Shift Changes: Clothing company Karen Kane brings manufacturing back home
As part of a series on American manufacturers that are bringing production back home, Bloomberg TV aired a story about American clothing company Karen Kane, which recently shifted the majority of its production from China to the U.S. The company reduced its overseas production from 50% to 20%, and now manufactures 80% of its clothing line in the U.S., a decision CEO Lonnie Kane says was made in the wake of mounting labor and shipping costs in China:
“Economically, [over] the last few years in China they’ve been raising labor costs and raising raw material costs, and we found ourselves in a position where we could not estimate the cost of our goods. To try and deal with that, we looked at moving more of our production back to the U.S."
Kane says the company’s transition to a primarily domestic manufacturing base was an easy one, and that its American production facilities were able to quickly ramp up production while maintaining controlled and predictable pricing:
“Since we had a background in producing in Los Angeles, it was not a difficult task for us. We talked to the manufacturers we use in Los Angeles about bringing work back, and they were very receptive to it, and little by little we just started bringing more production back.”
We’re glad that Karen Kane is benefitting from keeping production at home, and we’re sure their customers are appreciative of their commitment to American manufacturing. As a recent Alliance for American Manufacturing (AAM) national poll demonstrated, 97% of Americans have a favorable view of U.S.-made goods—a statistic that the company should keep in mind as it continues to expand its domestic manufacturing base.
Watch the entire Bloomberg segment below:
Karen Kane CEO Returning Production From China... by Bloomberg
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