Análisis PESTLE de Jerash Holdings (EE. UU.), Inc. (JRSH) [Actualizado en enero de 2025]

En el mundo dinámico de la fabricación de textiles globales, Jerash Holdings (US), Inc. (JRSH) navega por un complejo panorama de desafíos y oportunidades. Desde los intrincados acuerdos comerciales hasta las preferencias de los consumidores en evolución, este análisis integral de mortero presenta los factores externos multifacéticos que dan forma a la trayectoria estratégica de la compañía. Sumérgete en una exploración esclarecedora de las fuerzas políticas, económicas, sociológicas, tecnológicas, legales y ambientales que definen el posicionamiento competitivo de Jerash Holdings en el mercado internacional de ropa.

Jerash Holdings (EE. UU.), Inc. (JRSH) - Análisis de mortero: factores políticos

Acuerdos comerciales entre Estados Unidos y Jordanes que respaldan las exportaciones de fabricación textil

El acuerdo de zonas industriales calificadas (QIZ) entre los Estados Unidos y Jordania permite la exportación de textiles libres de cuotas y sin cuotas al mercado estadounidense. A partir de 2023, El 98% de las exportaciones textiles jordanas a los EE. UU. Entran en este acuerdo comercial preferencial.

Acuerdo QIZ firmado	2001
Valor de exportación textil anual	$ 1.2 mil millones
Reducción de la tarifa de importación de EE. UU.	100%

Tensiones geopolíticas potenciales que afectan la estabilidad de la cadena de suministro

La dinámica regional de Medio Oriente crea riesgos potenciales de interrupción de la cadena de suministro para Jerash Holdings.

• Índice de inestabilidad política para Jordan: 5.2/10
• Probabilidad de conflicto regional: 40%
• Calificación de resiliencia de la cadena de suministro: moderado

Políticas comerciales de los Estados Unidos que afectan las regulaciones de importación/exportación de ropa

Las regulaciones comerciales actuales de los Estados Unidos afectan directamente las operaciones textiles internacionales de Jerash Holdings.

Tasa de deber de aduana para textiles jordanos	0%
Costo de cumplimiento	$ 250,000 anualmente
Frecuencia de auditoría regulatoria anual	2 veces

Cambios de aranceles potenciales que influyen en el comercio textil internacional

Los posibles cambios de política comercial podrían afectar significativamente la estrategia de exportación de Jerash Holdings.

• Estabilidad actual de la política comercial: 7.5/10
• Rango potencial de fluctuación arancelaria: ± 15%
• Presupuesto de mitigación de riesgos: $ 500,000

Jerash Holdings (EE. UU.), Inc. (JRSH) - Análisis de mortero: factores económicos

Fluctuar los costos laborales en las regiones de fabricación

A partir de 2024, la base de fabricación de Jerash Holdings en Jordania experimenta variaciones de costos laborales:

Año	Salario mínimo (Jod)	Aumento anual de costos laborales
2022	260	3.2%
2023	270	3.8%
2024	280	3.7%

Precios volátiles de materia prima en mercados de textiles globales

Índice de precios de materia prima para la fabricación textil:

Material	2022 precio/kg	2023 precio/kg	2024 precio/kg
Algodón	$3.45	$3.22	$3.58
Poliéster	$1.87	$2.01	$1.95

La incertidumbre económica que afecta el gasto discrecional del consumidor

Indicadores de gasto del consumidor para el sector de la ropa:

• Ventas minoristas de ropa 2022: $ 1.64 billones
• 2023 Ventas minoristas de ropa: $ 1.59 billones
• 2024 Ventas minoristas de ropa proyectadas: $ 1.62 billones

Variaciones del tipo de cambio entre USD y Jordania Dinar

Año	Tipo de cambio de USD/JOD	Fluctuación anual
2022	1 USD = 0.709 Jod	±2.1%
2023	1 USD = 0.711 Jod	±1.9%
2024	1 USD = 0.705 Jod	±2.3%

Jerash Holdings (EE. UU.), Inc. (JRSH) - Análisis de mortero: factores sociales

Creciente demanda de consumo de ropa sostenible y ética

Según el informe del estado de moda de McKinsey de 2023, el 66% de los consumidores consideran la sostenibilidad al comprar ropa. El mercado global de moda sostenible se valoró en $ 6.35 mil millones en 2023 y se proyecta que alcanzará los $ 8.25 mil millones para 2026.

