Clothing Makers Find It Hard to Break With China’s Supply Chain
- After shifting to Southeast Asia, some are now moving back
- Output rates in China are better, workers may be more skilled
Workers at a garment factory in Guangzhou, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
From Adidas AG to Nike Inc., apparel and footwear makers have been shifting their supply chains out of China, pushed by geopolitical tensions and pulled by lower manufacturing costs.
But amid mounting global economic uncertainties and weakening consumer demand, many are discovering that finding alternative production hubs comes with its own challenges. Some are even upping stumps and moving back to the mainland.