President Donald Trump’s “Made in America” initiative has encouraged retailers to consider reshoring manufacturing. Clothing executives from major and smaller retailers, such as Walmart, Reformation, and Gambert Shirtmakers, have explored domestic production. However, a large-scale shift remains unlikely due to high labor costs, a lack of skilled workers, and tariffs on essential materials.
While some companies are increasing domestic production—such as Reformation sourcing more from Los Angeles and Gambert Shirtmakers expanding its dress shirt operations—the apparel industry faces significant hurdles in re-establishing large-scale manufacturing in the U.S.
High Labor Costs and Infrastructure Gaps
Manufacturing costs in the U.S. are significantly higher than in countries like China, Vietnam, and Bangladesh, where labor is cheaper. The U.S. apparel sector has been shrinking for decades as companies moved operations overseas to cut costs.
The lack of infrastructure, materials, and skilled workers prevents the U.S. from matching the efficiency of these established garment industries. Additionally, many raw materials and components used in clothing production are imported, making them subject to tariffs and further increasing costs.
Limited Capacity
Even as some companies attempt to reshore, many cannot expand quickly due to production constraints. Gambert Shirtmakers, which produces high-end shirts in New Jersey, has received more orders from retailers like Nordstrom. However, its limited capacity and increased material costs—due to tariffs on imported fabrics and buttons—make rapid scaling difficult.
Innovation and Technology in the U.S. Manufacturing
Footwear manufacturer La La Land Production and Design in Los Angeles is exploring solutions to high labor costs by investing in advanced 3D printing technology.
While brands like Adidas have shown interest in the U.S.-made sneakers, traditional manufacturing methods remain cost-prohibitive. Innovations in automation and alternative production techniques may help make domestic manufacturing more competitive in the future.
Despite reshoring efforts, approximately 97% of clothing sold in the U.S. is still imported. While China has lost some market share, Vietnam and Bangladesh have gained ground as major suppliers. The reliance on global supply chains is unlikely to change in the near future, given the cost advantages and established infrastructure of overseas manufacturers.
The Future
Bringing large-scale apparel manufacturing back to the U.S. would require major investments in workforce training, infrastructure, and raw material availability. While some companies are making progress in reshoring, experts predict that the majority of U.S. clothing production will remain overseas. Without a long-term strategic shift, global supply chains will continue to dominate the industry.
