Altering apparel supply chains?

New Technologies

The application of advanced technologies such as robotics and 3D printing to apparel manufacturing could also lead some companies to source more domestically. “Automation reduces labor-intensive tasks,” noted Moser.

A 2019 McKinsey study concluded that production is more likely to shift to the U.S. as automation improves, and, according to that survey, the industry believes that is exactly where things are headed. Over 80% of respondents believed that production of simple garments will be fully automated by 2025, creating an 80% labor reduction. Seventy percent believed complex garments, such as dresses and jackets, will be significantly automated, resulting in a 40% labor reduction.

“Within five to 10 years,” the study said, “suppliers with fully automated factories could enable full on-shoring. More complex silhouettes will be semi-automated within a decade and to such a degree that companies can scale up new, high-margin business models that include customization.”

In the nearer term, human labor will still be required to sew apparel, but finishing products can be automated. Under that scenario, raw materials may be cut and sewn in Asia, while the final work could be done by machines at a fraction of the time and cost in the U.S. or Mexico.