Contingency factors and reshoring drivers in the textile and apparel industry

Abstract

Purpose The purpose of this paper is to examine the relationship between contingency factors and reshoring drivers in the US textile and apparel industry. Design/methodology/approach Secondary data on the reshoring drivers and contingency factors for 140 US textile and apparel companies are analyzed using analysis of proportions. Findings The findings show that total annual revenue is significantly related to the reshoring driver of skilled workforce. No significant relationships are present between reshoring drivers and the region of the world reshored from not the region of the USA from which a company operates. There is a significant relationship between market segment and the reshoring driver of manufacturing process. The US production category (reshored, FDI, or kept from offshoring) exhibits a significant relationship with sustainability-related and cost-related reshoring drivers. Quality is a significant driver for reshoring from 2010 to 2016, although decreasing as a reported reason over that time period. Research limitations/implications Limitations include a focus on one industry, the lack of information to investigate the differences between companies making captive or outsourced reshoring decisions, and the use of companies who publicly announced reshoring. Practical implications This study outlines the relationships between contingency factors and reshoring drivers. The results provide companies with information about resources that will be demand (e.g. skilled workers) as well as policies and regulations that may be developed to address concerns such as sustainability. Originality/value This study adds to the limited number of studies on the relationships between contingency factors and reshoring drivers and contributes to the quantitative research on reshoring drivers.