FAQ: What Are the Options for Reshoring Apparel Production in the US?
As more fashion brands look to bring their production closer to home, reshoring apparel manufacturing has become a strategic move for businesses aiming to reduce supply chain risks, improve sustainability, and enhance quality control. But what are the real options for reshoring apparel production in the US? Below, we break down the key pathways available for brands considering domestic manufacturing.
Why Are Fashion Brands Considering Reshoring?
Reshoring apparel manufacturing allows brands to reduce dependency on international suppliers, lower shipping costs, and shorten lead times. With rising tariffs on imports from China, Mexico, and Canada, many companies are reevaluating their supply chain strategies. Domestic manufacturing partnerships also provide better oversight of ethical apparel production and allow brands to market themselves as "Made in the USA."
Additionally, sustainability and transparency have become major priorities for both consumers and brands. Many companies are looking for ways to reduce their carbon footprint by minimizing overseas shipments and working with ethical, fair-wage factories in the U.S. This shift aligns with growing consumer demand for transparency in sourcing and labor practices, making reshoring a competitive advantage for brands that prioritize sustainability.
What Are the Key Options for Reshoring Apparel Production?
1. Working with US-Based Cut & Sew Factories
Many US-based apparel factories offer full-package production services, from fabric sourcing to finished garments. These facilities often specialize in small-batch production, making them ideal for emerging brands or sustainable fashion supply chain consulting. Some states with strong manufacturing infrastructure include California, New York, North Carolina, and Texas.
However, transitioning to a U.S.-based factory requires adjustments. Labor costs are significantly higher than in many overseas markets, and not all domestic facilities have the same technological capabilities found in Asian manufacturing hubs. Brands must carefully vet potential partners to ensure they can meet both quality standards and cost expectations.
2. Developing Domestic Manufacturing Partnerships
Establishing long-term relationships with domestic suppliers and manufacturers ensures greater control over production timelines and quality standards. Brands can explore partnerships with regional factories specializing in specific apparel categories such as knitwear, denim, or outerwear.
Finding the right partners requires thorough research and due diligence. Many domestic factories have lower MOQs than their overseas counterparts, but costs will be much higher due to the costs of domestic labor. Certain facilities cater to small and mid-sized brands by offering flexible order quantities and development support, and you may be able to make the margins work with careful planning.
3. Utilizing On-Demand Apparel Manufacturing
On-demand manufacturing is gaining traction as brands move toward more sustainable fashion nearshoring strategies. Domestic factories that offer on-demand production allow brands to manufacture smaller quantities based on real-time demand, reducing excess inventory and waste.
This model is particularly beneficial for direct-to-consumer brands looking to test new designs without committing to large production runs. By only producing what is needed, brands can avoid overproduction, a major issue in traditional manufacturing that leads to excess stock and financial losses.
4. Nearshoring with US-Based Textile Mills
Reshoring knitwear or sweater manufacturing or other textile-intensive categories can benefit from sourcing fabrics domestically when possible. Textile mills in the Carolinas, for example, produce organic cotton and recycled materials, supporting circular fashion reshoring efforts.
While domestic textile production is growing, there are still limitations in terms of variety and availability. Some specialty fabrics may still need to be imported, making it important for brands to develop a hybrid sourcing strategy that balances domestic and international materials.
5. Investing in Vertical Integration for Apparel Production
Larger brands exploring a long-term commitment to US manufacturing may consider investing in their own production facilities, or establish a strong partnership with an existing factory by offering to share the cost of purchasing specialty equipment. This strategy requires higher upfront costs but allows more control over apparel production cost analysis, quality, and lead times.
Vertical integration also reduces dependency on third-party manufacturers, giving brands more flexibility to respond to changes in demand. While this option is not feasible for every company, those with strong financial backing may find it to be a worthwhile investment for long-term scalability.
How Can Brands Find Local Suppliers for Reshoring?
Finding sustainable fabric suppliers in Europe or the US requires thorough research and vetting. AJG Fashion Consulting specializes in local supplier identification for fashion brands, connecting businesses with ethical and sustainable manufacturers.
Some resources include:
Industry trade shows such as Texworld USA and SOURCING at MAGIC, which feature domestic textile and apparel manufacturers.
Online databases like Maker’s Row, Sewport, Fashiondex, and the International Trade Administration’s Made in the USA Directory.
Garment manufacturing project management services that assist brands in transitioning from offshore to domestic production.
Additionally, networking within the fashion industry and leveraging consulting firms like AJG Fashion Consulting can significantly streamline the supplier identification process.
What Are the Cost Considerations for Reshoring Apparel Manufacturing?
Understanding the financial impact of reshoring is crucial. Conducting a cost-benefit analysis of reshoring luxury fashion production or other product categories can help determine feasibility. Factors to consider include:
Labor costs – US wages are higher than overseas alternatives but provide ethical labor assurances.
Material availability – Some specialized fabrics and trims may still need to be imported, affecting pricing.
Scalability – Domestic factories often have lower MOQs, which can be beneficial for emerging brands but may pose challenges for scaling up.
Brands should weigh these factors carefully and explore potential government incentives to offset costs.
Are There Government Incentives for Reshoring Apparel Production?
Yes! Many state and federal programs support reshoring initiatives through grants, tax credits, and workforce training programs. Brands should research available incentives for domestic sourcing for organic cotton apparel and other sustainable materials.
Programs such as the Manufacturing Extension Partnership (MEP) and the Small Business Administration (SBA) provide resources and funding opportunities for companies investing in domestic production. Some states also offer tax breaks for businesses that create manufacturing jobs within the U.S.
How Can AJG Fashion Consulting Help Brands with Reshoring?
Reshoring apparel production is a complex process that requires strategic planning and industry expertise. At AJG Fashion Consulting, we offer fashion reshoring consulting, apparel nearshoring strategy development, and garment manufacturing project management to help brands transition to domestic production smoothly.
We assist with:
Identifying and vetting domestic suppliers
Conducting cost-benefit analyses
Navigating production setup and logistics
Ensuring ethical and sustainable manufacturing practices
Ready to explore reshoring for your brand? Contact us today to start the conversation.