The cost to produce in USA vs. China is shrinking
For two to three decades apparel brands have been seeking production sources in China. China is still no doubt a net net heavy exporter of finished apparel but this is changing. If you have a long term, established relationship with a supplier in China it is likely that you’re in great shape because you’ve got what so many seek – a reliable and trusted production source.
But two things are happening – 1. some production is starting to work its way from China to other Asian countries namely Vietnam, Cambodia, Indonesia, and over into Bangladesh, and 2. there is a resurgence of sorts for “made in America” because the cost differential is no longer as daunting as it once was.
There are a few key reasons for this:
1. Time. Some brands and buyers do not want to wait 90 to 120 days to get their goods from China. It takes typically 30 days for materials, 30 days for cut & sew, 30 days on a boat, and then 2 to 2 weeks in customs.
2. Price. China labor rates and overall costs of production are rising.
These two factors mean that for some brands/buyers is makes more sense to produce closer to home. Another advantage of producing in America is an easier go at quality control. A 2 to 3 hour plan ride to inspect production is doable vs. a long haul flight and a week in Asia. Bloomberg had a story on this very subject just yesterday.
It will be interesting to see who this will affect a general resurgence and those factories that are still in America in poised to take advantage of this trend and expand. If you are an American based Apparel facility and want to secure more production business, visit MFG.com and get access to a world of Buyers sourcing right now.
posted by tony forcucci
