Apparel Manufacturing

Apparel manufacturing (NAICS 315) covers the production of clothing and accessories through cut-and-sew operations, knitting mills, and finishing processes like pleating and embroidery. Domestic production has contracted sharply since the early 2000s as the phase-out of the Multi Fibre Arrangement shifted volume to Vietnam, Bangladesh, and China. What remains in the U.S. is structurally different from the mass-production model that preceded it — concentrated in Los Angeles (the largest domestic apparel manufacturing cluster), New York City's Garment District, and smaller hubs in North Carolina and Georgia.

Hanesbrands and PVH Corp. maintain some domestic operations, but the bulk of U.S.-based manufacturing today serves three niches: fast-replenishment programs where proximity to retailers cuts lead times from weeks to days, technical and performance apparel requiring proprietary fabrication (military uniforms under Berry Amendment domestic sourcing requirements, flame-resistant workwear), and premium brands that use "Made in USA" as a positioning tool. Contract manufacturers in Los Angeles run cut-and-sew operations for hundreds of brands, operating on thin margins with workforces subject to Department of Labor Wage and Hour Division enforcement actions that have made compliance a persistent industry issue.

The USMCA trade agreement (replacing NAFTA) maintains yarn-forward rules of origin that incentivize Western Hemisphere sourcing, benefiting producers in the U.S., Mexico, Honduras, and the Dominican Republic for duty-free access. Section 301 tariffs on Chinese goods and shifting brand strategies around supply chain resilience have modestly improved the competitive position of domestic and nearshore production since 2018, though the U.S. still imports the vast majority of apparel consumed domestically.