Nearshoring, artificial intelligence and sustainability are among the major trends that will transform the apparel manufacturing industry in 2025 and beyond.
While these are not new concepts – nearshoring has been talked about regularly since the early days of the COVID-19 pandemic, AI is becoming part of our everyday lives and the push for sustainability in manufacturing has been growing for years – the ability to adapt to and benefit from all three will help bring apparel manufacturers to the next level.
Nearshoring will be Essential
Nearshoring is becoming a primary strategy for U.S. manufacturers seeking faster turnaround times, better quality control and overall cost savings. Recent port strikes have only underscored the need for more localized production that reduces reliance on distant, often disrupted supply chains. The resulting shift from China and other overseas countries to Latin America will help improve production agility as well as strengthen supply chain resilience.
As the biggest trading partner to the United States and our closest southern neighbor, Mexico is especially well positioned to take advantage of the changing global supply chain landscape. Many companies that began manufacturing in Mexico in recent years – due to such factors as ongoing supply chain disruptions and rising geopolitical tensions – have come to appreciate the many advantages that nearshoring provides. These include faster delivery times and reduced transportation costs, greater oversight into production resulting in improved quality control and the potential to reduce the costs of manufacturing and delivering products to customers.
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Mexico’s strong and growing labor force is also a value-add for U.S. companies looking to nearshore production. According to North American Production Sharing (NAPS), which provides services to businesses manufacturing in Mexico, the country offers well-trained employees “ranging from production labor to highly skilled professionals.” Mexico’s employee base is also younger, with more than 40% of its 117 million inhabitants ranging from 20 to 49 years old.
AI Driving Customization and Efficiency
AI-driven customization is the next big wave for manufacturers and will dramatically transform the sector in 2025. Customers increasingly want personalized, high-quality products, and AI will empower manufacturers to deliver them efficiently and at scale.
In 2025, a growing number of apparel manufacturing orders will be customized using some form of artificial intelligence, with AI streamlining design, production and delivery to meet those demands. Beyond customization, AI will enhance predictive maintenance, quality control and inventory forecasting, optimizing the entire manufacturing flow. Other potential applications include predictive maintenance for machines and advanced software that uses generative AI to create new designs or refine existing ones.
While there are numerous advantages to adopting AI, this evolving technology is not without its hurdles. These include having to integrate new AI systems with existing infrastructure, the need for high quality data to ensure AI models are effective, the resistance of some employees to AI adoption and the often high upfront costs of AI technology, as well as uncertainty around the return on investment.
Despite the challenges, those that integrate AI now will likely reduce waste, cut costs, and improve customer satisfaction — critical factors in staying competitive, especially in an industry where customization and quick turnaround are increasingly demanded. Late adopters might struggle to catch up when market and client expectations move further toward AI-powered speed and customization.
Sustainability will Shift from Buzzword to Core Business Requirement
Sustainability will become a core expectation from both customers and regulators. There will be more mandates around eco-friendly materials and waste reduction. Integrating sustainable practices will no longer be a luxury but a necessity to remain competitive. By adopting energy-efficient processes, recycling materials and minimizing waste in production and shipping, companies are not just reducing their environmental footprint, they are also future-proofing their business.
Another type of waste that companies are increasingly focusing on is excess movement. Enabling employees to produce more without having to work as hard physically translates to fewer injuries and increased productivity, not to mention happier workers. At World Emblem, we train our team leaders, supervisors and managers to perform motion studies on our processes, such as reviewing human motion while performing a task to identify ergonomic issues or excessive motion. Team members work less but produce more per hour, a win for both the employee and the company.
While the Trump administration’s policies are likely to impact some environmental initiatives, many companies are guided by investor expectations for sustainability rather than government mandates. Even without federal support, consumer demand for sustainable products should continue, and businesses will remain committed to sustainability goals to enhance cost savings and brand reputation.
Companies that embrace nearshoring, AI and sustainability will be at the forefront of the apparel industry for years to come. Those that are unable or unwilling to adapt to these trends do so at their peril.
Randy Carr is President and CEO of World Emblem, the largest emblem and patch manufacturer in the world. Throughout his tenure, he has overseen the implementation of new technologies and methodologies that have led World Emblem to become a leading embroidery manufacturer. Carr began his career at World Emblem as an apprentice to his father Jerold Carr, who founded the family-run business in 1993.
