What Marcus Fabrics has to say about price increases
12-03-2010, 08:36 AM
#1
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Join Date: May 2009
Location: Orchard Park, NY (near Buffalo, which is near Niagara Falls)
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This is an excerpt from a newsletter that we just received from Marcus last night. With all the concern about prices, I thought you might like to know what the manufacturers are telling the retail shops.
"What is causing the price increases? First, there is a worldwide cotton shortage, now in its second year. The situation was significantly compounded by the flooding in Pakistan, which decimated the local cotton crops. Cotton prices are up over 100% from this time last year. Additionally, there are labor shortages, dollar devaluations and a list of global economic conditions in general; together, these affect the pricing on all products coming out of China. Not only has this created a shortage of greige goods for printing in China, but adversely affected the cost of the greige goods available worldwide. While we do print in Korea, the majority of the greige comes from China.
Looking ahead, what can we expect? We have experienced shortages in the past, but this particular set of conditions is like no other we have ever experienced in our 100-year history. In addition, greed and corruption are fueling extreme price fluctuations, as greige goods producers hold out for the best price. This cannot last forever, and hopefully the market will stabilize in the first quarter of 2011. The good news is that we are just now hearing that the cost of cotton is going down. However, these lower prices will likely not be reflected in the market for another six to nine months; as with any commodity, cotton costs rise faster than they fall. The challenge is that we must produce goods at the today's pricing. It will be a difficult 2011 for all of us, both within the industry and beyond."
BTW... Moda has been holding their prices steady, even for their new 2011 lines. When the rep stopped by, she said that they were able to do this because they had been working with the same suppliers and mills for so long, that they had excellent relationships built up with them. Perhaps the good connections allow them to avoid the greedy suppliers? Only Moda knows...
"What is causing the price increases? First, there is a worldwide cotton shortage, now in its second year. The situation was significantly compounded by the flooding in Pakistan, which decimated the local cotton crops. Cotton prices are up over 100% from this time last year. Additionally, there are labor shortages, dollar devaluations and a list of global economic conditions in general; together, these affect the pricing on all products coming out of China. Not only has this created a shortage of greige goods for printing in China, but adversely affected the cost of the greige goods available worldwide. While we do print in Korea, the majority of the greige comes from China.
Looking ahead, what can we expect? We have experienced shortages in the past, but this particular set of conditions is like no other we have ever experienced in our 100-year history. In addition, greed and corruption are fueling extreme price fluctuations, as greige goods producers hold out for the best price. This cannot last forever, and hopefully the market will stabilize in the first quarter of 2011. The good news is that we are just now hearing that the cost of cotton is going down. However, these lower prices will likely not be reflected in the market for another six to nine months; as with any commodity, cotton costs rise faster than they fall. The challenge is that we must produce goods at the today's pricing. It will be a difficult 2011 for all of us, both within the industry and beyond."
BTW... Moda has been holding their prices steady, even for their new 2011 lines. When the rep stopped by, she said that they were able to do this because they had been working with the same suppliers and mills for so long, that they had excellent relationships built up with them. Perhaps the good connections allow them to avoid the greedy suppliers? Only Moda knows...
12-03-2010, 09:12 AM
#3
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Join Date: May 2009
Location: La Pine Oregon, USA
Posts: 5,907
Yip -- that's what they were talking about on the FoxBusiness channel. I suggested to DH that we take the guest room and start stashing LOADS of fabric in there....fill the room up. I got "that" look from him .....guess that won't happen!!!
12-03-2010, 09:12 AM
#4
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Join Date: Aug 2010
Location: Close to Breezewood, PA
Posts: 397
I think we should produce our own products in America. I don't know why fabric has to come from China. With all the bad press of China products, you would think we could produce enough cotton crops for our country. I don't like the fact the China as put lead in toys, bad chemicals in tooth paste, etc. JMO
12-03-2010, 09:47 AM
#5
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Location: Orchard Park, NY (near Buffalo, which is near Niagara Falls)
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I think that everything comes from China because it's cheaper to produce it over there. Fewer labor costs, and less environmental controls.
We have been trained to shop by price first and foremost, for years, and this is one of the consequences.
From what I've been told by folks in the textile industry, all the cotton combing and weaving equipment left our shores over a decade ago. Even if we *wanted* to bring it back... that would take quite some time. And we are an impatient society.
We have been trained to shop by price first and foremost, for years, and this is one of the consequences.
From what I've been told by folks in the textile industry, all the cotton combing and weaving equipment left our shores over a decade ago. Even if we *wanted* to bring it back... that would take quite some time. And we are an impatient society.
12-03-2010, 09:48 AM
#6
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Join Date: Jul 2010
Location: Connecticut
Posts: 727
Wait until it takes a wheelbarrow full of money to buy a yard of fabric in the not too distant future. When the FED
prints money to pay our debt, our bucks are worth less. Yippie, can't wait (sarc). Thank God I have a pretty good stash built up and can probably quilt for a few years at least until I'm out.
About the cheap labor in China, we drove those businesses overseas by labor not being competitive and taxing the heck out them. Apparently if we want our companies to stay here we have to provide incentive for them to do so.
Start stocking up on the fabric ladies. Such a chore, I know LOL.
prints money to pay our debt, our bucks are worth less. Yippie, can't wait (sarc). Thank God I have a pretty good stash built up and can probably quilt for a few years at least until I'm out.
About the cheap labor in China, we drove those businesses overseas by labor not being competitive and taxing the heck out them. Apparently if we want our companies to stay here we have to provide incentive for them to do so.
Start stocking up on the fabric ladies. Such a chore, I know LOL.
12-03-2010, 09:50 AM
#7
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Join Date: May 2009
Location: Orchard Park, NY (near Buffalo, which is near Niagara Falls)
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Originally Posted by Jamiestitcher62
Wait until it takes a wheelbarrow full of money to buy a yard of fabric in the not too distant future. When the FED
prints money to pay our debt, our bucks are worth less. Yippie, can't wait (sarc). Thank God I have a pretty good stash built up and can probably quilt for a few years at least until I'm out.
prints money to pay our debt, our bucks are worth less. Yippie, can't wait (sarc). Thank God I have a pretty good stash built up and can probably quilt for a few years at least until I'm out.
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