Jerash Holdings (EUA), Inc. (JRSH): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico da fabricação global de têxteis, a Jerash Holdings (EUA), Inc. (JRSH) navega em um cenário complexo de desafios e oportunidades. Desde acordos comerciais complexos até as preferências em evolução do consumidor, essa análise abrangente de pestles revela os fatores externos multifacetados que moldam a trajetória estratégica da empresa. Mergulhe em uma exploração esclarecedora de forças políticas, econômicas, sociológicas, tecnológicas, legais e ambientais que definem o posicionamento competitivo de Jerash Holdings no mercado internacional de vestuário.

Jerash Holdings (EUA), Inc. (JRSH) - Análise de Pestle: Fatores Políticos

Acordos comerciais dos EUA-Jordânia que apóiam as exportações de fabricação de têxteis

O Acordo de Zonas Industriais Qualificadas (QIZ) entre os Estados Unidos e a Jordânia permite a exportação de têxteis sem impostos e sem cotas para o mercado dos EUA. A partir de 2023, 98% das exportações têxteis da Jordânia para os EUA entram sob este acordo comercial preferencial.

Contrato de Qiz assinado	2001
Valor anual de exportação têxtil	US $ 1,2 bilhão
Redução de tarifas de importação dos EUA	100%

Potenciais tensões geopolíticas que afetam a estabilidade da cadeia de suprimentos

A dinâmica regional do Oriente Médio cria riscos potenciais da cadeia de suprimentos para a Jerash Holdings.

• Índice de instabilidade política para a Jordânia: 5.2/10
• Probabilidade de conflito regional: 40%
• Classificação de resiliência da cadeia de suprimentos: moderado

Políticas comerciais dos EUA que afetam os regulamentos de importação/exportação de vestuário

Os regulamentos comerciais atuais dos EUA afetam diretamente as operações têxteis internacionais da Jerash Holdings.

Taxa de dever aduaneiro para têxteis jordanianos	0%
Custo de conformidade	US $ 250.000 anualmente
Frequência anual de auditoria regulatória	2 vezes

Potenciais mudanças tarifárias que influenciam o comércio têxtil internacional

As possíveis mudanças de política comercial podem afetar significativamente a estratégia de exportação de Jerash Holdings.

• Estabilidade da política comercial atual: 7.5/10
• Faixa potencial de flutuação da tarifa: ± 15%
• Orçamento de mitigação de risco: US $ 500.000

Jerash Holdings (EUA), Inc. (JRSH) - Análise de Pestle: Fatores Econômicos

Custos de mão -de -obra flutuantes em regiões de fabricação

A partir de 2024, a base de fabricação de Jerash Holdings na Jordânia experimenta variações de custos de mão -de -obra:

Ano	Salário mínimo (jod)	Aumento anual do custo da mão -de -obra
2022	260	3.2%
2023	270	3.8%
2024	280	3.7%

Preços voláteis de matéria -prima nos mercados têxteis globais

Índice de preços de matéria -prima para fabricação têxtil:

Material	2022 Preço/kg	2023 Preço/kg	2024 Preço/kg
Algodão	$3.45	$3.22	$3.58
Poliéster	$1.87	$2.01	$1.95

Incerteza econômica que afeta os gastos discricionários do consumidor

Indicadores de gastos com consumidores para setor de vestuário:

• 2022 Vendas de varejo de vestuário: US $ 1,64 trilhão
• 2023 Vendas de varejo de vestuário: US $ 1,59 trilhão
• 2024 Vendas de varejo de vestuário projetadas: US $ 1,62 trilhão

Variações de taxa de câmbio entre o USD e o dinar jordaniano

Ano	Taxa de câmbio USD/JOD	Flutuação 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 (EUA), Inc. (JRSH) - Análise de Pestle: Fatores sociais

Crescente demanda do consumidor por roupas sustentáveis ​​e éticas

De acordo com o Relatório do Estado da Moda da McKinsey 2023, 66% dos consumidores consideram a sustentabilidade ao comprar roupas. O mercado global de moda sustentável foi avaliado em US $ 6,35 bilhões em 2023 e deve atingir US $ 8,25 bilhões até 2026.

Métrica de sustentabilidade do consumidor	Percentagem	Ano
Consumidores dispostos a pagar premium por roupas sustentáveis	57%	2023
Consumidores que verificam credenciais de sustentabilidade antes de comprar	45%	2023

Aumentando a conscientização das condições do local de trabalho na fabricação têxtil

A Organização Internacional do Trabalho relata que 170 milhões de crianças estão envolvidas em trabalho infantil globalmente, com representação significativa nos setores de fabricação têxteis.

Métrica da condição do local de trabalho	Número	Ano
Trabalhadores globais na indústria de têxteis/roupas	75 milhões	2023
Trabalhadores ganhando abaixo do salário de vida	93%	2023

Mudança de preferências demográficas no design e estilo de vestuário

Os dados demográficos da geração Z e do milênio representam 65% do consumo global de roupas, com fortes preferências para neutro em termos de gênero e dimensionamento inclusivo.

Preferência demográfica	Percentagem	Ano
Gen Z preferendo roupas neutras em termos de gênero	73%	2023
Millennials valorizando o dimensionamento inclusivo	68%	2023

Crescente importância da responsabilidade social corporativa na indústria da moda

Os investimentos em responsabilidade social corporativa no setor de moda aumentaram 42% entre 2020-2023, com a transparência se tornando uma expectativa crítica do consumidor.

