U.S. apparel manufacturing reached its height shortly after World War II and has steadily declined ever since. As late as 1980, clothing production still made up one in 10 American manufacturing jobs. But by 2007, 95 percent of apparel bought in the U.S. was imported from elsewhere.
One explanation:
The rise of the branded private label was the nail in the coffin for U.S. apparel manufacturing. Designers started taking over their own manufacturing (contracted overseas) and opening their own retail outlets rather than relying on department stores. … More importantly, though, these new private labels started investing heavily in advertising. Nike, Levi’s, Calvin Klein—with the movement of production overseas, the race at home was to capture the imagination, and dollars, of the American consumer. Companies were no longer selling clothing—they were selling a lifestyle.
The Dish 