UAMMI study: Utah's cut-and-sew industry growth rate is seven times national average

Brice Wallace 

While perhaps not bursting at the seams, Utah’s cut-and-sew industry has seen significant growth in recent years and could continue to do so with a few alterations.

A study by the Utah Advanced Materials & Manufacturing Initiative indicates that the industry accounted for $58 million in GDP in 2022, up by more than $25 million since 2018.

“It is feasible for the Utah C&S industry to not only continue as a viable industry in Utah, but it could leverage its current strengths to grow the industry and become a more prominent component of the national C&S industry,” the 28-page study report says.

The study was funded by a grant from the U.S. Economic Development Administration and conducted with partners from Bridgerland Technical College, the Suazo Business Center and Utah State University.

The study defines C&S manufacturing as the creation of apparel and accessories from raw materials. Apparel industries that are not classified as C&S manufacturing create and own their fabric, whereas C&S manufacturing industries use fabric that is owned by other companies. Among contractors, work may also include non-apparel items such as backpacks or tents for the outdoor equipment industry, with both commercial and military applications.

Utah’s C&S industry has grown at a much faster rate than at the national level, with a number of new firms having established operations in the state since 2018. The study indicates Utah has 120 C&S establishments, doubling over the past two decades and up 50 percent since 2017.

C&S GDP growth nationally was 2.4 percent annually since 2017, reaching $10.3 billion in 2022. Utah’s rate was seven times higher, or 15.4 percent annually. The state figure was boosted by the growing number of firms which has increased Utah’s C&S industrial base, the study says.

Industry growth in Utah is in part due to reshoring and to programs at higher education institutions, including the Outdoor Product Design and Development program at Utah State University, it says. Increased demand for sewing classes in Utah’s high schools has been offset a bit by many rural school districts dropping C&S courses.

Utah in 2022 had an average of 1,342 employees in the industry that would qualify for unemployment insurance benefits. While that is down 9.26 percent over 20 years, the decrease nationally was “catastrophic” during that period, with a loss of two-thirds of the workforce to 120,600, it says. “Consequently, the Utah industry, from a workforce perspective, has proven to be more resilient than the nation,” the study says.

UAMMI said discussions with industry stakeholders revealed that there is a lack of comprehensive understanding of the state’s cut-and-sew ecosystem. Market opportunity, workforce training and retention, and workforce composition were all poorly understood, it said.

Most Utah C&S establishments are small, with an average employment of about nine. The average hourly starting pay is $17.20, with the average full-time pay for all employees being $23 per hour. Two-third of employers do not offer employee benefits.

“C&S job categories are the lowest-paying manufacturing jobs in Utah,” the report says. “As such, it is susceptible to high job turnover as well as loss of business to foreign competition — a combination that represents an existential threat to the industry. While this has generally been understood, it has not been well quantified nor informed by a thorough understanding of the industry’s strengths and opportunities.”

The study recommends several actions to bolster the industry for long-term success. They include the development an industry-focused consortium, which UAMMI will launch in 2024, to market the industry, enhance education opportunities and represent industry interests; development of an apparel/textile institute within the state; further development of incentives to accelerate automation in the industry through incentives, such as the Manufacturing Modernization Grant Program; and tailoring interaction between industry and the state’s educators to give students insight into the latest opportunities in the industry.