Textile and apparel manufacturing in the USA is staging a comeback and even companies based in India and China are investing in US facilities, according to a report in the latest issue of Textile Outlook International from the global business information company, Textiles Intelligence.
Developments in technologyâ€â€notably automation and roboticsâ€â€are enabling US factories to cut their costs while proximity to the market provides producers in the USA with a significant competitive advantage over companies based in distant countries in terms of quick response and market knowledge.
Reshoring appears to have the support of the public. Almost 8 out of 10 US consumers say they would rather buy an American-made product than an imported one. And over 60 per cent of them would be willing to pay 10 per cent more for it. The resurgence in manufacturing in the USA has been fairly modest and followed substantial losses between 2005 and 2008. Indeed, the US apparel industry still supplies less than 3 per cent of the US domestic market for apparel in volume terms. Also, US apparel imports continue to be dominated by low cost Asian suppliers, reflecting the fact that cost minimisation continues to play a vital role in sourcing decisions.