Inflation Worries Hit the Industry

March 11, 2011 at 3:59 pm Leave a comment

Recent news stories have warned of massive inflation in all sectors of the economy in the coming year. A variety of forces are compounding to make for price increases for food, oil and retail goods. Political and social upheavals in Egypt and across the Middle East, severe weather patterns, and stock market worries are expected to contribute to a 10 to 15 percent increase in retail prices this fall.

The fashion and garment industry, with its dependence on raw materials and labor, is already trying to strategize a graceful entry into the era of higher retail prices. Big name value stores, like the ubiquitous Wal Mart and Target, are likely to struggle with inflation, especially in textiles like cotton, silk, and leather.

No matter what retailers and manufacturers do to soften the blow, it seems inevitable that consumers will wind up bearing the burden in the coming year. Even luxury brands will find it hard to avoid passing the price increases on to their customers.

With the profit margin in the garment industry becoming so thin, it is more important than ever for fashion companies to eliminate waste and balance their resources at every step of the production process. It seems that a data management system will be a crucial necessity for many companies in the near future. In troubled economic times companies have to take control over their data stream and their supply chain, or risk losing valuable assets due to inefficiency and redundancy.

Check out these recent news stories for more predictions and an analysis of upcoming inflation numbers.

http://www.wwd.com/menswear-news/retailers-brace-for-price-jolts-3550816

http://www.aolnews.com/2011/02/16/from-farming-to-fashion-inflation-looks-to-be-on-its-way/

And visit the BMS website to find out how Supply Chain Management tools could help your company fend of inflation troubles in the future.

JW Yates

New York, New York

March 11th, 2011

Business Management Systems
330 West 38th Street
Suite 705
New York, NY 10018
(800) 266-4046
info@bmsystems.com
http://www.bmsystems.com

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About BMS

Business Management Systems (BMS) has been a leading provider of product lifecycle management software solutions to the apparel & textiles industry for 15 years, delivering VerTex Toolboxes--an easy-to-use modular system uniquely configured to meet every company's specific needs.

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