Made in The USA

American Apparel,  on of the few clothing manufacturers stationed here in the United States filed for bankruptcy on Monday. Although the bankruptcy will clear most of the companies debt, they also reconsidered if they should continue manufacturing in the U.S. As American's, most of us like to say that we are more likely to buy American made things than overseas but most of the time that is not the case. Price and quantity is usually what appeals to us; if a garment is cheap we like it. 

If American Apparel were to re-station overseas, they would lose their reputation of "Made in the USA". However, American Apparel would cut costs dramatically by doing this. Sadly, the cost to employ people in the United States is at least double of what it costs to employ people over in China, Bangladesh, India, etc. American Apparel can only hope that they would not lost their loyal "USA made clothing customers" by expanding overseas.


Most apparel companies actually are stationed overseas making American Apparel a minority. Economically, it is way more efficient for companies to operate in countries where the cost of materials and labor is cheap. If an American company produces a shirt for $10 including labor, a manufacturer in China can product that same shirt for 4$ and thats including labor as well. If the American company wanted to have competitive prices they might charge $20 for that shirt while doubling their money. China could charge the same price of $20 while quadrupling their money. Because this happens to be the reality of the situation, less companies are able to generate a revenue being stationed in the United States.


Works Cited:
Li, Shan. "American Apparel Hangs on to Its Made-in-America Model — by a Thread." Los Angeles Times. Los Angeles Times, 07 Oct. 2015. Web. 07 Oct. 2015.