US-Based vs. Overseas Decoration: Lead Times, Quality, and Hidden Costs

The economics of overseas manufacturing for decorated apparel are compelling on the surface: lower per-unit labor costs can mean lower quotes. But for buyers placing large screen print and embroidery orders, the full picture is more complicated — and for many programs, US-based production is the better economic decision once all costs are counted.

Here’s an honest breakdown of the tradeoffs.

The Case for Overseas Production (When It Makes Sense)

Let’s start with where overseas production has a legitimate edge:

Per-unit labor cost: In countries with lower labor costs, decoration cost per unit can be lower — particularly for embroidery, which is labor-intensive.

Integrated supply chains: Some overseas factories do blanks manufacturing and decoration in the same facility, which can reduce coordination complexity for buyers sourcing private-label goods from scratch.

Very large programs: At extreme volumes (millions of units annually), overseas production economics are harder to beat for pure cost.

For retail private label programs operating at massive scale with long lead times built into their calendar, overseas production often pencils out.

The Hidden Costs of Overseas Production

For buyers who haven’t run an overseas decorated goods program, there are costs that don’t show up in the per-unit quote:

Ocean freight: Container shipping from Asia or elsewhere adds cost, and that cost fluctuates significantly with market conditions. Post-pandemic shipping disruptions are a reminder of how exposed you are to freight cost volatility.

Transit time: Ocean freight from Asia typically takes 4–8 weeks for transit alone. Add production time and customs clearance and you’re looking at 12–20+ weeks from order to receipt. Your calendar must accommodate this.

Customs duties and tariffs: Import duties on decorated apparel can add meaningful cost. Tariff classification matters — screen printed goods are often classified differently than blanks.

Import compliance: Customs brokerage, country of origin compliance, CPSC documentation, and similar requirements add both cost and administrative overhead.

Quality control risk: When production is overseas, fixing a quality issue is exponentially harder. By the time you receive goods and identify a problem, production is finished and you’re looking at a rerun — not a correction. Many buyers hire third-party QC inspectors in overseas factories, which adds cost.

Communication friction: Time zone differences, language barriers, and the absence of a direct production relationship create communication overhead. Art changes, spec questions, and production updates all move slowly.

Minimum order flexibility: Overseas factories often have higher minimums and less flexibility on order changes once production begins.

US-Based Production: The Real Advantages

Faster turnaround: US-based production eliminates ocean freight transit time. A typical large run can be produced and shipped domestically in 6–10 weeks from order. Compared to 16–22 weeks overseas, that’s a meaningful competitive advantage for programs with tighter calendars.

Direct communication: When your order is being produced domestically, you can communicate in real time with the production team. Art questions get answered same-day. Production issues can be addressed before they become full-run problems.

Reactive production: Need to adjust a quantity or add a style mid-program? Domestic production can often accommodate changes that overseas factories cannot.

No import risk: No customs delays, no tariff exposure, no documentation overhead. Domestic shipping is straightforward and predictable.

Domestic compliance: If your program requires union-made goods, Made in USA claims, or specific US-origin documentation, domestic production is the only option.

Easier quality control: Problems identified during production can be corrected before they become a finished-goods issue. And if there’s a quality problem on received goods, resolution is much faster with a domestic manufacturer.

The Total Cost Comparison

For large orders, overseas production often looks 15–25% cheaper per unit on paper. But when you add:

• Freight cost (ocean + drayage)
• Import duties and tariffs
• Customs brokerage
• Third-party QC inspection
• Longer payment cycle carrying cost
• Rerun risk premium (the implicit cost of having no recourse on quality issues)
• Administrative overhead for compliance documentation

…the gap often narrows to 5–10%, and sometimes disappears entirely.

For buyers who value:

• Predictable, short production timelines
• Direct communication and quality control
• Flexibility to adjust orders
• No import complexity

…domestic production is often the more economical choice once the full picture is considered.

Who Should Consider Overseas Production

• Buyers with very long planning cycles (6+ months) who can absorb transit time
• Programs requiring integrated blanks manufacturing + decoration in a single overseas facility
• Very high volume, cost-is-everything programs where price is the only variable
• Buyers with established overseas sourcing operations and compliance infrastructure

Who Is Better Served by US-Based Production

• Programs with seasonal or event-driven deadlines
• Buyers who need production flexibility mid-run
• Programs requiring Made in USA or domestic-origin compliance
• Buyers without dedicated import compliance infrastructure
• Programs where quality control and communication are high priorities
• Buyers whose total program is below the volume threshold where overseas production economics become compelling

For most buyers at the 100,000–500,000 unit range, US-based production offers a compelling combination of cost (when total cost is properly counted), quality control, and operational simplicity that overseas production can’t match.

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Merch Factory Direct is a US-based screen print and embroidery manufacturer serving buyers at 100,000+ units. Learn more about us and our US-based production, or request a quote and see what domestic production costs for your order.