Why brands like Untuckit are experimenting with robot-made T-shirts
Despite concerted efforts, notably through tariff implementations aimed at bolstering domestic production, the envisioned resurgence of "Made in the USA" manufacturing in the apparel sector has largely remained elusive. Import data consistently indicates a redirection of sourcing from China to other Asian nations, as well as Europe and Mexico, rather than a significant homecoming of production to American shores. However, a growing contingent of industry executives is beginning to identify AI-powered robotics as a transformative force, capable of recalibrating the economic calculus and potentially paving a viable path for the revitalization of domestic apparel manufacturing. This technological integration promises to address the long-standing challenges of high labor costs and efficiency gaps, which have historically rendered U.S. production uncompetitive.
The Tariff Effect: A Diverted Stream, Not a Resurgence
The former Trump administration’s tariff actions, particularly those levied on goods from China, were explicitly designed with the strategic objective of incentivizing companies to shift their manufacturing bases back to the United States. The rationale was that increased import costs would diminish the attractiveness of foreign production, thereby making domestic alternatives more economically appealing. However, the practical outcome for the apparel industry has largely been a recalibration of global supply chains rather than a wholesale return to American factories.
Instead of reshoring, many brands adopted a "China Plus One" strategy, diversifying their manufacturing footprint to countries such as Vietnam, Cambodia, India, and Madagascar. This shift was a pragmatic response to the tariffs, allowing companies to mitigate increased costs while still leveraging the established infrastructure, skilled labor, and competitive pricing found in other Asian manufacturing hubs. Data from various trade organizations and economic reports, including those cited by Modern Retail, underscore this trend, showing significant increases in goods sourced from these alternative regions. For example, some analyses indicated that hundreds of billions of dollars in U.S. imports changed their country of origin in the wake of the tariffs, with the lion’s share going to other low-cost production centers.
Bjorn Bengtsson, Chief Product and Supply Chain Officer at the popular apparel brand Untuckit, offers a firsthand account of this seismic shift. Untuckit, like many brands, previously relied heavily on China for its production. The imposition of tariffs fundamentally altered their cost structures, compelling them to explore and establish partnerships in new territories. Bengtsson recounts the arduous process of transitioning manufacturing operations to countries like Vietnam, India, and Madagascar. He candidly acknowledges the inherent difficulties, emphasizing China’s long-standing reputation as the premier global hub for apparel manufacturing, lauded for its unparalleled quality and service. Moving away from this established ecosystem, he notes, invariably introduces complexities and challenges in maintaining consistent quality and operational efficiency.
The Enduring Appeal and High Cost of "Made in the USA"
Despite the complexities of global sourcing, the allure of producing goods domestically remains strong for many brands, including Untuckit. Bengtsson articulates several compelling reasons for desiring U.S.-based production: the potential to utilize high-quality American-grown cotton, the significant reduction in lead times due to proximity to the end consumer, and the enhanced agility to respond to market trends and demand fluctuations. Furthermore, the "Made in the USA" label often resonates positively with consumers, signifying quality, ethical production, and support for the national economy.
However, the primary impediment to widespread U.S. apparel manufacturing remains the prohibitive cost. Bengtsson illustrates this stark reality by estimating that a shirt currently retailing between $79 and $150 could skyrocket to as much as $195 if produced entirely in the United States. This substantial price differential is primarily attributable to significantly higher labor costs, more stringent regulatory environments, and the absence of a fully developed, integrated apparel manufacturing ecosystem that can compete on scale and efficiency with established global hubs. The fragmentation of the domestic supply chain, from textile mills to cut-and-sew operations, also contributes to increased expenses and logistical hurdles. For brands operating in competitive retail markets, such a drastic price increase is often untenable, pushing them towards overseas alternatives despite the tariffs.
