Local Vs. Overseas Manufacturing
This is another manufacturing/production partner blog post in honour of Fashion Revolution Week! Before embarking on production for your fashion start-up, it would be very helpful to research the differences between local manufacturing and offshore manufacturing.
Fashion Revolution Overview
We are doing this blog post in celebration of Fashion Revolution Week — a movement calling for more transparency in the fashion industry. They are a global movement that encourages consumers to ask brands “Who made my clothes”, stand up for workers’ rights, and strive for ethical wages.
Addressing The Production Stereotype
Producing in North America or Europe is not better than producing in Asia or other overseas countries. There are ethical factories and unethical factories all over the world. For example, I know of some genuinely fair and stand-up factories in Asia and also some shady factories in Canada. Just because a production facility is located somewhere doesn’t mean it’s automatically ethical or unethical — dig deeper!
We always empower our clients and community to make the best decision for their brand and situation. So today we’re going to overview the pros and cons of local vs. overseas production and give you some things to think about. Let’s take a look at each option’s pros and cons.
Pros of Domestic / Local Production:
Communication: Communication will be easier in your language, and it’s more convenient and easier for collaboration — you can pop in or visit in person regularly.
Climate Impact: Carbon emissions tend to be lower because you don’t have to ship things overseas.
*The caveat here is that we assume you’re sourcing your fabric nearby as well.
Flexibility: Same time zone, same currency, same holidays, same hours of operations.
Cons of Domestic / Local Production:
Costs: The price of production will be high as labour costs are far more expensive in the US and Europe, compared to offshore manufacturing, due to legal minimum wage rates.
Machinery: Sometimes depending on what garment you’re making and where you’re located, the expertise and required machinery might not be available to you.
Pros of Overseas Production:
Machinery and technology: Certain countries (e.g. China, Bangladesh, India) have been producing garments for decades so there’s a lot of expertise and skillsets there.
Costs: Offshore production is generally more cost-effective — either because labour is cheaper and/or the power of your dollar and the currency conversion is better, especially when producing large volumes.
Cons of Overseas Production:
Communication: You can’t assume they will be fluent in English - most likely you’ll need a translator or will be speaking to someone whose first language is not English, and this could be an additional cost. You also have to take into account time zone differences.
Cultural differences: Working with countries in other geographical areas means having to learn different business etiquette, respect local traditions and religious and national holidays that may affect your manufacturing and timelines (e.g. Chinese New Year, Diwali, Italian August holiday, etc)
Logistics and Cost: Having samples made overseas will incur unanticipated costs, especially if you are providing all of the materials. Costs for transportation, delivery and insurance must also be considered.
Quality control: You may have to go back and forth overseas, travelling to an overseas factory will incur costs that will have to be included in your product pricing formulas.
Regardless if you do domestic or overseas production partners, always ensure that you get samples, ask for references, and ensure there is a good fit! I always say that production partners are like your business partners — they’re going to be helping you make your products so you want to have a transparent, open and honest relationship with them.
At the end of the day, it depends on what kind of garments or accessories you’re making, what your budgets look like, and what is important to you as a Founder (e.g. convenience, collaboration, cost, etc.)
If you want help finding ethical manufacturing and/or figuring out how to best work with a new production partner and set yourself up for success, check out our Sustainability Consulting Services.
How Can We Support The Fashion Revolution Movement?
#WhoMadeMyClothes
Fashion Revolution has email templates
Demand more transparency and show brands that it’s important (where the money’s at!)
Donate to Fashion Revolution if you can
