NAICS Code 313310-27 - Knit Goods (Wholesale) (Manufacturing)
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NAICS Code 313310-27 Description (8-Digit)
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Parent Code (less specific)
Tools
Tools commonly used in the Knit Goods (Wholesale) (Manufacturing) industry for day-to-day tasks and operations.
- Knitting machines
- Circular knitting machines
- Flat knitting machines
- Computerized knitting machines
- Yarn winders
- Yarn splicers
- Yarn tensioners
- Needle detectors
- Fabric inspection machines
- Fabric cutting machines
- Sewing machines
- Embroidery machines
- Steam presses
- Irons
- Scissors
- Needles
- Thread
- Marking tools
- Measuring tools
Industry Examples of Knit Goods (Wholesale) (Manufacturing)
Common products and services typical of NAICS Code 313310-27, illustrating the main business activities and contributions to the market.
- Knit sweaters
- Knit socks
- Knit hats
- Knit scarves
- Knit gloves
- Knit leggings
- Knit tights
- Knit dresses
- Knit skirts
- Knit tops
- Knit cardigans
- Knit shawls
- Knit ponchos
- Knit beanies
- Knit headbands
- Knit wrist warmers
- Knit arm warmers
- Knit boot cuffs
Certifications, Compliance and Licenses for NAICS Code 313310-27 - Knit Goods (Wholesale) (Manufacturing)
The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.
- Oeko-Tex Standard 100: This certification ensures that the textile products are free from harmful substances and are safe for human use. It is issued by the International Association for Research and Testing in the Field of Textile Ecology (Oeko-Tex).
- Global Organic Textile Standard (GOTS): This certification ensures that the textile products are made from organic fibers and meet environmental and social criteria. It is issued by the Global Organic Textile Standard International Working Group.
- WRAP Certification: This certification ensures that the textile products are produced under lawful, humane, and ethical conditions. It is issued by Worldwide Responsible Accredited Production (WRAP).
- Fair Trade Certification: This certification ensures that the textile products are produced under fair labor conditions and that the workers receive fair wages. It is issued by Fair Trade USA.
- ISO 9001: This certification ensures that the textile products meet quality management standards. It is issued by the International Organization for Standardization (ISO).
History
A concise historical narrative of NAICS Code 313310-27 covering global milestones and recent developments within the United States.
- The knit goods industry has a long history dating back to the 16th century when knitting machines were invented. The industry has since undergone significant changes, with the introduction of new technologies and materials. In the 19th century, the industry saw the introduction of the circular knitting machine, which allowed for the production of seamless garments. The industry continued to grow in the 20th century, with the introduction of synthetic fibers and the development of new knitting techniques. In recent years, the industry has seen a shift towards sustainable and eco-friendly materials, with many companies adopting new practices to reduce their environmental impact. In the United States, the knit goods industry has a rich history dating back to the colonial era. The industry grew rapidly in the 19th century, with the introduction of new technologies and the expansion of the textile industry. The industry continued to grow in the 20th century, with the introduction of new materials and the development of new knitting techniques. In recent years, the industry has faced challenges due to increased competition from overseas manufacturers and changing consumer preferences. Despite these challenges, the industry remains an important part of the US economy, with many companies adopting new practices to remain competitive in the global market.
Future Outlook for Knit Goods (Wholesale) (Manufacturing)
The anticipated future trajectory of the NAICS 313310-27 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.
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Growth Prediction: Stable
The future outlook for the Knit Goods (Wholesale) (Manufacturing) industry in the USA is positive. The industry is expected to grow in the coming years due to the increasing demand for knit goods in the fashion industry. The industry is also expected to benefit from the growing trend of athleisure wear, which has become increasingly popular in recent years. Additionally, the industry is expected to benefit from the increasing popularity of online shopping, which has made it easier for wholesalers to reach a wider audience. However, the industry may face challenges due to the increasing competition from low-cost imports from countries such as China and India. Overall, the industry is expected to grow steadily in the coming years, driven by the increasing demand for knit goods in the fashion industry and the growing trend of athleisure wear.
Industry Innovations for NAICS Code 313310-27
Recent groundbreaking advancements and milestones in the Knit Goods (Wholesale) (Manufacturing) industry, reflecting notable innovations that have reshaped its landscape.
- Smart Textiles: Smart textiles are a recent innovation in the knit goods industry. These textiles are designed to be interactive and can change color, shape, or texture in response to external stimuli such as heat, light, or sound.
- Sustainable Materials: Many knit goods manufacturers are now using sustainable materials such as organic cotton, bamboo, and recycled polyester to reduce their environmental impact.
- 3D Printing: 3D printing is a recent innovation that has the potential to revolutionize the knit goods industry. It allows manufacturers to create complex designs and patterns that would be difficult or impossible to achieve with traditional manufacturing methods.
- Digital Printing: Digital printing is a recent innovation that allows manufacturers to print designs directly onto fabric, eliminating the need for separate printing and dyeing processes.
- Wearable Technology: Wearable technology is a recent innovation that has the potential to transform the knit goods industry. It includes products such as smart watches, fitness trackers, and other wearable devices that can be integrated into clothing.
