It showed that small and mid-sized clothing manufacturers experienced a 44 per cent quarter-on-quarter drop in average sales revenue, steeper than the overall manufacturing average decline of 39 per cent across all categories analysed.
Average sales revenue for clothing manufacturers fell to £278,427 (~$378,661) in Q1 from £498,254 (~$677,626) in the previous quarter. On a year-on-year (YoY) basis, revenue was down 53 per cent.
UK clothing manufacturers saw average sales revenue plunge 44 per cent in Q1 amid weaker business confidence linked to Middle East tensions.
Revenue dropped to £278,427 (~$378,661) from £498,254 (~$677,626) in the previous quarter.
Manufacturing profitability and purchase orders also declined sharply, while inventory levels rose amid softer demand.
The data is collected from more than 600 UK firms using Unleashed’s inventory management software across 12 manufacturing sectors, including clothing and fashion.
Among the categories studied, clothing manufacturers ranked seventh. The quarterly sales revenue also dropped 44 per cent to £222,657 (~$302,814).
Meanwhile, average stock on hand more than doubled to £244,615 (~$332,676) from £121,263 (~$164,918) in the previous quarter, suggesting slower inventory movement and softer demand conditions. Lead times shortened from 26 days to 19 days during the same period.
Joe Llewellyn, GM of ERP Small Business at The Access Group, the parent company of Unleashed, said, “Tensions in the Middle East, including the Strait of Hormuz blockade, have created significant market uncertainty and our data suggests this is now taking its toll on manufacturers. Having started the year on a growth footing, the first quarter of the year saw the biggest drop in sales revenue we have recorded since 2024. With fuel prices already up, and energy prices expected to rise later this year, the coming months could reduce confidence, increase costs, and squeeze margins even more. While many SMEs have slim buffers to weather these changes, our data suggests they are taking steps to mitigate the impact by reducing stock on hand to protect their margins.”
The report also highlighted broader weakness across manufacturing. Purchase order values fell an average 51 per cent quarter-on-quarter, while profitability declined from 54 per cent to 35 per cent, marking the lowest level since before 2018.
Fibre2Fashion News Desk (JP)
