What to make of the past 12 months and the state of the decorated-apparel industry? What to expect in the year to come? To find out, we at Impressions Magazine polled a sampling of industry leaders to see what they thought about the way things stand in terms of the commercial apparel decorators of the world. Specifically, we asked:
- How have you seen economic roller coaster ride of the past year affecting the decorated apparel industry, both in the United States and internationally?
- What one or two developments—technological or otherwise—do you see as having been the most impactful this past year in terms of the decorated-apparel industry?
- Looking into your crystal ball, what would you say apparel decorators and materials and equipment suppliers should be on the lookout for in 2026?
Below are the first four of the 16 responses we received. Note: because we received so many exceptionally well-thought-out responses, we’ve divided this piece into three separate parts to make them a little bit easier to ponder and digest. What follows are the responses we received from Barudan America, Atkinson Consulting, Sportsman Cap & Bag and STAHLS’.
To see Part 2 and the responses we received from Live & Tell by L.A.T., Inktavo, Vastex, Brother International and Allmade, click here. To see Part 3 and the responses we received from Kati Sportcap & Bag, 613 Originals, Epson America, Madeira USA, Hirsch Solutions, ColDesi and Melco, click here.
Thanks again to all who participated, and here’s to a happy, healthy—and profitable 2026!
Bob Stone, vice-president sales, Barudan America Inc. (embroidery machines), barudanamerica.com:
In the U.S. market, the machine business for us has been very good the past four years. We began to see a slowdown at the end of the third quarter which, unfortunately, has remained somewhat flat through December. [However,] sales internationally have been good in some markets, particularly in Asia, but slow in Europe and the Middle East.
Direct-to-film has had a huge impact on the decorated apparel industry. Barudan isn’t in the printing business—we concentrate on what we do best, which is embroidery machines. But I see the growth in DTF. Many of our customers have added DTF to their embroidery shops, which shifts dollars that may have been spent on screen printing, direct-to-garment (DTG) or additional embroidery equipment.
This is my 34th year in the industry, so I’ve seen a lot of ups and downs. I think the economy is going through an adjustment period right now. However, the world loves branded apparel, and I don’t see that changing any time soon. I predict 2026 will be a good year for decorated apparel.
Marshall Atkinson, principal of Atkinson Consulting, atkinsontshirt.com:
From my perspective, the businesses that have leaned into understanding the changes in the market have been more prosperous. Getting in front of customers, asking better questions and providing solutions based on what customers need still seems to do the trick. Those waiting on customers to call, still trying to sell things people don’t want or refusing to change are the ones who have been struggling.
Artificial Intelligence, hands down. Whether you are building your own AI agent, creating your own app or using AI for art, scheduling, data analysis or research, AI is what is moving the needle these days. Regardless of your business, your customers are increasingly delegating their thinking to AI. How will your business show up so that ChatGPT recommends you as the answer to your customer’s question? If you aren’t thinking about this already, you should be.
Max Leonard, brand manager, Sportsman Cap & Bag (blank headwear), sportsmancaps.com:
I feel that the effect on the apparel industry, while apparent, was maybe not as harsh as we were expecting, at least when talking about headwear. We saw some hesitancy from buyers at different points throughout the year, but for the most part, sales stayed strong, and people continued to buy promotional gear. I think we saw a renewed interest in value price-conscious options across the industry, brands like Valucap and Sportsman knits. That being said, we did not experience a drop off in our high-quality brands like Imperial, Legacy/Locale, and Richardson.
I think that, as the landscape of the apparel industry is ever-changing, products and processes are always evolving and improving. One thing I noticed this year is that decorators are really looking for the products and designs that are going to make their decoration process the easiest. For headwear, this means quality material that is heavy enough to avoid snags and wrinkles, but light enough that they don’t bend or snap embroidery needles. A huge win for headwear decorators is the revival of the five-panel construction. Styles like the HTA from Legacy, the 5054 from Imperial, or the 8869 from Valucap offer this five-panel design that leaves a wide-open decoration space and takes that front seam out of the equation. Brands like Flexfit are also changing the game with some of their innovative technology. Styles like the 180 Delta, or the 6110NU feature a fused front seam, so while they maintain the classic look of a six-panel cap, they boast significantly less material and no thread around the front seam, making embroidery, screen printing, DTF, and just about any other type of decoration a breeze.
Looking ahead, I think there are a few things that should be considered when planning for 2026. First, I believe that sustainability is only going to continue to grow in popularity as more people are becoming environmentally conscious. As brands like Atlantis Headwear show us that practices become more common, they will keep evolving, which means more accessibility, more competitive price points on sustainable styles, and more opportunities for brands to easily adopt eco-friendly practices, programs, and processes. I will also speculate on two trends I see continuing into 2026. Two-tone colorways have been making a serious comeback recently, and as this look picks up traction on social media, I think that we will see more customers looking in this direction. Now, in terms of performance, I think that the perforated, or “laser-cut” mesh has been highly successful in 2025, and with the growth of the athleisure market, and the innovation in moisture-wicking, odor-reducing, buoyant and many other types of materials I think that hats like the 632 from Richardson, the CUT from Legacy, and the S1505 from Imperial are going to be a must-have look in 2026.
