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Smaller brands will lead reshoring trend in the US

  

Smaller brands will lead reshoring trend in the US

Intensified by the pandemic, supply chain woes are offering US brands new opportunities to bring apparel production back to the country. Many apparel makers had shifted production overseas in the 1990s mostly to China and few Asian countries that offered cheap labor, raw materials and lower operating costs. Now, with apparel manufacturing becoming more technically advanced and environmentally and socially conscious, manufacturers plan to reshore production back to the US. However, for this, they first need to reevaluate and renovate their supply chains. And as per a Fortune report, companies that seem most capable to achieve this are smaller, independent brands as they are better positioned to shift production back to the US.

Raw material shortage, high costs make reshoring unviable

Around 24 per cent of US manufacturers plan to reshore operations by 2025, says a ThomasNet report published in July 2021. However, they are incapable of reshoring as of now because of non availability of raw materials like fabric, zippers, and buttons within the country. Labor costs and overhead expenses too are an added burden which makes goods less competitive and profitable.

Covid outbreak has led to US apparel supply chains being completely destroyed and big companies are still struggling to find real-time solutions. The pandemic-induced factory and textile mill lockdowns, shipping disruptions and shifts in consumer buying patterns highlighted brands’ dependence on overseas production.

What’s more, big companies operating in the US cannot alter their production schedules as they produce millions of pieces at a time. However, smaller apparel companies can flow their products from as far as China. These brands also manufacture goods in smaller quantities to avoid using excess inventory. This enables them to sell more easily.

Innovation-key to reshoring by US brands

US brands cannot reshore production without innovating their products and processes. They are introducing innovative concepts like make-to-order and limited-edition goods to start reshoring. Brands are also digitizing fashion by using 3D designs for quicker and more efficient production. Automation is being done with made-to-order production and leveraging new technologies from innovators like Lectra, Shima Seiki, and Twine.

Innovations allow small brands to introduce pre-sale or limited-edition collections despite the small-batch production being more expensive. Product innovations enable them to build an emotional connect with consumers and highlight the benefits of slow fashion.

Smaller brands uphold their brand’s environmentally and socially conscious values by operating in small factories. Big brands consider reshoring only by engaging smaller US factories for prototyping, made-to-order goods, limited edition offerings, and upcycling, or leaning into digital experimentation, like NFTs and Web3.

 
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