Outdoor Industry Association’s (OIA) and SnowSports
Industries America’s (SIA) assertion that no commercially viable production of
performance outerwear pants and jackets in the United States was confirmed by a
U.S. International Trade Commission (ITC) report released July 27, 2007. More importantly, the report confirms that
domestic production of performance outerwear pants and jackets intended for
outdoor recreational purposes is virtually non-existent.

The report titled “Certain Textile Articles:
Performance Outerwear” evaluated the capability of U.S. domestic firms to
manufacture performance outerwear jackets and pants used for hiking, biking,
mountain climbing, skiing, snowboarding, hunting, fishing, various water sports
and other outdoor activities, as well as use by the U.S. government for
military and uniform purposes. Workplace
apparel utilized for protection from fire, chemicals, cuts and punctures was
also defined as performance outerwear for the purposes of the investigation.

The ITC found that an overwhelming majority, 11 of
the 13 U.S. firms reporting domestic
production of performance outerwear, were intended for use by the U.S.
government, which by federal law must purchase from domestic producers. Only two of the 13 firms reported production exclusively
for commercial use. It was unclear
whether those two firms produced performance outerwear for workplace or
recreational use.

OIA research, which tracks point-of-sale data from
outdoor-specific retail channels, and SIA research, which also tracks POS data,
but from snowsport-specific retail channels, indicated that in 2006 sales of
recreational use performance outerwear totaled $2.1 billion with more than 21
million pieces sold. The sales data does
not include mass merchant retailers. The
ITC findings indicate 2006 domestic production of all performance outerwear was de minimis, accounting for less than one percent of specialty
retail sales.

“The ITC’s report substantiates OIA’s position that
there is no commercially viable domestic production of performance outerwear,”
commented OIA President and CEO Frank Hugelmeyer. “Trade penalties like tariffs, quotas and
threats of punitive duties are not protecting a domestic industry and in fact are
only harming U.S.
businesses, their employees and ultimately, the American consumer.”

The report also evaluated the domestic production
of the fabrics that go into performance apparel, but those results were
inconclusive due to what the ITC called “significant double-counting for the
shipment data” and the structure of the industry making it virtually impossible
to discern the fabrics end use.

OIA is still evaluating options for potential use
of the report in Washington,
D.C., but is likely to first seek
official recognition of the difference between performance apparel intended for
outdoor recreational purposes and mass market garments.