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US-China trade war force companies to look for sourcing alternatives

With the US-China trade war gaining momentum, apparel manufacturing countries on the direct line of China-US fire are looking for alternative sourcing options. Central America for instance is emerging as a favorable option as companies look to accommodate speed to market and dodge trade bullets. In El Salvador in particular, factories all along the synthetic supply chain collaborate in a synthetic cluster to give customers the kind of vertical sourcing experience that keeps things quick and efficient. Each link in the synthetic cluster—from yarn to garment—is within one hour’s drive from the other, which also keeps the country’s carbon footprint down. Besides, Central America enjoys a duty free relationship with the United States under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

In Bangladesh, manufacturers are rallying around to deliver quicker turns and improved sustainability as value adds for brands and retailers sourcing there. The country plans to use the blockchain technology that gives Bangladesh an advantage in traceability and transparency—and the country is looking into ways to incorporate it into supply chains.

Marci Zaroff, founder and CEO of Metawear, which operates one of its key international manufacturing platforms in India, believes that the country has incredible verticality, an astronomical workforce and opportunities in sustainability—particularly where cotton is concerned.

Though there’s been a challenge to secure organic cotton seeds in the country, and the weather has posed problems for the crop, the government is getting involved in sustainability as a competitive offering for the country.

 

 
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