43% of supply chains shifted sourcing locations in 2025

Forty-three per cent of businesses shifted their sourcing geography in 2025, according to a survey of more than 1,000 companies published by quality control firm QIMA in 2026. The survey reveals significant growth in alternative manufacturing hubs, with Vietnam recording 30 per cent growth in sourcing activity, Thailand up 44 per cent, and Egypt surging 52 per cent as brands diversify away from concentrated supply chains.

The geographical reshuffling reflects broader industry efforts to reduce supply chain risk and respond to trade policy changes. Fashion and apparel companies have been particularly active in relocating production, seeking manufacturing partners in countries offering competitive labour costs, trade advantages, and proximity to key consumer markets.

Why are fashion brands changing sourcing locations?

Supply chain diversification has become a strategic priority following disruptions during the pandemic and ongoing geopolitical tensions. The concentration of manufacturing in single countries or regions exposes brands to heightened risk when trade policies shift, labour costs rise, or logistical challenges emerge. By spreading production across multiple geographies, companies aim to build resilience and maintain flexibility.

Trade policy uncertainty continues to drive decision-making. Tariffs, trade agreements, and regulatory changes influence where brands choose to manufacture goods, particularly for products destined for major consumer markets in North America and Europe. The search for stable, cost-effective manufacturing environments has intensified as brands evaluate long-term sourcing strategies.

Which countries are gaining manufacturing share?

The QIMA survey highlights three notable growth markets. Vietnam's 30 per cent increase in sourcing activity reflects the country's established position as an alternative to China, with developed garment manufacturing infrastructure and favourable trade agreements. Thailand's 44 per cent growth indicates rising interest in diversified Southeast Asian production, whilst Egypt's 52 per cent surge positions North Africa as an increasingly important sourcing destination, particularly for European brands seeking nearshoring options.

These shifts align with broader manufacturing trends observed across the apparel sector. Southeast Asian countries have invested in textile and garment production capacity, whilst North African nations offer geographical proximity to European markets and competitive labour costs. Latin American countries are also attracting attention from North American retailers pursuing nearshoring strategies, though specific growth figures from the QIMA survey were not disclosed.

What challenges do sourcing shifts present?

Relocating production involves substantial operational complexity. Brands must qualify new suppliers, ensure quality standards are met, and navigate unfamiliar regulatory environments. Building relationships with manufacturers in new countries requires time and investment, and production capabilities vary significantly across regions. Not all countries offer the same infrastructure, skilled workforce, or technical expertise that established manufacturing hubs provide.

Quality control becomes more complex as supply chains fragment across multiple countries. Companies must implement robust inspection and compliance programmes to maintain product standards when working with diverse supplier networks. The QIMA survey underscores the importance of third-party auditing and inspection services as brands expand into new manufacturing markets where oversight may be less familiar.

• Qualifying new suppliers and establishing quality standards in unfamiliar markets
• Managing increased complexity from multi-country sourcing networks
• Ensuring compliance with varying regulatory requirements across jurisdictions
• Investing in inspection and auditing infrastructure for new manufacturing partners
• Balancing cost savings against potential risks in emerging production hubs

How does nearshoring affect the fashion industry?

Nearshoring strategies bring production closer to end markets, reducing shipping times and transportation costs whilst improving responsiveness to consumer demand. For European brands, North African countries such as Egypt, Morocco, and Tunisia offer shorter lead times compared to Asian manufacturing. North American retailers are similarly evaluating Central American and Caribbean options to shorten supply chains.

The trend supports faster inventory turnover and more agile product development cycles, particularly important for fashion brands competing in an environment where speed to market influences competitiveness. Nearshoring can also reduce carbon emissions associated with long-distance shipping, aligning with corporate sustainability commitments, though the overall environmental impact depends on local energy sources and manufacturing practices.

What does the future hold for global sourcing?

The geographical diversification documented in the QIMA survey is likely to continue as brands refine supply chain strategies and respond to evolving trade dynamics. No single country is positioned to replicate China's scale and integration across the full textile and apparel value chain, meaning brands will increasingly operate multi-country sourcing models rather than simply replacing one dominant hub with another.

Technology adoption will play a role in managing this complexity. Digital tools for supplier management, quality monitoring, and logistics coordination become more valuable as the number of sourcing locations increases. The fashion industry's ability to navigate fragmented supply chains whilst maintaining quality, cost efficiency, and delivery performance will shape competitive dynamics in coming years.

Businesses that successfully balance diversification with operational excellence are better positioned to weather future disruptions. The 43 per cent of companies that shifted sourcing in 2025 represent a significant portion of the industry actively rethinking manufacturing footprints, signalling that supply chain transformation remains a priority for fashion executives navigating an uncertain global trade environment.