In the Dec 1st 2010 article by David Bebon “Uncovering the Cotton Crisis” David gives a fairly detailed account of the direction that pricing on this commodity is heading and cheaper is not even close.
This is going to create a fundamental shift in terms of supply and demand where the corporate market is going to get shorted stock in lieu of higher margins in retail. How our industry suppliers will compete for limited raw material will determine their success or failure in this industry of the next number of years. What this means for corporate purchasers of uniforms, promotional t-shirts, corporate wear and trade show apparel is that not only will costs be rising in 2011 and 2012, but suppliers having deep inventory at the ready will become more and more scarce.
How this can be overcome is to develop clothing programs so that your supplier is aware of your long term needs and can schedule inventory buys accordingly.
This is just another way we can help to Get YOU Noticed!
PS here is another great article with an update on cotton from February 2011.