THE NORTH AMERICAN APPAREL decorating industry is rapidly evolving, winding its way through economic and technological changes to meet the demand for personalized, branded, and custom apparel.

Screen Printing magazine, in partnership with Keypoint Intelligence, conducted a survey to capture a profile of North American apparel decorators in 2024 to compare industry shifts since 2022 (when the previous survey was conducted) to track insights into challenges and opportunities that are being faced by apparel decorators.

Back in 2022, the industry felt optimistic. Businesses were rebounding from the pandemic, buoyed by high consumer demand and hopeful about growth. Emerging technologies such as direct-to-garment (DTG) and direct-to-film (DTF) printing were becoming increasingly popular, viewed as innovative tools for expanding customization capabilities. Two years later, the 2024 survey reflects a more subtle industry outlook. Enthusiasm for digital printing has grown, but economic challenges, like rising production costs and inflation, have tempered the previous optimism. Here, we explore how these factors have influenced the industry’s path from 2022 to 2024.

Small and Mid-Sized
Companies Remain Central

The structure of the apparel decoration industry — dominated by small to mid-sized enterprises (SMEs) — has largely stayed unchanged. In both 2022 and 2024, most respondents reported annual revenues under $5 million, with many smaller businesses focusing on cost-effective production methods to meet large orders without overextending financially.

In 2022, most respondents reported revenue under $500,000, underscoring a landscape of small, independently run businesses managing multiple roles. Their budgets limited large-scale investments, which led many companies to stick with traditional screen printing as their primary production method. Screen printing’s scalability and affordability made it an attractive choice for companies looking to maintain steady output.

By 2024, some companies had grown, with more respondents reporting annual revenues between $1 million and $5 million. However, 88% of respondents still reported revenues under $5 million, reaffirming that the industry relies heavily on SMEs. While smaller firms benefit from flexibility and customer responsiveness, their limited budgets continue to restrict large technology investments, influencing the rate of digital adoption. Many of these companies lean on tried-and-true screen printing for predictability in pricing and production costs.

The Digital Printing Surge:
New Technologies Gain Ground

A major shift between 2022 and 2024 is the increasing adoption of digital printing technologies. In 2022, screen printing was the primary production method, with 60% of respondents using manual presses and 55% using automatic ones. Digital printing was seen as a complementary option rather than a core method, mainly suitable for small or custom orders. At that time, only 24% of respondents planned to invest in DTF, indicating cautious interest in digital’s potential.

However, by 2024, digital printing has clearly gained momentum. DTF technology in particular saw a surge, with 42% of respondents indicating plans to invest in it — a nearly twofold increase since 2022. DTG and dye sublimation also grew in usage, driven by digital’s adaptability to meet rising demand for small-batch and custom orders. Digital printing has opened up possibilities for faster production, reduced setup time, and the flexibility to offer more personalized products.

The shift toward digital printing reflects broader consumer trends. Customers are looking for high-quality, custom products with rapid turnaround, and digital methods offer that flexibility. Unlike traditional screen printing, which is ideal for high-volume jobs, digital printing is better suited for smaller runs without the high setup costs. For apparel decorators, this trend toward digital is a competitive advantage, allowing them to better serve customers looking for unique designs.

Still, screen printing remains essential, especially for high-volume orders where digital’s per-unit cost may be less economical. In 2024, 77% of respondents still used manual screen presses, and 71% used automatic presses, illustrating the ongoing value of screen printing for certain business models. As a result, many companies have adopted a hybrid approach, combining digital and screen printing to meet a wide range of customer needs—from large B2B contracts to niche, bespoke orders.

Technology Investments:
Reluctance and Realities

While digital printing has made significant strides, purchasing decisions in both 2022 and 2024 indicate some reluctance, particularly among smaller businesses. Cost remains a significant factor, with many companies wary of the high expenses associated with new equipment, maintenance, and staff training.

In 2022, this cautious approach was evident. Only 15% of respondents planned to invest in DTG, and 24% expressed interest in DTF. Traditional screen-printing equipment remained the top priority, as it met high-volume, cost-sensitive production needs. Many companies preferred the stability of screen printing, which allowed them to avoid the added risk of untested technologies in an uncertain economic environment.

In 2024, however, investment intentions have shifted. DTF became the top choice for new technology purchases, with 42% planning to adopt it, signaling growing confidence in digital’s potential to meet demand and improve margins. Still, some respondents opted out, citing high costs or concerns about the compatibility of digital printing with their business models, particularly those with high-volume B2B clients.