Required Materials or Services for Knit Goods (Wholesale) (Manufacturing)
This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Knit Goods (Wholesale) (Manufacturing) industry. It highlights the primary inputs that Knit Goods (Wholesale) (Manufacturing) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.
Material
Dyes and Colorants: Chemicals used to impart color to knitted fabrics, crucial for meeting customer preferences and trends in the fashion industry.
Elastic Bands: Used in various knit products, elastic bands provide stretch and comfort, making them essential for items like socks and fitted garments.
Interfacing Materials: Used to reinforce and stabilize certain areas of knitted garments, interfacing materials are crucial for maintaining shape and structure.
Labels and Tags: Essential for branding and providing care instructions, labels and tags are attached to knit goods to inform consumers about the product.
Packaging Materials: Materials used to package knit goods for wholesale distribution, protecting products during transport and enhancing presentation.
Thread: Used for sewing and finishing knitted products, thread is vital for ensuring durability and quality in the final garments.
Yarn: A fundamental material used in the production of knit goods, yarn is essential for creating the interlocking loops that form various knitted products.
Zippers and Fasteners: Components used in various knit products, zippers and fasteners are essential for functionality and ease of use in garments.
Equipment
Computer-Aided Design (CAD) Software: Software that assists in designing knit goods, allowing for precise specifications and innovative patterns to be created digitally.
Cutting Machines: Machines that cut knitted fabrics into specific shapes and sizes, essential for preparing materials for further processing or assembly.
Embroidery Machines: Machines that add decorative elements to knit goods, enhancing their appeal and allowing for customization options.
Finishing Equipment: Machinery used to enhance the appearance and feel of knitted products, including processes such as steaming and pressing to ensure quality.
Knitting Machines: Specialized machinery that automates the process of knitting, allowing for efficient production of various knitted fabrics and garments.
Service
Consulting Services: Expert advice on industry best practices, helping businesses optimize their operations and navigate market challenges effectively.
Inventory Management Services: Services that assist in tracking and managing stock levels of knit goods, ensuring that supply meets demand efficiently.
Logistics and Distribution Services: Services that manage the transportation and delivery of knit goods to retailers and other bulk buyers, ensuring timely and efficient supply chain operations.
Market Research Services: Services that provide insights into market trends and consumer preferences, helping businesses in the knit goods sector to make informed decisions.
Quality Control Services: Services that inspect and ensure the quality of knit goods before they are distributed, helping to maintain industry standards and customer satisfaction.
Sustainability Consulting: Advisory services focused on implementing sustainable practices in the production and distribution of knit goods, appealing to environmentally conscious consumers.
Trade Show Participation Services: Services that help businesses showcase their knit goods at trade shows, facilitating networking and potential sales opportunities.
Products and Services Supplied by NAICS Code 313310-27
Explore a detailed compilation of the unique products and services offered by the Knit Goods (Wholesale) (Manufacturing) industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the Knit Goods (Wholesale) (Manufacturing) to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Knit Goods (Wholesale) (Manufacturing) industry. It highlights the primary inputs that Knit Goods (Wholesale) (Manufacturing) professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.
Material
Knit Accessories: This includes a variety of knitted items such as headbands and leg warmers, produced to complement outfits. Retailers purchase these accessories to provide customers with fashionable options that enhance their overall look.
Knit Activewear: This category includes performance-oriented garments made from stretchy knitted fabrics that allow for ease of movement. Retailers often stock these items to cater to the growing market of fitness enthusiasts.
Knit Baby Clothes: Soft and comfortable knitted garments designed for infants, these products are made from gentle materials to ensure safety and comfort. Retailers focus on these items to attract new parents looking for quality baby apparel.
Knit Fabric Rolls: These rolls of knitted fabric are produced in various weights and textures, suitable for a range of applications from apparel to home textiles. Wholesalers supply these materials to manufacturers and designers who create finished products.
Knit Loungewear: Casual and comfortable clothing made from knitted fabrics, ideal for relaxation at home. Retailers often feature these items in their collections to appeal to consumers seeking comfort and style.
Knitted Gloves: These hand coverings are made using advanced knitting technology, ensuring a snug fit and warmth. Retailers purchase these gloves to offer customers a variety of options for cold weather protection.
Knitted Hats: These headwear items are crafted using various knitting techniques, ensuring warmth and style for different seasons. Retailers stock these hats to meet consumer demand for fashionable and functional accessories.
Knitted Scarves: Produced from high-quality yarns, these scarves are designed to provide warmth and style, often featuring intricate patterns. They are popular among retailers looking to enhance their winter accessory collections.
Knitted Socks: Manufactured through a precise knitting process, these socks provide comfort and durability, making them essential for everyday wear. They are commonly sold in bulk to retailers who cater to various demographics, including athletes and casual wearers.
Knitted Sweaters: These garments are produced using specialized knitting machines that create interlocking loops of yarn, resulting in warm and comfortable clothing suitable for casual and formal occasions. Retailers often purchase these sweaters to offer a variety of styles and colors to consumers.
Comprehensive PESTLE Analysis for Knit Goods (Wholesale) (Manufacturing)
A thorough examination of the Knit Goods (Wholesale) (Manufacturing) industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.
