Apparel Manufacturers

The 3,756 Apparel manufacturers in the US transform fabrics into clothing and accessories. The companies described in this report are known as “cut-and-sew” apparel manufacturers, and produce items such as dresses, suits, shirts, and pants. “Cut-and-sew” manufacturers differ from apparel knitting mills, which produce knit products, such as hosiery, socks, and underwear. Apparel firms design and market apparel, but may outsource their entire manufacturing operations to firms outside the US.

Demand Driven by Trends

The apparel market is driven by constantly evolving fashion trends and fads, many of which can be short-lived.

Complications from Foreign Production

Apparel companies that rely on foreign firms for any part of production are more vulnerable to remote management problems, increases in transportation expenses, and trade-related issues.

Jul 23, 2026 - Untuckit Explores Automated Apparel Production

• Untuckit is experimenting with AI-powered robotics to produce T-shirts in the US, highlighting how apparel manufacturers are responding to ongoing tariff pressures by pursuing automation and supply chain diversification rather than large-scale reshoring, according to a Modern Retail report. While the company continues shifting sourcing from China to countries including Vietnam, India, and Madagascar to manage tariff costs, it sees automation as a longer-term path to making domestic production more competitive. Untuckit's partner, CreateMe, uses AI-enabled robots and adhesive bonding instead of traditional stitching to produce on-demand, stitch-free T-shirts, reducing labor needs and enabling smaller production runs closer to consumers. Prologis' 2026 Supply Chain Outlook reflects the broader trend, with about 70% of organizations increasing AI use in supply chain operations and three-quarters of executives identifying AI as their top investment priority. However, executives say the technology is not yet advanced enough to efficiently manufacture more complex apparel.
• US manufacturing expanded for a sixth straight month in June, with the ISM Manufacturing PMI easing to 53.3 from 54.0 in May, while the apparel, leather & allied products industry outperformed the broader sector by remaining among the 14 industries reporting overall growth. Apparel also outpaced much of manufacturing in demand, ranking among the 11 industries with rising new orders, signaling stronger customer demand than many peers. Apparel's performance across the ISM indexes was mixed. The industry reported expanding inventories, suggesting manufacturers are building stock to meet demand, but new export orders contracted, pointing to weaker international sales. Apparel was not listed among industries reporting higher production or employment, indicating output and hiring likely lagged the broader manufacturing sector. Overall, June's results suggest domestic demand for apparel remained relatively resilient despite slowing manufacturing growth, while export weakness and cautious production trends tempered the outlook.
• Despite tariffs and record manufacturing investment, the US apparel industry remains deeply reliant on overseas production, according to Kearney’s 2026 Reshoring Index. Apparel & Accessories imports from Asian low-cost countries reached $88 billion in 2025, outpacing domestic apparel production and reinforcing dependence on offshore supply chains. The report found overall US manufactured imports climbed 4.6% to $2.98 trillion, while US manufacturing output slipped 0.4%, driving the Manufacturing Import Ratio up to 14.15%, near post-pandemic highs. For apparel manufacturers, the findings suggest tariffs have largely redirected sourcing away from China rather than accelerated large-scale reshoring to the US. The industry continues to face structural barriers including higher labor costs, limited domestic textile infrastructure, and shortages of skilled manufacturing workers. Still, the report noted modest reshoring gains in related textile and fabric sectors, signaling that parts of the US apparel supply chain could gradually rebuild if investment and policy stability continue.
• Apparel prices were 3.9% higher in June 2026, compared to the previous year, according to the Consumer Price Index by the US Bureau of Labor Statistics (BLS). Prices for the category were down 1.2% from the previous month. Employment by apparel manufacturers fell 7.9% in June 2026 compared to a year ago, according to the BLS. Employment in the industry for the past decade has fallen by 44%, lower than the 11% growth in overall private employment. Producer inflation for cut and sew apparel manufacturers was up 4.4% in June 2026 compared to a year ago, according to producer price data released by the BLS.

Industry size & Structure

A typical apparel manufacturer employs about 22 workers and generates $2.2 million annually.

• The apparel manufacturing industry consists of about 3,756 companies that employ about 84,500 workers and generate $8.1 billion annually.
• The industry is fragmented - the 20 largest companies account for 20% of industry sales.
• Most large apparel companies, such as VF Corporation, PVH Corp., Levi Strauss, and Ralph Lauren, outsource the production of garments to low-cost manufacturers located abroad. Gildan, a large Canadian apparel manufacturer, owns American Apparel, Comfort Colors, and other brands, with manufacturing facilities in the US and overseas.