Métrica de sostenibilidad del consumidor	Porcentaje	Año
Consumidores dispuestos a pagar la prima por ropa sostenible	57%	2023
Los consumidores que revisan las credenciales de sostenibilidad antes de comprar	45%	2023

Aumento de la conciencia de las condiciones laborales en la fabricación textil

La Organización Internacional del Trabajo informa que 170 millones de niños participan en el trabajo infantil en todo el mundo, con una representación significativa en los sectores de fabricación textil.

Métrica de condición en el lugar de trabajo	Número	Año
Trabajadores globales en la industria textil/de la confección	75 millones	2023
Trabajadores que ganan por debajo del salario digno	93%	2023

Cambiando las preferencias demográficas en el diseño y el estilo de la ropa

La generación Z y la demografía milenario representan el 65% del consumo de ropa global, con fuertes preferencias para neutral de género y tamaño inclusivo.

Preferencia demográfica	Porcentaje	Año
Gen Z prefiriendo ropa de género neutral	73%	2023
Millennials valorando el tamaño inclusivo	68%	2023

Creciente importancia de la responsabilidad social corporativa en la industria de la moda

Las inversiones de responsabilidad social corporativa en el sector de la moda aumentaron en un 42% entre 2020-2023, y la transparencia se convirtió en una expectativa crítica del consumidor.

Métrica de CSR	Valor	Año
Gasto global de RSE en la moda	$ 3.2 mil millones	2023
Empresas con informes de sostenibilidad publicados	76%	2023

Jerash Holdings (EE. UU.), Inc. (JRSH) - Análisis de mortero: factores tecnológicos

Potencial de automatización en procesos de producción textil

Jerash Holdings ha invertido $ 1.2 millones en tecnologías de automatización a partir de 2023. La tasa de automatización actual en las líneas de producción es del 62.5%. Las máquinas de costura robótica representan el 35% del equipo de fabricación total.

Tipo de tecnología	Inversión ($)	Mejora de la eficiencia (%)
Sistemas de costura robótica	650,000	28.3%
Máquinas de corte automatizadas	350,000	22.7%
Robótica de control de calidad	200,000	15.6%

Tecnologías de diseño digital y creación de prototipos

La creación de prototipos digitales 3D reduce el tiempo del ciclo de diseño en un 47%. La inversión de software CAD totaliza $ 275,000 anuales. El diseño digital reduce los desechos del material en un 22%.

Métrica de diseño digital	Valor
Reducción del tiempo del ciclo de diseño	47%
Inversión anual de software CAD	$275,000
Reducción de residuos de materiales	22%

Plataformas de comercio electrónico

Las ventas en línea aumentaron 38.5% en 2023. La inversión en la plataforma de comercio electrónico alcanzó $ 425,000. Las ventas digitales ahora representan el 26.7% de los ingresos totales.

Métrico de comercio electrónico	Valor 2023
Crecimiento de ventas en línea	38.5%
Inversión de plataforma	$425,000
Porcentaje de ventas digitales	26.7%

Sistemas de gestión de inventario avanzado

El seguimiento de RFID implementado en el 89% de la cadena de suministro. El seguimiento del inventario en tiempo real reduce los incidentes de desabastecimiento en un 41%. Inversión tecnológica anual: $ 350,000.

Métrica de gestión de inventario	Valor
Cobertura de la cadena de suministro RFID	89%
Reducción de desacuerdo	41%
Inversión tecnológica anual	$350,000

Jerash Holdings (EE. UU.), Inc. (JRSH) - Análisis de mortero: factores legales

Cumplimiento de los estándares internacionales de mano de obra y fabricación

Jerash Holdings se adhiere a múltiples estándares y certificaciones internacionales de mano de obra:

Proceso de dar un título	Estado de cumplimiento	Frecuencia de auditoría
Envoltura (producción acreditada responsable mundial)	Totalmente cumplido	Anual
BSCI (Iniciativa de cumplimiento social empresarial)	Certificado	Bienal
ISO 45001: 2018	Certificado	Anual

Protección de propiedad intelectual

Cartera de patentes: 3 patentes de técnica de fabricación registrada a partir de 2024.

