. Again, as with production values, apparel manufacturing

GVA saw large increases.

Figure 24: Gross Value Added

Source: Office for National Statistics Annual Business Survey

£2,096 £1,887 £1,934 £1,847£2,262 £2,110 £1,913

£2,253

£930

£651£885

£831

£744 £911£897

£1,068

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

2008 2009 2010 2011 2012 2013 2014 2015

Textiles Apparel

27

Index of Production

The Index of Production gives a good insight into recent sector productivity based on a volume of

production. The index also demonstrates the volatility within fashion and textiles manufacturing

sector when compared to wider UK manufacturing which has been fairly stable across recent years.

Interestingly, the index in 2016 shows textiles and apparel manufacturing performing differently,

with apparel production having risen significantly in 2015 declining substantially in 2016 whereas

textiles manufacturing enjoyed their first year of production growth in recent times.

Figure 25: Index of production 2013 = 100


Producer Prices

2016 saw a rise in producer prices as the final two quarters saw increases on this scale. However,

both textiles and apparel manufacturing have seen falls in production costs in recent years so the

recent rises put costs back to around the mark they were at in 2011.

80

85

90

95

100

105

110

115

120

2010 2011 2012 2013 2014 2015 2016

All manufacturing Textiles Apparel

28

Figure 26: Producer price index (2010=100)


Output per job

Output per job in textiles and clothing manufacturing has been volatile in comparison to the wider

all manufacturing figure. Whilst all manufacturing has remained fairly stable through the past six

years, textiles and clothing has seen significantly movements both up and down, something seen

during 2016 with the year ending just slightly under 2013’s average. This in many ways

demonstrates the volatility of production and workforce requirements within the sector with order

runs dictating workforce requirements.

Figure 19: Output per job 2013=100


90

95

100

105

110

115

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014 2015 2016

Textiles Wearing Apparel

80

90

100

110

120

130

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014 2015 2016

All Manufacturing Textiles and Clothing

29

Business Investment

Investment

Despite the positive turnover and GVA figures reported for 2016, business investment by textiles,

clothing, leather and footwear manufacturers declined in 2016 for the fifth successive year to £147

million.6 This is down from the peak of £247 million in 2011 and even the 2010 annual figure when

the effects of the downturn were most being felt within the sector. There was a similar pattern in

wider UK manufacturing which also saw a decline in investment in 2016 having enjoyed steady

growth in recent years.

Figure 27: Business Investment (Chained Volume Measure. Reference Year 2013)


Research and Development

Linked to the performance of business investment, research and development spend also saw a

decline for textiles, clothing, leather and footwear manufacturers during 2015 to stand at £19m, its

lowest level of investment for four years. However this is still significantly above the numbers

recorded in the years during the downturn and sharp business decline around 2009, 2010 and 2011

as firms both innovate and look to lead the market in a number of key textile areas, many in

applications not directly relevant to fashion with many within the technical realm.

Figure 28: Research and Development. Total Intermural Research & Development

6 Using the Chained Volume Measure

£187

£247£230 £220

£201 £189

£147

£0

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

£0

£50

£100

£150

£200

£250

£300

2010 2011 2012 2013 2014 2015 2016

£m

Textiles, Clothing and Leather All Manufacturing

30

Source: Business Enterprise Research and Development via Office for National Statistics

£17£19

£15

£10£11

£14

£20£22 £22

£19

£0

£5

£10

£15

£20

£25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

£m

31

Exports and Imports

Exports

Demonstrating the global demand for UK fashion and textiles products, exports continued to

perform well in 2016, increasing again on year by year figures, to stand at over £9bn combined in

total value. Textiles, following a small drop in 2015 were up 4.8 per cent to £2.8bn whilst apparel

were up 7.7 per cent on the year.

Figure 29: Exports of textiles and apparel from the UK 2012-2016

Source: HMRC (based on SITC 65 & 84)

Exports by global region

Looking at the markets for these textiles and apparel products, the European Community remains

the largest area with £1.93bn worth of textiles and £4.8bn worth of apparel goods exported there.

