As we turn the page to 2025, there are a few key trends that we expect to see shape the apparel industry. While many focus on what colors, styles, and fabric will dominate buying habits, decorators should also pay attention to key economic and business trends. Below are my top predictions for 2025 in the apparel decorating community.

Trend No. 1: Nearshoring Will Become Essential

In 2025, I predict nearshoring will become a primary strategy for many midsize manufacturers seeking faster turnaround times, better quality control, and overall cost savings. The recent port strikes have only underscored the need for more localized production that reduces the reliance on distant, often disrupted supply chains. We expect this shift to improve production agility and strengthen supply chain resilience for U.S. companies, with substantial reductions in lead times and transportation costs.

By relocating production to neighboring countries like Mexico, businesses can reduce transportation costs, shorten lead times, and gain greater oversight of manufacturing processes. Nearshoring has the potential to boost the growth of Mexican manufacturing exports to the U.S. from $455 billion today to an estimated $609 billion in the next five years, according to Morgan Stanley Research.

Trend No. 2: AI Will Drive Customization and Efficiency

AI-driven customization is the next big wave for manufacturers and will dramatically transform the manufacturing sector in 2025. Those that don’t adopt this innovative technology will soon be extinct. Customers increasingly want personalized, high-quality products, and AI will empower manufacturers to deliver them efficiently and at scale.

In 2025, we predict that over 70% of emblem orders will be customized using some form of AI, with the technology streamlining both design and production to meet those demands. Beyond customization, AI will enhance predictive maintenance, quality control, and inventory forecasting, optimizing the entire manufacturing flow. Those in manufacturing who integrate AI will likely reduce waste, cut costs, and improve customer satisfaction — critical factors in staying competitive, especially in a sector where customization and quick turnaround are increasingly demanded.

Trend No. 3: Sustainability Will Shift from Buzzword to Core Business Requirement

Sustainability will become a core expectation from both customers and regulators. We expect to see more mandates around eco-friendly materials and waste reduction, especially in industries that often involve large-scale production. Integrating sustainable practices will no longer be a luxury but a necessity to remain competitive. By adopting energy-efficient processes, recycling materials, and minimizing waste, companies are not just reducing their environmental footprint but also future-proofing their business.