Political Factors
Trade Regulations
Description: Trade regulations play a crucial role in the knit goods wholesale industry, particularly regarding tariffs and import restrictions on textiles. Recent trade agreements and policy changes have influenced the cost and availability of imported knit goods, impacting pricing strategies for wholesalers in the U.S.
Impact: Changes in trade regulations can lead to increased costs for imported knit goods, affecting profit margins for wholesalers. Additionally, domestic producers may face heightened competition from imports, which can pressure local prices and market share, necessitating strategic adjustments in sourcing and pricing.
Trend Analysis: Historically, trade regulations have fluctuated based on political climates and international relations. Currently, there is a trend towards more stringent trade policies, which may continue to shape the industry landscape. Future predictions suggest ongoing negotiations and geopolitical tensions will keep trade regulations dynamic, with a medium level of certainty regarding their impact on the industry.
Trend: Increasing
Relevance: HighLabor Policies
Description: Labor policies, including minimum wage laws and worker rights regulations, significantly impact operational costs in the knit goods wholesale industry. Recent legislative changes in various states have raised compliance costs for wholesalers, affecting their pricing and operational strategies.
Impact: Changes in labor policies can lead to increased operational costs, which may necessitate adjustments in pricing strategies and profit margins. Wholesalers may need to invest in workforce training and compliance measures to avoid legal repercussions, impacting overall operational efficiency and profitability.
Trend Analysis: Labor policies have seen gradual changes, with a trend towards more stringent regulations expected to continue. The level of certainty regarding this trend is medium, influenced by political and social movements advocating for worker rights and fair wages.
Trend: Increasing
Relevance: Medium
Economic Factors
Consumer Spending Trends
Description: Consumer spending trends directly influence the knit goods wholesale industry, particularly as economic conditions fluctuate. Economic downturns can lead to reduced discretionary spending, affecting sales of knit goods, while economic growth can boost demand for these products.
Impact: Economic fluctuations can create volatility in demand for knit goods, impacting revenue and profitability for wholesalers. Companies may need to adjust their inventory and pricing strategies to maintain sales during downturns, which can lead to operational challenges and increased competition.
Trend Analysis: Consumer spending has shown variability, with recent inflationary pressures affecting purchasing behavior. The trend is currently unstable, with predictions of potential recessionary impacts in the near future, leading to cautious consumer spending. The level of certainty regarding these predictions is medium, influenced by broader economic indicators.
Trend: Decreasing
Relevance: MediumMarket Demand for Sustainable Products
Description: There is a growing consumer preference for sustainable and ethically produced knit goods, driven by increased awareness of environmental issues and social responsibility. This trend is particularly strong among younger consumers who prioritize sustainability in their purchasing decisions.
Impact: The rising demand for sustainable products presents opportunities for growth in the knit goods wholesale sector. Wholesalers that can source and promote sustainable knit goods effectively stand to gain market share. However, failure to adapt to this trend may result in lost sales and reduced competitiveness.
Trend Analysis: Over the past few years, the demand for sustainable and ethically produced products has steadily increased, with projections indicating continued growth as consumers prioritize environmental and social considerations. This trend is supported by a high level of certainty, driven by demographic shifts and lifestyle changes.
Trend: Increasing
Relevance: High
Social Factors
Health and Wellness Trends
Description: The increasing focus on health and wellness has led to a surge in demand for comfortable and functional knit goods, such as activewear and athleisure. This shift is particularly evident in younger demographics who prioritize both style and comfort in their clothing choices.
Impact: This factor positively influences the knit goods wholesale industry, as companies that align their offerings with health and wellness trends can capture a larger market share. However, those that fail to adapt may struggle to maintain relevance in a competitive market.
Trend Analysis: Health and wellness trends have been on the rise for several years, with a strong trajectory expected to continue. The certainty of this trend is high, driven by ongoing public health campaigns and increasing consumer awareness about the benefits of active lifestyles.
Trend: Increasing
Relevance: HighChanging Fashion Preferences
Description: Fashion preferences are continually evolving, with consumers increasingly seeking unique and trendy knit goods. The rise of social media and influencer marketing has accelerated the pace of fashion changes, impacting wholesale demand for knit products.
Impact: The rapid changes in fashion preferences can create challenges for wholesalers, as they must stay ahead of trends to meet consumer demands. Companies that can quickly adapt their inventory and marketing strategies to align with current trends are more likely to succeed, while those that lag may face declining sales.
Trend Analysis: The trend of changing fashion preferences has been increasing, with a high level of certainty regarding its impact on the industry. This trend is driven by social media influences and the fast fashion movement, necessitating agility in inventory management and marketing strategies.
Trend: Increasing
Relevance: High
Technological Factors
E-commerce Growth
Description: The rise of e-commerce has transformed how consumers purchase knit goods, with online sales channels becoming increasingly important. This shift has been accelerated by the COVID-19 pandemic, which significantly changed shopping behaviors.
Impact: E-commerce presents both opportunities and challenges for the knit goods wholesale industry. Companies that effectively leverage online platforms can reach a broader audience and increase sales. However, they must also navigate logistics and supply chain complexities associated with online sales, which can impact operational efficiency.
Trend Analysis: The growth of e-commerce has shown a consistent upward trajectory, with predictions indicating continued expansion as more consumers prefer online shopping. The level of certainty regarding this trend is high, influenced by technological advancements and changing consumer habits.
