Local clothing accessories manufacturing industry to continue to shrink in revenue

Market and industry research firm IBISWorld has updated its Tailoring and Clothing Accessories Manufacturing in Australia market research report, finding the sector shrunk by 5.7 per cent over the last five years.

The report, updated from February 2014, calculated the industry to be worth $1.8 billion overall (down from $2 billion last year).

Cheap imported competition and soft local retail conditions had harmed revenue. The effect of imports will be increasingly felt due to a reduction in clothing tariffs from 10.0 per cent to 5.0 per cent in January.

Declining revenues are expected over the next five years, though conditions are tipped to improve overall.

High-value, specialty goods were more likely to be successful for operators, said IBISWorld.

“Australia's competitive advantage lies in the production of higher quality, niche market goods that can be specialised for consumers,” a statement from the research firm read.