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T-shirts, sweatshirts, polos, a few of our leading promotional goods made from cotton has taken a hit with the cotton price increase of 2011. “Coming out of the recession, cotton demand recovered as the economy did, says Gary Adams, VP of economics and policy analysis for the National Cotton Council. “By the middle of 2010, we were in a much tighter situation than people anticipated.” Cotton had cost so little for so long that people did not see the price increase coming. For nearly 2 decades, the price of cotton per pound was closer to $.50 than $1.00. But on November 1, cotton prices soared to $1.52 per pound, a 276% increase. Factors affecting the price increase include:
• Increased global demand
• Speculative investing
• Extreme weather
• Labor unrest in Asia
• Export limits in India
• Higher operating costs at factories
• Farmers planting less cotton
We may see higher cotton prices for a couple of years at least, but people are still going to want apparel. Even if a t-shirt was up 100%, it’s still more effective and visible than other promotional items, adds Corsano, the CEO of Anvil Knitwear.
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