Trend: Increasing
Relevance: HighAdvancements in Textile Technology
Description: Technological advancements in textile manufacturing and processing, such as automated knitting machines and digital printing, are enhancing the quality and efficiency of knit goods production. These innovations are crucial for meeting consumer expectations and reducing production costs.
Impact: Investing in advanced textile technologies can lead to improved product quality and operational efficiency, allowing wholesalers to differentiate themselves in a competitive market. However, the initial investment can be substantial, posing a barrier for smaller operators in the industry.
Trend Analysis: The trend towards adopting new textile technologies has been growing, with many companies investing in modernization to stay competitive. The certainty of this trend is high, driven by consumer demand for higher quality and more innovative products.
Trend: Increasing
Relevance: High
Legal Factors
Intellectual Property Rights
Description: Intellectual property rights, particularly regarding design patents and trademarks, are critical in the knit goods wholesale industry. Protecting unique designs and branding is essential for maintaining competitive advantage and market position.
Impact: Strong intellectual property protections can enhance brand value and prevent unauthorized copying of designs, which is crucial for wholesalers. However, navigating the complexities of intellectual property law can be challenging and may require significant legal resources, impacting operational costs.
Trend Analysis: The trend towards strengthening intellectual property rights has been increasing, with a high level of certainty regarding its importance in the industry. This trend is driven by the need for brands to protect their innovations and maintain market differentiation.
Trend: Increasing
Relevance: HighCompliance with Labor Laws
Description: Compliance with labor laws, including wage regulations and workplace safety standards, significantly impacts operational practices in the knit goods wholesale industry. Recent changes in labor laws have raised compliance costs for wholesalers, affecting their bottom line.
Impact: Adhering to labor laws is essential for avoiding legal repercussions and maintaining a positive brand image. Non-compliance can lead to fines and damage to reputation, making it critical for wholesalers to prioritize compliance measures, which can increase operational costs.
Trend Analysis: Labor laws have seen gradual changes, with a trend towards more stringent regulations expected to continue. The level of certainty regarding this trend is medium, influenced by political and social movements advocating for worker rights.
Trend: Increasing
Relevance: Medium
Economical Factors
Sustainability Practices
Description: There is a growing emphasis on sustainability within the knit goods wholesale industry, driven by consumer demand for environmentally friendly products. This includes practices such as using organic materials and reducing waste in production processes.
Impact: Adopting sustainable practices can enhance brand loyalty and attract environmentally conscious consumers. However, transitioning to sustainable methods may involve significant upfront costs and operational changes, which can be challenging for some wholesalers.
Trend Analysis: The trend towards sustainability has been steadily increasing, with a high level of certainty regarding its future trajectory. This shift is supported by consumer preferences and regulatory pressures for more sustainable production methods in the textile industry.
Trend: Increasing
Relevance: HighEnvironmental Regulations
Description: Environmental regulations governing waste management and emissions are increasingly relevant to the knit goods wholesale industry. Compliance with these regulations is essential for minimizing environmental impact and avoiding legal penalties.
Impact: Adhering to environmental regulations can lead to increased operational costs, as companies may need to invest in cleaner technologies and waste management systems. However, compliance can also enhance brand reputation and appeal to environmentally conscious consumers, providing a competitive advantage.
Trend Analysis: The trend towards stricter environmental regulations has been increasing, with a high level of certainty regarding their impact on the industry. This trend is driven by growing public awareness of environmental issues and advocacy for sustainable practices.
Trend: Increasing
Relevance: High
Value Chain Analysis for NAICS 313310-27
An in-depth look at the Knit Goods (Wholesale) (Manufacturing) industry's value chain, highlighting its role, key activities, and efficiency strategies, along with its unique value drivers and competitive strengths.
Value Chain Position
Category: Distributor
Value Stage: Final
Description: The industry operates as a distributor in the textile sector, focusing on the wholesale distribution of knitted fabrics and garments. Companies in this sector engage in sourcing, storing, and selling knit goods to various retail and commercial buyers, ensuring that products meet market demands.
Upstream Industries
Broadwoven Fabric Mills- NAICS 313210
Importance: Critical
Description: Knit goods wholesalers rely on textile mills for high-quality knitted fabrics, which are essential inputs for their business. These fabrics are produced using advanced knitting techniques and must meet specific quality standards to ensure durability and comfort in the final products.Fiber, Yarn, and Thread Mills - NAICS 313110
Importance: Important
Description: Yarn spinning mills provide the raw yarns necessary for knitting processes. The quality and type of yarn received directly impact the characteristics of the knitted goods, making this relationship vital for maintaining product standards and meeting customer expectations.Fabric Coating Mills- NAICS 313320
Importance: Important
Description: Dyeing and finishing mills supply pre-treated fabrics that enhance the aesthetic appeal of knit goods. The finishing processes ensure that fabrics are colorfast and meet the desired specifications for texture and appearance, which are crucial for market competitiveness.
