why did tropical sportswear move their company overseas

Tropical Sportswear was once a prominent American clothing manufacturer known for its high-quality sports apparel. However, in recent years, the company has shifted its production overseas, leaving many wondering why they made this decision. In this article, we will explore the reasons behind Tropical Sportswear's decision to move their company overseas.

1. Cost Cutting Measures

One of the primary factors that influenced Tropical Sportswear's decision to move their company overseas was cost-cutting measures. Manufacturing products in the United States is a more expensive process due to higher wages, health care expenses, and other operating costs. By relocating production abroad, Tropical Sportswear was able to reduce its manufacturing costs significantly. The availability of cheap labor in countries like China, Vietnam, and Bangladesh allowed the company to save on labor costs, increasing their bottom line.

2. Increased Globalization

The world has become more connected than ever, with globalization paving the way for businesses to broaden their horizons and tap into new markets. Tropical Sportswear was no exception to this trend; they recognized the opportunity to gain a foothold in emerging markets by producing their products abroad. By sourcing materials, producing, and selling products overseas, the company was able to expand its customer base and sales worldwide.

3. More Accessible Supply Chain

Another reason Tropical Sportswear moved overseas was to streamline their supply chain. When producing locally, companies must source materials domestically, which can hinder their ability to operate due to limited access to raw materials. By moving their production abroad, Tropical Sportswear was able to tap into global sourcing networks for materials, increasing its supply chain's efficiency and reducing overall production costs.

4. Smaller Environmental Footprint

Tropical Sportswear's move overseas also had environmental benefits. Clothing production can be a particularly environmentally destructive industry due to the high levels of material waste and chemical discharge produced. However, by moving their operations overseas, particularly to countries with more environmentally friendly regulations, Tropical Sportswear was able to reduce its carbon footprint significantly.

5. Engaging in Corporate Social Responsibility

In addition to reducing their environmental footprint, Tropical Sportswear's move overseas allowed them to participate in corporate social responsibility initiatives. By sourcing from factories abroad, they gave much-needed support to businesses in developing countries, providing jobs and stimulating their local economies. They also had the opportunity to ensure that their products were ethically made and that their workers were treated well. By partnering with factories that promote fair labor practices, Tropical Sportswear was able to demonstrate their commitment to corporate social responsibility.

In conclusion, while Tropical Sportswear's decision to move their company overseas may have been controversial for some, it is clear that it was a strategic move. By reducing their costs, broadening their customer base, streamlining their supply chain, reducing their environmental footprint, and engaging in corporate social responsibility, the company was able to solidify its position in the sports apparel industry. As globalization continues to forge on, Tropical Sportswear's decision provides an interesting case study in how companies can adapt to changing times and take advantage of new opportunities.