How can we increase production for apparel/textiles in the USA?

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Permalink Reply by Apparel1 on May 3, 2011 at 2:29pm

My personal opinion is that "retailer" support would be critical. Let's face it, the reason that most companies produce outside the USA is due to "pricing". Although cost of labor is increasing in developing countries, labor in the USA is still higher.

IF major retailers such as wal-mart would decide to purchase a certain percentage of clothing from USA manufacturers, that may have an impact. However, this means they would lose some of their competitive advantage. What if the government agreed to subsidize the cost of garments for retailers that make commitment to purchase a particular percentage of clothing domestically? Sounds a bit crazy for the government to contribute money to wal-mart, but keep in mind that they help out MANY other large companies from other industries. Oil companies make a fortune but our taxes go to them. I wonder how many people would be employed if walmart decided to produce 10 percent of their cotton t-shirts domestically. My guess is that this would put many to work.

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Permalink Reply by Gerald J. Sherman on May 4, 2011 at 12:11pm

I have been looking for the solution to this problem for a long time;and you hit the nail on the head! I love the idea that US retailers become involved in buying USA manufactured products...But, like anything else they must see a benefit for cooperating...possibly a tax deduction incentative, or any other thing that will benefit them in order for them to buy USA...I have been criticized for my previous suggestion, that the government subsidize efforts to encourage manufacturing of American made apparel...I also believe that foreign makers should be required to set up factories in the USA and produce at least a percentage of their production that they import to us...Foreign autho makers, (Toyota, and others are doing it presently) -- why can't we enforce this on US apparel manufacturers who produce their goods out of the country? It's time for all of us to speak out...Let''s hear you comments AMERICA...

 

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Permalink Reply by Apparel1 on May 3, 2011 at 2:38pm

American Apparel (americanapparel.net) has been producing domestically. However, as per my understanding they are not currently profitable. This is not to say that they will never be profitable, but It appears that their labor cost possibly has a drag on earnings. Note: I have not fully read their financial statements. It is possible that labor charges are not the drag. Possibly it is another area of the business.

Anyway, their is possibly a good formula to develop a successful business based solely on domestic production? Any one have more thoughts on this subject? Please share your opinion.

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