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WebMD
18 minutes ago
- WebMD
Back Pain Relief From This Therapy Can Last for Years
back pain treatments that offer lasting relief, or any relief. That's why a surprising new study, published Wednesday, is drawing public and clinical attention, showing that adults with disabling low-back pain who completed just eight sessions of a novel therapy saw sustained improvements in their pain and activity levels – even after three years. The treatment, called cognitive functional therapy (CFT), blends physical therapy with a psychology-based approach. CFT "teaches patients how to manage their own symptoms, what their pain experience means, and how they can move forward without injuring themselves," said Chad E. Cook, PT, PhD, a pain researcher at Duke University in Durham, North Carolina. (Cook was not involved in the study.) Teaching people to self-manage pain is the cornerstone of the approach, Cook said. It's "why the authors saw improvements at three years – which is very uncommon." The study included 312 adults in Australia with an average pain level of 4 or more on a 10-point scale – enough to interfere with daily living and work activities. Of those who completed the CFT (which included seven 30- to 60-minute sessions over 12 weeks, plus an eighth "booster" session at 26 weeks), more than 40% saw improvement in their activity level – and maintained that improvement after three years, compared to 17% in a comparison group who received usual care. Pain scores dropped by an average of 2 points in the CFT group, compared with less than 1 point in the usual care group, and that was also sustained after three years. The average age of people in the study was 48, but benefits were seen among a wide range of ages, said study author Mark Hancock, PhD. Here are three things to know about CFT for low-back pain, a condition that affects more than 1 in 4 U.S. adults. CFT helped the people that nothing else worked for. Most people in the study did not expect the treatment to work, likely because other treatments they'd tried had failed. "The poor outcomes of mainstream approaches are one of the reasons the authors created CFT," Cook said. "Before giving up, it is worth speaking with a CFT clinician to determine if the approach is right for you." People with the most severe low-back pain have the most to gain: They're the ones who tend to reap the greatest benefit from CFT, the research showed. CFT is low risk and can be done anywhere. There's no clear go-to therapy for low-back pain, and many options – like surgery or opioids – carry high risks. Research on most treatments shows mixed results, and scientists haven't yet figured out how to tailor them to individual patients. But anyone can do CFT, anywhere. Many of the people in the study did their sessions via virtual appointments, although Hancock recommends doing the first session in person. It's movement and psychotherapy combined. A course of CFT is highly personalized, but it might include: Tailoring therapy based on what's causing your pain – an old back injury or past surgery, for example – and your experiences from treatments that didn't work Tracking exactly when and where pain shows up – like if it worsens while sitting, climbing stairs, or after certain movements Challenging unhelpful beliefs about pain, such as "I will never be able to work again" or "my posture is wrong" Practicing specific movements and psychological strategies with the therapist – like learning to move despite discomfort, training your body not to respond by tensing up (known as muscle guarding), and focusing instead on relaxing the muscles (which can ease pain) Relearning everyday movements that matter to you – such as standing or sitting without pain, walking the dog, or getting back on the bike – along with strength training and lifestyle habits that support recovery Developing helpful internal monologues, like "I became mindful to my response to pain" or "I don't fear my pain anymore" How Do You Get Started with CFT? Because it's an emerging therapy, you may not readily find a CFT-trained physical therapist. If you can't find one close to you, Hancock suggested searching for a physical therapist who describes themselves as "more of a coach, helping you to understand your back pain and giving you skills and confidence to return to activity." In the meantime, Hancock, a professor of physiotherapy and back pain researcher at Australia's Macquarie University in Sydney, offers these tips: Try to keep moving during pain, rather than resting or avoiding activity. Relax and try to move normally. View your pain as a warning sign, but not as message that damage is happening. If you gradually do more, the pain usually is reduced.