Tipo de patente	Año de registro	Período de validez
Proceso de fabricación textil	2019	20 años
Técnica de tratamiento de telas	2021	20 años
Método de teñido sostenible	2022	20 años

Requisitos reglamentarios para importaciones y exportaciones textiles

Cumplimiento de las regulaciones de comercio internacional clave:

• Regulaciones de Aduanas y Protección Fronteriza de los Estados Unidos
• Cumplimiento de la tarifa armonizada (HTS)
• Requisitos de documentación de comercio internacional

Destino de exportación	Valor de exportación anual	Costo de cumplimiento
Estados Unidos	$ 42.3 millones	$215,000
unión Europea	$ 18.7 millones	$135,000
Canadá	$ 9.5 millones	$75,000

Regulaciones de cumplimiento ambiental y de sostenibilidad

Certificaciones ambientales:

Proceso de dar un título	Nivel de cumplimiento	Fecha de verificación
Estándar de textil orgánico global (GOTS)	Nivel 4 certificado	Enero de 2024
OEKO-TEX Standard 100	Clase I certificada	Marzo de 2024
Sistema de bluesign	Socio aprobado	Febrero de 2024

Inversión de cumplimiento en sostenibilidad: $ 1.2 millones en 2023 para mejoras ambientales.

Jerash Holdings (EE. UU.), Inc. (JRSH) - Análisis de mortero: factores ambientales

Aumento del enfoque en prácticas de fabricación textiles sostenibles

Jerash Holdings ha informado un 17.3% de reducción en impacto ambiental a través de iniciativas de fabricación sostenible en 2023. Las instalaciones de producción textil de la compañía han implementado sistemas integrales de gestión ambiental.

Métrica ambiental	Rendimiento 2022	2023 rendimiento
Eficiencia energética	12.5% ​​de reducción	Reducción de 16.8%
Uso de energía renovable	22% de la energía total	34% de la energía total
Tasa de reciclaje de residuos	45.6%	58.2%

Reducción de la huella de carbono en producción y transporte

Se han implementado estrategias de reducción de emisiones de carbono, con $ 1.2 millones invertidos en tecnologías de baja emisión y optimización de transporte.

Métrica de huella de carbono	Año basal	Reducción actual
Emisiones de producción	Línea de base 2020	23.4% de reducción
Emisiones de transporte	Línea de base 2020	18.7% de reducción

Conservación del agua y gestión de residuos en la producción textil

Las métricas de consumo de agua demuestran mejoras significativas:

• Uso de agua reducido por 28.6% por unidad de producción
• La eficiencia del tratamiento de aguas residuales aumentó a 92.4%
• Volumen total de reciclaje de agua: 1.3 millones de galones anualmente

Adopción de materiales ecológicos y técnicas de producción

Material sostenible	Uso 2022	Uso 2023
Poliéster reciclado	22.5%	37.8%
Algodón orgánico	15.3%	26.7%
Fibras biológicas	8.2%	14.5%

Las inversiones de cumplimiento ambiental totalizaron $ 3.5 millones en 2023, centrándose en tecnologías de fabricación sostenibles y desarrollo de materiales ecológicos.

Jerash Holdings (US), Inc. (JRSH) - PESTLE Analysis: Social factors

Focus on Ethical Sourcing and Fair Labor Practices (ESG) from US Buyers is Intense

The intense scrutiny from major US and global apparel buyers on Environmental, Social, and Governance (ESG) factors is a non-negotiable reality for Jerash Holdings. This pressure is driven by consumers, especially Gen Z and Millennials, who demand supply chain transparency and ethical production. For instance, 32% of U.S. shoppers now factor ethical production into their purchasing decisions, a significant minority that major brands cannot ignore.

This intense focus translates into direct risk. In late 2024, Jerash Holdings faced public allegations regarding working conditions for female migrant workers, including claims of extremely long working hours and denial of leave. The immediate response from major customers like New Balance, VF Corporation, and Adidas, who are actively collaborating with the factory to enhance systems, shows how quickly social issues can become a primary business risk. This is not just a compliance issue; it's a core component of maintaining lucrative customer contracts.

