Textile Innovation, Hecho en México, and the Ever-Merging North American Marketplace - EDPNC

We recently learned from a Mexican knits producers that something of a townhall took place in May for Mexico’s textile industry, including the textile chamber CANAINTEX and likely members of the apparel chamber, CONAIVE as well.

Although we have yet to find public reporting on the event, those watching industry news may be aware that in December of 2024, Mexico imposed 15-35 percent tariffs on MFN country-originated textile finished goods and inputs. While the temptation is to assign some of this impetus to the Trump administration, Mexico’s apparel and textile industry lost 80 thousand employees over the past couple of years, around 20 percent of the industry, due to dumping or dumping-like practices related to its textile and apparel imports. This is combined with something of a crackdown/modernization that has been going on in Mexico’s IMMEX program, which led to the identification of eight companies in Mexico that had been using the program to fraudulently import (120 million USD worth of) apparel and textile inputs, evading VAT and duties. The textile industry and others, including CONCAMIN, support these measures to reclaim and fortify national textile and apparel production. Meanwhile President Sheinbaum is explicit that the measures are not meant as a “message” to China, but rather a return to the grassroots and heritage strengths of Mexican industry.

Part of the townhall no doubt included conversation on the signing by ANTAD, Mexico’s national association of department stores and supermarkets, whose members reported sales of 25 billion USD in the first quarter of 2025, of an agreement with the Secretaría de Economía to increase national content on the stores shelves of 22 members. Department stores will increase Hecho en México products from 30 to 42 percent, for example. The agreement aims for 70 percent overall by 2028. As ANTAD expects quality national content, the group is amplifying the message that suppliers of textiles and footwear, among other product categories, should focus on supply chain and packaging maturity, developing quality relationships with buyers, innovate in all areas from design to production to marketing, and that they rise to or exceed international standards on traceability, efficiency, quality control and payments.

Indeed, the conversation we had with the Mexican knits company was in the context of introducing them to a North Carolina company, prior to the recent Tech Textile show in Atlanta, that proposes to collaborate on incorporating NC textile innovations into Mexican production, a win-win that grows client base and value earned for both parties. As the president of CONAIVE recently told the press, Mexico has one of the most complete and competitive textile supply chains in the world, especially when it comes to high-value added textiles like those used in automotive and aerospace. Mexico also has notable output volumes for apparel in denim, workwear and knitwear. It had to focus on those areas to stay alive, in some sense, and we hope that the new initiatives can help Mexico companies, with collaboration throughout North and Central America including North Carolina, step up to meet demand for more regionally produced, high-quality clothing and other textiles as well.

An official announcement in English of the Hecho en México certification, part of the Sheinbaum administration’s Plan Mexico, may be reviewed in brief here, with full text in Spanish here. Read on below for some background information we have cobbled together on how quality Mexican producers have fared in the Global Marketplace and some background on Mexico’s long history of textile production.

Some Well-Known Textile Companies in Mexico

Company	Origin	Action	Website
Grupo Kaltex	Mexican	Major yarn and textile producer promoting, wovens and non-wovens	www.kaltex.com.mx
Grupo Siete Leguas	Mexican	Leading denim manufacturer	sieteleguas.com.mx
Zagis	Mexican	Recently invested 25 million USD in a new organic cotton yarn plant in Hidalgo	www.zagis.com/en
Grupo Denim	Mexican	Vertically integrated denim company	grupodenim.mx
Toray Industries	Transnational	Operates a technical textile facility in Jalisco for automotive	www.plastics.toray/about/globalnetwork/trmx.html
VF Corporation	Transnational	Runs an apparel production site in Yucatán	www.vfc.com/news/media-assets/supply-chain
Suminoe Textile Co.	Transnational	Produces automotive textiles in Guanajuato	suminoe.co.jp/en/company/group

Small, Medium and New Mexican Producers in the Global Textiles Market

Mexican producers can leverage sustainability trends, local expertise, and strategic market positioning to scale and create significant economic impact in textiles and apparel, including the slow fashion sector. Key opportunities include:

1. Growing Consumer Demand for Sustainable Fashion

By 2025, 73% of Mexican consumers are expected to choose second-hand or sustainably produced clothing, driven by environmental concerns and a willingness to pay premiums for ethical products. This creates a robust domestic market for brands emphasizing quality and longevity over fast fashion disposability.

