Apparel Manufacturers NAICS 3152

May 27, 2026 - Apparel Imports Continue to Outpace Domestic Production: Report

• 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 4.2% higher in April 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 up 0.4% from the previous month. Employment by apparel manufacturers fell 11.7% in April 2026 compared to a year ago, according to the BLS. Employment in the industry for the past decade has fallen by 46.1%, lower than the 11.3% growth in overall private employment. Producer inflation for cut and sew apparel manufacturers was up 4.2% in April 2026 compared to a year ago, according to producer price data released by the BLS.

• While the broader US manufacturing sector expanded for a fourth straight month in April, the apparel industry showed a more uneven recovery, with stronger orders and imports but continued job losses and weaker exports, according to the latest Manufacturing ISM Report on Business. Apparel, Leather & Allied Products was among the industries reporting growth in new orders, while apparel imports also increased, signaling continued reliance on overseas sourcing. At the same time, apparel manufacturers faced mounting cost pressures. The ISM Prices Index surged to 84.6%, its highest level since 2022, driven partly by tariffs and higher petroleum-based input costs that affect textiles and synthetic materials. Employment in apparel manufacturing contracted, reflecting ongoing labor and margin pressures despite improving demand.
• Sales for the US apparel manufacturers industry are projected to grow at a CAGR of 0.59% between 2025 and 2029, slower than the overall economy's anticipated growth, according to an updated forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the nondurable goods manufacturing industries including apparel manufacturers. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. The forecast noted that a tighter immigration policy could limit the expansion of the labor supply and job growth for nondurable goods manufacturing industries. However, labor productivity could still improve due to new technologies such as AI and 3-D printing as well as adjustments forced by the pandemic.