The majority of the clothes Americans purchase today are made overseas. However, there are signs that the tide may be shifting. The U.S. clothing manufacturing industry, once a dominant force, has seen a significant decline in domestic production¹ over the years. Understanding where most of the clothes sold in the U.S. are made, and the potential for U.S. manufacturers to rebound, offers valuable insights into the future of the industry.

While the U.S. still relies heavily on imports, growing interest in "Made in USA" products and shifting economic factors are creating new opportunities for domestic manufacturers.

This article explores where U.S. clothing is made, the impact of globalization, and the potential for a resurgence in domestic production.

What Percentage of Clothing in the U.S. Is Made Domestically?

Although the U.S. clothing market is predominantly supplied by overseas manufacturers, there is a small but significant portion of clothing made domestically. Let’s explore how much clothing in the U.S. is made within its borders.

The U.S. clothing manufacturing industry has drastically declined over the years, but certain segments of the market are still manufactured domestically.

Fashion designer reviewing designs in the studio.

The current state of domestic clothing production:

How Much Clothing Is Produced by United States Clothing Manufacturers?

The percentage of clothing manufactured domestically in the U.S. is relatively small, around 2-3% of the total clothing market.

While domestic manufacturing accounts for a small portion, niche markets such as premium denim², activewear, and sustainably produced garments are seeing growth in the U.S.

How Has the U.S. Clothing Manufacturing Industry Changed Over Time?

Historically, the U.S. was a major player in the clothing manufacturing sector, but over time, this has shifted dramatically.

The industry has gone through significant changes, primarily due to the shift of production overseas where labor costs were cheaper.

Where Are the Majority of U.S. Clothing Imports Coming From?

While U.S. clothing manufacturers have declined in number, imports from other countries have surged. Understanding where the majority of clothing sold in the U.S. comes from reveals the global nature of the clothing supply chain.

Countries like China, Vietnam, and Bangladesh dominate the U.S. clothing import market, driving the global supply chain that U.S. retailers rely on.

Key countries supplying clothing to the U.S.:

Which Countries Are the Top Suppliers of Clothing to the U.S.?

The U.S. imports clothing from various countries, but the top suppliers have remained consistent over the years.

China continues to be the largest supplier, though countries like Vietnam and Bangladesh are rapidly increasing their market share.

How Has Globalization Impacted U.S. Clothing Manufacturing and Imports?

Globalization has made it easier for U.S. companies to access affordable clothing from overseas, shifting the focus away from domestic production¹.

The U.S. now imports most of its clothing due to lower production costs in other countries, but there are signs of a shift as consumer demand for sustainability and local production grows.

What Are the Benefits of Manufacturing Clothing in the United States?

Despite the advantages of offshore production, there are several benefits to manufacturing clothing domestically in the U.S. Companies and consumers alike stand to gain from shorter production times, reduced shipping costs, and ethical production standards.

U.S.-made clothing offers several advantages, from faster turnaround times to improved quality control.

Key benefits of U.S. clothing manufacturing:

How Does Domestic Production Impact Lead Times and Shipping Costs?

Manufacturing clothing in the U.S. significantly reduces lead times and shipping costs.

By producing clothing locally, brands can more quickly respond to market demands, reducing delays in product availability and improving overall efficiency.

What Are the Economic and Job-Related Benefits of U.S. Clothing Manufacturing?

Domestic clothing manufacturing provides significant economic benefits, including job creation and increased economic activity.

By investing in U.S.-based production, companies contribute to the local economy by providing stable jobs and boosting consumer spending.

Why Do Many Clothing Brands Choose to Manufacture Overseas?

Despite the benefits of domestic manufacturing, many clothing brands continue to source their products from overseas. The primary reason for this is cost—labor and production are significantly cheaper in countries like China, Vietnam, and Bangladesh.

While overseas production offers significant savings, it comes with challenges such as longer lead times and less control over production quality.

Factors influencing the decision to manufacture overseas:

How Do Lower Production Costs in Countries Like China and Bangladesh Affect U.S. Manufacturing?

Lower production costs³ in countries like China and Bangladesh have made it difficult for U.S. manufacturers to compete, as the cost of domestic labor is much higher.

While U.S. manufacturers struggle with higher labor costs, they focus on quality, sustainability, and quicker lead times to compete in the market.

How Does the Shift in Consumer Expectations Influence Clothing Manufacturing?

Consumers are increasingly concerned with sustainability, ethical practices, and the environmental impact of the clothing industry.

As demand for ethically produced clothing grows, U.S. manufacturers are adapting by emphasizing transparency, quality, and environmental responsibility.

Is There a Trend Toward Reviving U.S. Clothing Manufacturing?

There is growing interest in reviving U.S. clothing manufacturing, driven by changing consumer preferences, new technologies, and a focus on sustainability.

This trend, known as "reshoring⁴" or "nearshoring," is fueled by the desire for quicker lead times, ethical production, and reduced environmental impacts.

Key factors driving the trend toward domestic production:

Are U.S. Manufacturers Adapting to Meet the Demand for “Made in USA” Products?

Yes, U.S. manufacturers are increasingly adapting to meet the growing demand for "Made in USA" products.

By embracing new manufacturing technologies, sustainability practices, and local sourcing, U.S. manufacturers are positioning themselves to compete in a changing market.

What Innovations Are Helping United States Clothing Manufacturers Compete Globally?

Innovations such as automation, sustainable production techniques, and supply chain transparency⁵ are helping U.S. manufacturers compete with low-cost overseas producers.

Technological advancements allow for faster production times, reduced costs, and improved product quality, helping U.S. manufacturers remain competitive in a globalized market.

Conclusion

While U.S. clothing manufacturing has seen significant decline due to lower labor costs abroad, there are signs of a resurgence driven by consumer demand for ethically produced, locally sourced products. By embracing innovation, sustainability, and niche markets, U.S. manufacturers can compete with overseas production and contribute to the growth of the domestic clothing industry.