Risks Of Clothing Manufacturing Overseas

risks & benefit

Risks of Clothing Manufacturing

 

While the clothing manufacturing can be fulfilling and provide brands with immense rewards such as cost savings, it can also be highly stressful. Most of the time it will come with a whole lot of risks & unforeseen events that need to be addressed or planned for. But as a brand, what types of risks are in the clothing manufacturing world and how can you address them?

Risk of relying on one supplier

Even if you found a very good clothing manufacturing factory, there are still risks that may hinder production such as staff turnover, communication troubles & unforeseen events. Good & reliable clothing manufacturers can only be identified after some history of working together. One that delivers good and consistent quality is a sheer necessity and you need to work closely with them if you want to get the best possible results. A way to manage this risk is to diversify your portfolio of suppliers and have multiple factories on standby ready to begin clothing manufacturing should your main factory experience difficulties in meeting expectations.

A lack of skillful workers

To deliver optimised results & achieve production efficiency, clothing manufacturing suppliers need well skilled workers. Without the proper workers, clothing line manufacturers will not be able to deliver quality products. We have seen poorly made products with bad finishing and poor stitching reach disappointed overseas buyers. To manage this risk, brands could have on site teams who monitor conditions and conduct thorough inspections of finished products to ensure only products that meet a certain standard are exported.

A change in local or national regulations

This type of changes are hard to predict and bring great difficulties for brands sourcing clothing manufacturing from overseas. Examples include wage changes, health and safety regulations as well as union actions. Changes in regulations will impact production as well as production costs which will be passed on to brands such as yourself. To mitigate this risk, brands can source clothing from multiple countries or have contracts in place to prevent rises in costs.

Threats to international operations

Most companies in the clothing manufacturing world work internationally. If treaties are broken or any trading rules get changed, brands will have to deal with consequences. Of course, this can lead to some major changes in the long run. This is the reason why brands will always have to track any international changes and create a safety net in case things don’t go as expected.

 

Clothing manufacturing does come with its own set of risks and many times it can be very challenging. This is why it’s crucial for all manufacturers to take these risks into account and prepare contingency plans for them. Even if they might not appear during the clothing manufacturing process, it’s always important to have a good safety net in case things go wrong.

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