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When is it cost effective To Produce in USA?
Our clients are often shocked to learn that it is sometimes cheaper to produce in United States than overseas so we wanted to record a short video to explain why USA manufacturing makes more sense from an economic and logistics prospective.
There are a few basic cost components such as raw materials, duty, freight and management costs.
Fabric costs comes into play that if bring in garments from outside of USA, there is a customs duty rate, which can make it advantageous to produce in USA. This is a protection against foreign cheap labor as the duty rates can be 18% or higher.
Freight costs have been rising due to the rising price of fuel, so it can be expensive to bring full container from Far East.
The time commitment of producing in the United States as it is crucial for business owners to manage cash flow. Not being able to receive merchandise in a timely manner, causes supply chain inefficiently, which costs money rather than producing here in USA.
Management costs. A trip to Far East trip can easily costs $10,000 per trip. If you figure on 4 trips a year is that is $40,000 so if making 40,000 units, that is an extra $1/unit to produce outside of United States.
Call us at 215-628-2557 if you have questions about apparel manufacturing in United States.
Is clothing still Manufactured in USA?
Joe Greco, MSOD who is President of Greco Apparel which manufactures clothing around the world takes a few moments to explain why clothes do still get manufactured in the United States.
Our clients often wonder about the reality of clothes manufactured in USA so we wanted to record a short video to dispel the myth of all clothes being produced abroad.
There has been a tremendous shift since 1973 when Joe Greco first started in apparel business, where 95% of clothes sold in USA were manufactured in America. In 2014, only 3-5% of clothes sold in USA are actually manufactured in USA, so the ratios have switched over the last 40 years.
Most larger factories in USA are for military uniforms that are mandated to be manufactured in USA. Some smaller factories spread throughout the United States mostly owned and operated by immigrants bringing their sewing skills and knowledge of apparel business to this country are used to do smaller unit runs for smaller clients.
Call us at 215-628-2557 if you have questions about USA made apparel.
What Benefits does your Dominican Republic office provide?
Our clients often ask us about the benefit to clients of maintaining and office and staff in the Dominican Republic so we wanted to record a short video to explain how an office in Dominican Republic helps our clients.
Greco Apparel still does a good amount of production in the Dominican Republic so the office is helpful to support for vendors. By Greco Apparel having “boots on ground” and working hand and hand with factories, our clients can be assured that the factories receive raw materials in and finished garments out.
Greco Apparel also takes care of logistics as well as production schedules. The production scheduled are independent of what factories say. Our personnel will visit, look and verify, to help with any issues to get performance expected.
Call us at 215-628-2557 if you have questions about apparel manufacturing in Dominican Republic.