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Business Insider
04-07-2025
- Business
- Business Insider
A made-in-America apparel brand describes how Walmart helped it produce a more affordable US flag T-shirt
Check the tags on much of the American flag-themed apparel being worn this Independence Day weekend, and the country of origin may be somewhere other than the US. Making stuff overseas is typically cheaper, after all. That doesn't sit well with Bayard Winthrop, the founder of California-based apparel brand American Giant. "We can think of a lot of other mainstream brands or retailers that certainly don't abide by that for Fourth of July — or for any other thing," he told Business Insider. Bayard founded American Giant in 2011 with the mission of revitalizing US textile manufacturing, starting with what it dubbed "the greatest hoodie ever made." In recent years, the company celebrated Independence Day with a version of the iconic American flag T-shirt made entirely in the US. But Bayard said it was a challenge to achieve the kinds of production efficiencies that can lower costs. American factories can produce high-quality clothing, but it often comes at a premium price. For example, American Giant's website lists this year's US flag tee for $65. Bayard said the reasons for this include finer yarns and a more labor-intensive sewing process. "Those products are premium," he said. "They're optimized for top, top quality." About two years ago, Walmart approached him with a challenge to produce a made-in-US T-shirt at the retail giant's famously low prices. This was part of what is now a $350 billion commitment to invest in sourcing products that support American jobs until 2030. At the time, Bayard thought that the lowest possible price for an American-made shirt would have been $20 and that it would be "incredibly difficult" to make. The companies were able to make a shirt that is now available online and across roughly 1,500 Walmart stores for $12.98 — one-fifth of the price of the top-of-the-line version. American Giant developed a design that lowered costs by using a slightly thicker yarn and a tubular-knit pattern, rather than the side-sewn style of his main shirts, Bayard said. "But the vastly more important part of the costing is when you have Walmart and the volumes that they put there — which are huge — and staying committed to the program for an extended period of time," he said. Bayard stands firmly behind the quality of the less expensive Walmart product. "We think we're putting great quality stuff into the market, and we're offering these different entry points for customers," he said. Bayard said the first design for Walmart, released last year, exceeded sales expectations and was expanded to include four styles this year. The episode highlights one of the major hurdles to bringing back US manufacturing more broadly. The costs of starting (or restarting) industrial production can be both daunting and inefficient. (Look no further than the complicated and expensive process one team had to go through to make a grill scrubber entirely in the US.) If the effort to revive US manufacturing is going to succeed, Bayard said that small and large companies need to work together with sustained, long-term commitments that help the supply chain develop and become more cost-effective. "Poking at the problem with your 500-unit volumes" is "admirable," he said. "But if you actually want to make an impact, get serious about it and figure out ways to join forces with somebody like Walmart that's actually trying to do something good."
Boston Globe
29-04-2025
- Business
- Boston Globe
This Mass. company still makes T-shirts in the US. Its owner doesn't think tariffs will help.
Liquori's decades in American textiles have convinced him that his model would not work at scale. Not many Americans still want to painstakingly stitch together fabrics in a factory, he said. And Goodwear charges almost $60 for a basic t-shirt, more than eight times more than a comparable shirt made by Chinese fast fashion retailer Shein. Advertisement Goodwear generates an estimated $3 million a year in revenue, employs four people, and survives in part by exporting merchandise to Japan, where consumers demand authentic 'Made in the USA' clothing. Other clothing brands that still manufacture inside the US. include American Giant, Everlane, and Todd Shelton. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up However, any apparel maker that wants to be the size of Nike and make clothes in the US. is doomed to fail, Liquori said. That's a discouraging sentiment for anyone hoping Massachusetts can reprise its industrial dominance from a century ago, when mills in Lowell and other parts of Massachusetts employed tens of thousands. But by the late 20th century, globalization prompted apparel manufacturers to shift operations to developing countries in Asia and Latin America. Today, more than 97 percent of clothing sold in the US. originates overseas while only 2.5 percent of apparel is domestically produced, according to an advocacy and research group, who supports US. manufacturers. Advertisement Experts say returning apparel making to the US. in any meaningful way is highly unlikely, even with tariffs. By some estimates it currently costs $1- $3 in labor costs to make a shirt in China, Vietnam, and Bangladesh compared to $8 to $20 for the United States and Western Europe. 'Those are not the kind of jobs we want anymore,' said Thomas Roemer, senior lecturer in operations management for MIT's Sloan School of Management, who also directs the school's Leaders for Global Operations. 'We want upscale, better paying positions.' But back in the 1970s, when Liquori was a teenager, nearly all of clothing was US-made. He first became interested in apparel when he attended a silk screen class in high school. He offered to print his track team's name and logo on their t-shirts. 'Everybody took off their white t-shirts that they had on under their dress shirt and threw it at me,' he said. 