A successful U.S. apparel-maker, for instance, may assemble basic men's khaki pants in average sizes in Mexico, taking advantage of low labor costs as well as Mexico's proximity to the maker's Texas distribution centers; at the same time, this company can choose to manufacture products with more variable demand, like khaki pants with narrow waists and long inseams, in the United States, providing fast turnaround for retailers and lower exposure to inventory risk.
Outsourcing work to Mexico would benefit apparel-makers due to low labor costs.