Downstream Industries
Apparel Knitting Mills- NAICS 315120
Importance: Critical
Description: Apparel knitting mills utilize the wholesale knit goods to produce finished garments. The quality and variety of knit fabrics supplied are essential for the mills to create competitive and appealing clothing lines that meet consumer demand.Direct to Consumer
Importance: Important
Description: Wholesalers also sell directly to consumers through online platforms and specialty stores. This relationship allows for a more personalized shopping experience, where customers can access a wide range of knit products, enhancing brand loyalty and customer satisfaction.Institutional Market
Importance: Supplementary
Description: Institutions such as schools and hospitals purchase knit goods in bulk for uniforms and other uses. The reliability and quality of the products are crucial for these buyers, as they often require specific standards for durability and comfort.
Primary Activities
Inbound Logistics: Inbound logistics involve the careful receiving and handling of knitted fabrics and yarns from suppliers. Efficient storage practices include maintaining optimal conditions for fabric preservation, while inventory management systems track stock levels to ensure timely replenishment. Quality control measures are implemented to inspect incoming materials for defects, ensuring that only high-quality inputs are used in production.
Operations: Core operations include sorting, categorizing, and preparing knit goods for distribution. Quality management practices involve regular inspections and adherence to industry standards to ensure that all products meet customer specifications. Procedures include maintaining accurate records of inventory and implementing efficient order fulfillment processes to meet market demands.
Outbound Logistics: Outbound logistics encompass the distribution of finished knit goods to various retail and commercial customers. Common practices include using reliable transportation methods to ensure timely delivery while maintaining product quality. Packaging solutions are designed to protect goods during transit, ensuring they arrive in excellent condition.
Marketing & Sales: Marketing strategies often involve showcasing products at trade shows and through digital platforms to reach a broader audience. Customer relationship practices focus on building long-term partnerships with retailers and institutions, emphasizing quality and reliability. Sales processes typically include personalized service and support to address specific customer needs and preferences.
Support Activities
Infrastructure: Management systems in the industry include inventory management software that tracks stock levels and sales trends. Organizational structures often consist of dedicated teams for sales, logistics, and customer service, ensuring efficient operations. Planning systems are crucial for forecasting demand and managing supply chain activities effectively.
Human Resource Management: Workforce requirements include skilled personnel for logistics, sales, and customer service roles. Training programs focus on product knowledge and customer engagement techniques, ensuring staff are well-equipped to meet client needs. Industry-specific skills include familiarity with textile properties and market trends.
Technology Development: Key technologies include inventory management systems and e-commerce platforms that facilitate online sales. Innovation practices focus on adopting new technologies for efficient order processing and customer engagement. Industry-standard systems often involve data analytics for understanding market trends and customer preferences.
Procurement: Sourcing strategies involve establishing strong relationships with reliable suppliers for fabrics and yarns. Supplier relationship management is essential for ensuring consistent quality and timely delivery of materials, while purchasing practices emphasize cost-effectiveness and sustainability.
Value Chain Efficiency
Process Efficiency: Operational effectiveness is measured through metrics such as order fulfillment rates and inventory turnover. Common efficiency measures include tracking delivery times and customer satisfaction levels to optimize service quality. Industry benchmarks are established based on average delivery times and customer feedback.
Integration Efficiency: Coordination methods involve regular communication between suppliers, logistics, and sales teams to ensure alignment on inventory levels and customer orders. Communication systems often include integrated software solutions that facilitate real-time updates on stock and order status.
Resource Utilization: Resource management practices focus on optimizing storage space and minimizing waste during handling and distribution. Optimization approaches may involve implementing just-in-time inventory systems to reduce holding costs while ensuring product availability, adhering to industry standards for efficiency.
Value Chain Summary
Key Value Drivers: Primary sources of value creation include high-quality knitted fabrics, efficient logistics, and strong customer relationships. Critical success factors involve maintaining product quality and responsiveness to market trends, enabling wholesalers to meet diverse customer needs effectively.
Competitive Position: Sources of competitive advantage include the ability to offer a wide range of knit goods and establish reliable supply chains. Industry positioning is influenced by the quality of products and customer service, impacting market dynamics and customer loyalty.
Challenges & Opportunities: Current industry challenges include fluctuations in raw material prices and competition from overseas suppliers. Future trends may involve increased demand for sustainable and eco-friendly knit products, presenting opportunities for wholesalers to innovate and expand their offerings.
SWOT Analysis for NAICS 313310-27 - Knit Goods (Wholesale) (Manufacturing)
A focused SWOT analysis that examines the strengths, weaknesses, opportunities, and threats facing the Knit Goods (Wholesale) (Manufacturing) industry within the US market. This section provides insights into current conditions, strategic interactions, and future growth potential.
Strengths
Industry Infrastructure and Resources: The industry benefits from a well-established infrastructure that includes specialized warehouses and distribution centers designed for efficient handling of bulk knit goods. This strong infrastructure supports timely deliveries and enhances the ability to meet retailer demands, with many companies investing in logistics technology to streamline operations.
Technological Capabilities: Companies in this sector leverage advanced technologies for inventory management and order processing, which enhances operational efficiency. The industry is characterized by a moderate level of innovation, with firms adopting software solutions that improve supply chain visibility and reduce lead times.
Market Position: The industry holds a strong position within the textile wholesale market, with significant market share attributed to established relationships with retailers and brands. Brand recognition and a reputation for quality contribute to its competitive strength, although there is ongoing pressure from alternative sourcing options.
