The report also noted that widespread flooding in Thailand in 2011– the country’s worst floods in at least 50 years – harmed more than 160 companies in the textile industry and stopped about a quarter of the country’s garment production;
“Thong Thai Textile expected to lose US$1.3 to US$1.6 million, or about one month of sales, from the flood,” it said.
In summary, through this report, it’s clear that investor community is becoming increasingly focused on how through warmer temperatures, erratic rainfall, extreme weather events and altered ranges for pests and diseases can cause apparel companies to experience reduced availability of agricultural inputs, increased water stress, disrupted distribution systems (e.g., transport and stores), and damaged manufacturing facilities.
“In addition”, the report concludes, “climate change may also affect what consumers buy and where and when they buy it, so apparel companies that base their products on traditional seasonal cycles may need to adjust to fluctuating consumer needs and tastes (e.g., due to less distinct changes between seasons, warmer winters, and hotter summers).”
Contact: David Gardiner & Associates LLC for more information on the report.