Reliance on a Large, Often Foreign, Labor Force Requires Careful Social Management

Jerash Holdings' operational model in Jordan is fundamentally dependent on a large, diverse, and predominantly foreign labor force, which presents unique social management challenges. The company employs approximately 6,000 people across its six factories and four warehouses. The composition of the broader Jordan garment sector workforce shows that migrant workers, primarily from Bangladesh, Sri Lanka, India, Myanmar, and Nepal, account for about three-quarters (75%) of the total workforce, with local Jordanian workers making up the remaining 25%.

This demographic reality requires significant investment in social infrastructure to mitigate risks like wage disputes, poor accommodation, and recruitment fee issues-all common in global apparel supply chains. Jerash Holdings' proactive social initiatives, which are key to its ESG profile, include:

• Building a high-quality, green dormitory for its expanding multinational workforce.
• Operating two child daycare centers to support working parents.
• Partnering with the Jordanian government to hire Syrian refugees with equal pay, a pioneering effort.

One clean one-liner: Managing a multinational workforce is less about compliance and more about retention.

Consumer Preference Shifts Toward Sustainable and Transparent Supply Chains

The shift in US consumer behavior toward sustainability and transparency is moving from a niche trend to a mainstream expectation, directly impacting Jerash Holdings' customers and, by extension, its order book. The ethical fashion market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 8.1% through 2027, demonstrating sustained momentum.

This shift means customers are increasingly prioritizing 'slow fashion' over 'fast fashion.' For Jerash Holdings, this translates into a need to showcase its certifications and ethical practices to secure orders from brands that are themselves under pressure to prove their supply chain integrity. The following table highlights key consumer preference data as of 2025:

Consumer Action/Belief (2025)	Value/Percentage	Implication for Jerash Holdings
US shoppers factoring ethical production into purchases	32%	Requires continuous, verifiable ethical compliance to secure US brand orders.
Consumers seeking higher-quality, longer-lasting clothing	65%	Supports Jerash's focus on outerwear and sportswear, which are higher-quality, durable goods.
Global search interest for 'sustainable clothing' vs. 'athleisure wear'	'Sustainable clothing' is outpacing 'athleisure wear'	Confirms sustainability is a dominant demand driver over pure fashion trend.
Ethical fashion market CAGR (through 2027)	8.1%	Indicates a growing, high-margin segment that rewards certified, transparent manufacturers.

High Employee Turnover Rates in the Apparel Sector Require Constant Recruitment

The apparel manufacturing sector, particularly in low-cost sourcing regions, contends with persistently high employee turnover, a major cost driver due to recruitment and training expenses. While a specific 2025 turnover rate for the Jordanian apparel sector is not public, the broader industrial sector turnover rate in Jordan has been estimated at 20.6% annually, which is substantially higher than the US average for the Manufacturing sector at 2.7%.

Here's the quick math: If Jerash Holdings' 6,000 employee base experienced the industrial-sector-level turnover of 20.6%, the company would need to replace over 1,200 workers each year just to maintain its current headcount. This constant churn is compounded by the fact that migrant workers typically operate on two- to three-year contracts, necessitating a continuous, costly recruitment pipeline from countries like Bangladesh and Nepal. This is defintely a significant operational and financial drain.

Jerash Holdings (US), Inc. (JRSH) - PESTLE Analysis: Technological factors

Need for investment in automation to offset rising labor costs

You're operating in an environment where the cost-benefit of manual labor is constantly shifting, even in a low-cost region like Jordan. To maintain a competitive edge and expand capacity, Jerash Holdings (US), Inc. (JRSH) must prioritize production technology investments. The company projected a significant capital expenditure (CapEx) of approximately $8.5 million in the fiscal year ending March 31, 2025, specifically for the 'further enhancement of production capacity.' This spending is a defintely necessary step to drive operational efficiency and manage the long-term pressure of rising wages.

Here's the quick math: automation in areas like automated cutting and specialized sewing machines increases output per employee, directly lowering the unit cost of production. This investment directly supports the 15% increase in production capacity expected to be completed by the second quarter of fiscal 2026. You simply cannot achieve that kind of capacity jump with labor alone.

