Why a Major Shift to US Clothing Production is Unlikely
The push for U.S.-made clothing, fueled by President Donald Trump’s “Made in America” initiative, has led some U.S. retailers to explore domestic manufacturing for items such as T-shirts, suits, and coats. Despite this, industry executives say large-scale reshoring of clothing production is unlikely due to limited capacity and higher costs associated with labor and tariffs on imported materials.
Retail executives like Mitch Gambert, owner of Gambert Shirtmakers, have noted an increase in inquiries from U.S. brands seeking to reshore production, driven by the impact of Trump’s tariffs. Gambert, who manufactures shirts for Nordstrom, indicated that domestic production would be a major positive for his business, but capacity constraints remain a challenge. He also highlighted the increased costs of materials, such as buttons and zippers, due to tariffs on imports from China.
While some companies, such as Reformation, have placed more orders with domestic suppliers to adapt to tariff changes, others like Joe Ferrara of Ferrara Manufacturing, which makes clothing for Ralph Lauren, see a growing demand for small-batch, quick-turnaround products like wool coats and blazers. However, industry experts such as Steve Lamar, president of the American Apparel and Footwear Association, emphasize that the U.S. lacks the labor, skills, materials, and infrastructure to return to large-scale manufacturing.
Despite U.S. consumers’ reliance on cheap imports from China and other low-wage countries, a shift back to domestic production faces challenges. Yao Jin, a supply chain management professor at Miami University, asserts that the high cost of U.S. labor makes it difficult for U.S. companies to compete on price, especially against overseas producers.
At Gambert Shirtmakers, where 90% of workers earn more than the state’s $15.49 hourly minimum wage, the company struggles to keep up with demand due to limited production capacity. Additionally, with U.S. tariffs affecting raw materials such as fabric, businesses like Gambert face increased operational costs.
Alexander Zar, CEO of La La Land Production and Design, a footwear manufacturer in Los Angeles, has seen growing interest from sportswear brands in domestic sneaker production. However, Zar plans to use technology like 3D printing to offset high labor costs, recognizing that U.S.-made products may still be priced higher than those made overseas.
Despite the interest, Adidas has no immediate plans to shift its supply chain and will continue to produce only limited-edition shoes with La La Land.
Kim Glas, president of the National Council of Textile Organizations, supports additional tariffs on Chinese apparel imports but cautions that tariffs on Mexico and Canada hinder the U.S. industry by disrupting the flow of materials needed for production. Glas emphasized the need for certainty in trade policies to encourage long-term investment in domestic manufacturing.
