Cotton Prices Soar and T-shirt

Source from: http://www.d9go.com/ankh-royalty-tee/

The last few years have been very good for buyers of custom-printed t-shirts. Low cotton costs, coupled with rapid advances in printing technology, have pushed the price of t-shirts down to historic lows. But, look out for 2011!

A perfect storm of weather conditions, mixed with increased demand have given rise to alarming increases in the cost of raw cotton, which will, unfortunately, be passed on to consumers at the retail level. China and Russia have both experienced unseasonably cold weather and drought this year; and we have all heard of the devastating floods that hit Pakistan, the world’s 4th largest producer of the "fabric of our lives." India has restricted its exports as it protects its domestic supply. These effects have caused the price of raw cotton to almost double this year alone, along with the ever-increasing demand from these emerging countries and the rest of the world as well.

If you think that the switch to polyester or to a cotton-poly blend is the answer, think again. Synthetic fabrics, which get their origins from a petroleum base is fairing little better than cotton itself as demand and higher costs affect this industry as well.

Some manufacturers have planned better than others for this, and it will be up to responsible print vendors and retail outlets to do the necessary research and planning to make the next year one which doesn’t see end pricing for customers go through the roof. Some manufacturers were savvy enough to lock in prices for certain timeframes and/or purchase enough inventory to weather the storm until production can again catch up to demand.

Talk to your print vendor to discuss the best options for this coming dilemma. In most cases, the answers probably lie in increasing standing inventory for the short term, and/or moving up buying decisions to take advantage of the lower prices now available to both vendor and end customer. Your t-shirt vendor should have a plan in place at this point to help minimize any price increase that could occur because of this global shortage. Everyone should expect this price pressure to begin taking effect shortly after Christmas, 2010, if not before.

As always, take the time to establish a quality relationship with a print vendor who is knowledgeable, and has the experience to have their own relationships with various suppliers and distributors, who can help hedge against short-term ebbs and flows in all material cost issues. In the long run, it is your relationship with your vendor that will help you enjoy the most value for your t-shirt dollar.

Bob Dummitt is an account representative for AdColor, Inc. in Lexington, Kentucky. Bob has been in the graphic arts field for more than 10 years with experience in all forms of printing, from garments to trade show displays to restaurant signage.

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