The Return of Made in America: What Would it Really Take?

The made in America trend is coming back in full force and optimism is abound according to one survey by the National Association of Manufacturers but, after the announcement of Ralph Lauren's continued layoff plans this week and a disappointing 7 quarter decline in American's apparel spending the fashion industry is seemingly left out of the revival. American made clothing would be a smart investment for struggling luxury retailers who have been losing business to fast fashion, as frustrated consumers have been calling for American made apparel for a long time, with one of the most notable instances being the backlash for the Ralph Lauren US Olympic Uniforms made in China in 2012. Their voices have only gotten louder since the election of President Trump who has promised "America First" trade policies. An even bigger benefit is the increased turnaround time that American production provides. The year round work schedule and locality of domestic production more than compensates for the scale and speed of overseas production in most cases. However, companies have struggled to make any progress in this area and many are paying for it in profit losses and a declining reputation. Despite the dismal retail climate and lack of initiative from some of the industries' key players the American apparel industry is actually quite well suited for a turn around but, relying on traditional business practices from previous generations won't lead to success. Consumers are more and more interested in a local experience and they are placing value on high quality clothing that has an impeccable fit and, more disinterested in keeping up with fly by night trends in the ever expanding multi-seasonal retail calendar.

American apparel manufacturers have also been struggling ever since outsourcing and international licensing became the industry's new business model in the 90s. Factories have been shuttering their doors and skilled apparel workers have found themselves out of work or lacking in the latest training making them unemployable. There are already several programs in place throughout the US that provide education and resources to displaced apparel workers however, increased funding and outreach is still needed. Those factories that have managed to stay open have had to make major cutbacks to key roles such as pattern makers and increase their minimum order sizes to ensure profits on new lines causing extra work for everyone and making it hard for designers to afford sample runs (for more detailed info. read my article about the process of manufacturing a garment here). Contradictory to what one might think it is the local factories and family run businesses that have weathered the bad economy by carving out a niche for themselves in specific products such as t-shirts or lounge wear.

The American garment factory emerged from the recession with a new model that has adapted to small specialty lines catering to wealthy consumers' niche interests and hobbies. Producing collections on a national scale is definitely possible and some brands have successfully done it but, there have been a limited number of these cases. Recreating the glory days of made in America clothing is going to be a difficult task in this new landscape as factories with complete vertical production capabilities are rare and small in scale. For example, one factory owner I spoke to explained that he used to have 3 or 4 button manufacturers he worked with but, over the years all but one has closed. Now he relies on one button manufacturer for all the lines he produces making it imperative for him to coordinate large orders in advance.

Diversifying is key and big brands that have access to cash flow can help support the growth of the domestic industry and reintegrate production in the US by introducing high-quality American production one line at a time and finding factories with the capabilities suitable to each of their markets (i.e. starting with the athletic line, then the basics line etc.) instead of expecting a factory to come equipped with capabilities for every product. Retailers can also help by stocking orders of made in America clothing so that up and coming designers are encouraged to establish US production and less likely to move operations over seas. And providing high-quality products made to fit could mean big payoffs for their reputation in the eyes of the consumer.