So, we’re nearly halfway through 2025. And what a year it’s been so far. It feels like living in a pinball machine, as we duck this, jump that, and swerve constantly to avoid getting hit. And going out of business. Let’s take a clear-eyed look at where things stand.

No doubt about it, 2025 has been rough. Tariffs, inflation, labour unrest, climate rules, regulatory pile-ons, and political chaos have all taken their toll on the global textile and apparel industry. It’s been one body blow after another. Most sectors would’ve buckled. Ours hasn’t. We’re still on our feet. But let’s not kid ourselves: Standing isn’t thriving.

Right now, we’re wedged between progress and pressure. Sure, there’s been real movement on sustainability, smarter sourcing, automation, and digital tools. But under the surface, fatigue is spreading. Structural cracks are widening. And too many “solutions” feel like duct-taped patches, quick fixes, not long-term answers.

Where does that leave us? Somewhere between survival mode and reinvention.

We’re watching two stories unfold at once. First, there’s clear momentum when it comes to innovation, compliance, and resilience. But next, we’re also grappling with structural flaws, many of which have been ignored or papered over for years. What’s working? What’s unraveling? And where does this industry go from here?

Sustainability gets real

Sustainability isn’t a PR strategy anymore. It’s become a core operating principle. Waterless dyeing is being adopted at scale. Chemical recycling is moving out of the lab. Regenerative cotton is being planted, harvested, and shipped. Brands and mills are investing real money into circular systems, mono-material design, and traceability.

The reason? Regulation is forcing the issue. Europe’s digital product passports, carbon border taxes, and waste directives are compressing timelines. For many companies that had previously treated sustainability as a nice-to-have are now scrambling to catch up. Greenwashing is no longer just a reputational issue. It can be a legal liability. ESG, in turn, has gone from virtue signaling to a compliance requirement.

And it’s not just Europe. Governments around the world are getting serious about supply chain transparency, emissions tracking, and labour standards. The luxury of delay is over. If you’re not making sustainability operational, you’re falling behind. And fast.

Sourcing matures: Finally

The race to the bottom on FOB is slowing. After years of tariff shocks, pandemic delays, and political risk, brands are finally waking up. They’re building supplier relationships, diversifying sourcing regions, and choosing stability over price. Quality, proximity, and predictability are rising priorities.

Central America is back in the conversation thanks to trade agreements and speed-to-market advantages. India’s infrastructure investment is starting to bear fruit. Bangladesh and Vietnam are going beyond capacity. They’re investing in better compliance and environmental performance. That’s real evolution.

Still, not everyone’s learned the lesson. The Ethiopia example stands out. Brands rushed in, looking for the next frontier of cheap labour. And just as fast, they rushed out when conflict and instability hit. It’s a cautionary tale: sourcing based on hope rather than strategy is a recipe for failure.

All this before we even talk about tariffs (we will later).

Onshoring: Promise and limits

Talk of onshoring often sounds more like wishful thinking than actual policy. While some high-margin, low-volume production has returned to US soil – think small – batch runs and customisation – this isn’t a manufacturing renaissance. It’s a strategic nibble at the edges of a global supply chain.

Automation is beginning to make a dent, especially when combined with AI and predictive tools. Moreover, there’s growing interest among some younger workers, especially when roles include sustainability and innovation, to enter the domestic industry. But problems remain: labour shortages, outdated infrastructure, and uncompetitive cost structures make full-scale reshoring highly unlikely.

“Made in USA” plays well in marketing copy, but for most brands, that’s where the story ends. Without major investment in automation at scale and a renewed commitment to industrial infrastructure, onshoring will remain the exception, not the rule.

Digital tools gain traction

One silver lining from the pandemic is that it accelerated digital transformation. 3D design, virtual sampling, AI-driven demand forecasting, and automated quality control are no longer experiments. They’re becoming everyday tools for brands and manufacturers that have invested in the right systems.

These technologies are helping to reduce overproduction, tighten inventory control, and speed up the development cycle. In factories, smarter workflows and real-time decision-making are slowly becoming standard. We’re still chasing the holy grail of perfect demand forecasting, but we’re a lot closer than we used to be.

That said, adoption is uneven. Big brands with deep pockets are leaning in. Smaller suppliers? Many are still stuck with clipboards and spreadsheets. Cost, complexity, and talent shortages remain major roadblocks to wider adoption. The tech is ready. The execution? Not so much.

