Shifting positions? Europe and the United States become new options for manufacturing

China and Vietnam have always been major manufacturers in Europe and the United States. Due to congestion and the epidemic, the supply chain is facing serious difficulties. In order to reduce costs and maintain normal operations, many large shoe and clothing companies in Europe and the United States have turned their attention to closer countries and regions.

For example, Crocs, a famous American shoe brand , has recently moved its production to countries such as Indonesia and Bosnia . Local shoe retailer Steve Madden also said that it has recently withdrawn production in Vietnam and transferred half of its production orders from China to Brazil and Mexico.

In Europe, according to Spanish fashion retailer Mango , it has accelerated local production in countries such as Turkey, Morocco and Portugal, and plans to significantly increase the number of products manufactured locally in Europe in 2022. The company previously mainly sourced products from China and Vietnam.

While China remains the main clothing manufacturer in Europe and the United States, countries such as Bulgaria, Ukraine, the Czech Republic, Morocco and Turkey are among those that are generating new interest among clothing and footwear producers .

The shift has led to an increase in local exports, with the CEO of supply chain risk management firm Alex Ehrlich saying : “We are seeing a big increase in freight and trucking activity in countries like Turkey, Hungary and Romania . ”

Turkey's clothing exports are expected to hit a record high of $20 billion this year, from a total of $17 billion in 2020 , driven by a surge in orders from the European Union, according to the Turkish Chamber of Commerce and Clothing Council .

In Bosnia and Herzegovina, exports of textiles, leather and footwear amounted to about $436.65 million in the first half of 2021, which is already higher than exports for the whole of 2020 .

Many companies remain heavily dependent on Vietnam, where recent production shutdowns have caused severe disruptions. The Vietnamese government said in October that it would miss its apparel export target of about $5 billion this year in a worst-case scenario due to the impact of coronavirus restrictions and worker shortages.

During the peak season, the supply chain is still facing severe challenges. Ensuring normal sales at the lowest cost is the first choice for retailers. Shifting positions is also an effective way in this case.

Europe and America

manufacture

Supply Chain