AI and Robotics: Reshaping the Economic Landscape
This is precisely where AI-powered robotics enter the conversation as a potential game-changer. The core premise is simple yet revolutionary: by automating significant portions of the manufacturing process, companies can drastically reduce their reliance on manual labor, thereby mitigating the primary cost disadvantage of domestic production. The concept is not entirely novel; some advanced manufacturers in China have already demonstrated the efficacy of implementing AI and robotics to enhance efficiency and reduce labor costs within their own highly competitive environments. The difference now is the growing maturity and accessibility of these technologies, making them a more viable solution for high-wage economies.
AI’s role extends beyond mere automation; it involves intelligent automation. AI algorithms can optimize production schedules, predict maintenance needs for machinery, enhance quality control through computer vision, and even manage inventory more effectively. Robotics, in turn, provide the physical capability to execute tasks with precision, speed, and consistency, often surpassing human capabilities in repetitive or hazardous operations.
Bengtsson’s proactive approach to exploring these nascent technologies exemplifies the industry’s evolving mindset. He has engaged with CreateMe, a California-based AI robotics company, on an innovative T-shirt project. This collaboration focuses on developing on-demand, stitch-free apparel, a radical departure from traditional garment construction. CreateMe’s process utilizes AI-enabled robots that employ advanced adhesives to assemble garments, eliminating the need for conventional sewing. This method not only streamlines production but also opens up possibilities for novel designs and material combinations. While the line is still under development, with retail sales details anticipated later in the year, the potential implications are profound. CreateMe’s website boasts the capacity to handle both high-volume orders and smaller batches, as few as 100 units, offering unprecedented flexibility for brands.
Bengtsson expresses optimism about the aesthetic quality of these robotic-produced garments, noting that the stitch-free T-shirts "look exactly the same as a stitch T-shirt." His willingness to experiment underscores a broader industry sentiment: a pragmatic recognition that technological innovation is essential to overcome current manufacturing limitations. He is actively seeking out and embracing such opportunities, believing they hold the key to future competitiveness.
Industry-Wide Adoption: AI as a Strategic Imperative
Untuckit’s experimentation is not an isolated incident but rather indicative of a broader, accelerating trend across the supply chain and manufacturing sectors. Business executives are increasingly viewing AI and robotics not merely as efficiency tools but as critical strategic investments essential for easing supply chain costs, enhancing resilience, and navigating a volatile global economic landscape.
A compelling illustration of this widespread adoption comes from Prologis, a leading logistics real estate company. Their comprehensive 2026 Supply Chain Outlook Report, based on a survey conducted by The Harris Poll involving over 1,800 business leaders, reveals significant insights. A staggering 70% of organizations reported already incorporating more AI into their supply chain operations. Furthermore, the report highlights that three out of four executives identified AI as their top investment priority, significantly outpacing other critical areas like supplier relationships, which were prioritized by roughly four in ten executives.
The findings of the Prologis report serve as a stark warning and a call to action: "Organizations must accelerate AI adoption or risk competitive obsolescence as automation becomes table stakes." This statement underscores the rapidly shifting competitive landscape, where technological laggards face the genuine threat of being outmaneuvered by more agile and technologically advanced competitors. The imperative is clear: embrace AI or face marginalization. The applications of AI in supply chain management are vast and include demand forecasting, inventory optimization, route planning, warehouse automation, predictive maintenance for machinery, and even risk assessment for supplier networks. By integrating AI, companies aim to achieve greater transparency, efficiency, and adaptability across their entire logistics ecosystem.
Current Hurdles and the Road Ahead for Advanced Robotics
While the promise of AI-powered automation is immense, the technology still faces significant hurdles before it can fully revolutionize complex apparel manufacturing. Bengtsson himself points to the limitations when it comes to more intricate garments. The "bread and butter" of Untuckit’s product lineup, a woven shirt with a collar, presents a particular challenge. The precise, nuanced stitching required to attach a collar around a neck hole, ensuring both aesthetic appeal and structural integrity, remains a domain where human dexterity and judgment often surpass current robotic capabilities. "Automation is great, but if the collar doesn’t look good, it doesn’t help me," Bengtsson rightly observes.
