Louis Vuitton's Texas Factory Struggles: A Case of Luxury in the Lone Star State

LVMH's Louis Vuitton factory in Texas, opened in 2017 to avoid tariffs, faces production and quality issues. Despite tax incentives, staffing remains below target, with quality concerns and high turnover among workers. LVMH plans more jobs in Texas, streamlining operations from California by 2028.

Established six years ago, Louis Vuitton's Texas factory has encountered significant challenges, impacting production and quality. The factory was inaugurated by LVMH CEO Bernard Arnault and President Donald Trump, aimed at expanding LVMH's U.S. footprint to avoid tariffs on European goods.

Despite promises of high-skilled jobs, the factory struggles with a shortage of experienced leather workers capable of meeting the brand's high standards. Reports reveal up to 40% of leather hides are wasted, and pressure to meet production targets led to quality being compromised at times.

Louis Vuitton plans to expand further into Texas, transferring operations from California by 2028 despite initial recruitment difficulties. The move, however, is fraught with logistic challenges and has not fully achieved expected staffing levels due to unforeseen circumstances like the COVID-19 pandemic.

(With inputs from agencies.)