‘Made in USA’, losing its sheen as brands opt to source abroad

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‘Made in USA’, losing its sheen as brands opt to source abroad

"Nearly 97 per cent of the world’s clothing manufacturing happens outside America. The country’s shopping habits have changed dramatically. In 1965, 95 per cent of the clothing Americans purchased was made in the US. Today, it’s just 2 per cent. In order to keep up the sustainability tag, some of American brands are proudly displaying ‘Made In USA’ tag, which is far from reality."

Made in USA large

Nearly 97 per cent of the world’s clothing manufacturing happens outside America. The country’s shopping habits have changed dramatically. In 1965, 95 per cent of the clothing Americans purchased was made in the US. Today, it’s just 2 per cent. In order to keep up the sustainability tag, some of American brands are proudly displaying ‘Made In USA’ tag, which is far from reality.

Companies that used to manufacture everything in the US, such as Red Wings and New Balance, have shifted production of most products overseas. Some companies who are still producing in the USA showcase limited quantities of a product. For instance, Tanner Goods, a leather accessories brand; New England Shirt Co, a men’s shirts brand; and Oak Street Bootmakers, a footwear company.

Costs drive brands to source from outside

Companies highlight that it’s easier to manufacture overseas, if you want to go for mass manufacturing. Resource availability is one of the biggest reason for American brands to look overseas for manufacturing. Additionally, fabric sourcing is one of the biggest concerns facing domestic companies in the US.

Made in USA losing its sheen as brands opt to source abroad

Some companies like American Giant have been able to sustain the ‘Made in USA’ tag simply because they are dealing in knitwear like sweatshirts, T-shirts, and leggings, which are made from North Carolina cotton. The moment they look for expansion, they must shift production base or source materials from other countries. The company explains sourcing merino wool from New Zealand would be an easy thing to explain to customers. Cost efficiency is also something that comes into play while sourcing fibres and fabrics.

Branding strategy

Brands wanting to position themselves as American-made must factor in transparency and an uncertain future as the industry changes. Similar modern brands like Zady, Everlane and The Reformation use a transparent business model as the emotional hook for customers, rather than ‘Made in America’. The key lies in branding your product well while staying true to your ethical manufacturing practices.

Sourcing the need of the hour

Retailers need to maintain a discipline and focus on a greater mission in order to avoid cutting costs on manufacturing overseas. Overseas factories compete on more than just cheaper cost. For brands looking to create designs using advanced skill sets, like block printing or embroidery, they should look beyond American factories. Moving beyond your area of expertise is when you require outsourcing. Of late, investment in manufacturing technology and quality in the US has declined substantially as the industry has shifted to other parts of the globe. At the same time, small domestic brands with very limited production capacities might still be a viable option for some American brands who truly want to stay localised.

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