Next Level Apparel (NLA; asi/73867) says it’s bringing more production closer to home.

The Torrance, CA-based apparel supplier has formed a partnership with Grupo M, a vertically integrated manufacturer that will provide NLA with nearshore garment production.

Executives described Grupo M as one of the largest textile manufacturers in the western hemisphere. The company’s operations are centered in the Dominican Republic.

NLA said the partnership will improve speed to market, decrease the risk of supply chain disruption due to geopolitical issues, and increase supply chain transparency, including the upstream traceability of the cotton the supplier uses. In January, Next Level announced that it was switching over to U.S. cotton for all orders placed after Feb. 1, 2023.

“With our premium products, our customers not only look good, but they also can feel good about how those products are sourced,” said NLA CEO Randy Hales. “As part of our ethos, we seek like-minded suppliers who prioritize sustainability and uphold equally high standards. This exciting partnership with Grupo M is another step forward in our longstanding commitment to supply chain visibility and accountability.”

NLA has worked with Grupo M for several years on various projects, Hales told ASI Media. With this new partnership, Grupo M is set up to produce 90% of Next Level’s styles, the CEO shared.

Ethical and sustainable production are fundamental at Grupo M, said company President Fernando Capellán.

“We are thrilled to collaborate with NLA to offer nearshore production while furthering our shared visions of innovation and transparency,” said Capellán, who founded Grupo M 37 years ago. “We appreciate Next Level Apparel’s passion, enthusiasm and diligence in bringing the highest-quality products to its customers while being equally committed to ethical and responsible sourcing.”

Nearshoring is the supply chain practice of partnering with suppliers, manufacturers and other necessary entities within a supply chain that are located in countries that are near the country of the firm that’s doing the sourcing and, often, its end-market.

Interesting move from Next Level Apparel. The Top 40 #promoproduct supplier says this will shorten fabric-sourcing lead times, reduce geopolitical sourcing disruption risks, and improve supply chain transparency,https://t.co/YYCrkucuV7@NextLevelTees @TheresaHegel @ASI_MBell

— Chris Ruvo (@ChrisR_ASI) February 3, 2023

In recent years, nearshoring has been on the rise in the promotional products industry – a phenomenon that both tariffs on China-made products and the supply chain disruption of COVID-19 accelerated. NLA has been among those transitioning to nearshore sourcing.

Counselor’s 2022 State of the Industry report found that over a 12-month period, about 55% of suppliers said they actively explored new countries from which to source due to trade uncertainty with China. Despite nearshoring gaining steam, the majority of promo products sold in North America are made in China, as well as other nations in Asia.  

NLA has placed a sharp focus on supply chain and sustainability. In another example, the company earlier this month announced a partnership with Oritain, a New Zealand firm that uses forensic and data science to verify the origin of products and raw materials. Oritain will help NLA to confirm the origin of cotton fibers, minimizing the risk of supply chain partners blending the product with lower-quality fibers.

NLA is an approved member of the Fair Labor Association, has received certification for its factories from Worldwide Responsible Accredited Production, and has partnered with Better Work, a program that brings together stakeholders in the garment industry to improve working conditions.

Based on estimated 2021 North American promotional product revenue of $275 million, Next Level Apparel ranked seventh on Counselor’s most recent list of the largest suppliers in the industry.