Britain’s textile industry gets an unexpected boost from COVID-19

Stephen Beard Apr 13, 2020
Cloth is produced in the Lochcarron Tartan Factory in the Scottish town of Selkirk in 2016. Andy Buchanan/AFP via Getty Images

Britain’s textile industry gets an unexpected boost from COVID-19

Stephen Beard Apr 13, 2020
Cloth is produced in the Lochcarron Tartan Factory in the Scottish town of Selkirk in 2016. Andy Buchanan/AFP via Getty Images

The coronavirus outbreak is a human tragedy and an economic disaster, but some businesses could in the long term do quite well out of it. Take Britain’s textile industry. Throughout the 1990s, British textile companies lost a lot of business to China as clothing retailers and brands in the United Kingdom turned en masse to the Far East for cheaper production.

But now the disruption in trade with China has made some of those retailers reconsider the wisdom of having long supply chains, and they’ve been turning back to British manufacturers.  

Bhavik Master of Paul James Knitwear: “We could see production up by at least 20 to 30%.” (Mimisse Beard)

“We’ve been getting a lot of inquiries solely due to the fact that retailers and brands need to be spreading their risk and placing orders locally and making sure the shops aren’t empty,” said Bhavik Master, boss of Paul James Knitwear, a knitted apparel manufacturer in the city of Leicester in the English Midlands.  

Suddenly, security of supply — and not cost — is paramount. Although his factory is currently shuttered and his staff furloughed, Master expects a surge in firm orders as soon as the coronavirus crisis subsides.

“I think we’ll be stepping up production by at least 20 to 30%,” he told Marketplace.

Other textile companies in Leicester are also getting a boost from COVID-19, the disease caused by the new coronavirus. Alkesh Kapadia of Barcode Design, another local fashion manufacturer, said that he’d received a flood of orders from worried customers.

Alkesh Kapadia of Barcode Design.

“They are concerned about getting stuff from China,” he said.  

Manufacturers like Master and Kapadia have their own supply chain worries. Many of their raw materials come from abroad and from countries that have been hard hit by the coronavirus. Italy, for example, is a major supplier of yarn.

Kate Hills of Make It British. (Photo courtesy Hills)

But Kate Hills of Make It British, a manufacturing advocacy group, said that British clothing retailers and brands are now focused on sourcing their fabrics domestically “so that in future the whole garment can be made in the U.K.”

When the disease finally recedes, won’t all these supply chain anxieties subside, too? Hills thinks not.

“I think the coronavirus is going to change the clothing industry’s mindset,” she said. “The industry will ask, ‘Do you want all your products made somewhere like China, or should you spread your risk and start making at least a percentage of your products much closer to homer, in the U.K.?’”

One of the biggest economic casualties of the crisis could be the international supply chain, and that, Hills believes, will help Britain’s textile manufacturers. 

COVID-19 Economy FAQs

Millions of Americans are unemployed, but businesses say they are having trouble hiring. Why?

This economic crisis is unusual compared to traditional recessions, according to Daniel Zhao, senior economist with Glassdoor. “Many workers are still sitting out of the labor force because of health concerns or child care needs, and that makes it tough to find workers regardless of what you’re doing with wages or benefits,” Zhao said. “An extra dollar an hour isn’t going to make a cashier with preexisting conditions feel that it’s safe to return to work.” This can be seen in the restaurant industry: Some workers have quit or are reluctant to apply because of COVID-19 concerns, low pay, meager benefits and the stress that comes with a fast-paced, demanding job. Restaurants have been willing to offer signing bonuses and temporary wage increases. One McDonald’s is even paying people $50 just to interview.

Could waiving patents increase the global supply of COVID-19 vaccines?

India and South Africa have introduced a proposal to temporarily suspend patents on COVID-19 vaccines. Backers of the plan say it would increase the supply of vaccines around the world by allowing more countries to produce them. Skeptics say it’s not that simple. There’s now enough supply in the U.S that any adult who wants a shot should be able to get one soon. That reality is years away for most other countries. More than 100 countries have backed the proposal to temporarily waive COVID-19 vaccine patents. The U.S isn’t one of them, but the White House has said it’s considering the idea.

Can businesses deny you entry if you don’t have a vaccine passport?

As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.

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