Is The Economy Making Our Pockets Shallow?

: Chris Lee Law Firm

  Filed under: Economy

debtThe answer is simple: Yes! We aren’t just talking about our pockets getting shallow in the traditional sense either, but literally. As the economy challenges us daily to maintain our budget, get out of debt and keep food on the table; it is also changing the way many businesses operate.

Many manufacturing businesses, both national and abroad, have been pressured into finding ways to maintain profitability during these tough times. The stock market continues to waver and consumerism follows suit; forcing many businesses to make changes, seek bankruptcy protection or risk closing the doors for good.  So exactly what are businesses doing to keep their books out of the red?

Trimming The Fat

Despite recent lows in consumer spending, many businesses are faring better than others. Clothing, food and entertainment businesses are doing surprisingly well, mostly due to their position as “necessities” among consumers. The clothing industry is pulling ahead in profitability thanks to some important changes to their product lines.

Clothing manufacturers have begun to eliminate unnecessary accessories and reduce the amount of fabric used in the clothing. Many popular clothing brands have been making clothing without extra buttons, zippers, beading or heavy prints. By eliminating these additional accessories from the clothing, the manufacturer saves money while the consumer hardly notices.

Another increasingly popular trend is to make clothing that is lighter or thinner, which happens to align perfectly with current fashion trends. Skinny jeans aren’t called “skinny” just for their look anymore. Clothing manufacturers are also developing creative ways to cut their costs by eliminating pockets, or creating a fake pocket that has all of the style, with less material used.

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