The cost of denim and jeans manufacturing will increase due to the drought in California.
The drought in California is affecting more than just food prices and lawn watering - it stands to up clothing prices across the world. The cotton crops in California are at the lower levels since the 1930s, which means fewer store to pull from. With no end to the drought in sight, companies might even raise prices just to halt some sales, according to NBC News. It takes up to 2,900 gallons to make a single pair of jeans.
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The impact will not only hit regular consumers, but also high end designers, furniture manufacturers, and even linen companies.
"There's going to be some major impacts into our company, primarily as a result of the water problems that California is having," said Jeff Shafer, CEO of Agave Denim, a company that makes jeans and other cotton-based apparel. "I expect laundries will have less water available to them and will likely have price increases, or surcharges for water consumption."
Most of the cotton produced in California goes to higher end clothing, and cotton crops in Texas (where a lot of affordable clothing comes from) are doing well. Approximately 75% of the premium denim market comes from Southern California, according to the California Fashion Association, an industry trade group. One of the companies affected will be American Apparel.
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If you are looking to gain a few pounds or lose some weight, you might do best to make some denim purchases now.