Background and Context

Sentinel Peak Ventures provides the tools and strategies that US apparel and footwear companies need to increase revenues, brand value, and market share by switching to or increasing their US-based manufacturing/sourcing.

In recent years, US-made apparel and footwear have become competitive in price and quality with international production for the following reasons:

• The additional costs and risks of international manufacturing – rising labor costs, transportation, QA/QC challenges, long lead times, communications and cultural barriers, and political and economic instability – have tipped the scales in favor of US production.
  
  
• Data-driven production and supply chain management tools are being adopted by manufacturers in their US facilities, significantly increasing productivity and reducing costs.
  
  
• Many companies are now taking advantage of Federal, state and local tax credits and other incentives to reduce further the costs of establishing or expanding domestic apparel and footwear production capacity.
  
  

Moreover, corporate goals for long-term sustainability and product quality have taken root in boardrooms and on factory floors across the US. At the same time, events overseas and a growing “buy local” movement have led American consumers to seek greater transparency and traceability for offshore production while increasing the demand for US-made products.

In short, the forces behind the growth in domestic apparel and footwear production are competitive costs, increased quality of US-made products, and consumer sentiment. They provide a unique opportunity for those companies capable of seizing it.