The world, our nation and especially the apparel industry was stymied by the results of the Presidential election, and now are starting to realize the changes that might come with the Trump Administration. But the opening speakers at the US Fashion Industry Association’s Annual Conference in New York City on November 9th, didn’t dwell on the negative. As a trade association, and body of people and organizations that represent the industry there was a lot of optimistic discussion and positive outlook.
Opening speakers Jon Fee, John Pellegrini, and David Spooner (all DC-based trade policy attorneys) certainly positioned the opportunities that may arise in a new trade environment that can only be called “apprehensive” and uneasy. They even went to the extent to state there is a chance for more necessary legislative checks-and-balances along with a sweeping rewrite of trade regulations that could relieve the industry from current impossible compliance standards.
Overall, it’s best to take a wait-and-see attitude, rather than set off alarms now. But it has been my feeling throughout the last eight months that global trade in 2017 will be unstable – with or without a Trump presidency and a Republican Congress.
Next up, a panel of transportation executives shared their thoughts on the Hanjin meltdown and the potential impact the formation of new shipper alliances will have on transportation. Concerns for higher shipping rates, volumes, and availability are key issues to follow next year. Conversely, consolidation of worldwide carriers has been enormous during the previous 30 years, but never more so than in 2016. An overall word of advice from the group: analyze the performance – both financial and service-related – of all carriers to ensure you are moving your goods with a reliable organization.
In another session, U.S. Customs and Border Protection Office of Field Operations Executive Assistant Commissioner Todd Owen assured trade and supply chain professionals that the administrative change in leadership at the head of the organization will not affect the way CBP operates. Commissioner Owen also highlighted new capabilities that streamline the screening of incoming shipments while increasing sensitivity of inspections for harmful materials. The discussion also touched on new regulations like the forced labor regulatory enforcement procedures coming online. Owen said that in 2017 the changes implemented through TFTEA will become more visible to importers as they come online.
Commissioner Owen wrapped up with a review of global cargo security concerns, including C-TPAT, AEO, ISA and the Trusted Trader Program. This program, a mutual recognition with 11 countries under the standard of C-TPAT, gives tax and inspection benefits for importers/exporters doing business in these countries.
During a conference-wide poll, attendees were asked to choose their top worry for 2017. Overwhelmingly, trade protectionism ranked highest and political gridlock took second place. Managing social and environmental compliance was the third biggest worry, a topic which appropriately lead into the next panel session on sustainability. Representatives from the Better Cotton Initiative, Cotton Incorporated, and American Eagle Outfitters discussed the latest trends that will model potential sustainability initiatives. The key takeaway: companies need to transform the way raw materials are produced in order to fulfill the demands of a growing industry.
Heading into the afternoon, PwC’s Retail Strategy Director Tim Laseter shed some light on the state of retail today, specifically as it relates to new and innovative shopping experiences. Tim used the event’s mobile app to poll the audience on these trends and compare to a 2014 survey and report. Most of the answers differed from 2014, reflecting the advancement of shopper expectations and habits. For instance, today’s consumers feel on-time delivery should be free and won’t pay for shipping.
The last panel of the day looked to the future of trade policy and the global fashion industry. This panel provided predictions into 2017 for various areas of supply chain management such as sourcing, social compliance, transportation and logistics, and retail. In conclusion, the industry will face significant instability in the coming year, but at the end of the day, just keep doing business and the business will keep on going.
This post was published on November 14, 2016 and updated on November 14, 2016.
