Unspun, a San Francisco based B Corp certified technology company, has announced plans to build domestic automated apparel manufacturing hubs across the United States, backed by letters of support from Walmart and REI, two of the country’s largest and most influential retailers. Supply chain partners Bethel Industries, Peckham, and PDS Ltd / GSC Link have also signed on to help establish the facilities, with initial production on the near term horizon.
The Technology Behind the Plan
At the heart of unspun’s model is a proprietary AI enabled 3D weaving technology that produces semi finished garments directly from yarn in minutes, collapsing dozens of traditional cut and sew steps into a single, fully automated process. The platform allows brands to produce closer to actual consumer demand, reorder within the same season, and significantly reduce the excess inventory that costs the apparel industry billions of dollars each year. By cutting production cycles from months to days, 3D weaving is estimated to enhance margins by 400 to 600 basis points through fewer discounts and write offs, while also creating skilled American manufacturing jobs in the process.
The Funding and Expansion Plan
unspun has raised over $50 million in venture capital funding to date and is now planning to raise an additional $40 million in project level financing to build 10 factories across the US. Equipment is already ready for deployment and the company is currently evaluating sites across multiple states, assessing infrastructure requirements and workforce training programs as it moves toward establishing the first hubs.
What the Brands and CEO Said
Avisnash Bhasker, Vice President of Apparel Production Development at Walmart, said, “Our customers are proud to buy apparel made in America, and the demand keeps growing. We are excited about unspun’s commitment and effort in helping rebuild domestic manufacturing capability that is faster, smarter, and designed for how customers actually shop.”
Arne Arens, CEO of unspun and former Global Brand President of The North Face, said, “We are not exploring whether domestic apparel manufacturing can work. We are building it. Our clients are looking for a new production model because they see the economics: manufacturing closer to the customer, responding to demand within the same season, and creating skilled American jobs in the process.”
Why This Matters for the Industry
The initiative represents one of the first examples of AI enabled automation being deployed to rebuild domestic US apparel manufacturing capacity at scale. For brands like Walmart and REI, the appeal goes beyond patriotic optics. A domestic, demand driven production model reduces exposure to the kind of global supply chain disruptions and tariff headwinds that have rattled the apparel industry in recent years. With US tariffs on apparel imports creating mounting pressure on margins across the sector, the ability to manufacture locally, on demand, and at a commercially viable cost is no longer just an aspiration. For unspun, it is becoming a tangible reality.
