Cut and Sew Apparel Contractors Revenue Benchmarks
The average cut and sew apparel contractors business in the United States generates $1.6M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 2,434 cut and sew apparel contractors businesses in the U.S., employing 21,785 workers with an average profit margin of 10.0%. The average employee in this industry earns $46K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Cut and Sew Apparel Business Actually Do?
Cut and Sew Apparel Contractors: Businesses that transform raw materials or components into finished products.
Who buys: Wholesalers, retailers, other manufacturers, and government.
Sector-level description — a more specific write-up is available for high-traffic industries.
Average Revenue
$1.6M
per year
Profit Margin
10.0%
industry average
Revenue / Employee
$184K
per year
Total Businesses
2,434
in the US
Est. Owner Income
$165K
small business avg
Labor Cost
18.0%
of revenue
Avg Employee Wage
$46K
per year (BLS)
Market Saturation
0.7
firms per 100K people
How Much Do Cut and Sew Apparel Contractors Charge?
Cut and Sew Apparel Contractors: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the cut and sew apparel contractors category — the ranges below are typical for the sector.
| Service | Typical range |
|---|---|
Contract manufacturing markup | 15–35% over materials + labor |
Own-brand product margin | 25–60% gross margin |
Custom / low-volume run | 40–150% over direct costs |
Sector-typical ranges — individual services within this industry may fall higher or lower.
Complete cut and sew apparel business plan
A 12-section data-backed business plan for a cut and sew apparel contractors business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the cut and sew apparel contractors industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Raw materials & components | $50 | $830K | Steel, chemicals, electronics, packaging — the physical inputs that become the product. |
Wages & benefits | $18 | $296K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $95K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $59K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $12 | $202K | Depreciation on equipment, energy, R&D, quality control, freight. |
Net profit | $10 | $165K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
10.44%
openings/year
Closure Rate
16.77%
closings/year
Net Job Growth
-7.09%
annual
Businesses Closed
544
in 2023
Firm Count Trend
Should You Start a Cut and Sew Apparel Business?
Startup Cost
$50K – $250K
Break-Even
11 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a cut and sew apparel contractors business do?
- Cut and Sew Apparel Contractors: Businesses that transform raw materials or components into finished products. Wholesalers, retailers, other manufacturers, and government.
- How much do cut and sew apparel contractors charge?
- Cut and Sew Apparel Contractors: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the cut and sew apparel contractors category — the ranges below are typical for the sector. See the pricing table above for typical rates by service type.
- How much does the average cut and sew apparel contractors make per year?
- The average cut and sew apparel contractors business generates $1.6M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $165K per year at a 10.0% profit margin.
- How many cut and sew apparel contractors businesses are there in the US?
- There are 2,434 cut and sew apparel contractors businesses operating in the United States, employing a total of 21,785 workers.
- How much does it cost to start a cut and sew apparel contractors business?
- Startup costs for a cut and sew apparel contractors business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the cut and sew apparel contractors industry?
- The average employee in the cut and sew apparel contractors industry earns $46K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The cut and sew apparel contractors industry is contracting — losing jobs at a net rate of 7.1% per year. More establishments are closing (16.8%) than opening (10.4%), suggesting market challenges.
Approximately 40% of cut and sew apparel contractors businesses survive their first 5 years. This is below the national average (~50%) — new entrants face elevated risk of failure. Ensure adequate capitalization. In 2023, 544 firms in this industry closed permanently.
Employment & Wages
The average employee in the cut and sew apparel contractors industry earns $45,519/year. This is below the national average of ~$65K — typical for this sector. With 2,357 establishments employing 22,686 people, the typical business has about 10 employees.
Industry Trend (2000–2023)
The cut and sew apparel contractors industry has declined 65% since 2000 (from 9,439 to 3,332 firms).
See full historical statistics →Compare Cut and Sew Apparel Contractors revenue with other industries: