The industry employs around 29,000 people across the UK, with only a small proportion self-employed. It has an estimated total output (GVA) worth around £630 million. The relocation of manufacturing companies overseas and reduced consumer demand for knitted garments in favour of fleeces has resulted in a decline in production. Output decreased by 58% between 1998-2003. Employment levels also dropped during this period.

The Skillfast-UK’s definition of the knitting industry includes the following activities:

• manufacture of knitted and crocheted fabrics (including warp and weft knitting)
• manufacture of knitted and crocheted hosiery, including socks, tights and panti-hose
• manufacture of knitted and crocheted pullovers, cardigans and similar articles (including fully-fashioned and cut and sew knitwear, corporate clothing)
• manufacture of lace
• manufacture of narrow fabrics (braiding and weaving of narrow fabrics and manufacture of ribbons, elastics)
• dyeing and finishing of knitted fabrics and articles

The manufacture of knitted articles and of narrow fabrics account for the largest shares of employment in the industry and together account for approximately two thirds of the total. 

It is estimated that 55% of those working have no qualifications or are qualified at below NVQ Level 2 or equivalent, compared to 49% in the sector as a whole. Approximately, 1 in 7 are qualified at the equivalent of Level 4 or above, compared with one in four of the workforce across the wider economy.

Issues that need to be addressed by the industry in the future include:

• influx of cheap imports
• relocation of customers  offshore
• increasing concentration of retail sector and decline of independent retailers
• changing consumer tastes
• high overheads and increasing energy and raw material costs
• difficulty of sourcing raw materials to meet requirements
• shortage of skilled labour
• impact of national minimum wage
• cost of implementing regulations
• exchange rate fluctuations

Source: Skills Needs Assessment – knitting, lace and narrow fabrics 2005a