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A growing number of fashion brands are consolidating existing sourcing bases, opting to work with fewer but more capable vendors over the next two years, according to a 2026 Fashion Industry Benchmarking Study published by the U.S. Fashion Industry Association.
As part of a “new phase of sourcing strategy,” 30 U.S. fashion companies surveyed between April and June 2026 are adjusting their tactics due to ongoing trade and tariff uncertainty, per the study published in partnership with Sheng Lu, professor and director of graduate studies in the Department of Fashion and Apparel Studies at the University of Delaware.
Because U.S. tariffs will continue to have an impact on cost, “the goal is to maintain geographic diversity while consolidating sourcing networks to work more closely with key strategic partners overseas that offer sourcing flexibility and strong compliance,” USFIA President Julia Hughes said in a foreword.
Compared to 2025 statistics, substantially fewer brands plan to source from additional companies or expand their vendor network over the next two years, per the study. This means that instead of pushing rapid geographic expansion and diversification, some brands are prioritizing capacity, flexibility, inventory agility and regional balance.
