FORBES: Tariffs Should Hasten Apparel Manufacturing’s Move Out Of China And Back To U.S., Study Says


This is a very interesting read indeed, based on a study conducted by our friends at The Sourcing Journal. How much of it do you agree with? 

The fashion industry is faced with challenges ranging from increasingly fickle consumers with little brand loyalty to the rise of upstart brands upsetting the traditional giants. One way it’s seeking to respond to that changing dynamic: moving production out of Asia back to the U.S. or nearby countries.

About four-fifths of nearly 200 global apparel industry sourcing executives said “a step change in nearshoring for speed is somewhat or highly likely by 2025,” according to a survey conducted by McKinsey & Co. and The Sourcing Journal, a trade publication, in September. Most of the respondents came from companies based in the Americas or Europe.

Almost 80% of the survey respondents also said it’s “highly likely” or “somewhat likely” that “trade agreements change offshore-onshore equation.”

The threat of more tariffs on imports from China “will further support nearshoring,” Karl-Hendrik Magnus, a McKinsey partner, said at the Sourcing Journal Summit in New York on Thursday, when he released the survey findings in a study titled “Is Apparel Manufacturing Coming Home?”

In fact, when asked “what will be your company’s most important nearshore market by 2025,” 30% of respondents cited the U.S. as the biggest potential winner when it comes to “nearshoring” for North America. Mexico followed with 20%.

For Europe, Turkey came out as the top choice, according to the survey.

“What’s happening in D.C. is accelerating all the conversations” about moving production back to or near the U.S., Erika Swan, Reebok’s VP of product operations, said at the event, which gathered some 400 industry executives from companies that also included Under Armour, Calvin Klein parent PVH and Amazon. Read More



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