In prior years, our economic impact analysis was limited by the availability of only the 1997 Economic Census; however, this year’s report reflects the recently published Economic Census 2002 for states and counties, and the 2003 County Business Patterns data for counties. Therefore, we can assess the changes in the value-added component of these industry sectors between 1997 and 2002 and direct payroll in 2003.

According to the US Census 2003 County Business Patterns, Fashion Industry direct payroll was reported to be $3.89 billion. Updated information from the NYS Department of Labor places 2004 Fashion Industry payroll at approximately $3.9 billion. This is an enormous decrease in Fashion Industry payroll. There was $4.17 billion in direct payroll in 2000, which in un-inflated terms is a decline of 8.6%. When inflation is taken into account, this translates to a decline of 17.3%

The value added from the New York City apparel and textile manufacturing totaled $2.88 billion, according to the Economic Census 2002. This is a decline of 40.6% from the 1997 Economic Census figure of $4.85 billion in un-inflated terms. With inflation, this is a decline of 47.2%. This is a significant decline in the importance of the manufacturing portion of the Fashion Industry.

Total wholesale apparel sales in New York City was reported to be $37.5 billion in 2002. This figure was an 8.6% decline from the 1997 figure in un-inflated terms, or 18.6% when inflation is factored in. In Manhattan, total wholesale apparel sales of $33.5 billion in 2002, a decrease from the 1997 figure of $37.9 billion. Although the total employees were about the same in Manhattan’s wholesale apparel sector, the number of firms decreased from 4,261 to 3,243 wholesale apparel companies between 1997 and 2002. This is also a significant decline in the overall importance of the Fashion Industry as it relates to the New York City economy.

The Fashion Industry’s firm profile continues to show that a vast majority companies are relatively small with fewer than 10 employees. According to the 2003 County Business Patterns, 72.4% of fashion industry establishments in New York City had fewer than 10 employees, while only 2.1% had between 50-99 employees, and 0.8% had 100 employees or more. Similarly, in Manhattan, less than 1% (0.56%) of fashion industry firms had 100 employees or more, and less than 2% of the companies had 50-99 employees, and 72.0% of fashion industry establishments had fewer than 10 employees.