'And they were all very excited.' In 1983, Liquori launched Goodwear USA and eventually sold shirts across the country alongside brands like Champion, Russell, and Reebok. However, the 1994 passage of the North American Free Trade Agreement (NAFTA) and China's decision to open its borders decimated the US. apparel industry as companies outsourced their operations to foreign labor. Fortunately for Liquori, Goodwear apparel became a hit in Japan where retailers and consumers demanded authentic Made in the USA merchandise. Advertisement 'Our phone was ringing off the hook more by virtue of we were one of the remaining people still making domestically,' he said. Goodwear was also able to control its costs because it never owned its own factory. Goodwear also worked hard to identify a group of factories still operating in the US. where it could easily increase and decrease its orders as needed. 'That's sort of our talent, vetting these vendors,' he said. 'These factories are becoming fewer and fewer but knowing how to pivot and use the people that are still alive in the industry is the testament to the Goodwear brand.' Liquori also said Goodwear produces higher quality, more durable clothing than low-cost competitors. 'If you buy a better-quality garment, it's going to last longer,' he said. 'You might pay $50 for one of our shirts, but isn't that better than buying a $12 Old Navy shirt four or five times over the next five years?' But experts say that argument, while valid, doesn't jibe with consumers today. Americans have become addicted to ultra cheap fast fashion that they can constantly dispose of and replace, said DeAnn Campbell, a consultant with Rethink Retail advisory and research firm. 'Americans no longer want to pay full cost,' Campbell said. 'We have come to a point where we are not going to give up cheap clothing without some extreme pain.' Brian Kelly, a former top executive with Sears and Lane Bryant, also thinks Made in the USA is no longer a compelling brand. 'I don't know if Made in America really resonates anymore,' he said. 'The current atmosphere has become an ugly place.' The challenges are real, Liquori said. Advertisement 'Consumers definitely care that it's Made in the USA,' he said. 'But then when the rubber hits the road … they'll just buy everything on price.' Thomas Lee can be reached at
Yahoo
27-04-2025
- Business
- Yahoo
Made-in-US clothing company CEO says tariffs are boosting demand
US President Trump has made tariffs a central part of his second administration in an effort to bring back manufacturing in the US. Clothing companies are among those hardest hit by hefty tariffs on imports from China. American Giant founder and CEO Bayard Winthrop joins Julie Hyman on Asking for a Trend to discuss how tariffs have boosted demand for the company, which sources and manufactures almost all of its products in the US. Winthrop also discusses the company's new partnership with Jason Kelce. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. This earnings season has been littered with companies cutting or abandoning growth targets because of uncertainty over tariffs, but for a company that makes all of its products in the US, there could be benefits. Joining us now, Bayard Winthrop, CEO of American Giant. Bayard, thank you so much for. Being your American giant is an American company that makes t-shirts and sweatshirts on their apparel all in the US. So, first, I guess I would just ask, have you seen an increase in demand because of having all of your products made here? Yeah, I think that the, the general uh uh awareness and thoughtfulness about where products are coming from is, is helping our business in that, in that way for sure. And what about, you know, we've been hearing from a lot of companies that are saying they're going to see increased costs, uh, because of the tariffs, particularly other apparel companies that are importing their products. So what's talk to me about your costs and what you have seen and what you think you will be seeing. Yeah, there's no question that if, if the tariffs take any anything like the shape that they're being talked about now, particularly in regards to China, that that's gonna increase costs for traditional apparel companies that are sourcing in. In China, Vietnam, uh, and internationally. I think for us, um, when you make domestically, I think it is labor that you're really, uh, paying a differential on primarily. The, the sources of fabric and things like that are, are, are quite equal to our international competitors. Um, but we think that's a good thing. We think that that good quality jobs and communities that need them, particularly low skilled work is a really critical piece that's been missing in the, in the American economy. And I think, uh, um, that's why we chose to make our stuff prominent in the US and, um, and I think it's, uh, it's, we pay a premium for that, but we think that's a good thing. we transitioned to good quality and the customers understand that. um, you know, it seems as though maybe some of your competitors will be raising prices as they see these increased costs. If competitors are raising prices, do you then see an opportunity to raise prices or the opposite? No, I don't think so. I don't think that we really are gonna respond to what our competitors are doing. I think we're pretty focused on our core business model, which is making really great quality stuff in the US. It's been that way for going on 15 years now, and we intend to continue to do that. And the gyrations that are happening in the marketplace, I think, aren't gonna affect us very much. And so we, we, we plan on just staying the course, um, and, you know, hopefully some of this volume is gonna come back to the US and, uh, and drive more, uh, more. In the domestic supply chain that really needs it, and I think we would benefit from that. So, so we're hopeful that that's going to result in more companies deciding to reshore domestically and bring some of their production closer to home. Um, Byron, I'm curious about something more of sort of a bigger picture question for you. It's almost a cultural question. One of the things that Treasury Secretary Scott Besson has said is that we need to wean Americans, I'm I'm paraphrasing here, wean Americans. Off of buying cheap crap from overseas and as somebody who makes both premium product that you sell directly as well as making contract stuff for the likes of Walmart, do you think it is possible to see that kind of possible and or desirable to see that kind of cultural change where people buy less but maybe spend more on those few items they're going to last? Yeah, I think, I think what the secretary is saying is actually maybe a little bit more nuanced than that. I think he's saying that the results of the policies of the last 40 years have resulted in a real addiction to cheap disposable goods and