Japan's apparel makers are shifting production back to their country. Among the reasons are pressures from a weaker yen, rising overseas labor costs and shipment troubles caused by the pandemic.

The concept of nearshoring production close to consumer markets is gaining ground in the industry. Moves like this show how the supply chain disruption caused by the coronavirus pandemic has given the apparel industry reason to rethink its production strategy, signaling a shift away from overseas hubs like China and Vietnam.

Manufacturing costs are higher in Japan compared with overseas locations. Yet companies believe that the benefits, including shorter delivery times, can offset extra expenses by cutting waste and lost opportunities. Japan’s textile industry started moving production offshore in the 1970s. But now some of the cost advantages of overseas production have waned. Monthly wages in China and Vietnam have roughly doubled since 2010. Apparel companies typically have an easier time relocating production than do automakers or other industrial companies because their equipment is smaller.

Japanese company, World Co whose products sell at department stores and shopping centers, will locate most of its high-end clothing production in Japan within three to five years, up from the current level of roughly 40 per cent. Similarly TSI Holdings, which distributes Jill Stuart women's fashion and Ping golf wear brands in Japan, is considering expanding output at its domestic plants in Yamagata and Miyazaki prefectures. Automation would be used to make jackets, coats and blouses, among other products