Mexico News – Made in Mexico clothing production has hit its worst slump in over three decades. Clothing makers in Mexico have faced 31 straight months of decline. This is the deepest and longest fall since 1994. Analysts link the slump to weak domestic demand. They point to rising imports from Asia. Local makers face narrow margins and tight credit. In May, apparel output fell 4.4 percent year on year. It rose only 0.1 percent from April. The manufacturing index stood at 70.0 points. That sits below the 71.1 point average for January through May. Over the first five months of 2025, production dropped 4.1 percent compared with the same period last year. This follows a 9.2 percent slide in early 2024. The downturn hit Mexico City and Nuevo León hard. Smaller firms report staff cuts.
Made in Mexico clothing production
Data from the Monthly Indicator of Industrial Activity at INEGI reveals the scale of the downturn. A sustained drop for more than two years has pushed the sector into uncharted territory. The index values track output levels against a 100 point base. After peaking above 80 points in recent years, figures have slid closer to 70. Analysts say that gap signals weak demand and rising imports. Local manufacturers must improve efficiency or shift to higher value goods to recover.
Government push and limited uptake
The Ministry of Economy launched a “Made in Mexico” label campaign to boost local firms. It has awarded the seal to 1,134 companies nationwide. Only about 25 come from the clothing sector. These include Novaneu, a sportswear maker. Corfran, a women’s underwear firm, also holds the seal. Distribuidora de Textiles Avante is in lingerie. Roberta Ángeles Ojeda makes handmade garments. Grupo Industrial Creysi specializes in baby clothing. Industry insiders say low participation reflects tight margins. Many brands skip the campaign due to costs and limited export linkages.
Tariffs offer little relief
To shield local output, the government imposed 35 percent tariffs on Chinese apparel. The move aimed to raise prices on imports. However, data shows that Chinese goods remain cheaper even with tariffs. Consumers and retailers still favor low-cost imports. The weak impact of the tariff has frustrated domestic producers. They face high labor costs and technology gaps compared with Asian rivals. The sector posted a 9.4 percent annual drop in 2024. That was the worst since the 22.4 percent collapse during the 2020 pandemic shock. Early signs point to further declines in 2025 if firms do not adapt. Without stronger policy or fresh investment, recovery may remain out of reach.
Sector outlook
Since 1994 only the pandemic year saw a steeper fall. Output plunged 22.4 percent in 2020. That drop was sudden but short. The current slump is deeper in time. Local brands cite high energy and labor costs. They struggle on price and speed. Many firms call for more training. They want help upgrading equipment. They seek stronger links to export markets. Such moves may boost resilience in coming years. Otherwise the sector may shrink further before bottoming out. Government, industry and labor groups must work together. Falling output may harm jobs and local communities.
Mexico apparel industry, textile manufacturing, Made in Mexico, trade tariffs, INEGI, Ministry of Economy
