Supply chain disruptions brought on by the Covid-19 epidemic are expected to cost the US textile and footwear industries between US $ 9 billion and US $ 17 billion in 2022 alone, according to recent information from the International Trade Commission.
The Covid-19 pandemic’s effects on international supply chains are examined in the International Trade Commission’s (ITC) Recent Trends in US Services Trade: 2023 Annual Report.
According to the analysis, inventory distortion losses from pandemic-related supply disruptions will cost global merchants US $ 580 billion by 2020. Costs to manufacturers and operators of the worldwide retail supply chain were projected to reach US $ 1.2 trillion in 2020.
According to the research, the changes in demand, supply shortages, and transportation bottlenecks brought on by the Covid-19 outbreak were the “most dramatic stress test of the past 75 years” for global supply networks and showed their frailty and their limitations. The paper states that the pandemic had a negative effect on the revenues of 94 per cent of US retail companies, according to a poll of international retail executives.
Due to the fact that US garment retailers import almost 90 per cent of their merchandise, US businesses that depend on international suppliers for inputs and finished goods have been hardest hurt.
“Analysis of supply chains since the onset of Covid-19 pandemic has suggested diversifying supply is critical for retailers,” the report reads.
The research highlights how sourcing is “relatively easy to move” for some industries, like textiles, with “numerous” options to China, including neighbouring Asian nations like India and Pakistan and Latin American nations like Mexico.
According to the survey, pandemic-related interruptions also exposed a lack of openness between suppliers and merchants.