the outsourcing of all our manufacturing capability from textiles all the way through to uh to war fighting ships, things like that, and that there's a real need to rebalance our economy and the Chinese economy, that the Chinese economy has really tilted too far. away from a consumption-based economy too much towards the manufacturing and exporting-based economy, and the US economy really has become too overextended as a purely consumption-based economy. That may not be the best thing for your viewership that are very fixed focused on the performance of the stock market, but I do think the secretary has said quite clearly that he believes that the US economy needs to reclaim some of its manufacturing capabilities. Um, I think that will Address the question you're talking about this, this, uh, this addiction to cheapness that really I think all Americans kind of intuitively understand that a lot of the things that we buy uh are quite different than they were 30 years ago when things lasted for a longer period of time, they were less disposable, better for the environment, arguably, um, so I think that's an ancillary impact from what the core uh intent of the policy that they're trying to enact is. Um, Bayard, uh, uh, from a very big sort of existential question to a more fun one, you guys have partnered with Jason Kelsey for his, uh, clothing line. Um, how did that partnership come about and, and how's it doing so far? Well, if, if you know anything about Jason, he's a, he's a solid authentic guy that believes in the course of the values. He has a, a foundation called Underdog that benefits kids in Philadelphia and beyond. Um, and he, uh, felt that it mattered a lot to him and his value system that he made his clothes locally. And, um, it's not the easiest thing to do. And so he reached out to me about a year and a half ago and said, hey, could we do something together here? And he's just been a great partner. He's a, he's a heck of an advocate for real working people, and I think this partnership is an extension of that. And, uh, it launched today. So I'm hearing that it's selling like crazy. Uh, you can go to the underdog site and buy it and support his foundation, uh, but it's early, so we're looking forward to a lot of good stuff to come.
Yahoo
27-04-2025
- Business
- Yahoo
Made-in-US clothing company CEO says tariffs are boosting demand
US President Trump has made tariffs a central part of his second administration in an effort to bring back manufacturing in the US. Clothing companies are among those hardest hit by hefty tariffs on imports from China. American Giant founder and CEO Bayard Winthrop joins Julie Hyman on Asking for a Trend to discuss how tariffs have boosted demand for the company, which sources and manufactures almost all of its products in the US. Winthrop also discusses the company's new partnership with Jason Kelce. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Sign in to access your portfolio
Irish Daily Star
25-04-2025
- Business
- Irish Daily Star
Jason Kelce makes major announcement but insists it's nothing to do with Donald Trump
Jason Kelce has announced that he will be launching a new clothing line in which a collection of sweatshirts and T-shirts will be made entirely in the United States. The former Philadelphia Eagles star's revelation comes amid Donald Trump' s trade war, which continues to unfold across the globe after he announced tariff rate changes to each country that buys and sells from the nation . One notable country to have a drastic increase on its tariffs is Vietnam, which has gone from around 16 percent to 46 percent, affecting a anumber of clothing companies which manufacture its products out of the south-east Asian country. However, Kelce has made it clear that there's no political motive woven into his initiative, in spite of the current President's tariff tactics to shake up economies around the world. Produced in collaboration with San Francisco -based American Giant, Kelce's items will be made from cotton grown in North Carolina , and finished in California . Read More Related Articles Rory McIlroy's mansion owned with Erica Stoll pictured, golf course next door Read More Related Articles Rory McIlroy made trip to amazing new mansion while celebrating Masters win "Been a long process, but proud to be a part of something that supports our communities and US manufacturing," Kelce posted on X (formerly Twitter), revealing his exciting new venture. Understandably so, fans had an inkling that his choice of words were a current dig at Trump. However, he set the record straight in a recent interview with the New York Times , where he further discussed his commitment to domestic production, noting the personal fulfillment he finds in knowing the clothing is entirely crafted in America. "I have no issues with global trade whatsoever," the 37-year-old said. "I don't think there's any type of statement trying to be made other than, 'Listen, there's some really awesome reasons to support homegrown American businesses and local businesses'. I grew up going into steel mills with my father. So, the concept of American workers making things was something that was ingrained early. And I just always gravitated toward it." U.S. President Donald Trump's trade war continues to unravel across the globe Kelce's brand, Underdog, is working hand in hand with American Giant, a manufacturer hailing from San Francisco , to roll out items targeted at "burlier" clientele, all designed by Kelce himself. While the Super Bowl winner himself hasn't openly shared his political leanings, his wife Kylie has been vocal about her firmly left-leaning perspectives. Kelce's younger brother, Travis , notably remained quiet during last year's election run-up. He currently resides in Kansas City, where Missouri voted Republican, but his girlfriend, popstar sensation Taylor Swift , publicly endorsed the Democrats and Kamala Harris . Swift's endorsement provoked a fiery reaction from Trump , who posted on Truth Social: "I HATE TAYLOR SWIFT!!!!" Despite the harsh words about his partner, Kelce was diplomatic when it was revealed that Trump would be watching him play at the Super Bowl in February. "It's awesome," Kelce responded to the news of Trump attending the game. "It's a great honor, I think, no matter who the President is. I'm excited because it's the biggest game of my life and having the President there, it's the best country in the world so it's pretty cool."