The Asian, North American and Middle Eastern markets were also significant for textiles and apparel

manufacturers.

£2,715 £2,791 £2,813 £2,688 £2,823

£4,427£5,102 £5,502 £5,767 £6,249

£0

£2,000

£4,000

£6,000

£8,000

£10,000

2012 2013 2014 2015 2016

£m

Textiles Apparel

32

Figure 30: Export markets for textiles and apparel from the UK in 2016 by region

Textiles (£m) Apparel (£m)


Exports by global region 2015 vs 2016

Looking at how global regions performed in 2016 vs 2015, European markets have shown substantial

growth in 2016, with textiles up seven per cent, and apparel exports up 13.9 per cent. North

American markets have also shown growth over the year, up 3.5 per cent for textiles and 5.7 per

cent for apparel.

Table 8: Fashion and Textiles exports by global region


2015 2016 % 2015 2016 %

European Community £1,795 £1,930 7.0% £4,114 £4,779 13.9%

Asia and Oceania £294 £306 3.8% £629 £535 -17.5%

Eastern Europe £54 £50 -8.4% £119 £76 -56.0%

Latin America and Caribbean £27 £24 -9.1% £18 £19 2.0%

Middle East and N Africa £143 £136 -5.7% £286 £233 -22.6%

North America £245 £253 3.5% £426 £452 5.7%

Sub-Saharan Africa £55 £47 -17.6% £35 £23 -55.7%

Western Europe exc EC £75 £77 2.7% £140 £131 -6.6%

Total £2,688 £2,823 4.8% £5,767 £6,249 7.7%


£1,930

£306

£253

£136

£77

£50 £47

£24

EuropeanCommunity

Asia andOceania

North America

Middle East andN Africa

Western Europeexc EC

Eastern Europe

Sub-SaharanAfrica

Latin Americaand Caribbean

£4,779

£535

£452

£233

£131£76

£23

£19

EuropeanCommunity

Asia andOceania

North America

Middle Eastand N Africa

WesternEurope exc EC

Eastern Europe

Sub-SaharanAfrica


33

Exports by top 20 individual countries

The data from HMRC also gives us an indication of the top 20 markets for textiles and apparel.

Textiles greatest markets from the UK are Germany (worth £301m), Netherlands (£246m) the USA

(£220m) and the Irish Republic (£216m).

In terms of apparel, Germany (£1,3bn), the Irish Republic (£884m), France (£627m) and the USA

(£383m) were the greatest markets for exported from the UK.

Table 9: Exports of textiles and apparel from the UK by specific country 2016 (Top 20)

Exports

Textiles Apparel

1 Germany £301 Germany £1,307

2 Netherlands £246 Irish Republic £884

3 United States £220 France £627

4 Irish Republic £216 United States £383

5 Romania £163 Italy £372

6 Belgium £161 Spain £268

7 France £153 Netherlands £255

8 Italy £138 Belgium £180

9 Poland £127 Hong Kong £136

10 Spain £73 Australia £133

11 China £72 Poland £120

12 Denmark £55 Sweden £113

13 Hong Kong £48 Czech Republic £103

14 Sweden £47 UAE £98

15 Czech Republic £44 Austria £83

16 Portugal £43 Denmark £81

17 Morocco £41 Japan £71

18 Japan £34 Hungary £66

19 Turkey £34 Canada £66

20 UAE £31 Greece £59


34

Imports

Imports of fashion and textiles goods have followed the increasing consumer demands for fashion

and textiles goods and again rose in 2016, following the patterns of previous years. Imports of

textiles goods stood £5.38bn in 2016, up 4.9 per cent on 2015 whilst apparel at £19.1bn in 2016, was

up 4.4 per cent on 2015.

Figure 31: Imports of textiles and apparel into the UK 2016


Imports by global region

Imports of fashion and textiles goods into the UK were sourced from a variety of regions.