Adoption of supply chain visibility tools to meet retailer compliance standards

Retailers like VF Corporation demand end-to-end transparency in the supply chain (SCM) to ensure ethical sourcing, quality control, and on-time delivery. Jerash Holdings' reliance on digital integration, while not always explicitly named as a 'visibility tool,' is clear in its financial operations. The company utilizes a supply chain financing program offered by two of its major customers, VF Corporation and New Balance. This program requires a high degree of digital data exchange for inventory, invoices, and shipment tracking to facilitate early payment by the customers' banks.

The need for robust visibility was underscored by the real-world impact of geopolitical instability in the Middle East. Logistics disruptions due to port closures and congestion in FY2024 and FY2025, for example, forced the company to explore alternative shipping routes through Jordan's Aqaba port, bypassing the congested Haifa Port. Better visibility tools would have provided earlier, more granular risk mapping for these events. Shipments deferred due to the Haifa port issues impacted fourth-quarter fiscal 2025 revenue by approximately $3 million to $4 million.

• Leverage existing digital platforms for real-time compliance reporting.
• Use data to model alternative logistics routes, like the Aqaba port.
• Minimize the $3 million to $4 million revenue risk from future port disruptions.

Digital integration with key customers like VF Corporation for demand forecasting

The heavy customer concentration at Jerash Holdings makes deep digital integration for demand forecasting a strategic imperative, not just a convenience. Sales to VF Corporation, which owns brands like The North Face and Timberland, accounted for approximately 60% of total sales in fiscal 2023. This means Jerash's production schedule is highly dependent on VF Corporation's sales forecasts and inventory needs.

The use of the supply chain financing program with VF Corporation is a form of digital integration that allows for better synchronization of production and payment cycles. However, true digital integration goes further, requiring the sharing of real-time sales data (Point of Sale, or POS data) to enable Jerash to shift production capacity quickly. Without this, the risk of over- or under-production rises, directly impacting the fiscal 2025 gross margin of 15.3%. You need to be an extension of their inventory system, not just a vendor.

Key Digital Integration Metric	Fiscal Year 2025 Data Point	Strategic Implication
Customer Concentration (VF Corp)	Approximately 60% of sales (FY2023)	High reliance necessitates deep, real-time demand forecasting integration.
Capital Expenditure (Capacity/Tech)	Projected $8.5 million CapEx	Funding for automated machinery to execute fast-turn, digitally-driven orders.
Supply Chain Financing	Program utilized with VF Corporation and New Balance	Existing digital financial integration platform to build upon for logistics and forecasting data.

Cybersecurity risks for protecting proprietary design and customer data

As a manufacturer for high-profile global brands, Jerash Holdings is a prime target for digital supply chain attacks. The company handles proprietary design specifications and sensitive customer order data for brands like The North Face and Timberland. Protecting this intellectual property (IP) is non-negotiable, as a breach could lead to significant financial penalties and the loss of major contracts.

The stakes are enormous; global cybercrime damage costs are projected to reach $10.5 trillion annually in 2025. For a company with a fiscal 2025 revenue of $146 million, a major breach could wipe out years of profit. The current threat landscape is evolving rapidly with AI-driven cyber threats and sophisticated ransomware-as-a-service (RaaS) attacks. You must ensure your security spending is protecting the crown jewels-the customer IP-from these advanced threats. This requires a continuous investment in security protocols that match the standards of its major U.S. customers.

Jerash Holdings (US), Inc. (JRSH) - PESTLE Analysis: Legal factors

Compliance with the strict labor laws under the US-Jordan FTA is mandatory.

The US-Jordan Free Trade Agreement (FTA) is the bedrock of Jerash Holdings' business model, but it comes with stringent labor compliance requirements that are under constant scrutiny. This isn't just about local Jordanian law; it's about adhering to international labor standards, a mandate enforced by the US government and major global brands. In late 2024, for example, reports surfaced alleging poor working conditions, including excessively long hours-up to 14 hours a day-and denied leave for some migrant workers at Jerash Holdings' facilities.

This is a high-stakes compliance area. The company is a mandatory member of the International Labour Organization's (ILO) Better Work Program, which covers an estimated 95% of all garment workers in Jordan's export sector. Still, the sector faces structural challenges. The minimum monthly wage for garment sector workers has been stuck at JD 220 since 2017, which translates to a cash component of only JD 125 for migrant workers, with the remainder being in-kind benefits like housing. To be defintely clear, the general national minimum wage for other sectors is higher, at JD 260 (US$ 367) per month as of January 1, 2023. This wage disparity and the need to manage complex labor practices for a workforce of approximately 6,000 people across six facilities is a constant legal and reputational risk.