Financial Health: Financial performance across the industry is generally strong, with many companies reporting stable revenue growth and healthy profit margins. The financial health is supported by consistent demand for knit goods, although fluctuations in raw material prices can impact profitability.
Supply Chain Advantages: The industry enjoys robust supply chain networks that facilitate efficient procurement of yarns and fabrics from manufacturers. Strong relationships with suppliers and logistics providers enhance operational efficiency, allowing for timely delivery of products to market and reducing costs.
Workforce Expertise: The labor force in this industry is skilled and knowledgeable, with many workers having specialized training in textile distribution and inventory management. This expertise contributes to high operational standards and efficiency, although there is a need for ongoing training to keep pace with technological advancements.
Weaknesses
Structural Inefficiencies: Some companies face structural inefficiencies due to outdated inventory systems or inadequate warehouse layouts, leading to increased operational costs. These inefficiencies can hinder competitiveness, particularly when compared to more modernized operations.
Cost Structures: The industry grapples with rising costs associated with transportation, labor, and compliance with industry regulations. These cost pressures can squeeze profit margins, necessitating careful management of pricing strategies and operational efficiencies.
Technology Gaps: While some companies are technologically advanced, others lag in adopting new supply chain technologies. This gap can result in lower productivity and higher operational costs, impacting overall competitiveness in the market.
Resource Limitations: The industry is vulnerable to fluctuations in the availability of raw materials, particularly due to global supply chain disruptions. These resource limitations can disrupt procurement schedules and impact product availability.
Regulatory Compliance Issues: Navigating the complex landscape of labor and environmental regulations poses challenges for many companies. Compliance costs can be significant, and failure to meet regulatory standards can lead to penalties and reputational damage.
Market Access Barriers: Entering new markets can be challenging due to established competition and regulatory hurdles. Companies may face difficulties in gaining distribution agreements or meeting local regulatory requirements, limiting growth opportunities.
Opportunities
Market Growth Potential: There is significant potential for market growth driven by increasing consumer demand for comfortable and versatile knit apparel. The trend towards sustainable and eco-friendly products presents opportunities for companies to expand their offerings and capture new market segments.
Emerging Technologies: Advancements in textile technology, such as 3D knitting and automated inventory systems, offer opportunities for enhancing product quality and operational efficiency. These technologies can lead to increased productivity and reduced waste.
Economic Trends: Favorable economic conditions, including rising disposable incomes and a growing focus on casual and athleisure wear, support growth in the knit goods market. As consumers prioritize comfort and style, demand for knit products is expected to rise.
Regulatory Changes: Potential regulatory changes aimed at promoting sustainable manufacturing practices could benefit the industry. Companies that adapt to these changes by implementing eco-friendly practices may gain a competitive edge.
Consumer Behavior Shifts: Shifts in consumer preferences towards sustainable and ethically produced knit goods create opportunities for growth. Companies that align their product offerings with these trends can attract a broader customer base and enhance brand loyalty.
Threats
Competitive Pressures: Intense competition from both domestic and international players poses a significant threat to market share. Companies must continuously innovate and differentiate their products to maintain a competitive edge in a crowded marketplace.
Economic Uncertainties: Economic fluctuations, including inflation and changes in consumer spending habits, can impact demand for knit goods. Companies must remain agile to adapt to these uncertainties and mitigate potential impacts on sales.
Regulatory Challenges: The potential for stricter regulations regarding labor practices and environmental standards can pose challenges for the industry. Companies must invest in compliance measures to avoid penalties and ensure operational sustainability.
Technological Disruption: Emerging technologies in alternative textile production could disrupt the market for traditional knit goods. Companies need to monitor these trends closely and innovate to stay relevant.
Environmental Concerns: Increasing scrutiny on environmental sustainability practices poses challenges for the industry. Companies must adopt sustainable practices to meet consumer expectations and regulatory requirements.
SWOT Summary
Strategic Position: The industry currently enjoys a strong market position, bolstered by robust consumer demand for knit goods. However, challenges such as rising costs and competitive pressures necessitate strategic innovation and adaptation to maintain growth. The future trajectory appears promising, with opportunities for expansion into new markets and product lines, provided that companies can navigate the complexities of regulatory compliance and supply chain management.
Key Interactions
- The strong market position interacts with emerging technologies, as companies that leverage new inventory management systems can enhance operational efficiency and competitiveness. This interaction is critical for maintaining market share and driving growth.
- Financial health and cost structures are interconnected, as improved financial performance can enable investments in technology that reduce operational costs. This relationship is vital for long-term sustainability.
- Consumer behavior shifts towards sustainable products create opportunities for market growth, influencing companies to innovate and diversify their product offerings. This interaction is high in strategic importance as it drives industry evolution.
- Regulatory compliance issues can impact financial health, as non-compliance can lead to penalties that affect profitability. Companies must prioritize compliance to safeguard their financial stability.
- Competitive pressures and market access barriers are interconnected, as strong competition can make it more challenging for new entrants to gain market share. This interaction highlights the need for strategic positioning and differentiation.
- Supply chain advantages can mitigate resource limitations, as strong relationships with suppliers can ensure a steady flow of raw materials. This relationship is critical for maintaining operational efficiency.
