Why Does American-Made Clothing Cost More?

Via on Feb 26, 2014

Why-Does-American-Made-Clothing-Cost-More-

Two images: The difference is glaring.

“I really want to buy American-made clothing, but it’s just so expensive!”

Have you ever heard that? Or said that?

Most of us do  want to support local brands. We want to keep our money local, create jobs, and support transparency. But often, it seems to come at a steeper price.

Why do responsible choices cost so much?

Let’s take a look at the world’s most popular garment: the t-shirt. NPR’s Planet Money recently made 24,470 t-shirts during their Planet Money T-shirt Project. They told the story of how their tees were made, from interviews with cotton farmers to the women sewing the actual shirts.

As a wrap-up, Planet Money released estimates of their t-shirt prices (which “sold” for $25 via Kickstarter Project.) With the help of Jockey (yes, the huge t-shirt company) they produced their men’s tee in Bangladesh, and published their costs. The entire goal of the project was transparency. (I think they did an excellent job.)

The Planet Money tee is one data point of overseas production. But what do things look like on the other end of the spectrum, back here in America?

I’m a small, indie designer using a hyper-localized process and USA-based manufacturing. My last production run of t-shirts was 165 pieces. I buy surplus fabric (excess and leftovers from other companies) and work with a cut-and-sew shop thirty minutes from my house. I am the polar opposite of Jockey.

Here’s a comparison of my biggest costs per tee—fabric and labor—versus the fabric and labor costs for the Planet Money tee. (Keep in mind, these aren’t all of the costs, but the two biggest ones for USA garment manufacturers. Check out Planet Money for their final cost breakdown.)

Cost-Comparison

The difference is glaring.

The reason why virtually all garment manufacturing has moved overseas in the last 50 years is oh-so-obvious when you take a look at the numbers: even if I were producing thousands of t-shirts, my labor costs could never, ever be as low as $0.50.

Bangladesh’s minimum wage just rose from $39 per month to $68 per month. The factory that Planet Money worked with paid workers $80 per month. The seamstress who sewed my tees makes between $15 – 20 per hour, depending on the project.

This is the reality of pricey American-made clothing. Most indie designers aren’t much different from me, making smaller quantities at higher costs. Tack on other expenses (packaging, shipping, design, sampling), add margins for wholesale and retail, and voila: USA-made isn’t cheap (and shouldn’t be).

Your favorite local designers certainly aren’t dragging bags of money to the bank.

The next time you find yourself browsing through a rack of clothing, no matter where it came from, think about the numbers. While higher prices don’t always mean better ethics, consider this:  What has to happen in order for a t-shirt to cost only $5, $10, or $15 in the store?

Can you support that answer?

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Editor: Renée Picard

Photo: Seamly.co (Kristin Glenn)

About Kristin Glenn

Kristin Glenn is the founder of Seamly.co, a clothing company using surplus fabric to produce basics and versatile apparel for women, right here in the USA. Her latest project is the Versalette—one garment that can be worn over 30 ways. She hates waste, loves adventure, and is obsessed with conscious consumption. Follow her on Facebook.

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7 Responses to “Why Does American-Made Clothing Cost More?”

  1. Melanie says:

    Kristen, as a designer I thank you for this… it's a great example to help the average consumer. I think there is a lot of skepticism among the general public given that luxury goods are notorious for huge mark-ups when they are also made in the same factories, so at times prices can seem a little "made up". Not so in the case of made in America (or in my case made in Canada). Love your blog!

  2. Olive says:

    I haven’t read the whole Planet Money T-Shirt Project but does anyone include information on cost of living when they are pointing out the minimum wage issues around the world? Minimum wage in Australia seems generous as compared to the US until you factor in the cost of living, and then it seems a bit more even. After traveling in Southeast Asia I can see how smaller wages makes sense since food, drink, and accommodation are so inexpensive.

  3. Kate L says:

    This is not all correct! The reason also is automation. We use the same way to manufacture for 30 years, no new systems, or machines here. Bangladesh’s manufacturing is for large volume, and not the best Quality.

    You did not factor in the rising costs of labor in Asia, and if you add on duties, freight and lead times, it is becoming more economical to look into manufacturing in the USA. It takes approx. 60 days to make product overseas, we can make it faster here, turning product faster, and increasing sales, customer loyalty and quality. Walmart is taking a 50 billion dollar initiative for made in America.

    It acually costs 5%-!0% to manufacture in the USA vs Asia- I know because I have built and am working in factories world wide.

    • Tiffany says:

      If it's all automated, then why are so many people dying in building fires and such? It's not all about automation.

  4. Jessica says:

    Kristin, thank you for posting this! We struggle with the same issues as fellow sustainable entrepreneurs. We follow a cradle to cradle philosophy but often face very real tradeoffs in the cost of eco materials and sewn in america, while still being affordable and being able to offer wholesale. I noticed you dont do wholesale. Good fir you for offering this transparent look! PS we love your beautiful website. :) Jessica and the folks at YOGO.net

  5. Lisa says:

    This is good information and I agree that not supporting sweat shops is important. The trouble is that in many cases people can not afford to buy the more expensive clothing even if they want to. I'm not talking about middle class people simply feeling like it is too expensive. I'm talking about poor people who can barely afford the sweat shop produced clothing. Sometimes making the right choice is not even an option. Poverty in this country perpetuates even greater poverty in other places. What can we do as a society to alleviate this situation?

  6. Gabrielle says:

    Kristin, thank you for speaking about this! I too am a designer of a small organic baby clothing business…we have kept to our beliefs of using all american goods…and its been tough, but we do keep it going! It means a lot to a lot of folks, but some still dont understand why it cost more…being organic cotton and made in the USA ! I truly wish more manufacturing could come back to the US…but in the meantime it is about educating the consumers and perhaps the next generation – our kids…that it isnt always about finding the cheapest item…look at where it is made, and how it gets here, how people are treated, paid, etc. Thanks again!

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