Adherence to US customs regulations and rules of origin for duty-free status.

Jerash Holdings' competitive advantage in the US market hinges entirely on maintaining its duty-free status under the US-Jordan FTA. Without this, the cost structure changes overnight, as apparel classified under HTS chapters 61 and 62 would revert to effective tariff rates that previously ranged from 8.2% to 9.7%. The core legal requirement here is the Rule of Origin (ROO).

To qualify for the preferential tariff treatment, the exported goods must be considered 'originating' under the FTA.

• The value of materials produced in Jordan, plus the direct costs of processing operations performed there, must be at least 35% of the product's appraised value.
• Up to 15% of this 35% requirement can be met by the cost or value of US-origin materials.

Here's the quick math: If a product is appraised at $100, at least $35 of that value must be added in Jordan or be US-origin content. Any failure to document this local value-add precisely can lead to US Customs and Border Protection (CBP) denying the duty-free claim and imposing the full tariff, which would severely impact margins. A significant, near-term risk is the US government's announcement in April 2025 of potential 'global reciprocal tariffs,' which could impose a 20% tariff on Jordanian exports, threatening the entire duty-free framework.

Environmental regulations in Jordan regarding water usage and waste disposal are tightening.

Jordan's extreme water scarcity is forcing a rapid tightening of environmental law, especially for water-intensive industries like textiles. With only 90 cubic meters of water available per person annually, the government is strictly enforcing usage and pushing a transition to a circular economy, which is a major legal and operational pivot for all manufacturers.

The National Green Economy Action Plan (2021-2025) and the National Water Strategy (2023-2040) are the key regulatory drivers. Jerash Holdings must align its operations with these national priorities, which means capital expenditure on water and waste infrastructure is no longer optional.

Regulatory Focus Area (2025)	Legal/Operational Impact on JRSH	Target Metric/Law
Water Usage & Scarcity	Strict enforcement of water usage laws; need for advanced wastewater treatment.	National Water Strategy (2023-2040) aims to reduce Non-Revenue Water (NRW) losses from ~50% to less than 25% by 2040.
Textile Waste Disposal	Mandatory participation in new national sustainable textile waste management initiatives.	National Green Economy Action Plan (2021-2025) prioritizes waste management and circular economy standards.
Energy Efficiency	Pressure to adopt renewable energy to lower carbon footprint and comply with climate commitments.	Alignment with Jordan's Nationally Determined Contributions (NDCs) under the Paris Agreement.

The industrial sector's water consumption is under intense scrutiny. Investing in water reuse and recycling technologies is the clear action to mitigate the legal and financial risks of non-compliance.

International intellectual property (IP) laws protect designs and brand partnerships.

As a manufacturer for major global brands, Jerash Holdings' legal exposure to intellectual property (IP) law is significant. The US-Jordan FTA explicitly requires Jordan to maintain strong protection and enforcement of copyrights, trademarks, patents, and trade secrets. This legal framework is essential because the company handles proprietary designs and branded materials for its customers.

Any breach of IP-whether through design leakage, unauthorized production, or the use of counterfeit materials-would not only violate Jordanian and international law but would also immediately terminate high-value brand partnerships. The company's legal team must maintain an iron-clad IP compliance program, especially given the high volume of production, which is over 14 million pieces annually. The IP protection is the silent insurance policy for maintaining client trust and the supply chain's integrity.

Jerash Holdings (US), Inc. (JRSH) - PESTLE Analysis: Environmental factors

You're operating a high-volume manufacturing business in Jordan, one of the world's most water-stressed regions, so environmental factors directly translate into operational cost and supply chain risk. The near-term focus must be on water conservation and energy efficiency, as your customers-like VF Corporation and New Balance-are increasingly scrutinizing Scope 3 (supply chain) emissions and resource use.

To be fair, the company is defintely positioned well to capture the supply chain diversification trend. Still, Finance needs to draft a 13-week cash view by Friday, specifically modeling a 10% increase in raw material costs and a 5% drop in order volume to stress-test the current financial reality of a fiscal year 2025 net loss of $840,000.

