September 24, 2022
  • September 24, 2022

The Swiss ITMF tracks production costs in the primary textile industry

By on June 2, 2022 0
The manufacturing costs of different textile products in the primary textile industry have been broken down into various cost elements at each stage of the textile value chain, according to a new report released by the International Textile Manufacturers Federation (ITMF). The federation has published the new edition of the International Comparison of Production Costs (IPCC).

The 2021 edition added Central America and Mexico to the historical cost analysis in Bangladesh, Brazil, China, Egypt, India, Indonesia, Italy, Republic of Korea, Pakistan, Turkey, the United States and Vietnam. Cost factors, manufacturing costs and total production costs are available for different textile products in the segments of spinning, stretch texturing, weaving, knitting and finishing.

The publication found that producing one yard of woven fabric from 1-1/8″ cotton in a continuous open-width (COW) process cost $1.36/m on average in 2021 (range between 1. $11/m in India and $1.91/m in Italy).

The manufacturing costs of different textile products in the primary textile industry have been broken down into various cost elements at each stage of the textile value chain, according to a new report released by the International Textile Manufacturers Federation (ITMF). The federation has published the new edition of International Comparison of Production Costs.

Spinning the yarn needed to produce that one yard of finished fabric costs an average of 19% of the total fabric production cost worldwide (ranging from 15% in Korea, Rep. to 22% in Central America). Weaving this yarn adds on average an additional 19 percentage points (pp) to the total cost of production of the fabric (range between 14 pp in Egypt and 26 pp in Italy). Finally, finishing this meter of fabric increases the final production cost by 31 pp (range between 26 pp in Egypt and 33 pp in the United States, Turkey and India).

The study further revealed that the average raw material cost needed to produce this yard of woven fabric was 31% of the cost of producing the fabric. It was relatively cheaper in Italy (22%) and the most expensive in Egypt (40%).

The publication also showed that Mexico and Central America are comparatively more dependent on the cost of energy to spin NE/30 yarn than the other countries in the panel. The cost of electricity represents respectively 28% and 25% of manufacturing costs in the two countries. In contrast, the United States and Egypt benefit from relatively low energy costs (10% and 11% of manufacturing costs, respectively).

Dependence on labor costs is very high in Italy and the United States, with shares of 40% and 38% of manufacturing costs. This cost element accounts for only 2-3% of total manufacturing costs in India, Pakistan, Bangladesh and Egypt. NE/30 yarn mills in Egypt, Central America and Pakistan also face high investment costs (more than 40 percent of their manufacturing costs). The cost of capital is much lower in Italy and South Korea, where it reached 21% in 2021.

Fibre2Fashion (RR) Press Office