2. Proximity to North American Markets

Mexico’s geographic advantage enables faster, cost-effective supply chains that appeal to brands and consumers seeking transparency and reduced carbon footprints. Nearshoring supports smaller-scale, ethical production while maintaining competitive costs.

3. Skilled Workforce and Artisanal Heritage

Mexico’s long tradition in textile craftsmanship and a large skilled labor pool facilitate the production of high-quality, ethically made garments. This supports differentiation in markets that value authenticity and craftsmanship.

4. Government Support and Protective Measures

Recent tariffs on imported textiles and garments from countries without free trade agreements (e.g., 15% on inputs, 35% on finished goods) aim to protect local producers, giving enterprises a better chance to scale domestically and regionally.

5. Technological and Sustainable Innovations

Adoption of eco-friendly materials, digital printing, and energy-efficient processes enhances product appeal and operational efficiency, enabling Mexican producers to compete globally on sustainability credentials.

6. E-commerce and Digital Platforms

Expansion of online marketplaces for second-hand and smaller-scale fashion goods facilitates broader market access, especially among millennials who dominate sustainable consumption trends in Mexico.

References

: https://mexicobusiness.news/ecommerce/news/second-hand-fashion-attract-73-mexicans-2025
: https://novalinkmx.com/2024/02/09/mexicos-competitive-edge/
: https://www.linkedin.com/posts/mexicobusiness_second-hand-fashion-to-attract-73-of-mexicans-activity-7270129679334862849-gSsz
: https://mexicobusiness.news/policyandeconomy/news/business-trends-mexico-2025
: https://mexico.fespa.com/en/news/panorama-y-desafios-de-la-industria-textil-mexicana-en-2025
: https://www.fashionrevolution.org/north-america/mexico/
: https://siila.com.mx/news/stores-trends-prices-new-retail-landscape-mexico-2025/7539/lang/en
: https://www.pradagroup.com/en/news-media/news-section/25-03-07-prada-group-unfpa-queretaro.html

Background on Mexico’s Textile Industry

Mexico’s textile and apparel production has a rich history dating back to pre-Hispanic times, with indigenous peoples spinning cotton and weaving fabrics. By 1400 BCE, fibers from yucca, palm, maguey, and cotton were used. Post-Spanish conquest, European fibers like wool and silk and new weaving technologies were introduced, transforming local production and styles^[1]. The colonial era saw the rise of large woolen workshops (obrajes) employing coerced labor, with Mexico becoming a significant wool and silk cloth producer by the late 16th century^[2].

The industrial revolution accelerated textile manufacturing in Mexico, marked by the first modern spinning mills in 1830 in Puebla and mechanized weaving around 1900 during Porfirio Díaz’s regime^[3][4][5]. By the 20th century, Mexico’s textile industry was a vital economic sector, with major production hubs in Puebla, State of Mexico, and Hidalgo, specializing in cotton denim and synthetic fibers^[5].

In the contemporary globalized economy, Mexico’s textile sector benefits from proximity to North American markets, enabling faster, cost-effective supply chains and making it the fifth largest textile supplier worldwide^[6][7]. However, it faces challenges from cheaper imports, especially from China and Southeast Asia, and struggles with modernization costs, energy expenses, and competition from fast fashion brands^[8].

Technological advances such as automation, digital supply chain management, and sustainable textile innovations are shaping the industry’s future, offering opportunities to enhance efficiency, product differentiation, and sustainability. Yet, adapting to global trade dynamics and maintaining competitiveness remain ongoing challenges^[9].