Interestingly, textiles imports were evenly sourced by value from the European Community

(£2.47bn) and Asia (£2.2bn)with other areas of non-EU Western Europe also significant import

sources (£371m).

Apparel markets are dominated by Asia with almost £11.4bn exported here in 2016 accounting for

60 per cent of all imports. The European Union is the next largest block totalling just under £5.37bn.

Other significant markets again include other non-EU Western European countries.

£4,659 £4,868 £5,088 £5,138 £5,387

£16,020 £16,915 £17,667 £18,309 £19,093

£0

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

2012 2013 2014 2015 2016

£m

Textiles Apparel

35

Figure 32: Imports of textiles and apparel to the UK by region 2016



Imports by global region 2015 vs 2016

Imports into the UK, especially for textiles saw solid growth from both the European Community and

Asia and Oceania. Non-EC Western Europe also grew as a market for textiles imports during 2016.

In terms of apparel, imports grew strongly from the Europe Community, rising 12.4% over the year

whist North and Latin America (from a lower base) also saw substantial growth. Sub-Saharan Africa,

saw a large decline over the year.

Table 10: Fashion and Textiles imports by global region

Textiles Apparel

2015 2016 % 2015 2016 %

European Community £2,331 £2,478 5.9% £4,705 £5,369 12.4%

Asia and Oceania £2,129 £2,231 4.6% £11,248 £11,367 1.1%

Eastern Europe £4 £3 -17.7% £56 £60 7.5%

Latin America and Caribbean £14 £13 -4.8% £32 £41 21.9%

Middle East and N Africa £104 £95 -9.2% £372 £364 -2.3%

North America £190 £183 -4.4% £283 £323 12.5%

Sub-Saharan Africa £14 £14 -2.3% £153 £114 -34.9%

Western Europe exc EC £352 £371 5.1% £1,459 £1,454 -0.3%

Total £5,138 £5,387 4.6% £18,309 £19,093 4.1%


£11,367£5,369

£1,454

£364

£323

£114

£60

£41

Asia andOceania

EuropeanCommunity



North America

Sub-SaharanAfrica

Eastern Europe


£2,478

£2,231

£371

£183 £95

£14

£13

£3

EuropeanCommunity

Asia andOceania


North America


Sub-SaharanAfrica


Eastern Europe

36

Imports by top 20 individual countries Imports of both textiles and apparel goods were dominated by China (excluding goods via Hong

Kong which are measured separately). Over £1bn worth of textiles goods were imported from China

whilst Belgium (£551m) and Pakistan (£450m) were also significant markets and demonstrates

country specialisms in goods supply. Eight individual countries exported over £350m worth of

textiles goods to the UK in 2016 from a variety of country sources.

After China (£4.5bn), apparel imports from Bangladesh (£2bn), Turkey (£1.4bn), India (£1.1bn) and

Italy (£1bn) were of largest value into the UK. Again, the individual country list demonstrates the

variety of goods sourced and diversity of UK consumer needs with a mixture of low cost and luxury

supplying countries within the list.

Table 11: Imports of textiles and apparel into the UK by specific country 2016 (Top 20)

Imports


1 China £1,053 China £4,147

2 Belgium £551 Bangladesh £2,029

3 Pakistan £450 Turkey £1,439

4 Germany £397 India £1,139

5 India £377 Italy £1,010

6 Netherlands £369 Sri Lanka £929

7 Italy £354 Germany £817

8 Turkey £352 Hong Kong £734

9 France £166 Cambodia £704

10 United States £165 France £671

11 Spain £112 Netherlands £613

12 Portugal £95 Spain £525

13 South Korea £77 Vietnam £492

14 Denmark £71 Pakistan £485

15 Poland £63 Belgium £444

16 Israel £44 Romania £345

17 Czech Republic £43 United States £299

18 Hong Kong £40 Malaysia £208

19 Irish Republic £36 Portugal £203

20 Bangladesh £36 Indonesia £159


Documents

The UK Fashion and Textiles Association compendium of UK ... · The first part assesses sectoral performance early in 2017 and the possible outlook for industry future performance