AECE The Apparel Export Council of Egypt
A new report from UKFT, which is centered on ethical compliance in UK supply chains, says the relationship dynamic between buyers and sellers must change for the true potential of “Made in the UK” to be realised.
The Responsible UK Fashion and Supply Chain report notes the UK garment manufacturing sector has hit global headlines in the past for all the wrong reasons, assuring that while there are isolated cases of ethical violations in UK factories, like anywhere else in the world, the problem is not rife.
In fact, the ambition of UK fashion brands and retailers to be sourcing more widely from their home turf, exists, with the understanding they have a closer eye on what is happening in the factories they source from, among other benefits.
However, many are put off by the high prices charged by makers in the UK compared to overseas suppliers.
But what about tales of ethical violations in UK fashion factories?
The report acknowledges that international media has highlighted social and ethical compliance issues in certain UK fashion and textile manufacturing regions but assures “there is no evidence to suggest this is a widespread issue across the UK.”
That’s not to say it doesn’t exist. But the report does note — where it is happening — much of the time, it stems from a power imbalance between buyer and supplier where the supplier is pressured to lower costs.
“Buyers often apply global market price expectations to UK manufacturers, creating pressure to undercut costs below the national living wage — a practice that would be both illegal and unethical.”
In addition, it points out there is a growing trend of UK brands and retailers engaging manufacturers for sampling without proceeding to production — a practice that undermines manufacturer stability by consuming resources without generating sustainable revenue.
“The research reveals that stress, primarily driven by pricing pressures and unrealistic expectations, is due to poor understanding and lack of investment at the retail level when training their staff in ethics, including ethical pricing, which is a significant catalyst for noncompliance.
“UK manufacturers identify price pressures from brands and retailers as a root cause of unfair remuneration practices. Strengthening purchasing practices and developing a comprehensive understanding of manufacturing costs can help remediate social and ethical non-compliance while building a more stable UK manufacturing ecosystem.”
And the research says there needs to be an overhaul in the general relationship dynamic between buyer and supplier.
Buyers expect that ethical compliance lies with the supplier and many require manufacturers to demonstrate social and ethical best practices through multiple tools and verification methods.
“The research reveals that effective social and ethical compliance need not rely solely on costly audits — success comes from maintaining flexibility and openness to diverse approaches. This period of consultation has demonstrated that supporting a responsible UK manufacturing infrastructure requires a move beyond rigid compliance requirements towards a relationship-led model where there is a deeper understanding between buyer and manufacturer. Retailers and brands need to broaden their approach to verification, accepting diverse methods through which suppliers can demonstrate commercially viable social and ethical best practice.”
What needs to happen for a sustainable UK manufacturing sector to be realised?
The report outlines five key recommendations from legislation to investment in tools that can help the UK manufacturing sector really take off and align with high standards of social and ethical compliance.
Equally, it suggests attitudinal changes may be required before full implementation can be achieved.
“The sector must reach a position where social and ethical compliance enables rather than hinders growth.”
1 . Legislation and Policy
Building regulatory strength: A strong regulatory framework creates a level playing field and ensures all businesses operate to high standards. Expert consultation emphasised how mandatory frameworks drive more consistent change than voluntary approaches. Clear legislation and enforcement mechanisms are essential to protect workers and maintain the UK’s manufacturing reputation.
- Training and Education
Empowering through knowledge: Education and training are fundamental to embedding better practice across the industry. Consultation findings consistently highlighted education as a crucial focus area, particularly for businesses with fewer than 50 workers who often struggle with basic social and ethical compliance understanding. By developing comprehensive learning programmes, all stakeholders can better understand their responsibilities and how to meet them. - Demystifying Standards
Reducing social and ethical compliance fatigue: Initial industry workshops suggested developing a unified UK social and ethical compliance standard to reduce complexity and costs. However, expert consultation revealed this approach could be counterproductive. Many apparent differences between existing standards relate more to presentation than substance, with significant alignment achieved among leading organisations in recent years. The existence of Fast Forward, developed specifically for UK manufacturing, demonstrates that creating another standard would only add to framework proliferation. Instead, experts advocate for better understanding and utilisation of existing standards. This highlights a knowledge gap that could be addressed through a comprehensive toolkit, helping stakeholders navigate current frameworks more effectively. Such a resource could filter out complexity and present requirements in an accessible format, supporting both manufacturers and retailers in meeting social and ethical compliance objectives. - Tools and Systems
Connecting through technology: New digital platforms and databases can transform how social and ethical compliance information is managed and shared, creating efficiency and transparency across the sector. Consultation highlighted the need for practical, accessible systems that work for businesses of all sizes. - Incentives and Funding
Supporting sustainable growth: Financial support and incentives are crucial to help manufacturers invest in better practices while remaining competitive in the global market. Consultation revealed how limited resources often prevent smaller manufacturers from making necessary improvements. Implementation requires coordinated action from all stakeholders with particular attention to maintaining momentum through early demonstration of benefits. Consultation illustrated the importance of regular industry engagement to ensure solutions remain practical and aligned with business needs.
The UKFT says for UK manufacturers to win more business, they must focus on upselling the value proposition.
“Bridging the gap between UK manufacturing capabilities and price expectations remains crucial,” reads the report.
“While manufacturers report strong domestic demand, many potential clients default to overseas options when faced with UK costs. Buyer KPI’s should be redefined when approaching the costing of UK manufacturing with price expectations to look beyond high intake margins and focus on net margins/profitability of product lines. This suggests a need to better demonstrate the complete value proposition of UK manufacturing, particularly how reduced inventory and faster market response can deliver long-term financial and environmental benefits.”
The research suggests UK manufacturing offers strategic advantages that can offset higher operating costs. A key benefit emerges in inventory management — domestic production enables rapid-response manufacturing that significantly reduces unsold and dead stock, a major challenge facing the fashion and textile industry due to many brands sitting on large volumes of both.
“Leicester-based manufacturers provide evidence of this model’s success, showing how quick-response local production helps retailers minimise excess inventory while improving cash flow.”
By Just Style