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Day 12: Price vs. Speed (Why US Fabric Costs More)

Welcome to Week 2, Day 12 of My Dad vs. The Algorithm. USA vs overseas fabric manufacturing cost

Today we are answering the most Googled question in our industry: "Why is US manufacturing more expensive than overseas?"

I showed my dad, Ira, an email from a customer who was torn. They loved our quality, but they had a quote from a mill overseas that was significantly cheaper per yard.

Illustration of Ira and Alex from Greene Textile standing proudly next to a pallet of shrink-wrapped fabric rolls in a warehouse. Behind them is a large wall calendar with the first three weeks crossed out, circling the current date with "DONE!" written next to it. Text at the bottom reads: "Premium USA Quality. In your hands in 21 days."
Premium USA Quality. In your hands in 21 days. 🏁 Ira and Alex show off the reality of "Los Angeles Speed"—while overseas options take months, domestic production allows you to hit the market in just 2-3 weeks

Ira’s Reaction:

"Of course it's cheaper. They are quoting you for delivery in 12 weeks. I am quoting you for delivery next week. You aren't just paying for the cotton; you are paying for the calendar. In the fashion industry, time is the most expensive commodity you have."

Here is the breakdown of the Speed vs. Price trade-off.

The "Slow Boat" Strategy (Low Cost, High Risk)

If you source from overseas (Asia, South America, etc.), you will almost always get a lower price per yard. Labor and overhead are lower.

  • The Trade-Off: The Lead Time.

    • Development: 2-4 weeks.

    • Production: 4-6 weeks.

    • Shipping (Ocean): 4-8 weeks.

  • Total Time: 3 to 5 months.

Ira’s Take:

"If you are making basic white t-shirts that you will sell forever, go ahead and wait for the boat. But if you are chasing a trend—like a specific color of green that is hot on TikTok right now—by the time that boat arrives in 4 months, nobody will want it. You saved $2 a yard, but you're stuck with 1,000 yards of 'Zombie Inventory' that you can't sell."

The "Speed to Market" Strategy (Higher Cost, Low Risk)

When you manufacture in the US (specifically Los Angeles), you are paying a premium for agility.

  • The Trade-Off: The Speed.

    • Knitting: 3-5 days.

    • Dyeing: 5-7days.

    • Shipping (Truck): 1-3 days.

  • Total Time: 2 to 4 weeks.

Ira’s Take:

"In Montebello, we can knit it on Monday, dye it on Wednesday, and you can cut it on Friday. If you launch a drop and it sells out in 24 hours, I can get you a restock next week. You capture the sales while the hype is still real. That ability to 'chase the winner' is worth way more than the money you save on the yardage."

The Bottom Line

Neither option is "wrong." It depends on your business model.

  • Source Overseas: For "Basics" and "Evergreen" styles where you can predict sales 6 months in advance.

  • Source USA: For "Fashion," "Trends," and "Restocks" where speed is critical to cash flow.

Ira’s Final Advice:

"Don't trip over dollars to pick up pennies. If you miss the season, the fabric is worthless no matter how cheap you bought it."

Tune in tomorrow for Day 13!

(Missed yesterday's post about Heather Construction? Read Day 11: The Cookie Theory here.)

Need fabric fast? Check our In-Stock Shop which ships in 24-48 hours.

 
 
 

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