Offset Rising Costs by Nearshoring Production and Sourcing Locally Using Apparel Technology

With the challenges of higher material costs, geopolitical uncertainty, economic turbulence and supply chain disruption seemingly here to stay, many fashion and apparel brands that source and/or manufacture overseas are facing a significant pinch on their profit margins and operational stability.

If you’re facing these circumstances as an apparel business leader, you’ve likely considered moving your procurement and production within your country's borders, or at least closer to home, to mitigate your risks—including supply price hikes, tariff rate increases and border closures, among others.

But restructuring your business from a model heavily reliant on outsourcing to an entirely domestic operation is no small ask. Such an initiative comes with plenty of its own difficulties, such as higher labor costs, skills shortages and difficulty sourcing materials affordably—not to mention the expense and effort to build new facilities and supply chain partnerships where necessary.

That said, nearshoring production and sourcing locally are still well worth considering, especially if you want your organization to be resilient to the realities that make working overseas more challenging. And it can be done without eating into your profit margins too much, if at all, with the right apparel technology at your disposal.

Briefly before we begin, keep in mind that even if you haven’t yet considered nearshoring, this post contains great information about how apparel software can save your company money, which is a goal for any business. And given how dynamic the apparel industry is, you truly never know what's in store—in the future, moving your operations back home may be on the table.

The Challenges of Producing Apparel and Sourcing Materials Domestically

By and large, apparel brands in the U.S. and Europe sourced materials and manufactured domestically until the 1970s, when regulatory changes and globalization made outsourcing the more financially advantageous strategy. The end of the Cold War in the 1990s and termination of trade restrictions in the 2000s led to it becoming the norm.

One result of this change was the shift of many apparel manufacturing jobs to Asia, as well as other regions. Because the opportunities aren't nearly as plentiful in the U.S. and Europe anymore, fewer workers have learned the skills necessary for those roles, so now qualified labor is in very short supply—that’s one of the hurdles you must overcome to convert to a domestic model.

Higher minimum wages in the U.S. and European countries were one of the reasons outsourcing came into favor, and they’re another pain point for your fashion and apparel company if you’re looking to bring your operations home. Not only are skilled workers more difficult to find, but they also demand pay rates that are higher than those for Asian workers by an order of magnitude or more.

In terms of materials, denim, knit fabrics, synthetic fibers (e.g. polyester and nylon), trim and notions (e.g. buttons and zippers) are all commonly procured from suppliers based in Asia due to affordability. U.S. businesses can use homegrown cotton, but they almost always export it for processing and then import it back. So the trouble of finding in-country vendors and paying their higher costs is another hurdle.

Lastly, we’ll address the elephant in the room, that being the cost of leasing, purchasing or building one or more apparel production facilities in your own country. For some brands, this expense will be a dealbreaker or simply unfeasible, but others that have existing domestic locations won’t have to face this issue.

Fortunately, if your fashion and apparel business is considering or actively undertaking an effort to nearshore production, you don’t have to face this uphill battle alone and unequipped. With the right technology and provider, you can both accomplish it more effectively and make it more affordable to do so.

How Apparel Software Help Offset the Higher Costs of Nearshoring Production and Local Sourcing

While purchasing apparel manufacturing software might not seem like the answer for saving you money to offset the increased costs of domestic operations, the right system can preserve your profit margins and make the transition much easier. The three most relevant solutions to cover are enterprise resource planning (ERP), shop floor control (SFC) and product lifecycle management (PLM).

Apparel ERP software is likely the most popular system used by brands—besides typical office software like the Microsoft suite—and that’s for good reason. As apparel management software, it covers everything from procurement to sales, and it can save you money by reducing carrying costs through better demand forecasting, minimizing labor needs thanks to process automation and eliminating downtime with optimized production scheduling.

SFC software, which is a variety of manufacturing execution system (MES), can also protect your apparel organization’s bottom line. The solution schedules, tracks and reports progress of all manufacturing processes, helping you drive continuous improvement and greater productivity on the factory floor. It also streamlines processes and enables incentive pay to make your operators more efficient, which reduces your staffing requirements.

As for PLM, it can empower your business to optimize your new product development (NPD) process, reducing how many samples are needed and thus saving on costs. The solution also facilitates identifying and working with in-country suppliers thanks to a convenient vendor portal that can be accessed by either party, and that can then be carried over to your ERP’s procurement module to ensure that the correct suppliers are always used.

And beyond all that, each of these systems can help your fashion and apparel become more sustainable, which is great for both your brand reputation and finances. Overall greater operational efficiency reduces energy costs. Better insight into production losses and reduced sample requirements can help you cut back on material waste, and shorter supply chains keep carbon emissions to a minimum.

Brighten Your Business’s Outlook With Aptean Software

The past few years have brought tremendous changes for the apparel industry, and the shifts in international relations and the global economy have sent shockwaves across global markets. But change is nothing new in this industry. You know that well from your experience in the field, just like you know all the ins and outs of your operations.

Wouldn’t it be nice to work with a software provider that knows apparel like you? One with a team that has decades of collective expertise and purpose-built solutions enabled by artificial intelligence (AI)? Aptean’s got what it takes to deliver on all the above and a whole lot more—here's a few reasons to keep us at the top of your list.

First, we do truly know apparel, and our most qualified people designed our software specifically to handle the processes and challenges of the industry. Our apparel ERP has deep functionality, boosting the accuracy of demand projections and production planning while ensuring omnichannel fulfillment with built-in electronic data interchange (EDI) and integrations. Warehouse management is another invaluable feature, helping you accelerate inventory turns.

Meanwhile, Aptean’s SFC is now an award-winning solution, having won Best New Concept at the 2025 Texprocess Innovation Awards. Its real-time production management capabilities give users greater insight into manufacturing data, helping them make smarter decisions to improve efficiency and profitability—and 95% of our customers achieve savings of 10-35% in less than four months.

Last but not least, our apparel PLM gives you complete control and visibility over all design processes, from managing your libraries and creating tech packs to seamless integration with Adobe Illustrator and Browzwear so your designers don’t even have to leave their design software to transfer files. It can also streamline change management and vendor quotes, especially important if you’re reconfiguring your products or sourcing.

Finally, we’ll share about our AI-first approach—it means that we incorporate AI from the beginning with everything we do. It’s only natural that we’d extend that to our solutions, which are now equipped with smart functionalities like machine learning and generative AI. We’re also providing our software through AppCentral, our all-in-one enterprise platform, with AI at its core and automatic integration between your Aptean systems.

Check out the nine reasons you should invest in apparel software solutions if you want to learn more about how they generate returns. You can also contact us with any questions or book your personalized demo.