Yahoo
an hour ago
- Yahoo
AvidXchange Announces Second-Quarter 2025 Financial Results
CHARLOTTE, N.C., Aug. 06, 2025 (GLOBE NEWSWIRE) -- AvidXchange Holdings, Inc. (Nasdaq: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, today announced financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights: Total revenue was $110.6 million, an increase of 5.2% year-over-year, compared with $105.1 million in the second quarter of 2024. Revenue included interest income of $10.6 million compared with $11.8 million in the second quarter of 2024. General and administrative expenses included transaction and deal costs of $6.4 million primarily related to the proposed plan of merger announced on May 6, 2025. GAAP net loss was $(9.5) million, compared with a GAAP net income of $0.4 million in the second quarter of 2024. Non-GAAP net income was $10.7 million, compared with $10.7 million in the second quarter of 2024. GAAP gross profit was $73.6 million, or 66.6% of total revenue, compared with $68.7 million, or 65.3% of revenue in the second quarter of 2024. Non-GAAP gross profit was $81.6 million, or 73.8% of total revenue, compared with $76.3 million, or 72.6% of revenue in the second quarter of 2024. Adjusted EBITDA was $17.4 million compared with $17.5 million in the second quarter of 2024. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Measures and Other Performance Metrics." Second Quarter 2025 Key Business Metrics and Highlights: Total transactions processed in the second quarter of 2025 were 20.1 million, an increase of 1.8% from 19.7 million in the second quarter of 2024. Total payment volume in the second quarter of 2025 was $21.5 billion, an increase of 4.1% from $20.6 billion in the second quarter of 2024. Transaction yield in the second quarter of 2025 was $5.50, an increase of 3.2% from $5.33 in the second quarter of 2024. Financial Outlook & Earnings TeleconferenceAs disclosed previously, due to its pending acquisition by TPG in partnership with Corpay, AvidXchange has suspended its previously issued financial outlook for fiscal 2025 and will not hold a teleconference to discuss its second quarter 2025 financial results. About AvidXchange™AvidXchange is a leading provider of accounts payable ('AP') automation software and payment solutions for middle market businesses and their suppliers. AvidXchange's software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,500 businesses and it has made payments to more than 1,350,000 supplier customers of its buyers over the past five years. To learn more about how AvidXchange is transforming the way companies pay their bills, visit Forward-Looking StatementsCertain statements made in this press release constitute forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact and generally relate to future events, hopes, intentions, strategies, or performance may be deemed to be forward-looking statements, including, without limitation, statements regarding AvidXchange's pending acquisition by TPG in partnership with Corpay. These forward-looking statements are based on management's current expectations and beliefs as of the date they are made. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause AvidXchange's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the risks discussed in AvidXchange's filings with the Securities and Exchange Commission ('SEC'), including AvidXchange's Annual Report on Form 10-K and other documents filed with the SEC, which may be obtained on the investor relations section of our website ( and on the SEC website at AvidXchange undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise, except as required by law. Non-GAAP Measures and Other Performance MetricsTo supplement the financial measures presented in our press release in accordance with generally accepted accounting principles in the United States ('GAAP'), we also present the following non-GAAP measures of financial performance: Non-GAAP Gross Profit, Non-GAAP Gross Margin, Adjusted EBITDA, Non-GAAP Net Income (Loss) and Non-GAAP Earnings Per Share. A 'non-GAAP financial measure' refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. We have presented Non-GAAP Gross Profit, Adjusted EBITDA, Non-GAAP Net Income (Loss) and Non-GAAP Earnings Per Share in this press release. We define Non-GAAP