Why Boosting U.S. Manufacturing Hinges More on Training and Technology Than Tariffs
Today, the American fashion industry imports the vast majority of its goods, but supply chain upheaval and trade uncertainty are convincing more brands to take another look at U.S. manufacturing.
As speakers explained during Sourcing Journal’s recent webinar, “Reshoring Reality: Turning Turmoil into Domestic Opportunity,” moderated by senior news and features editor Kate Nishimura, there are a number of benefits to moving production back home. For one, shorter lead times allow companies to be more responsive in their buying, ordering goods that are more apt to sell. Being closer to production also provides better oversight into quality and supports collaboration during product development.
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“Brands saw during the pandemic how fragile overseas production can be, and onshoring gives them more control, less risk and the ability to diversify where and how their goods are made,” said Betsy Franjola, founder of Hocking Hills Garment Center.
Tariffs may be top of mind, but the speakers don’t see them as a major driver or incentive toward increasing U.S.-based sourcing and manufacturing. While the stated intent of the duties is partly to boost factory jobs, the current tariff plan put forth by the Trump administration would not have been Reshoring Initiative president Harry Moser’s “first choice” to bring more production stateside. He would rather see a more modest 10 to 15 percent tariff instituted on a long-term basis like 10 years so that companies feel confident making investments. As job creation data shows, the threat of tariffs has actually had the opposite effect. “So far, the tariffs have clearly slowed down the rate of reshoring,” said Moser. “Because of all the concerns, the uncertainty, the companies have sort of put the brakes on until they find out what the reality is going to be.”
Still, there are companies forging ahead with U.S. production, such as Hocking Hills Garment Center in Southeast Ohio that opened last fall. Although onshoring has its positives, after decades of predominantly offshoring, it is not a simple task to bring factories back stateside. “Building a new domestic sewing factory from the ground up isn’t easy, especially here in the U.S., where we have allowed so much of our manufacturing capacity and our workforce to erode over the decades,” said Franjola.
Panelists agreed that talent is a top hurdle. Without a readily available labor force of skilled sewists, individuals must be recruited into the field and then trained. One group that could step in are immigrants from countries with more emphasis on sewing skills. Justin Hershoran, senior solutions architect at Aptean, gave the example of a company in Kentucky that is employing refugees from Haiti. “We have a huge resource in the country of immigrants—especially undocumented immigrants—many of whom did sewing in their home country before they came here,” said Moser. “Instead of deporting them, why not set up a system where they can work and make a fair income, and at the end of five years…or 10 years get a citizenship. It would solve two problems at the same time.”