Domestic or off-shore
The trend for the past decade has been for US apparel manufacturers and large retailers producing private label garments to source production offshore. The emphasis has been on the low wages in developing countries. International sourcing challenges involve cultural, communication, financial, legal and political issues. Ethical issues concerning child labor or poor working conditions are difficult to identify and correct. Quality is harder to control from afar.

Off-shore contractors typically offer full package contracting as a convenience for firms based in the USA, while domestic contractors have traditionally been CMT or specialty. Domestic firms have begun offering full package services to compete with off-shore firms.

"Gradually [over the last ten years], we have shifted specific product areas overseas as we saw fit… What you give when you import is flexibility and lead time. An, in most cases, you gain price and [materials and skilled labor in specific categories. For example, sweaters] that whole category is over there. " Hartstrings used to produce entirely in the United States. But as it grew and the industry and competition changed, some production was moved overseas. Peggy Hart Earle outlines how the product category often dictates whether the production is sourced domestically and overseas.

Domestic sourcing, while often more expensive in terms of labor costs, offers advantages in terms of quick order-to-delivery time. Domestic contractors can

• Fill small orders
• Accommodate style and fabric changes easily to meet retailer just-in-time delivery requests.
• Meet quality expectations with greater control due to geographic proximity.
• Reduce shipping costs, customs duties and quotas
• Attract customers who prefer garments made in the USA for patriotic, domestic
  employment, or economic development reasons. The military services and other branches sometimes require domestic production, providing a competitive niche for enterprising firms.

Off-shore contractors benefit from some of the emerging international trade policies in apparel and textiles. The World Trade Organization (WTO) phased out all quotas in January 2005. Tariffs are reduced in many locations due to other trade policies such as NAFTA and the Caribbean Basin Initiatives. International trade policies continue to evolve and are complicated, affecting apparel production decisions. Thoughtful analysis and advice from experts is usually necessary to reduce the risks in off-shore production

A combination of domestic and off-shore production is becoming the norm for many major US apparel and sewn products businesses. By selecting production by

• product type,
• delivery date
• price,

businesses maximize flexibility and control costs and risks.

"We would not necessarily do the whole design work on our product and the development work on our product…we would design and send specs and have it developed at the factory where we’re going to have it made." Denni McCann describes why it is sometimes more efficient to develop and produce selected products at factories other than those owned by Champion JogBra and its parent company.