Gross Profit & Gross Margin as revenue less cost of revenue excluding the portion of depreciation and amortization and stock-based compensation expense allocated to cost of revenues. We define Adjusted EBITDA as our net loss before depreciation and amortization, impairment and write-off of intangible assets, interest income and expense, income tax expense (benefit), stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, and charitable contributions of common stock. We define Non-GAAP Net Income (Loss) as net loss before amortization of acquired intangible assets, impairment and write-off of intangible assets, stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, acquisition-related effects on income tax, and charitable contributions of common stock. Non-GAAP income tax expense is calculated using our blended statutory rate except in periods of non-GAAP net loss when it is based on our GAAP income tax expense. In each case, non-GAAP income tax expense excludes the effects of acquisitions in the period on tax expense. We define Non-GAAP Earnings per Share as Non-GAAP Net Income (Loss) per diluted share. We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance. Availability of Information on AvidXchange's WebsiteInvestors and others should note that AvidXchange routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations section of AvidXchange's website. While not all information that AvidXchange posts to the Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, AvidXchange encourages investors, the media and others interested in AvidXchange to review the information that it shares at the Investor Relations link located at Users may automatically receive email alerts and other information about AvidXchange when enrolling an email address by visiting 'Email Alerts' in the 'Resources' section of AvidXchange's Investor Relations website Investor Contact: Subhaash KumarSkumar1@ Holdings, Statements of Operations(in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues $ 110,570 $ 105,132 $ 218,512 $ 210,730 Cost of revenues (exclusive of depreciation and amortization expense) 30,949 30,426 61,738 60,759 Operating expenses Sales and marketing 23,068 19,956 45,579 39,697 Research and development 26,975 25,008 52,357 50,912 General and administrative 33,510 22,635 62,458 46,895 Impairment and write-off of intangible assets - - - 162 Depreciation and amortization 8,479 9,208 17,148 18,515 Total operating expenses 92,032 76,807 177,542 156,181 Loss from operations (12,411 ) (2,101 ) (20,768 ) (6,210 ) Other income (expense) Interest income 4,480 5,979 8,621 12,541 Interest expense (2,010 ) (3,323 ) (4,016 ) (6,660 ) Other income 2,470 2,656 4,605 5,881 (Loss) income before income taxes (9,941 ) 555 (16,163 ) (329 ) Income tax (benefit) expense (477 ) 119 612 244 Net (loss) income $ (9,464 ) $ 436 $ (16,775 ) $ (573 ) Net (loss) income per share attributable to common stockholders, basic and diluted Basic $ (0.05 ) $ 0.00 $ (0.08 ) $ 0.00 Diluted $ (0.05 ) $ 0.00 $ (0.08 ) $ 0.00 Weighted average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted Basic 206,933,045 207,025,967 205,982,206 205,961,720 Diluted 206,933,045 210,370,559 205,982,206 205,961,720 AvidXchange Holdings, Balance Sheets(in thousands, except share and per share data) As of June 30, As of December 31, 2025 2024 Assets Current assets Cash and cash equivalents $ 335,773 $ 355,637 Restricted funds held for customers 1,148,195 1,250,346 Marketable securities 71,461 33,663 Accounts receivable, net of allowances of $4,362 and $4,279, respectively 50,988 51,671 Supplier advances receivable, net of allowances of $2,024 and $1,644 respectively 18,035 14,080 Prepaid expenses and other current assets 15,503 15,317 Total current assets 1,639,955 1,720,714 Property and equipment, net 96,632 97,592 Deferred customer origination costs, net 29,005 28,119 Goodwill 165,921 165,921 Intangible assets, net 65,235 71,068 Other noncurrent assets and deposits 7,087 6,297 Total assets $ 2,003,835 $ 2,089,711 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 20,482 $ 15,494 Accrued expenses 45,094 46,849 Payment service obligations 1,148,195 1,250,346 Deferred revenue 12,747 13,967 Current maturities of lease obligations under finance leases 36 103 Current maturities of