The UK’s garment manufacturing sector is entering a period of growing uncertainty. While global supply chains continue to adapt post-pandemic, UK factories are facing a mounting list of challenges: rising costs, shrinking margins, delayed purchasing decisions, and a continued shortage of skilled labour.
According to Deloitte, 84% of CFOs surveyed in September 2025 expected operating profits to decline, prompting many to take tighter control of business expenditure. Among those surveyed, 68 executives — including 11 from FTSE Top 100 companies — confirmed that margins were falling at 47% of firms, and expansion plans had been paused to preserve cash flow.
Only 25% of respondents indicated there was new product development underway — a worrying indicator for long-term competitiveness.
These trends are being keenly felt within the UK garment sector.
Buyers Hesitating, Factories Absorbing the Risk
A recurring industry frustration is delayed order confirmation from buyers and merchandisers. In some cases, fabric has reportedly been held by factories for over two months, while buyers take additional time to decide which styles to proceed with.
This leaves manufacturers in a difficult position—carrying material and labour costs without the guarantee of orders being fulfilled.
As a result, production originally planned for September is now being pushed back to January 2026. Such delays threaten capacity planning, cash flow, and ultimately, long-term business viability.
How can retailers expect their supply chains to function efficiently when consideration for factory lead times is absent?
This lack of alignment not only slows growth but undermines confidence at a time when the UK’s garment industry is working hard to strengthen domestic production.
A Sector Already Under Pressure
The current environment is made more challenging by:
- Inconsistent forecasting from brands
- Increasing uncertainty around procurement
- Weak investment in new product development
- Rising operational costs
Meanwhile, the UK continues to lag behind international competitors who have spent the past decade investing heavily in local capability, sustainability, and skills.
Employment numbers underline this reality. The garment sector now carries a 13-year low in recruitment, signalling declining momentum and difficulty attracting new talent into the trade.
Government Action Is Needed
There is a clear opportunity for policy to reset the trajectory.
With the UK Government committing to a £400bn Public Procurement Budget, decisive action is required to ensure this investment supports the domestic textile and garment ecosystem — rather than defaulting to overseas suppliers.
Targeted support could:
✅ Stimulate growth
✅ Generate skilled employment
✅ Increase capacity for public-sector textile requirements
✅ Boost regional manufacturing hubs like Leicester
If the UK is serious about developing a resilient industrial base, strengthening public procurement policy to favour UK-made textiles and uniforms is a logical and necessary step.
A Path Forward
For the garment manufacturing sector to thrive, we call for:
- Fair and timely purchasing behaviour from buyers
- Longer-term supplier commitments
- Investment in innovation and skills
- Reform in procurement to prioritise UK-made goods
Without these measures, the UK risks losing momentum at a critical moment — just as global markets are rethinking the importance of ethical, transparent, and local supply chains.
Now is the time to act.