- Technological gaps can hinder market position, as companies that fail to innovate may lose competitive ground. Addressing these gaps is essential for sustaining industry relevance.
Growth Potential: The growth prospects for the industry are robust, driven by increasing consumer demand for comfortable and versatile knit apparel. Key growth drivers include the rising popularity of sustainable knit products, advancements in textile technologies, and favorable economic conditions. Market expansion opportunities exist in both domestic and international markets, particularly as consumers seek out functional and stylish knit goods. However, challenges such as resource limitations and regulatory compliance must be addressed to fully realize this potential. The timeline for growth realization is projected over the next five to ten years, contingent on successful adaptation to market trends and consumer preferences.
Risk Assessment: The overall risk level for the industry is moderate, with key risk factors including economic uncertainties, competitive pressures, and supply chain vulnerabilities. Industry players must be vigilant in monitoring external threats, such as changes in consumer behavior and regulatory landscapes. Effective risk management strategies, including diversification of suppliers and investment in technology, can mitigate potential impacts. Long-term risk management approaches should focus on sustainability and adaptability to changing market conditions. The timeline for risk evolution is ongoing, necessitating proactive measures to safeguard against emerging threats.
Strategic Recommendations
- Prioritize investment in advanced inventory management technologies to enhance efficiency and product quality. This recommendation is critical due to the potential for significant cost savings and improved market competitiveness. Implementation complexity is moderate, requiring capital investment and training. A timeline of 1-2 years is suggested for initial investments, with ongoing evaluations for further advancements.
- Develop a comprehensive sustainability strategy to address environmental concerns and meet consumer expectations. This initiative is of high priority as it can enhance brand reputation and compliance with regulations. Implementation complexity is high, necessitating collaboration across the supply chain. A timeline of 2-3 years is recommended for full integration.
- Expand product lines to include sustainable and functional knit goods in response to shifting consumer preferences. This recommendation is important for capturing new market segments and driving growth. Implementation complexity is moderate, involving market research and product development. A timeline of 1-2 years is suggested for initial product launches.
- Enhance regulatory compliance measures to mitigate risks associated with non-compliance. This recommendation is crucial for maintaining financial health and avoiding penalties. Implementation complexity is manageable, requiring staff training and process adjustments. A timeline of 6-12 months is recommended for initial compliance audits.
- Strengthen supply chain relationships to ensure stability in raw material availability. This recommendation is vital for mitigating risks related to resource limitations. Implementation complexity is low, focusing on communication and collaboration with suppliers. A timeline of 1 year is suggested for establishing stronger partnerships.
Geographic and Site Features Analysis for NAICS 313310-27
An exploration of how geographic and site-specific factors impact the operations of the Knit Goods (Wholesale) (Manufacturing) industry in the US, focusing on location, topography, climate, vegetation, zoning, infrastructure, and cultural context.
Location: The operations thrive in regions with established textile manufacturing hubs, such as the Southeastern US, particularly North Carolina and Georgia, where proximity to suppliers and a skilled workforce enhances efficiency. Urban centers provide access to major transportation networks, facilitating distribution to retailers and businesses across the country. Regions with a strong retail presence also benefit from reduced shipping times and costs, making them ideal for wholesale operations.
Topography: Flat and accessible land is crucial for the establishment of warehouses and distribution centers, which are often located in areas with minimal elevation changes to facilitate easy transportation of goods. The Southeastern US offers favorable topography for large-scale operations, allowing for expansive facilities that can accommodate inventory and logistics needs without significant geographical barriers.
Climate: Mild climates in regions like the Southeast allow for year-round operations without the need for extensive climate control systems, which can be costly. Seasonal variations, such as increased demand during colder months, can be effectively managed in these areas, ensuring that production and distribution align with market needs. However, facilities must still consider humidity levels that could affect the quality of knit goods during storage and distribution.
Vegetation: Vegetation management is essential to ensure that facilities comply with local environmental regulations, particularly regarding stormwater management and pest control. Areas with dense vegetation may require additional maintenance to prevent interference with operations, while also providing necessary buffers to protect against environmental impacts. Facilities often implement landscaping that minimizes maintenance while enhancing the aesthetic appeal of their operations.
Zoning and Land Use: Zoning regulations typically require industrial classifications that allow for wholesale distribution and storage of textile products. Facilities must navigate local land use regulations that dictate the types of activities permitted on-site, including any necessary permits for operations involving large-scale warehousing and distribution. Compliance with local zoning laws is critical to avoid operational disruptions and ensure smooth business activities.
Infrastructure: Robust transportation infrastructure is vital, including access to major highways and railroads for efficient distribution of knit goods. Facilities require reliable utilities, including high-capacity electrical service for machinery and adequate water supply for operational needs. Communication infrastructure is also essential for coordinating logistics and inventory management, ensuring that operations run smoothly and efficiently.
Cultural and Historical: The historical presence of textile manufacturing in the Southeastern US has fostered a skilled labor pool familiar with the industry, contributing to community acceptance of wholesale operations. Local communities often recognize the economic benefits these facilities bring, though there may be concerns regarding environmental impacts. Engaging with the community through outreach programs can help address these concerns and promote a positive relationship between the industry and local residents.
In-Depth Marketing Analysis
A detailed overview of the Knit Goods (Wholesale) (Manufacturing) industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.
