Charles Esther
Bayard Winthrop, the founder and CEO of California-based apparel company American Giant, has embarked on a mission to bring high-quality clothing manufacturing back to the United States.
In this exclusive account, Winthrop shares his journey, the challenges of reviving U.S. manufacturing, and his thoughts on trade and the future of American industries.
A New Direction: From Libertarian Economics to American Manufacturing
Bayard Winthrop’s career began in small consumer product manufacturing businesses.
Initially, he followed the prevailing economic mindset of outsourcing production to overseas factories, influenced by Chicago School libertarian economic thinking.
It made financial sense at the time, but over the years, Winthrop grew increasingly disillusioned with this model.
He found himself disconnected from the products he was selling and troubled by the labor practices he encountered.
A turning point came in 2010 when Winthrop had his first daughter.
The realization that he could no longer participate in the race to cut labor costs by outsourcing production inspired him to start American Giant.
His goal was simple: to create a business that produced high-quality products close to home while offering fair wages and supporting American manufacturing.
The Revival of Iconic American Brands
Growing up in the 70s and 80s, Winthrop admired iconic American clothing brands like Levi’s, Wrangler, Champion, Red Wing, and Woolrich.
These brands not only represented high-quality products but also carried a sense of pride for their American craftsmanship.
However, by 2010, many of these companies had shifted their production overseas.
Winthrop saw an opportunity to fill the void and started American Giant with a focus on superior quality.
The company’s first product—a men’s sweatshirt—received rave reviews, with one article calling it “the greatest hoodie ever made.”
The resulting demand led to a back-order status that lasted for nearly three years, confirming that there was indeed a market for high-quality, domestically produced apparel.
American Giant’s Role in the Working Middle Class
Winthrop is acutely aware of the challenges faced by the American middle class, particularly those with high school degrees who have not benefited from the stock market boom.
He believes that the past 40 years have been tough on these individuals, particularly in rural and urban communities.
American Giant aims to be a small but impactful solution by creating well-paying jobs and focusing on U.S.-made products.
Winthrop reflects on how the textile industry in the U.S. was once booming but has since been hollowed out. In the 1970s, nearly 95% of clothing purchased by Americans was made in the U.S. Today, that figure has fallen to less than 5%.
American Giant’s mission is to reverse this trend by reintroducing manufacturing to the U.S. and supporting domestic workers.
Overcoming the Challenges of U.S. Manufacturing
While U.S. manufacturing capabilities have certainly declined over the years, Winthrop believes there is still significant untapped potential.
He points to the knitting industry as an example of a sector that could be revitalized.
Despite what many believe, high-quality, large-volume knitwear can still be produced in the U.S. The challenge lies in overcoming the disaggregated supply chain that has emerged over time.
Unlike countries like China, where large-scale orders can be quickly filled, U.S. manufacturers must contend with fragmented production processes.
American Giant’s success has been built on Winthrop’s willingness to dive deep into the supply chain.
The company has had to assemble its production from various sources, but with increasing volume, it is now easier to maintain and expand U.S. manufacturing.
Despite the higher costs associated with domestic production, Winthrop emphasizes that the quality is far superior, and it is worth the effort.
Shifting Trade Relationships and the Impact of Tariffs
Winthrop is a strong advocate for rebalancing U.S. trade relationships.
He believes the current trade agreements are less than ideal, particularly with China.
While tariffs on China have disrupted global trade, Winthrop sees them as a necessary step in addressing long-standing issues in U.S.-China trade.
The COVID-19 pandemic further highlighted the risks of relying on foreign countries for essential goods like medical masks and gowns.
However, Winthrop also cautions against treating all countries the same way.
He stresses the importance of differentiating between adversarial countries like China and U.S. allies such as Canada and Vietnam.
He argues that the current trade environment can create instability, which could deter private businesses from investing and moving forward.
The Potential for U.S. Manufacturing to Meet Growing Demand
Despite the challenges, Winthrop is optimistic about the potential of U.S. manufacturing.
He notes that the U.S. remains a net exporter of cotton, and many textile manufacturers have the capacity to meet higher demand for knitwear and apparel.
American Giant’s own experiences, such as its successful partnership with Walmart, show that it is possible to meet large-volume orders domestically without compromising on quality.
One key challenge, however, is the lack of skilled workers in certain industries.
While there is ample machinery for textile production, there is a skills gap that needs to be addressed.
Winthrop believes that the solution lies in training people to take up jobs in the manufacturing sector, offering them a viable career path that could compete with other industries like fast food.
Rebalancing Trade: A Necessary Trade-Off
Winthrop acknowledges that rebalancing trade will involve some sacrifices.
If tariffs result in higher costs for consumers, particularly for everyday items like T-shirts, the benefits could include better wages for workers in areas that have been economically distressed.
While this shift may require some adjustment on the part of consumers, Winthrop believes it is a worthwhile trade-off if it leads to the creation of good jobs and the revitalization of communities.
Ultimately, Winthrop believes that a more rational middle ground exists between total reliance on foreign manufacturing and complete self-sufficiency.
By focusing on high-quality, domestically produced goods, American businesses can support both local workers and consumers while rebuilding the foundation of American manufacturing.
A Vision for the Future
Winthrop’s vision for American Giant is clear: to create a business that produces high-quality products, supports American workers, and contributes positively to the economy.
He is committed to providing good jobs for U.S. workers, especially in areas that have been left behind in the modern economy.
By focusing on quality and sustainability, American Giant is working toward a future where manufacturing is once again a vital part of the U.S. economy.
As the debate over trade and manufacturing continues, Winthrop’s efforts show that it is possible to reimagine American industry and create jobs that benefit both workers and consumers.
The future of U.S. manufacturing, while not without challenges, holds tremendous potential.