lease obligations under operating leases 663 1,207 Current maturities of long-term debt 4,800 4,800 Total current liabilities 1,232,017 1,332,766 Long-term liabilities Deferred revenue, less current portion 10,640 11,856 Obligations under finance leases, less current maturities 63,342 63,025 Obligations under operating leases, less current maturities 1,655 1,969 Long-term debt 4,300 4,300 Other long-term liabilities 4,331 3,962 Total liabilities 1,316,285 1,417,878 Commitments and contingencies Stockholders' equity Preferred stock, $0.001 par value; 50,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025 and December 31, 2024 - - Common stock, $0.001 par value; 1,600,000,000 shares authorized as of June 30, 2025 and December 31, 2024; 207,695,309 and 204,335,860 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 208 204 Additional paid-in capital 1,718,132 1,685,644 Accumulated deficit (1,030,790 ) (1,014,015 ) Total stockholders' equity 687,550 671,833 Total liabilities and stockholders' equity $ 2,003,835 $ 2,089,711 AvidXchange Holdings, Statements of Cash Flows(in thousands) Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net loss $ (16,775 ) $ (573 ) Adjustments to reconcile net loss to net cash used by operating activities Depreciation and amortization expense 17,148 18,515 Amortization of deferred financing costs 190 212 Provision for credit losses 1,976 1,481 Stock-based compensation 29,571 23,278 Accrued interest 638 822 Impairment and write-off on intangible assets - 162 Loss on write-off of fixed assets 3 - Gain on lease buyout (172 ) - Accretion of investments held to maturity (629 ) (2,209 ) Deferred income taxes 247 178 Changes in operating assets and liabilities Accounts receivable 184 (3,652 ) Accrued interest on investments 43 - Prepaid expenses and other current assets (186 ) (2,481 ) Other noncurrent assets (980 ) (839 ) Deferred customer origination costs (887 ) (142 ) Accounts payable 4,988 (1,378 ) Deferred revenue (2,436 ) (2,735 ) Accrued expenses and other liabilities (1,631 ) (11,388 ) Operating lease liabilities (686 ) (323 ) Total adjustments 47,381 19,501 Net cash provided by operating activities 30,606 18,928 Cash flows from investing activities Purchase of marketable securities held to maturity (65,329 ) (98,996 ) Proceeds from maturity of marketable securities held to maturity 28,117 55,996 Purchases of equipment (1,324 ) (1,100 ) Purchases of intangible assets (9,034 ) (8,087 ) Supplier advances, net (5,431 ) (4,092 ) Net cash used in investing activities (53,001 ) (56,279 ) Cash flows from financing activities Repayments of long-term debt - (813 ) Principal payments on finance leases (81 ) (150 ) Proceeds from issuance of common stock 1,474 5,393 Proceeds from issuance of common stock under ESPP 1,447 1,220 Remittance of taxes upon vesting of restricted stock units (209 ) - Payment of acquisition-related liability (100 ) (100 ) Payment service obligations (102,151 ) (385,201 ) Net cash used in financing activities (99,620 ) (379,651 ) Net decrease in cash, cash equivalents, and restricted funds held for customers (122,015 ) (417,002 ) Cash, cash equivalents, and restricted funds held for customers Cash, cash equivalents, and restricted funds held for customers, beginning of year 1,605,983 1,985,630 Cash, cash equivalents, and restricted funds held for customers, end of period $ 1,483,968 $ 1,568,628 Supplementary information of noncash investing and financing activities Property and equipment purchases in accounts payable and accrued expenses $ - $ 19 Interest paid on notes payable - 2,673 Interest paid on finance leases 3,000 2,954 Cash paid for income taxes 369 254 AvidXchange Holdings, of GAAP to Non-GAAP Measures Three Months Ended June 30, Six Months Ended June 30, Reconciliation of Revenue to Non-GAAP Gross Profit and Non-GAAP Gross Margin 2025 2024 2025 2024 (in thousands) Total revenues $ 110,570 $ 105,132 $ 218,512 $ 210,730 Expenses: Cost of revenues (exclusive of depreciation and amortization expense) (30,949 ) (30,426 ) (61,738 ) (60,759 ) Depreciation and amortization expense (5,977 ) (6,034 ) (12,106 ) (12,098 ) GAAP Gross profit $ 73,644 $ 68,672 $ 144,668 $ 137,873 Adjustments: Stock-based compensation expense 1,996 1,625 3,980 2,857 Depreciation and amortization expense 