The 'Made in U.S.A.' Premium

As textile and apparel companies begin shifting more production to the United States, taking advantage of automation and other cost savings, a hard economic truth is emerging:  Production of cheaper goods, for which consumers are looking for low prices, is by and large staying overseas, where manufacturers can find less expensive manufacturing. Even when consumers are confronted with the human costs of cheap production, like the factory collapse in Bangladesh that killed more than 1,000 garment workers, garment makers say, they show little inclination to pay more for clothes.

Essentially, to buy American is to pay a premium — a reality that is acting as a drag on the nascent manufacturing resurgence in textiles and apparel, while also forcing United States companies to focus their American-made efforts on higher-quality goods that fetch higher prices.

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