Geoff Krasnov offers apparel/clothing/garment manufacturing and sourcing news.

Thursday, September 20, 2007

MADE IN USA.....Worth a nickel?

I am often approached by potential customers looking for private label apparel manufacturing who state that they want to make the products in the United States. Their rationale almost always comes from an imbedded sense of patriotism, often enhanced by the thought of child and slave labor overseas. This , inevitably, leads to discussion on what value consumers place on "made in USA" labels. The reality is that they may be willing to spend upwards of 10% more, but not much past it. Unfortunately, there are precious few high volume sewn products made here that cannot be made and imported for 20-35% less (with a corresponding volume). Exceptions are low labor products that have high duty rates (chief value synthetics is one). Even those catagories are then more inexpensively made in the southern hemisphere (Central America, Carribean Basin, Mexico and South America). It is only the low volume specialty products that don't have foreign competition (typically runs of under 1200 pieces), but what they do have is an even more insideous competitive field, illegal USA factories. Whether it is shops that don't pay workers comp or overtime, hire illegal immigrants, pay under the table, skirt OSHA regulations or other non-conforming practices it all amounts to subverting costs in order to remain competitive. Style Source Inc certifies every subcontractor for legal practices annually. It is our committment to maintain integrity on this front, even though many domestic competitors turn blind eyes to how their contractors operate. Many will plead ignorance of knowledge that their work is sent out from their legal shops on a tiered scale to illegal smaller shops. We do not tolerate our work being farmed out, period. Everyone is looking for avenues to decrease costs and pricing in an inflationary time. Our prices have not increased since the inception of Style Source in 2002. Our latest move, splitting headquarters and manufacturing has yielded us a signifigant decrease in overhead, allowing some breathing room. Just last week our finisher announced a wholesale increase in bleaching and dyeing prices, which we are fully absorbing. In the meantime, our Canadian fabric supplier has seen our dollar go from $1.40 to parity, and have announced a 35% price increase on all fabrics. Is made in USA worth a nickel? That question is not germain. The question is, is made in USA worth a dollar? The answer from consumers is NO. Custom apparel production is capital intensive and has high upfront development costs. Style Source has the experience to find creative paths in producing high quality custom apparel in short runs at competitive prices, and we do so with integrity.

1 Comments:

Blogger Unknown said...

Superb blog!

4:25 PM

 

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