Foreign competition wiped out nearly every American denim mill. One of the last survivors operates in a corner of Georgia. Its machines hum with history. Yet across the world in Pakistan, factories run at a scale and speed that make survival here look like a miracle.
Mount Vernon Mills stands as one of the oldest denim operations left in the United States. Business Insider reporters walked its floors this month. They watched workers manage processes refined over generations. The mill has adapted. It now uses synthetic dyes in its Georgia plant to color yarn more efficiently than traditional methods. But adaptation only goes so far.
“The US was once the biggest denim manufacturer in the world. But after decades of competition from cheaper foreign factories, the country that popularized jeans has lost almost every denim mill,” the Business Insider team reported after touring both the American site and a major Pakistani counterpart.
And that counterpart? Crescent Bahuman. This Pakistani facility showcases the vertical integration that defines modern denim powerhouses. From spinning raw cotton through weaving, dyeing, and final garment assembly, everything happens under one roof. Labor costs stay low. Output runs massive. Brands from Levi’s to Zara and H&M source heavily from such operations.
Pakistan ranks among the world’s most important denim manufacturing hubs. Its mills handle the full production chain. They export fabrics and finished jeans to global names. Many rely on domestic cotton. This cuts expenses further. Recent reports highlight how Pakistani producers have overtaken China in certain US apparel categories thanks to these advantages. A 2022 Business of Fashion piece first flagged the shift. Newer data from late 2025 shows the trend holding despite trade frictions.
Tariffs now complicate the picture. As of December 2025, Pakistani denim apparel faces 19 percent duties entering the US market. That’s down from higher proposed rates but still significant. China contends with 10 to 30 percent. Bangladesh sees 20 percent. Mexico, despite USMCA benefits, deals with 25 to 30 percent in some scenarios. These levies hit consumers. Prices climb. Discounts shrink. Replenishment orders drop to 30 percent from prior 40 to 60 percent levels, according to analysis by University of Delaware professor Dr. Sheng Lu.
Yet demand for denim refuses to fade. Eighty-five percent of US consumers wear it. They own an average of 11 pairs each. The American market accounts for 22 percent of global denim sales. Projections put the worldwide industry at $120 billion by the end of 2025. It could reach $161 billion by 2033. Growth sits at 3.75 percent annually. Jeans remain cultural staples even as production shifts overseas.
But. The human element differs sharply between regions. American mills pay wages that support families and communities. Pakistani operations draw from a vast labor pool where costs allow aggressive pricing. One pair of jeans that might cost $18 to $35 to produce in Asia sells at retail for $60 to $100 in mid-market tiers. Premium “Made in USA” or Italian pieces command far more. Brands must decide if the story justifies the markup.
Small American makers still fight for space. Todd Shelton produces all-cotton jeans in a New Jersey factory. Raleigh Denim runs a workshop in North Carolina with vintage machines. Each pair gets signed by the jeansmith. These outfits target customers who value craft and proximity. They cannot match megafactory volumes. Their edge lies in customization, speed to local trends, and a narrative that resonates with buyers tired of distant supply chains.
Pakistan pushes technology to stay ahead. Mills invest in laser finishing and ozone washing. These techniques reduce water use dramatically. Recycling old cotton into new denim yarn gains traction. Artistic Milliners pioneered some of these recycling methods years ago. Such steps address environmental criticism while trimming costs. Vertical integration lets them control quality from fiber to finished product. Soorty Enterprises and Naveena rank among the notable names driving this capability.
Global shifts add pressure. Tariffs on top producers create uncertainty. Egypt expands with new facilities backed by $8.8 million and $40 million investments. Mexico offers nearshoring benefits for US brands seeking faster turnaround. Bangladesh and Vietnam scaled through heavy machinery purchases and low wages. The denim supply chain proves vulnerable to policy changes, labor issues, and raw material swings.
Mount Vernon Mills tries to carve a different path. At nearly 180 years old, it experiments with new dyeing approaches and focuses on specialty fabrics. Its continued existence shows resilience. Yet the contrast with Pakistani megafactories remains stark. One produces in batches suited for niche brands. The other ships millions of meters annually to fast fashion giants.
Consumers ultimately decide. Some pay extra for American-made labels. Others prioritize price and accept overseas origins. Sustainability claims grow louder on both sides. Water-saving tech in Pakistan meets eco-conscious marketing in the US. Neither side holds a monopoly on innovation.
The gap persists. American factories battle high operational expenses and limited scale. Pakistani producers wrestle with infrastructure challenges, energy costs, and reputational risks around labor standards. Trade policies swing back and forth. Brands chase the best mix of cost, quality, speed, and story.
Recent coverage underscores the stakes. A December 2025 WWD analysis laid out how tariffs could raise prices and slow replenishment across retail. Kohan Textile Journal described Pakistan’s integrated mills as essential to global supply. Business Insider’s factory visits brought the human and mechanical reality into focus. No easy answers emerge.
One thing feels clear. The denim trade no longer belongs solely to any single nation. It spreads across borders. Mills in Georgia and Lahore both contribute. Their futures depend on balancing tradition with efficiency, cost with conscience, volume with value. The jeans on store racks carry stories from both worlds. Most buyers never see the factories behind the fabric. But those factories determine what appears on shelves and at what price.
And so the competition continues. Mount Vernon tweaks its processes. Crescent Bahuman scales its output. Brands weigh options. Tariffs rise and fall. Consumers reach for their favorite pairs. The blue jean, symbol of American ingenuity, now embodies a global contest that shows no sign of easing.
America’s Fading Denim Mills Face Pakistan’s High-Tech Surge first appeared on Web and IT News.