This hesitance reflects a common cost-benefit analysis within the industry. For companies that focus on higher volume orders, digital printing may not yet offer a compelling return on investment, especially if customers prioritize price over customization. For these businesses, traditional methods remain a practical choice, allowing them to manage costs without the risk associated with digital’s learning curve and maintenance demands.

Production Efficiency
and Equipment Uptime

Equipment uptime is critical for operational efficiency, especially in high-volume production. Screen-printing technologies report the highest weekly uptime, with an average of 61.22%, reflecting their reliability. In contrast, digital methods — DTG and DTF — report lower uptime due to maintenance and operational complexity. Dye sublimation shows the lowest average uptime at 24.17%, highlighting potential areas for improvement in equipment durability and maintenance.

Comparing these results to the 2022 survey, digital technologies continue to experience challenges with downtime. However, advances in predictive maintenance and technology improvements may gradually increase uptime, making digital methods more competitive for large-scale production.

Workforce Woes: Recruiting
and Retention Challenges Persist

In 2022, workforce challenges represented a significant issue for apparel decorators, and the problem seems to have only deepened. Two years ago, businesses struggled to find skilled labor, especially those with expertise in both screen and digital printing. High turnover rates and limited budgets for competitive salaries made recruitment and retention difficult, particularly for smaller companies.

In 2024, these workforce issues have intensified. With 74% of respondents citing difficulties in finding skilled workers, the industry faces a skills gap that could hinder its growth. As digital technology becomes more central, the need for employees with specialized skills has grown. Many companies struggle to attract talent capable of operating both digital and screen-printing technologies, especially given the technical skills required.

This workforce shortage underscores a broader industry challenge. The increasing reliance on digital printing demands a workforce trained in advanced equipment, yet companies often lack the resources to compete for top talent. Partnerships with trade schools and training programs could help bridge this gap, creating a pipeline of skilled workers prepared for the evolving demands of the apparel decoration industry.

Revenue Growth

The 2022 survey indicated moderate optimism for revenue growth, as businesses expected consumer demand to fuel expansion. While there was confidence in post-pandemic recovery, responses revealed a diverse outlook on growth rates. Specifically, 15.5% of companies saw growth of 20% or more, while another 24.5% reported growth between 10-19%. Smaller growth of 1-9% was noted by 19.1%, whereas declines were reported by 17.3% (7% at 1-9% and 10.3% at 20% or more).

In 2024, the economic landscape has shifted, reflecting a more cautious approach. Rising costs, inflation, and supply chain disruptions appear to have tempered growth expectations, leading companies to prioritize resilience over rapid expansion. In this environment, 14% of companies reported revenue growth of 20% or more, and 26% saw growth between 10-19%. Growth of 1-9% was noted by 29% of companies, while declines were observed at a slightly higher rate than in 2022, with 9% reporting declines of 1-9% and 6% reporting declines of 20% or more. The shift toward conservative growth projections reflects a broader industry trend of adjusting strategies to stabilize operations amidst economic pressures.

Key Recommendations
for Navigating Market Changes

In response to these industry shifts, several strategies emerge to help apparel decorators remain competitive:

• Adopt a Hybrid Production Approach: A combination of screen and digital printing allows companies to meet the needs of both high-volume and customized orders. This approach maximizes flexibility and meets diverse customer demands.
• Develop Workforce Training Partnerships: Workforce shortages underscore the need for skilled labor. Partnerships with vocational schools and trade programs can help establish a steady pipeline of skilled employees trained in both traditional and digital techniques.
• Emphasize Customization in Marketing: Digital printing has unlocked new possibilities for personalization. By marketing these capabilities, businesses can appeal to customers seeking unique, high-quality products and gain a competitive edge.
• Implement Cost Management Practices: Rising operational costs require a focus on cost control. Practices such as bulk purchasing and efficient production workflows can help businesses maintain profitability.

A Resilient Path Forward

The North American decorated apparel industry’s journey from 2022 to 2024 reflects a sector that is embracing innovation while balancing it with operational stability. Digital printing continues to grow in importance, but traditional screen printing remains a core element of production for many businesses. Workforce challenges and economic pressures highlight the importance of resilience, adaptability, and smart growth strategies.

By integrating both screen and digital printing, focusing on workforce development, and adopting sustainable financial practices, apparel decorators are positioning themselves to thrive. As demand for customization and flexibility grows, the industry stands ready to evolve, meeting ever-changing market needs with creativity and pragmatism. For those who adapt thoughtfully, the future promises both growth and opportunity.