US brands are cutting suppliers. They're not leaving Asia.

A growing share of US fashion brands are cutting the number of suppliers they work with. In the 2026 USFIA Fashion Industry Benchmarking Study (Sheng Lu and Emilie Delaye, University of Delaware, 30 US companies surveyed April-June 2026), nearly 50% plan to reduce their supplier base over the next two years — almost three times last year's rate. Only 21% plan to add new sourcing countries through 2027, down from 59% in 2025.

Here's the detail buyers should notice: this isn't a retreat from Asia. The total number of countries covered by the survey sample actually rose slightly, from 46 to 49. What's shrinking is the number of vendors per company inside the same regions — Bangladesh and Vietnam usage is down individually, even as Asia remains the dominant sourcing base overall.

The criteria brands cite for who stays on the shortlist: production capacity, compliance rigor, trade regulation expertise — not just price. One signal worth flagging: forced labor risk jumped from 10th to 6th place among the industry's top concerns for 2026, and nearly 75% of respondents plan to put more resources into compliance and sustainability. If you're one of the suppliers or agents on that list, that's now the bar, not a box to tick.

Source: Sheng Lu / University of Delaware, 2026 USFIA Fashion Industry Benchmarking Study