Market Overview
Market Size: Medium
Description: This industry focuses on the wholesale distribution of knitted fabrics and garments, including items such as sweaters, socks, hats, scarves, and gloves. Companies in this sector engage in the procurement of knitted goods from manufacturers and supply them in bulk to retailers and other businesses.
Market Stage: Growth. The industry is currently experiencing growth, driven by increasing consumer demand for comfortable and versatile knitwear, particularly in casual and athletic apparel. This growth is supported by trends in fashion and sustainability.
Geographic Distribution: Regional. Wholesale operations are typically concentrated in urban areas with access to major transportation networks, allowing for efficient distribution to retailers across the country.
Characteristics
- Bulk Distribution Operations: Daily operations involve the procurement of large quantities of knit goods from manufacturers and their distribution to various retail outlets and businesses, requiring efficient logistics and inventory management systems.
- Diverse Product Range: The industry encompasses a wide variety of knitted products, necessitating a flexible approach to inventory that can accommodate seasonal trends and changing consumer preferences.
- Strong Supplier Relationships: Successful wholesalers maintain robust relationships with manufacturers to ensure timely delivery and quality control of knit goods, which is crucial for meeting retailer demands.
- Logistics and Warehousing: Operations often include significant warehousing capabilities to manage inventory levels and facilitate quick distribution to clients, ensuring that stock is available to meet fluctuating demand.
Market Structure
Market Concentration: Fragmented. The market is characterized by a large number of small to medium-sized wholesalers, each specializing in different types of knit goods, leading to a competitive landscape with diverse offerings.
Segments
- Retail Distribution: This segment focuses on supplying knit goods to retail stores, requiring wholesalers to adapt to the specific needs and branding of various retail partners.
- E-commerce Fulfillment: Increasingly, wholesalers are catering to online retailers, necessitating efficient order fulfillment processes and the ability to manage direct-to-consumer shipping.
- Specialty Markets: Some wholesalers target niche markets, such as eco-friendly or custom-designed knit goods, which require specialized sourcing and marketing strategies.
Distribution Channels
- Direct Sales to Retailers: Wholesalers often engage in direct sales relationships with retailers, providing bulk orders and tailored services to meet specific retail needs.
- Online Platforms: Many wholesalers utilize online platforms to reach a broader audience, facilitating orders through e-commerce channels that streamline the purchasing process.
Success Factors
- Inventory Management Efficiency: Effective inventory management systems are crucial for minimizing excess stock and ensuring that popular items are readily available for distribution.
- Market Responsiveness: The ability to quickly adapt to changing fashion trends and consumer preferences is vital for maintaining competitiveness in the knit goods market.
- Quality Assurance Practices: Implementing stringent quality control measures ensures that the knit goods meet the standards expected by retailers and consumers, fostering trust and repeat business.
Demand Analysis
- Buyer Behavior
Types: Primary buyers include retail chains, boutique stores, and online retailers, each with distinct purchasing patterns and volume requirements that influence wholesale operations.
Preferences: Buyers increasingly prefer suppliers who can provide quality certifications, sustainable sourcing options, and flexible ordering processes to accommodate varying demand. - Seasonality
Level: Moderate
Demand for knit goods typically peaks during fall and winter months, aligning with seasonal fashion trends, while summer months may see a decline in certain product categories.
Demand Drivers
- Fashion Trends: Shifts in fashion trends significantly influence demand for knit goods, with seasonal styles driving purchasing decisions among retailers and consumers alike.
- Athleisure Popularity: The growing trend of athleisure wear has increased demand for comfortable knit garments, prompting wholesalers to expand their offerings in this category.
- Sustainability Concerns: Rising consumer awareness regarding sustainability is driving demand for eco-friendly knit products, compelling wholesalers to source from sustainable manufacturers.
Competitive Landscape
- Competition
Level: High
The competitive environment is intense, with numerous wholesalers vying for market share by offering diverse product lines and competitive pricing strategies.
Entry Barriers
- Established Relationships: New entrants face challenges in building relationships with manufacturers and retailers, which are crucial for securing favorable terms and consistent supply.
- Capital Investment: Starting a wholesale operation requires significant capital for inventory acquisition, warehousing, and logistics, which can be a barrier for smaller businesses.
- Market Knowledge: Understanding market trends and consumer preferences is essential for success, posing a challenge for new entrants without industry experience.
Business Models
- Traditional Wholesaler: This model focuses on purchasing large quantities of knit goods from manufacturers and distributing them to various retailers, emphasizing inventory management and logistics.
- E-commerce Wholesaler: A growing model where wholesalers operate online platforms to reach retailers directly, often providing drop-shipping services to streamline order fulfillment.
Operating Environment
- Regulatory
Level: Low
The industry faces minimal regulatory oversight compared to manufacturing sectors, although compliance with trade regulations and labeling requirements is necessary. - Technology
Level: Moderate
Wholesalers utilize inventory management software and e-commerce platforms to enhance operational efficiency and improve customer service. - Capital
Level: Moderate
Capital requirements are moderate, primarily focused on inventory acquisition and warehousing, with ongoing costs associated with logistics and technology upgrades.
NAICS Code 313310-27 - Knit Goods (Wholesale) (Manufacturing)
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