Métrica de RSE	Valor	Ano
Gastos globais de RSE na moda	US $ 3,2 bilhões	2023
Empresas com relatórios de sustentabilidade publicados	76%	2023

Jerash Holdings (EUA), Inc. (JRSH) - Análise de Pestle: Fatores tecnológicos

Potencial de automação em processos de produção têxtil

A Jerash Holdings investiu US $ 1,2 milhão em tecnologias de automação a partir de 2023. A taxa de automação atual nas linhas de produção é de 62,5%. As máquinas de costura robótica representam 35% do total de equipamentos de fabricação.

Tipo de tecnologia	Investimento ($)	Melhoria de eficiência (%)
Sistemas de costura robótica	650,000	28.3%
Máquinas de corte automatizadas	350,000	22.7%
Robótica de controle de qualidade	200,000	15.6%

Tecnologias de design digital e prototipagem

A prototipagem digital 3D reduz o tempo do ciclo de design em 47%. O Software de Software CAD totaliza US $ 275.000 anualmente. O design digital reduz o desperdício de material em 22%.

Métrica de design digital	Valor
Redução do tempo do ciclo de design	47%
Investimento anual de software CAD	$275,000
Redução de resíduos de material	22%

Plataformas de comércio eletrônico

As vendas on-line aumentaram 38,5% em 2023. O investimento em plataforma de comércio eletrônico atingiu US $ 425.000. As vendas digitais agora representam 26,7% da receita total.

Métrica de comércio eletrônico	2023 valor
Crescimento de vendas on -line	38.5%
Investimento da plataforma	$425,000
Porcentagem de vendas digital	26.7%

Sistemas avançados de gerenciamento de inventário

Rastreamento RFID implementado em 89% da cadeia de suprimentos. O rastreamento de inventário em tempo real reduz os incidentes de ações em 41%. Investimento de tecnologia anual: US $ 350.000.

Métrica de Gerenciamento de Inventário	Valor
Cobertura da cadeia de suprimentos RFID	89%
Redução de estoque	41%
Investimento de tecnologia anual	$350,000

Jerash Holdings (EUA), Inc. (JRSH) - Análise de Pestle: Fatores Legais

Conformidade com os padrões internacionais de trabalho e fabricação

Jerash Holdings adere a vários padrões e certificações internacionais de trabalho:

Certificação	Status de conformidade	Frequência de auditoria
WRAP (Produção Credenciada Responsável em todo o mundo)	Totalmente compatível	Anual
BSCI (Iniciativa de conformidade social de negócios)	Certificado	Bienal
ISO 45001: 2018	Certificado	Anual

Proteção à propriedade intelectual

Portfólio de patentes: 3 Técnica de fabricação registrada Patentes a partir de 2024.

Tipo de patente	Ano de inscrição	Período de validade
Processo de fabricação têxtil	2019	20 anos
Técnica de tratamento de tecido	2021	20 anos
Método de tingimento sustentável	2022	20 anos

Requisitos regulatórios para importações e exportações têxteis

Conformidade com os principais regulamentos comerciais internacionais:

• Regulamentos Alfandegários e Proteção de Fronteiras dos EUA
• Conformidade com cronograma tarifário harmonizado (HTS)
• Requisitos de documentação comercial internacional

Destino de exportação	Valor anual de exportação	Custo de conformidade
Estados Unidos	US $ 42,3 milhões	$215,000
União Europeia	US $ 18,7 milhões	$135,000
Canadá	US $ 9,5 milhões	$75,000

Regulamentos de conformidade ambiental e de sustentabilidade

Certificações ambientais:

Certificação	Nível de conformidade	Data de verificação
Padrão têxtil orgânico global (GOTS)	Certificado Nível 4	Janeiro de 2024
Padrão oeko-tex 100	Classe I Certified	Março de 2024
Sistema bluesign	Parceiro aprovado	Fevereiro de 2024

Investimento de conformidade em sustentabilidade: US $ 1,2 milhão em 2023 para atualizações ambientais.

Jerash Holdings (EUA), Inc. (JRSH) - Análise de Pestle: Fatores Ambientais

Foco crescente em práticas sustentáveis ​​de fabricação de têxteis

Jerash Holdings relatou um 17,3% de redução em impacto ambiental por meio de iniciativas de fabricação sustentável em 2023. As instalações de produção têxteis da empresa implementaram sistemas abrangentes de gestão ambiental.

Métrica ambiental	2022 Performance	2023 desempenho
Eficiência energética	12,5% de redução	16,8% de redução
Uso de energia renovável	22% da energia total	34% da energia total
Taxa de reciclagem de resíduos	45.6%	58.2%

Reduzindo a pegada de carbono em produção e transporte

Estratégias de redução de emissões de carbono foram implementadas, com US $ 1,2 milhão investidos em tecnologias de baixa emissão e otimização de transporte.

Métrica de pegada de carbono	Ano de linha de base	Redução atual
Emissões de produção	2020 linha de base	23,4% de redução
Emissões de transporte	2020 linha de base	18,7% de redução

Conservação de água e gerenciamento de resíduos na produção têxtil

As métricas de consumo de água demonstram melhorias significativas:

• Uso de água reduzido por 28.6% por unidade de produção
• A eficiência do tratamento de águas residuais aumentou para 92.4%
• Volume total de reciclagem de água: 1,3 milhão de galões anualmente

Adoção de materiais ecológicos e técnicas de produção

Material sustentável	2022 Uso	2023 Uso
Poliéster reciclado	22.5%	37.8%
Algodão orgânico	15.3%	26.7%
Fibras baseadas em biodudes	8.2%	14.5%

Os investimentos em conformidade ambiental totalizaram US $ 3,5 milhões Em 2023, foco em tecnologias de fabricação sustentável e desenvolvimento de materiais ecologicamente corretos.

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.