Watson says the data confirms what Vantage’s team has been witnessing: Innovation is no longer a competitive advantage. It’s now the price of admission. “Customers expect the same digital experience from a branded merchandise supplier that they get from Amazon or any modern e-commerce platform: fast, transparent and connected,” Watson says. Must Read | The State Of Innovation 2026 TABLE 9: % of total revenue allocated toward IT Suppliers $100M+ 3% Suppliers $25M-$100M 5% Suppliers $10M-$25M 5% Suppliers $3M-$10M 5% Suppliers Under $3M 9% “Because we’re seeing a lot more companies focus on innovation, digital transformation and things that are part of the IT function, is there more turnover, or has the necessity of the role grown to the point that we’re reaching outward to bring even stronger talent into our organization?” —ROB WATSON, VANTAGE APPAREL 88 • SEPTEMBER 2026 • TABLE 7: Does your firm have a formal digital transformation strategy? Yes, Documented Yes, Undocumented In Development No Suppliers $100M+ 77% 15% 8% 0% Suppliers $25M-$100M 35% 50% 9% 6% Suppliers $10M-$25M 39% 35% 9% 17% Suppliers $3M-$10M 29% 48% 14% 10% Suppliers Under $3M 33% 11% 56% 0% TABLE 8: What was your IT staff turnover rate in the last year? Suppliers $100M+ 4% Suppliers $25M-$100M 4% Suppliers $10M-$25M 15% Suppliers $3M-$10M 11% Suppliers Under $3M 63% When considering why smaller and midsize suppliers are reporting greater IT staff turnover than their larger counterparts, Watson suggests that the needs of an organization may have surpassed an IT professional that has been there for a long period of time. “Many organizations are questioning the quality of the people on their team and asking how to bring more skills in,” Watson says. “A lot of peers are also looking to bring in people in the IT profession that come equipped with AI knowledge. “Because we’re seeing a lot more companies focus on innovation, digital transformation and things that are part of the IT function, is there more turnover, or has the necessity of the role grown to the point that we’re reaching outward to bring even stronger talent into our organization?” For the second consecutive year, suppliers in the $100 million-plus range reported allocating only 3% of their revenue toward IT. “Whether it’s expanding integration capabilities, implementing a new ERP or exploring AI, investment starts with one question,” Watson says. “Does it make it easier for the customer to do business with you?”
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