Resilience as strategy

If there’s one concept that’s truly embedded itself, it’s risk management. The just-in-time model that once ruled is gone. In its place: buffer stock, multi-country sourcing, and real contingency planning. Brands understand that volatility, whether it’s climate-related, political, or logistical, is now a permanent reality.

This is more than a supply chain play. It’s a shift in how the industry sees itself. No longer built on assumptions of stability, but grounded in the expectation of constant disruption. The smartest players are planning for risk, not just reacting to it. That’s a welcome and necessary change.

What’s driving this? Hard lessons. Pandemic shutdowns, Suez blockages, tariff surprises, and geopolitical flare-ups have forced companies to think more like strategists and less like cost-cutters. Resilience has become an operating model, not just a buzzword.

The talent shift

Labour shortages are real, but it’s more nuanced than that. Talent isn’t gone. It’s just changing. Younger professionals are interested in this industry again, but only if it offers purpose. They want to work in sustainable fashion, textile innovation, and supply chain transformation.

Universities are catching up. Engineering programmes are graduating students who understand robotics and automation. Fashion schools are producing designers who think circular. And in producing countries, governments are investing in workforce development, not just as a labour pipeline, but as an economic growth strategy.

Still, there’s a long way to go. The current labour model is stretched thin. Skills have atrophied in developed markets. And in many low-cost countries, younger workers simply aren’t interested in factory jobs. Without a serious workforce overhaul, this industry can’t scale, no matter how good the tech is.

What’s still broken

Progress aside, let’s talk about the problems we can’t ignore. Start with the environment. Polyester dominates the market, and it’s nearly impossible to recycle at scale. Cotton has its own issues — water use, pesticide reliance, land competition. The industry’s footprint remains massive.

Regulatory pressure is only going to grow. The EU is leading the way, but others are following. If your business depends on cheap synthetics and murky supply chains, your runway is getting short. The clock is ticking, and most of the industry isn’t moving fast enough.

Then there’s the trade mess. Trump’s tariff policy (if it can be called a policy) is anything but stable. Duties on China one week, the EU the next. No strategy, no predictability—just chaos. For sourcing teams, it’s not policy. It’s whiplash. Planning around that? Nearly impossible.

China, margins, and sourcing pitfalls

Forget the old China narrative. It’s not about cheap labour anymore — it’s about industrial policy. Subsidies, power discounts, and infrastructure investment have created an ecosystem that’s hard to beat. India and Bangladesh are trying to close the gap with incentives, but results are mixed. And the US? Lots of talk, not much action.

Bad sourcing decisions are still haunting the industry. In the scramble to lock in production post-Covid, some brands went with the wrong partners. Weak infrastructure, poor compliance, political instability – it’s all coming to the surface. Ethiopia is the standout case, but others like Kenya and parts of Central America are also in question.

Margins are under siege from every direction. Inflation, soft consumer demand, inventory bloat, currency swings. Mid-tier brands are especially vulnerable, caught between rising costs and shoppers looking for discounts. It’s not a temporary blip. It’s a structural squeeze.

Tech’s double-edged sword

Digital tools and automation promise a lot, but they require scale, capital, and skilled operators. Many suppliers don’t have any of those. Machines are expensive. Integration is messy. And even when they’re up and running, finding people who can use them effectively is another battle.

That’s the hard truth: the tech works, but the execution is still miles behind. The vision of a smart, responsive, low-waste supply chain is compelling. Even so, we’re not there yet. And without broader industry coordination, we won’t get there fast enough.

So, where does that leave us? Standing, yes. But not on firm ground.

What comes next?

This industry doesn’t need another reinvention. It needs commitment. Strategic planning. Serious investment in people, not just machines. A shift away from reactive thinking and toward long-term resilience. Not lip service – action.

The old model is dead. And that’s not a tragedy. It’s an opportunity. What replaces it should be leaner, smarter, and more honest. Built on transparency, accountability, and the understanding that volatility is here to stay.

We’ve come this far through grit and adaptability. Now the challenge is to move forward with clarity and rebuild the foundations. That means no illusions, no shortcuts, and no going back.

Still standing? Absolutely. Are we stirred? For sure. But make no mistake: The real work starts now.

By Just Style