From Yahoo Finance · · 1m 10s
AI and Automation Could Unlock U.S. Onshoring
AI and automation might solve fashion brands' onshoring challenges by cutting lead times and scaling production without cheap labor.
In brief
AI and automation might solve fashion brands' onshoring challenges by cutting lead times and scaling production without cheap labor. AI-driven automation can enable faster, smaller-batch production for U.S. fashion brands without relying on cheap labor. Originally reported by Yahoo Finance.
Onshoring Stalls
Fashion brands avoid U.S. production due to long lead times and disjointed supply chains.
“We have 19-month lead times, we're forecasting in advance.”
AI Fixes Lead Times
AI helps brands predict demand and produce smaller batches to reduce waste.
“We can identify products people will want based on data using AI agents.”
U.S. Supply Chain Gaps
The U.S. lacks fabric makers and dye houses needed for large-scale fashion production.
“We export 75 to 80 percent of U.S. cotton offshore.”
Luxury Onshoring Works
Luxury brands can onshore high-quality products without mass production.
“If you are in the luxury market, you can onshore.”
Mass Market Needs Automation
Mass market onshoring requires automation to overcome labor costs and scale production.
“We have to leapfrog to the future with automation.”
3D Knitting Saves Time
3D knitting automates shoe production, cutting the time-consuming upper part.
“Use 3D knitted with technical knit full sock upper to eliminate the biggest bottleneck.”
U.S. Shoe Demand
The U.S. imports 2.3 billion pairs of shoes yearly, but domestic production is impossible without automation.
“We are importing 2.3 billion pairs of shoes annually in the United States.”
Automation for Scale
Automated production can handle 10-20% of U.S. shoe market at scale without cheap labor.
“We can capture 10 to 20 percent of the market if we accept capital intensity.”
The Future of Onshoring
AI and automation enable onshoring for fashion brands without relying on cheap labor.
“We have to see the parameters and work within them.”
The main idea
AI-driven automation can enable faster, smaller-batch production for U.S. fashion brands without relying on cheap labor.
