Just Style investigates the seven biggest challenges impacting the US apparel manufacturing industry right now and what can be done to overcome them.

The exhibitors at Texprocess Americas and Techtextil North America 2023 speak to Just Style about the seven key issues facing US apparel manufacturing and the wider industry, from labour shortages and a lack of partnerships, to ongoing supply chain challenges and an opposition to change.

1. Labour shortages

Many of the exhibitors at Texprocess Americas and Techtextil North America 2023 cite labour shortages as the biggest challenge for US fashion manufacturing.

Rolando Bohlemann, president at Schmetz Needle Corporation, puts it bluntly by stating the industry can’t even find technicians wanting to repair sewing machines let alone anything else, and Juki America sales manager Jairo Duran agrees and admits the shortage of both garment workers and technicians is becoming a major issue.

In terms of creating innovations within the material space, Laura Thornquist, president at Fibre52, says her company’s EVP (Graham Stewart) has a lot of experience as he’s been in the sector for years but it’s hard to find others as skilled as he is because the industry is losing a lot of experts and the skillsets disappear along with them too.  

From a technology point of view, Lenny Marano, president Americas at Lectra, says his company is fortunate to have a strong team but, he adds: “A big challenge for the wider apparel industry is getting the expertise in a high technology space.”

Dan Berzack, president of Sewn Products Equipment Company, is working hard to train people. He explains: “Garment manufacturing is still a very hands-on process and in the US there’s a lack of experienced technicians to work on some of the more advanced pieces.”

He points out that global markets using a lot of automation need people who understand it and can work on it. In markets without automation, it’s about making sure the machines don’t produce too much waste.

He highlights that a lot of customers will buy a machine but when there’s an issue they have to stop operations. However, as automation technology gets more complex, factories will have to get better at handling the issues on their own.

Bailey Smith, extension coordinator for the Zeis Textiles Extension at the NC State University, Wilson College of Textiles, says her university is playing its part in terms of bringing back the textile industry to the US with programmes focused on providing industry support in terms of training and prototyping.

She makes the point that bringing manufacturing back to the US cuts back on shipping costs and it also helps companies keep an eye on due diligence, which are both cited as challenges for the sector. She adds that the issues surrounding fast fashion remain a hot topic, and despite it being more expensive to manufacture in the US, it does help with sourcing and transparency.

2. Ongoing supply chain challenges

For Lydia Anaka, digital marketing manager at Eastman Machine Company, the supply chain is the biggest challenge for the apparel industry. She says: “We manufacture everything in the US but shipping, lead times and labour are the main pain points that all of us are seeing.” 

Jake Barth, inside sales consultant at Autometrix, agrees and says his company is still experiencing supply chain issues following the pandemic. He’s positive about China opening up again this year and says that has made it easier, but there are certain machine components that his company struggled to get, which resulted in having to switch up vendors.

Having full visibility within the supply chain and companies adopting the right technology remains crucial but it’s also about using it in the best way, suggests Daniella Ambrogi, global senior marketing director at CGS.

“In product development, designers don’t want to be monitoring every step of their work as they need to be creative but if we don’t have the information from the beginning how are we going to have it all through the supply chain,” she asks.

For retailers, Ambrogi says it’s about looking at what each element costs – sustainability might be more expensive but you can’t just look at the cost per piece – it’s about having shared risks with brands and manufacturers.

Ambrogi points out that during the pandemic the risks were all on the manufacturers when orders were cancelled, however, she says we are now seeing more collaboration between brands and manufacturers with liability on both sides when something happens.

3. Excess inventory

Ambrogi also cites inventory as being a big challenge and says it’s about trying to get consumer demands right.

Meanwhile, Hannah Rich, product development manager, Contempora Fabrics, tells Just Style everyone is still experiencing a lull in business and that’s driven from the pandemic.

She explains: “Everyone stopped all their orders and then when it ended everyone wanted to make and ship garments. Right now, brands and retailers have too much inventory and consumers are worried about a recession.”

On the plus side, Rich believes now is an excellent time to invest in development as there is time to focus on new things: “From a circularity perspective for instance, a very small amount is recycled in the US so it’s a good time to consider how we can build the infrastructure to support it, and ask, how can we remove the buttons, zippers etc so we can recycle the textiles?”  

4. Opposition to change

Three of the exhibitors at the show list opposition to change as being a major challenge for the US apparel industry. John Hollo, managing director at Pathfinder Cutting Technology, admits that customers are becoming more aware of where their clothing is sourced from and how it is manufactured. The challenge he sees, however, is selling the message to consumers so they understand why a piece of clothing should be $5 more expensive.

In line with this thinking, Cheryl Smyre, director advanced materials at Ciclo, explains that change requires a lot of education for the consumer about their apparel purchase choices.

She says: “We need to help them make choices that are good for the environment. It’s crucial to educate consumers that there are options like Ciclo in the market and that’s our main focus this year.”

For Smyre, it’s positive that there is a strong focus on textile-to-textile circularity but she is keen to point out that biodegradable materials have an important place in the circularity ecosystem too: “We consider ourselves to be thought leaders in this space and it’s vital that from a legislation standpoint – we’re working with the US government about both the problem and the solution we can offer.”  

Similarly, Thornquist, who works in cotton material innovation says there is opposition to change within the cotton space and adds: “When you do something in the same way for 80 years and then someone comes in and says they can do it cheaper and better, it’s not surprising they don’t believe you.”

5. 3D sewing

Frank Henderson, CEO, Henderson Sewing Machine Company, is adamant that 3D sewing is one of the biggest challenges facing the industry. He supports his point by explaining the first part of the apparel making process involves flat material and there are 3D visualisation tools but it has to be converted into the 2D form because the industry has to cut flat and then bring it back to 3D. 

He explains: “We can automate 2D products easily but when we get to the 3D aspect of joining it together the technology is not there yet.”

6. Sustainable and ethical regulations

Another key challenge for many of the exhibitors at the show is sustainable and ethical regulations. Lectra’s Marano explains brands and retailers need to ensure they are using factories with not only sustainable and ethical business practices, but also that all new regulatory requirements are followed.

Pam Peale, vice president of global sales and US PLM operations at Desl, agrees and points out that following the regulations from different parts of the world is a key challenge, especially as the EU’s regulations are in place whereas the industry is still keeping an eye on what’s to come from the US.

She uses PFAS (per-and polyfluoroalkyl substances) as a good example, which are used to make fluoropolymer coatings and products that resist heat, oil, stains, grease, and water. She explains the regulations on PFAS is being done state by state in the US, which makes it more challenging: “The industry has to report on it so it needs to have the data to track it.”

Graham Sullivan, founder of Seddi, highlights that there are ways to improve ESG within the sector, but he says ESG is hard to cut down if the industry doesn’t cut down on the waste that comes from physical samples. Sullivan believes the shift to digital is essential from both a sustainable and efficient supply chain process point of view, but he says the apparel industry needs to trust what’s on the screen.

7. Embracing partnerships

Finally, Charlie Merrow, CEO, Merrow Manufacturing, believes the US apparel industry needs to accept the benefits of working together and sees the lack of collaboration as a real challenge. He says:“ This is an industry that doesn’t easily tolerate partnerships – it’s an industry that’s been segmented and there’s a distrust in our industry that is unique.

Merrow admits there are many challenges in the industry, but he believes overcoming and realising that in partnership the apparel industry can create better commercial opportunities in its markets is the primary challenge.

He concludes: “Innovation requires understanding what the problem is that is being solved and making investments in the technologies and processes that create a better commercial outcome.”

By Just Style