texfash.com: The 38th World Fashion Convention was held at a time of turbulence: conflict in Europe, supply chains in disarray, trade wars, etc. How is the US textiles-apparel industry negotiating this situation? How uncertain are things? Do you think world trade is now dependent on far too many unknown variables?
Michael McDonald: While there are a lot of challenges to overcome for the textiles-apparel industry in the US, resiliency is built into the DNA of the manufacturing base here. Companies that successfully weathered the past five years—navigating through a global pandemic and dealing with significant supply chain bottlenecks—will survive. They are fighters.
Regarding uncertainties: One thing I’ve learned—while growing up in the industry, working in the industry, and studying the history of the industry—is that uncertainty and volatility are a constant. While global markets are navigating rough waters right now, I am confident that they are prepared for the unknown variables that exist on the horizon.
How stable is the US domestic market, both from the points of view of fashion retail as well as US manufacturing? What, according to you, are the faultlines that the US industry needs to watch out for as far as the home front is concerned?
Michael McDonald: Speaking specifically about manufacturing, the US manufacturing base faces the same types of challenges as manufacturing bases all over the world—from workforce development, automation, and fragmented supply chains. There are, however, opportunities to combat some of those faultlines, like R&D, working with industry associations, and building stronger relationships with regional supply chains.
The twin subjects of reshoring and near-shoring. These have been happening at a pace that has not yet changed the game. Your comments, please.
Michael McDonald: Let’s face it, China remains and will continue to remain a major player in manufacturing for the industry. The Chinese population alone exceeds that of the entire Western Hemisphere, so anyone who thinks that manufacturing can be moved from China to the Western Hemisphere entirely, is wrong. How regionalisation in the Western Hemisphere succeeds is by identifying ways to add value to the larger, global manufacturing base, such as through specialisation and rapid replenishment. There are still significant opportunities here.
In today's world, trade policies are determined by foreign policies of governments (across the globe). Do you think it becomes difficult to operate when industry (in all countries) has a sword hanging over its head all the time?
Michael McDonald: No person can answer that question on a global scale. If you look at the history of the industry in the US, specifically, there wasn’t much involvement from government in apparel manufacturing for years. That table has turned. And the industry is trying to figure out how to adapt.
