During the oil crisis In 1973, several industries that seemed completely unrelated to energy, such as plastics or fertilizers, suddenly discovered that Your costs could skyrocket in a matter of weeks for decisions made thousands of miles away, altering prices and supply chains in sectors where no one looked at the barrel of crude oil.
From oil to the closet. I counted the weekend Reuters that the rise in energy prices after the war in Iran is beginning to filter down a lot beyond gasoline or transportation, reaching a less obvious field: the clothes that reach the stores.
The link is direct, because a good part of the textile industry depends on petroleum derivatives, and any tension in that market is quickly transmitted to the materials that support global garment production.
The key piece. Polyester dominates the global textile industry with a massive presence in almost all types of clothing, from sportswear to everyday dresses. The problem is that its manufacture depends of compounds such as PTA and MEGwhose cost has skyrocketedabout 30% due to the rise in crude oil, the increase in from Asian suppliers and disruptions in the Middle East.
This pressure turns the polyester into the entry point of the energy crisis in fashion, transferring the impact from the energy markets to the fabric of the industry itself.
The chain that begins to break. Reuters remembered that the blow is being felt with special intensity in India and Bangladeshtwo pillars of global clothing production. Factories that were previously operating at full capacity have drastically reduced their activity, with looms stopped, production cut by less than half and difficulties in fulfilling international orders.
Added to this is the labor shortage in some textile centers, caused by basic energy problems such as the lack of gas, which adds another layer of tension to a system already on the limit.
Gain time without escape. Big names emerge here, where companies like Inditex or H&M They are not yet immediately transferring the impact to the consumer thanks to advance purchases and inventory planning, which has allowed them to mitigate and cushion the blow in the short term.
Even so, suppliers already they are announcing increases of prices and the absorption margin has a very clear limit. Plus: The use of recycled polyester offers some relief, although its weight remains low within the overall total, limiting its ability to offset current pressure.
Costs rise, demand trembles. Thus, the price increase starts to move to threads, dyes, transportation and essential components, generating a chain effect that can end up affecting the volume of orders.
For their part, manufacturers warn that, if the situation continues, production will fall and consumers will reduce purchases due to higher prices. The phenomenon, known as demand destructionintroduces an added risk: a simultaneous drop in supply and consumption that affects the entire industry.
It’s not just the Zara shirt, but also the shoes. Yes, because the impact of oil aims to spread as well to the footwear sectorwhere derived materials such as foams, adhesives or synthetic soles also depend on petrochemical products.
In other words, this means that the pressure on costs will not be limited to t-shirts or pants, but will reach a wide range of products, complicating the price planning and market stability.
The crisis where no one was looking. In short, what began as a rise in energy prices It is becoming a structural problem for the fashion industry.
In essence, the dependence on oil for key materials turns any conflict into a direct variable. about the final price of the garments. And as pressure builds up in the supply chain, the impact is no longer invisible or minimal, but is slowly but inexorably approaching. consumer pocketsignaling a profound change in how geopolitics can end up being reflected in something as everyday as the shirt that until now you bought for 20 euros.
Image | POT, Leitonmahillo
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