# Fashion industry production and inventory challenges > Live situation record from CLSTR: https://clstr.news/situations/fashion-industry-production-and-inventory-challenges > Updated: 2026-10-04T05:01:15.000Z. Sources: 7. Developments: 2. The fashion industry is grappling with significant financial and environmental challenges stemming from production and inventory management. Reports indicate that unsold clothing from 2023 held a retail value between $70 billion and $140 billion, with inventory days on hand reaching levels 14% higher than pre-2020 averages by 2024. To mitigate these losses, the industry is exploring a transition toward on-demand production models to replace traditional forecasting. Simultaneously, there is a growing movement to address a transparency gap regarding total production volumes. While the sector is estimated to produce between 80 billion and 150 billion garments annually, data suggests only 9% of analyzed brands disclose their actual production numbers. In response, initiatives such as the #ContarEstáDeModa campaign, led by the Association of Ethical and Sustainable Fashion (AMES), are working to encourage brands to publish annual production volumes to better measure environmental impact and waste reduction. ## Timeline ### 2026-10-04: Fashion industry faces transparency gap in production volumes The AMES association is campaigning for fashion brands to disclose annual production volumes, noting that only 9% of brands currently report these figures despite industry estimates of up to 150 billion items. 5 sources. https://clstr.news/cluster/fashion-industry-faces-transparency-gap-in-production-volumes ### 2026-09-09: Fashion industry shifts toward on-demand production to combat excess inventory The fashion industry faces massive losses from excess inventory, with unsold goods valued between $70B and $140B in 2023, driving a shift toward on-demand production models. 2 sources. https://clstr.news/cluster/fashion-industry-shifts-toward-on-demand-production-to-combat-excess-inventory --- Cite as: Fashion industry production and inventory challenges. CLSTR, https://clstr.news/situations/fashion-industry-production-and-inventory-challenges