The UK economy has come to greatly rely on its clothing and textile industry, which in the last year contributed £62 billion to its GDP. The UK’s clothing industry clearly demonstrates its economic power and global influence. This sector sustains 1.3 million jobs that come to represent 1 in every 25 jobs in the UK. Beyond employment, it contributes over £23 billion in tax revenues, making it a crucial contributor to HMRC’s coffers. The breadth of the UK clothing and textile industry is remarkable. From the iconic Savile Row suits, designer dresses and ubiquitous jeans to essential medical masks, upholstered car seats, and cutting-edge fabrics for space exploration, the industry encapsulates diverse facets of daily life.
As of 2020, the industry boasted a significant presence with 34,045 businesses. Among them, 30,035 were retailers, 8825 were wholesalers, and 8245 were engaged in manufacturing. Notably, the sector is characterized by a thriving community of SMEs with micro-businesses constituting a significant majority: 90% in retail, 85% in wholesale, and 80% in manufacturing. In a notable shift, the number of UK garment manufacturers increased by 13% in the decade leading up to 2020, reaching 4005. This reversal of a declining trend was attributed to increased investment, marking a departure from the previous exodus fueled by cheaper manufacturing options abroad.
While the UK exported £8.9 billion worth of fashion and textiles in 2020, down from £9.7 billion in the previous year, it remains a pivotal player on the international stage. Apparel exports, which amounted to £6.3 billion in 2020, witnessed a decline primarily driven by reduced EU export revenue. Despite this, EU countries constituted 70% of total export revenue, underscoring the importance of this market. Germany, Ireland, France, the US, Italy, Australia, Netherlands, South Korea, Israel and Spain make up the top 10 markets for UK apparel exports, revealing the industry’s interconnectedness with global markets.