EXECUTIVEPAGESAltering Apparel Supply Chains?
With supply-chain risk mounting, industry and technology developments
point to more near-shoring and on-shoring production possibilities.
Around February 10, factories in China began to resume production, as coronavirus quarantines ended
and workers began returning to their jobs. By late March, conservative estimates showed factories run-
ning over 60% of capacity. Presumably, the United States economy will also once again be open for
business - hopefully in the not-too-distant future.
Cargo operations in China were reported to be running smoothly, with normal operations at ports, airports,
trucking networks, and cargo terminals. The bigger problem has been the availability of transportation
capacity to and from China as ocean carriers cancel sailings and airlines drop flights.
With China, the original epicenter of the pandemic and the largest source of apparel sold in the US,
accounting for 42% of imports, some are speculating about how apparel supply chains may change post-
virus. The fact is that they are already in a state of flux - with other Asian nations being the primary
beneficiaries of that trend - but that recent business and technological developments could point to more
near-shoring of production as well as more domestic sourcing.
Still, “Asia as a whole continues to lead as the dominant sourcing base for U.S. fashion companies,” said
Sheng Lu, an associate professor in the Department of Fashion & Apparel Studies at the University of
Delaware.
Rethinking China
Investment portfolios benefit from diversification, and supply chain investments are no different. Apparel
companies were rethinking their reliance on China as a manufacturing base well before COVID-19 struck,
and that process accelerated once President Donald Trump and his tariffs came on the scene.
According to Lu, “China plus Vietnam plus many” is the sourcing mantra for many in the U.S. apparel
industry, with those two, plus India, being the top three sourcing origins. According to a study conducted
by Lu on behalf of the United States Fashion Industry Association (USFIA), well over half of the compa-
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