As clothing manufacturers continue to feel a squeeze from their retail customers, they are looking to move manufacturing to protect their margins.
Originally, manufacturers went to China because it was a good, low cost option that also ensured the quality of their products would not be compromised. While China has solidified its place as a staple in the manufacturing world, manufacturers are beginning to move production to other countries as the cost of production in China has dramatically increased due to higher wages, shortage of labor, high energy costs and an assortment of environmental problems.
Many of our clients and manufacturers throughout the industry are investigating and visiting options in other countries such as, Cambodia, Vietnam, Bangladesh, Jordan and Egypt. Even though moving production helps increase margins, the manufacturer has to confront different issues, including quality, timely deliveries and terms from the new factories. We are definitely seeing some shift in manufacturing locations, as well as more domestic manufacturing opportunities. However, China will still continue to remain the lead manufacturing destination.
These sentiments were echoed in a recent interview my colleague Tri Sciarra recently conducted with California Apparel News. Read what he had to say to them here.