The handling of soft, deformable materials like fabric is inherently more complex for robots than manipulating rigid components. Traditional industrial robots excel at repetitive tasks with fixed parameters, but the variability of textiles – their drape, stretch, and tendency to shift – requires highly sophisticated vision systems, advanced grippers, and real-time adaptive algorithms. While significant progress is being made in areas like robotic fabric manipulation and automated sewing, achieving the consistent quality and aesthetic finesse required for high-end apparel, especially intricate details like collars, cuffs, and plackets, remains an active area of research and development. The current state of the art suggests that while basic garment assembly can be automated, more complex, high-dexterity tasks still heavily rely on skilled human labor.
Beyond Apparel: Broader Supply Chain Dynamics
The broader retail landscape continues to grapple with multifaceted supply chain challenges, extending beyond tariffs and manufacturing locations. The fluctuating price of essential commodities, such as gas, has profound ripple effects. Rising gas prices, for instance, not only increase transportation costs for suppliers but also subtly alter consumer behavior. Recent earnings reports from major consumer packaged goods (CPG) giants like PepsiCo have highlighted how elevated fuel costs can impact impulse purchases at convenience stores and gas stations. Consumers become more deliberate in their choices, often opting to refuel at club retailers like Sam’s Club or Costco, where gas prices are typically lower, subsequently reducing their exposure to impulse buys at traditional convenience outlets. This shift demonstrates how macroeconomic factors can indirectly influence even seemingly unrelated retail segments.
Conversely, the rapid response capability of manufacturers remains crucial for capitalizing on emergent trends. The recent resurgence of the Hacky Sack, for example, illustrates the importance of agile production. Toy manufacturer PlayMonster, in collaboration with Wham-O (the trademark owner), quickly relaunched the product, adapting it with variations like light-up versions and those with audible kick counters, to meet renewed consumer interest in communal, in-person activities. Such instances underscore the strategic advantage of supply chains that can rapidly scale production and innovate in response to market demand, a capability that AI and robotics could further enhance.
Strategic Implications and the Future of Retail Logistics
Despite the current limitations, the long-term vision for AI-powered automation in manufacturing, particularly within the apparel industry, remains compelling. Bengtsson maintains a firm belief in the transformative potential of these technologies, especially in enhancing the speed and proximity of production to the point of sale. This "nearshoring" or "reshoring" model, facilitated by automation, offers numerous strategic advantages. It can drastically reduce lead times, minimize transportation costs, lower inventory holding costs, and provide greater flexibility to respond to rapidly changing consumer preferences or unexpected disruptions, such as pandemics or geopolitical events.
Moreover, bringing manufacturing closer to home can contribute to greater supply chain resilience, reducing dependence on distant and potentially unstable global supply routes. It also offers the potential for enhanced ethical oversight of labor practices and reduced environmental impact through shorter shipping distances. While the initial investment in advanced robotics and AI infrastructure can be substantial, the long-term benefits in terms of cost savings, increased efficiency, improved quality control, and enhanced market responsiveness are becoming increasingly difficult for forward-thinking brands to ignore.
In conclusion, while tariffs have not yet delivered the anticipated renaissance of U.S. apparel manufacturing, the confluence of advanced AI and robotics is beginning to shift the paradigm. The journey is complex, fraught with technological challenges and significant investment requirements, but the strategic imperative to create more efficient, resilient, and responsive supply chains is undeniable. As companies like Untuckit continue to experiment and invest, AI-powered automation stands poised to redefine the economics of domestic production, potentially ushering in a new era of "Made in the USA" for the 21st century. The evolution of these technologies will be a critical determinant in whether the dream of reshoring apparel manufacturing can finally transition from aspiration to widespread reality.