5,977 6,034 12,106 12,098 Non-GAAP gross profit $ 81,617 $ 76,331 $ 160,754 $ 152,828 GAAP Gross margin 66.6 % 65.3 % 66.2 % 65.4 % Non-GAAP gross margin 73.8 % 72.6 % 73.6 % 72.5 %AvidXchange Holdings, of GAAP to Non-GAAP Measures (Continued) Three Months Ended June 30, Six Months Ended June 30, Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss), including per share amounts 2025 2024 2025 2024 (in thousands, except share and per share data) Net income (loss) $ (9,464 ) $ 436 $ (16,775 ) $ (573 ) Exclude: Provision for income taxes (477 ) 119 612 244 Income (loss) before taxes (9,941 ) 555 (16,163 ) (329 ) Amortization of acquired intangible assets 2,859 3,414 5,744 6,827 Impairment and write-off of intangible assets - - - 162 Stock-based compensation expense 15,085 12,319 29,571 23,278 Transaction and acquisition-related costs(1) 6,449 - 8,445 - Non-recurring items not indicative of ongoing operations(2) (195 ) (1,976 ) 528 (630 ) Total net adjustments 24,198 13,757 44,288 29,637 Non-GAAP income (loss) before taxes 14,257 14,312 28,125 29,308 Non-GAAP income tax expense(2) 3,550 3,564 7,003 7,298 Non-GAAP net income (loss) $ 10,707 $ 10,748 $ 21,122 $ 22,010 Weighted-average shares used to compute Non-GAAP net income (loss) per share attributable to common stockholders, basic 206,933,045 207,025,967 205,982,206 205,961,720 Weighted-average shares used to compute Non-GAAP net income (loss) per share attributable to common stockholders, diluted 207,348,652 209,896,829 205,982,206 205,961,720 GAAP Net income (loss) per share attributable to common stockholders, basic and diluted $ (0.05 ) $ 0.00 $ (0.08 ) $ 0.00 Non-GAAP basic net income (loss) per share attributable to common stockholders, basic $ 0.05 $ 0.05 $ 0.10 $ 0.11 Non-GAAP basic net income (loss) per share attributable to common stockholders, diluted $ 0.05 $ 0.05 $ 0.10 $ 0.11 GAAP income (loss) per common share, basic and diluted $ (0.05 ) $ 0.00 $ (0.08 ) $ 0.00 Amortization of acquired intangible assets 0.01 0.02 0.03 0.03 Impairment and write-off of intangible assets - - - - Stock-based compensation expense 0.07 0.06 0.14 0.11 Transaction and acquisition-related costs 0.03 - 0.04 - Non-recurring items not indicative of ongoing operations(1) - (0.01 ) - - Provision for income taxes (0.02 ) (0.02 ) (0.03 ) (0.03 ) Adjustment to fully diluted earnings per share 0.01 - - - Non-GAAP diluted income (loss) per common share $ 0.05 $ 0.05 $ 0.10 $ 0.11 AvidXchange Holdings, of GAAP to Non-GAAP Measures (Continued) Three Months Ended June 30, Six Months Ended June 30, Reconciliation of Net Loss to Adjusted EBITDA 2025 2024 2025 2024 (in thousands) Net loss $ (9,464 ) $ 436 $ (16,775 ) $ (573 ) Depreciation and amortization 8,479 9,208 17,148 18,515 Impairment and write-off of intangible assets - - - 162 Interest income (4,480 ) (5,979 ) (8,621 ) (12,541 ) Interest expense 2,010 3,323 4,016 6,660 Provision for income taxes (477 ) 119 612 244 Stock-based compensation expense 15,085 12,319 29,571 23,278 Transaction and acquisition-related costs(1) 6,449 - 8,445 - Non-recurring items not indicative of ongoing operations(2) (195 ) (1,976 ) 528 (630 ) Adjusted EBITDA $ 17,407 $ 17,450 $ 34,924 $ 35,115 (1) For the three and six months ended June 30, 2025, this amount consists of transaction and deal costs incurred in connection with the proposed plan of merger announced on May 6, 2025 described in our unaudited consolidated financial statements. (2) For the three months ended June 30, 2025, this amount includes a $172 gain on lease buyout. For the three months ended June 30, 2024, this amount was primarily comprised of an insurance recovery of $2,110 for costs incurred in response to the cybersecurity incident that was detected in April 2023. For the six months ended June 30, 2025, this amount includes $618 in restructuring costs and a $172 gain on lease buyout. For the six months ended June 30, 2024 this amount includes $1,157 of severance costs and a net benefit of $1,808 of response costs incurred in connection with the cybersecurity incident. (3) Non-GAAP income tax expense is based on the Company's blended tax rate of 24.9% in periods the Company has Non-GAAP income before tax. In periods the Company is in a non-GAAP loss position, tax expense is based on GAAP tax expense.
