Last year, apparel decorators were wary about the future. Their concerns about the economy, tariffs and other factors were reflected in a dip in the industry’s health rating in our report. It was the first time in several years that decorators were less optimistic.
Not so in 2019’s State of the Industry report. Decorators have regained their sunny outlook, with the majority expecting to post a sales increase this year. They’re making plans to grow their businesses, either by purchasing new equipment, diversifying their offerings or hiring new employees.
“Despite the doom-and-gloom narrative from the talking heads in the mainstream media, all the companies I’m helping are having steady growth and are trending up,” says Marshall Atkinson, of Atkinson Consulting. “Decorators are dialing in their marketing efforts and connecting to customers like never before.”
To make good on those positive expectations and spur your growth, be sure to read on for insights into the everevolving landscape that is the decorated-apparel industry.
Rising Spirits
Decorators are once again bullish about the industry after last year’s uncharacteristic dip in optimism – a bump that can be attributed to (among other things) more certainty in the economy. That positivity should carry on into 2020, with decorators forecasting continued growth in the new year.
To see specific figures, please hover your pointer over the data points in each chart.
On the Rebound
The average industry health rating, according to decorated-apparel professionals
23%
Of decorators ranked the industry’s health as “robust” this year, compared to 18% last year.
Going Up
Just over half of decorators are expecting to grow sales this year, an increase over 2018 forecasts.
Feeling Better
Last year’s dip in decorators expecting an increase in sales has been reversed.
Expert Weigh-In
“The great thing about the decorated-apparel industry is its resiliency. Despite the economy, everyone still wants a new T-shirt or needs a company uniform to wear. We don’t sell ink or thread on fabric; we sell memories, connections and brand awareness.”Marshall Atkinson, Atkinson Consulting
Diversified Decoration
Embroidery and heat transfers are the top techniques offered by readers, but many decorators are exploring ways to increase their production capacity and diversify their offerings after a pullback in expansion plans last year. The most popular choices for planned equipment purchases are embroidery machines, screen-printing presses and direct-to-garment printers.
Top of the Crop
These are the top five techniques apparel decorators currently offer:
Patched Up
Have you been fielding more requests for patches and seeing them on hats, bags and shirts? You’re not alone. The decoration technique jumped up this year, reflecting its increasing trendiness.
A sizable portion of survey participants pointed to DTG as a growing trend in the decorated-apparel industry, noting its usefulness for decorating small quantities that require quick turn times and online order fulfillment.
Adding Capacity
The percentage of decorators who plan to purchase new equipment in the next year:
Expert Weigh-In
“We want to be clients’ one-stop shop for everything. You can either have a lot of customers and very few products to offer, or you offer a lot of products and services to a smaller group of customers and grow it from there.”Howard Potter, A&P Master Images
A Growth Mindset
Many decorators report having raised prices in the last three years or harboring plans to do so in the next year, an indication of their confidence in both the economy at large and their own company’s growth.
Price Check
About half of decorators have recently raised prices, and another half plans to increase prices next year.
PRICE CHANGES IN THE LAST 3 YEARS
PRICE CHANGES ANTICIPATED FOR NEXT YEAR
59%
of decorators say they consider the competition’s pricing when pricing their own products and services.
Expert Weigh-In
“Price increases are inevitably necessary. In the foreseeable future, most clients will expect them to some degree as they see increases in prices of many other things.”Andy Shuman, Rockland Embroidery
Getting Smaller
Though the median order size remains mostly unchanged, order sizes have, on average, been getting a little smaller. Andy Shuman of Rockland Embroidery attributes the trend to “zero inventory” program business that allows clients to “order in very small quantities at reasonably competitive rates.”
Despite the trend of smaller order sizes, only 23% of decorators say they’ve decreased minimum order quantities in the last year.
Promo Push
Apparel decorators continue to expand into other areas of decoration, including promotional products.
The percentage of apparel decorators who also imprint hard goods:
37%
2018
44%
2019
Three Ways to Increase Order Sizes
Industry consultant Marshall Atkinson offers these tips for growing your profits on each order.
1 Bundle Products: “That shirt order might be coupled with some embroidered hats,” he says. “Those athletic jerseys could be sold with travel bags and water bottles.”
2 Upsell: Offer your clients higher-level apparel items when you pitch. Sure, they might not always opt for the “best” or even “better” products in your arsenal, but if you don’t provide the opportunity, you could be missing out on extra revenue.
3 Be a Problem Solver: “Your job shouldn’t be an order taker, but more of a problem solver,” Atkinson says. “What problems can you solve for your customers? Think bigger picture. Ask more questions.”
Who Are Decorators Up Against?
Nearly half of decorators see online companies like Custom Ink and Amazon as their biggest source of competition. Local operations are the next biggest threat. Suppliers and distributors that do their own decorating are a worry for some, but not nearly as pressing a concern.
Distant Threat
As online selling has become more pervasive, the perceived risk from local competitors has decreased.
73%
Of decorators report having a business website, a noted improvement over last year when only 61% said they had a site.
Expert Weigh-In
“Today’s technology means we need to adapt, improve and change. Services are key. Providing a point of differentiation for customers will make decorators competitive even in the age of Amazon.”Taraynn Lloyd, Edwards Garment (asi/51752)
Taking Challenges Head-On
For decorators, the top business challenge is the same as it’s been for the last few years: increasing the size of their customer base. Recruiting high-quality employees and staying profitable are also perennial concerns.
Biggest Concerns
The top five challenges decorators say they face:
Finding People Is Hard Work
With unemployment rates the lowest they’ve been since the turn of the millennium, finding good workers is becoming increasingly difficult for decorators.
66%
Of decorators agree with the statement, “I’ve had difficulty finding quality workers in the job market.”
Expert Weigh-In
“Invest in your workers: Train them and get them the tools that can help them excel. It’s not about full automation. It’s about human and machine interaction to increase efficiency and quality, putting out more work with less effort and giving people higher pay with a better quality of life.”Ryan Moor, Ryonet/Allmade Apparel
What’s Trending for 2020?
We asked readers to share their thoughts on the biggest trends right now for apparel decorators. Unsurprisingly, many pointed to the continued growth of DTG and other forms of digital printing, as well as increased competition from both online giants and home-based crafters. Here are some other insights:
"More and more people are ordering shirts with logos overseas, especially school uniform stores. I’ve lost about $40,000 a year due to overseas purchasing."
"The DTG machine has ruined the small-business owner and individual artist. There’s no commitment or investment to starting a T-shirt business; therefore, it’s now the wild, wild West. Artwork gets stolen, and there are no real consequences. You can have any copied work vectorized for $5."
"On-demand production through process management, equipment configurations, technology and training."
"Online stores are advertising more on radio and TV, so more people are aware of them. Amazon is cutting into our sales since more people are sourcing their own garments."
"With the increasing popularity of performance fabrics for fashion wearables, heat transfer decoration has expanded tremendously. The transfers have gotten more vivid, the transfer papers are better and they’ve become more user-friendly."
"The need for quality contract decorators to outsource domestically is growing."
"Consumers are looking for advice from legitimate sources to help them decide which vendor to use. It’s becoming increasingly important to maintain a good online reputation, and online reviews on sites like Google and Facebook are key. Get on social media as much as you can, and possibly start a blog."
"Customers are buying higher-end products."
"Customers are demanding very, very short turnaround times."