American Fabric Industry Changes

Posted by andy on August 9th, 2015











CHINESE AND INDIAN FABRIC MANUFACTURERS INVEST IN THE CAROLINAS.

I came across this little article last week which I thought you might find interesting: New York Times: Hiroko Tabuchi: 2/8/2015

As you may know at one stage probably 30 to 40 years ago there was a “Collapse” of the fabric and garment industry in America largely due to the cost differential of manufacturing in China and other third world countries.

What appears to be happening now according to the article is just the reverse. As a standard measure, the cost of manufacturing a standard unit in the UNITED STATES is $1 but in China for the same unit, it is now closer to 96c. The 5 cents differential is no longer a good enough reason or point of difference to lure companies to manufacture in China. (Boston consulting)

A number of Indian and Chinese fabric manufacturers and printers are investing BILLIONS of dollars into the FABRIC industry in the States: $46 billion to be exact (Rhodium group)

WHY……..

According to the article, individual American States are offering large long term tax incentives, real estate investments are lower, lots of people needing and wanting jobs, the cost of power and transport is cheaper.

Interestingly enough this move has nothing to do with wages.  There is still a difference in wage rates between the two countries. Chinas current average hourly wage is $12.47 vs the States at $22.32.

Finally check out the following: Clothworks Fabrics of Seattle Washington in the States a distributor of ours has been manufacturing a range of Solid in the States for about three years now. (http://www.clothworks.com/index.php/fabric-collection/american-made-brand.html)

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