STAHLS’ (custom transfers/DTF production, heat-press equipment, production and business management software), stahls.com:
Carleen Gray, CEO, GroupeSTAHL: The past year has reinforced just how interconnected the global decorated apparel industry has become. Economic pressure hasn’t affected every shop or region the same way, but the underlying forces are consistent both in the U.S. and internationally.
First, tight labor markets and rising operating costs are accelerating the shift toward automation and digital workflows. Decorators are looking for ways to do more with fewer resources—streamlining art prep, ordering, scheduling and fulfillment. Tools powered by AI and connected software platforms aren’t replacing skilled decorators, but they are replacing inefficiency. Shops that embrace these tools are better positioned to weather economic swings than those relying on manual processes.
Second, ongoing supply chain volatility continues to influence how decorators plan and produce. Tariffs, geopolitical uncertainty, freight costs and even weather disruptions have made traditional “just-in-time” models far less predictable. As a result, we’re seeing more regional production, near-shoring, and increased reliance on on-demand decoration to reduce inventory risk and stay responsive to customer demand.
Finally, regulation and transparency around sustainability are playing a growing role—particularly in Europe, but with global implications. Increased scrutiny around chemicals, packaging, waste and traceability is impacting material choices and production methods. Brands and consumers alike are asking for proof of safer inks, more transparent supply chains, and lower-impact manufacturing, which adds complexity but also creates opportunity for decorators who adapt early.
Taken together, these forces explain why the industry has felt like a roller coaster. The path forward favors decorators who invest in flexible, digital and on-demand models—tools and strategies that help them stay agile, compliant, and profitable no matter where the next economic turn takes them.
[Looking ahead,] print-on-demand (POD) has moved from being a “nice-to-have” option to a business necessity. Decorators increasingly need to handle any order size, without sacrificing quality or turnaround. This shift reflects a broader reality of today’s market—customers want flexibility, and shops that can meet demand consistently are the ones thriving.
Another major development has been the rise of dimensional decoration and experiential customization. In our recently posted Predictions 2026 video, Josh Ellsworth summed this up with a simple but powerful idea passed down from our founder Ted Stahl: “The best way to predict the future is to invent it.”
That clarity is already taking shape through innovations like Liquid 3D, advanced patch systems, and heat-applied graphics that add texture, depth, and visual impact. These technologies are changing not just how products look, but how customers interact with them—especially in retail and event environments.
Josh Ellsworth, chief revenue officer, GroupeSTAHL: The economic volatility of the past year has accelerated a shift we’ve already been watching closely: decorators are becoming more flexible, more diversified and more strategic in how they operate. Rather than relying heavily on large bulk orders, shops are adapting to smaller runs, faster turnaround and a wider mix of products.
As Kelly Walters, our experiential marketing specialist, framed it in our recent industry conversations, the future isn’t being guessed at—it’s being shaped by what decorators are already experiencing on the show floor and with customers every day. That reality is pushing businesses to rethink how they approach production and growth.”
Jayson Tompkins, Stahls’ Fulfill Engine: I think we’re going to see a convergence of different verticals—whether it’s retail or sports or promo—and all the different products and the way connections happen…I think the pie is about to get a lot bigger for our industry. Internationally, we’re seeing similar behavior. Decorators are exploring new markets, new partnerships, and new product categories as a way to stay resilient. Economic pressure has encouraged innovation, not hesitation, and shops that can pivot quickly are finding opportunity even in uncertain conditions.
Looking ahead to 2026, several themes are becoming increasingly clear:
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Convergence and Collaboration
People are going to get to work with people they’ve never worked with before, in industries they haven’t worked with before.
This convergence—between retail, sports, promo, and on-demand fulfillment—will create new opportunities for decorators who are open to expanding beyond traditional lanes.
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Automation and Smarter Workflows
While creativity remains central, efficiency will be critical. Automation and integrated workflows will help decorators scale without burning out teams or sacrificing quality. This doesn’t replace creativity—it supports it.
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Experience-Driven Customization
Future growth is tied to experience, not just output. From live event printing to in-store customization stations, consumers increasingly want to be part of the creation process, not just the end result.
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Dimensional, Specialty Techniques
Finally, expect continued growth in specialty decoration—from dimensional graphics to embroidered and heat-applied patches with unique placements. These techniques help decorators differentiate in a crowded market and deliver premium value.
To see Part 2 of this three-part article, click here.To see Part 3 of this three-part article, click here.
