Since its global establishment, the apparel manufacturing industry has largely been driven by quota systems, especially in low-cost labor countries. Unit costing was not a primary concern, as quotas guaranteed consistent demand regardless of operational efficiency. However, with the phase-out of quotas after 2005—marking the end of the era of mass and commodity-based production—the industry began to evolve. This evolution was not characterized by competitive transformation, but rather by compliance-driven adaptation to global market pressures, including increasing demands for transparency, ethical standards, and, more recently, a shift toward circular economy principles and environmental protection.

This shift introduced new imperatives such as cost transparency based on standard minute values (SMVs), as well as adherence to growing expectations around compliance, ethical labor practices, and environmental responsibility. Yet, rather than upgrading or realigning workforce capabilities to meet these new demands, companies often responded by layering on additional roles and responsibilities. These were typically compliance-related functions added as separate jobs, rather than integrated into a strategically upskilled and agile workforce—further contributing to structural inefficiencies that persist to this day.

With the rapid advancement of Industry 4.0 and the emerging wave of Industry 5.0, a new era of manufacturing has begun—one defined by digital integration, automation, and human-centric innovation. At the same time, intensified market pressures and the shift toward fast-paced, small-lot fashion production have created unprecedented challenges. Yet, many industry leaders continue to rely on outdated mechanisms rooted in the legacy of quota-based, commodity production. Their responses are often fragmented—treating new demands with temporary fixes rather than systemic change.

This new era demands a decisive transformation focused on enhancing competitiveness. It calls for a fundamental shift in leadership mindset, deeper engagement with productivity drivers, restructured manufacturing systems and setups, and a significant upgrade in workforce capabilities. Unfortunately, the industry continues—and will likely continue—to struggle under the weight of decades-long inefficiencies, particularly in labor-driven sectors such as apparel manufacturing. While digital technologies, automation, and robotics are increasingly accessible, their adoption remains uneven hampered by legacy thinking and a persistent reluctance to embrace structural change.