Ask where clothes are manufactured and the honest answer changes every twenty years or so. It has moved from Britain to New England, to the American South, to Japan, to Korea and Taiwan, to China, and it is moving again.
Understanding why matters commercially, because the reasons tell you which shifts are durable and which are a price blip.
Who makes what now
Roughly, and with the caveat that this changes:
| Country | Strength |
|---|---|
| China | Everything, at volume. Still the largest apparel exporter by a wide margin |
| Bangladesh | Basic woven and knit garments at very high volume and low cost |
| Vietnam | Technical outerwear, sportswear, footwear |
| India | Cotton knitwear, home textiles, embroidery and embellishment |
| Turkey | Denim and fast turnaround for European buyers |
| Indonesia, Cambodia | Volume basics, sportswear |
Within countries it narrows again. In India, Tirupur does cotton knitwear, Ludhiana does woollens, Noida and Jaipur do woven and embroidered garments. Why one district ended up with the knitwear is the same story as this one, at smaller scale.
What actually drives the moves
Labour cost is the reason everyone gives, and it is real but incomplete. If it were the whole story, production would already have consolidated in whichever country was cheapest this year, and it has not.
Cluster depth is what makes a location stick. Once yarn spinners, dyehouses, accessory makers, printers and finishing units sit near each other, a factory there can solve a problem in an afternoon that would take a week somewhere with a thinner supply base. That is very hard to replicate quickly, and it is why cheap labour alone does not move an industry.
Trade policy moves faster than either. Tariffs, quotas and preference agreements can make a sourcing base viable or unviable in a single year, and no factory can advise you on your position — that is your customs broker’s job.
Buyer risk appetite has become a genuine driver. Concentration in one country stopped looking prudent after several years of disruption, and a lot of the movement since is buyers wanting a second source rather than a cheaper one.
What this means if you are choosing now
Three practical conclusions.
The country is a weak signal. Knowing a garment is “made in India” tells you very little — the cluster and the specific factory carry almost all the information. A good factory in an expensive country beats a poor one in a cheap country on total cost, once you count rework, delays and returns.
Match the cluster to the product. If you need cotton tees, go where cotton knitwear is made. Asking a knitwear cluster for technical outerwear gets you a quote and a subcontractor, which puts you two steps from whoever is sewing.
Landed cost is not unit cost. Duty, freight, transit time and cash tied up in water all move with the country. A shorter sea leg can be worth more than a lower piece price, particularly if you are replenishing during a season.
Why “cheapest country” is the wrong question
The unit price is the most visible number and the least useful one on its own. Four things move with the country and none of them appear on a quotation:
| What changes with location | |
|---|---|
| Duty | Tariff position and any preference agreement, which your broker owns |
| Freight and transit | A shorter sea leg is less cash sitting in water |
| Minimums | A deeper cluster can run smaller lots economically |
| Rework risk | The real cost of a bad shipment is the season, not the goods |
The last one dominates and never gets modelled. A batch that arrives wrong costs the retail margin on the whole order plus the replacement, which swamps a few cents per piece on the original quote.
It also helps to know what actually happens between your tech pack and the carton — the eleven steps a knitted garment goes through makes it much easier to see which of them a given supplier really controls.
The part nobody tells first-time importers
Wherever you source, the country decides very little about whether your order goes well. What decides it is whether the entity you are talking to actually makes the garment.
Every cluster in every country contains factories, trading houses and agents, all describing themselves as manufacturers. Telling them apart is the same job in Tirupur, Dhaka or Guangzhou, and it matters more than the flag on the label.
Is production coming back to the US?
Some, in specific shapes: small-run, fast-turnaround and cut-and-sew where speed to market beats unit cost, plus technical and defence work.
What has not returned at scale is the volume cotton knitwear business, and the reason is the cluster rather than the wage. The spinning, knitting, dyeing and finishing capacity that sits within a few kilometres of a Tirupur or a Dhaka garment unit does not exist domestically at that density, and rebuilding it is a decade-long capital question rather than a sourcing decision.
For most brands the practical answer is a mixed base: overseas for volume, domestic or near-shore for speed.
Where to start
Pick the cluster for your product, then do the work on the individual factory — the steps for that are the same wherever you land, and the verification matters far more than the country.
We are a cotton knitwear factory in Tirupur supplying brands and importers across the United States, and we would rather you chose us after checking than because of where we are. Trial orders start at 300 pieces per style per colour — tell us what you are making and we will tell you honestly whether we are the right cluster for it.