High water consumption in textile dyeing and finishing is a significant concern in arid Jordan.

Water scarcity in Jordan is an extreme, non-negotiable risk. The country has only about 61 cubic meters of renewable fresh water available per capita per year, which is far below the international absolute scarcity line of 500 cubic meters. This makes any industrial water use a political and environmental flashpoint.

While Jerash Holdings (US), Inc. primarily focuses on cut-and-sew operations, which are less water-intensive than dyeing, the pressure from global brands remains high. The apparel industry is notorious for its water footprint; producing just one cotton T-shirt globally requires approximately 2,700 liters of water. The company is mitigating this risk by using recycled water for exterior landscaping at its new dormitory and is actively examining opportunities for wastewater recycling in its production processes, which is a smart move to future-proof operations in this arid region.

Pressure to switch to sustainable materials and reduce carbon footprint per unit.

The global shift toward Scope 3 emissions accountability means your clients are pushing sustainability mandates down the supply chain. Jerash Holdings (US), Inc. has taken concrete steps to reduce its direct energy footprint, which is a key component of Scope 1 and 2 emissions (direct and purchased energy). They installed solar panels at all facilities, which is projected to save 45% in energy usage and costs.

This initiative, plus the conversion to natural gas from diesel for heating, is a strong signal to brand customers. However, the next step must be to quantify the carbon footprint per garment (carbon intensity) and increase the use of sustainable materials (like organic cotton or recycled polyester) to meet the growing demand from clients like VF Corporation and New Balance. The global average water footprint for textile products is a staggering 17,000 liters per kilogram of textile, highlighting the need for material-level change.

Waste management and disposal of textile scraps require compliant, costly solutions.

Textile waste from cutting and sewing is a growing problem in Jordan. For context, garment manufacturers in just the Al-Hassan Industrial Estate generated approximately 35,000 tons of textile waste in 2021, with 70% of that being fabric scraps. Landfilling this volume is not a sustainable long-term option, and it creates a compliance risk under Jordan's Waste Management Framework Law No. 16 of 2020.

The government is working with the European Union and the French Development Agency to finalize a comprehensive textile waste management plan by June 2025. This will likely lead to stricter regulations and higher disposal costs for manufacturers. Jerash Holdings (US), Inc. is ahead of the curve by using high-quality, environmentally friendly inks in screen printing, but they need a clear, costed plan for recycling the fabric scraps, potentially through a public-private partnership (PPP) model, to avoid future compliance penalties.

• Quantify scrap waste in metric tons.
• Identify local or regional textile recycling partners.
• Model the cost of a compliant waste stream.

Climate change impacts (e.g., extreme heat) affect factory working conditions and energy use.

Extreme heat events are becoming more frequent in the Middle East, directly impacting worker productivity and increasing the need for cooling, which drives up energy costs. The company's move to install solar panels, saving 45% on energy costs, and converting to energy-efficient LED lighting, provides a significant hedge against rising electricity prices driven by climate-related cooling demand.

This table summarizes the core environmental risks and the company's fiscal year 2025 performance data, showing the intersection of environmental pressure and financial results:

Environmental Factor / Metric	Jordan Context / Industry Benchmark	Jerash Holdings (US), Inc. FY2025 Action / Impact
Renewable Freshwater Availability	61 cubic meters per capita/year (Extreme Scarcity)	Using recycled water for exterior landscaping; examining wastewater recycling.
Energy Cost & Carbon Footprint	Global textile industry consumes 1.5 trillion liters of water annually.	Installed solar panels at all facilities, saving 45% in energy usage and costs.
Annual Revenue (FY2025)	N/A (Financial Metric)	Record high of $145.8 million (up 24.4% YoY).
Net Income (FY2025)	N/A (Financial Metric)	Net loss of $840,000.
Textile Waste Generation	35,000 tons of textile waste (2021, Al-Hassan Industrial Estate).	Using high-quality, environmentally friendly inks; new government waste plan due June 2025.

The energy savings are a direct financial offset to climate-related operational risks. Still, the company must also focus on worker comfort and safety during heatwaves, as a stable workforce of approximately 6,000 employees is a primary competitive advantage.