Yahoo
2 hours ago
- Yahoo
The High Cost of Staying American: Denim Brands Fight to Keep Production in the USA
Pete Searson, cofounder of Tellason, vividly remembers the day his business partner, Tony Patella, received the call from a sales rep. 'He said, 'Hey, Tony, are you sitting down?' He literally said that. And Tony goes, 'You're going to tell me [White Oak] is closing, aren't you?' The rep says, 'How did you know?' And Tony was like, how could they not be closing?' More from WWD Inside SJ Denim's 'Made in America' Issue Denim Marks the Next Chapter in Mackage's Lifestyle Journey Urban Outfitters Announces First Annual UO Haul Sale Targeting Gen Z Amid Back-to-school Season Searson and Patella visited the storied Greensboro, N.C.-based mill for its 110th anniversary in 2015. There, they learned that Tellason, the niche 'Made in USA' brand they had founded six years prior, was the famous mill's fourth-largest customer in the entire operation. 'And they were proud of it,' Searson said. 'We thought we'd be their 40th customer.' Revered globally for his historic ties to Levi Strauss & Co. and its American Draper X3 selvedge looms, White Oak's closure after 112 years continues to weigh on the minds of denim heads and entrepreneurs alike. Despite being a small client, even at number four, Searson said the brand did everything it could on a 'cultural and business level' to support White Oak. While larger companies 'chased the rainbow to profits by going overseas,' he said Tellason was never tempted by cheaper fabrics from Italy, China or Turkey. 'We committed to our raw materials,' he said. 'We certainly could have saved money and been maybe more profitable by buying fabrics from somewhere else, but that would have taken away from the ethos of our brand, which is made in USA, cut and sell in San Francisco, all the way. So, my take is, we did our part. We decided to stay with it, stay the course, because it meant something to us on a cultural level. And denim, in our opinion, is a really special product.' Tellason purchased a year-and-a-half's worth of proprietary fabric from White Oak ahead of its closure. The order was the last shipment to leave Greensboro. As the Tellason team unloaded the massive order in Oakland, Calif., Patella traveled to Japan to meet with mills about recreating the unique fabric. Kaihara Denim delivered. 'The first run of samples they came up with based on what we were doing with White Oak was on point. We couldn't even really tell the difference between White Oak and Kaihara,' Searson said. White Space While high-quality fabrics are available globally, White Oak's demise left a significant gap in premium U.S.-made denim and disrupted both the production and purpose of many 'Made in USA' brands. Since launching in 2010, Ginew has produced most of its small-batch collections in Los Angeles, Seattle and Portland, Ore. Until December 2017, the Native American-owned denim brand sourced all of its denim from White Oak. Following the mill's closure, Ginew transitioned to sourcing premium fabrics from Nihon Menpu Mills in Japan and Vidalia Mills in Louisiana. The latter ceased operations last fall and is set to be auctioned off this month to resolve outstanding debts. Dr. Erik Brodt (Ojibwe), cofounder of Ginew, said the focus has always been to source the highest-quality, most interesting fabrics. The task has never been easy. While sustainable fibers and technologies have become more accessible, finding high-quality U.S.-made fabric grows more challenging with each passing year. 'Manufacturing denim apparel that is made with USA-made denim fabric has become more difficult,' he said. 'There are several small mills that make premium denim in the U.S.; however, the cost, quality challenges and limited supply have made it tremendously difficult to source new, premium USA-made denim fabrics.' While Vidalia, with its promise of value-added fabrics and selvedge denim made on Draper X3 selvedge looms acquired from White Oak, seemed too good to be true for many industry insiders, brands like Ginew and Devil-Dog Dungarees were eager to place orders. Brodt said the mill produced 'stunning denims' with intricacies and artisanal elements. Devil-Dog Dungarees incorporated Vidalia Mills denim into its 75th-anniversary jeans, a limited release that Jeff Rosenstock, Devil-Dog Dungarees president, said paid tribute to both the brand's history and the legacy of American-made denim. 'As the only mill producing premium selvedge denim on American soil, Vidalia's craftsmanship and innovation helped preserve an important part of our industry's heritage. Vidalia represented a rare commitment to domestic textile production, and its closure is a significant loss for the U.S. denim industry,' he said. Others were more skeptical of the mill housed in a former Fruit of the Loom facility. To be a fully vertical denim mill with in-house spinning requires a right-sized facility and a knowledgeable workforce at each stage of production, not to mention cash. Pete Roberts, the founder and chief executive officer of Origin USA, said Vidalia lacked it all. 'There's a lot that goes into each one of those components, into carding and roving, into spinning, into dying, into weaving. And trying to bring back everything all at once with limited cash, using other people's money in this massive space…it was kind of a pipe dream,' Roberts said. 'It's unfortunate for brand owners like me and the apparel industry at large in the United States, but hopefully there's some lessons learned, and hopefully other people can pick up and push the ball a little further,' said Patrick Mate, founder and owner of Patriot Jean Co. Godmother NYC Inc founder and CEO Christine Rucci helps brands like Patriot Jean Co. build specialized supply chains around their design concept, price and finishing. She had 'high hopes' that Vidalia would become a fully vertical supply chain factory for large- and small-scale full-package production. 'It seems companies would rather shut down than invest in factories here. I have worked with so many of them for over 40 years and there are none left in the Southeast. Or they've shifted from jeans to government contracts to keep the lights on and people employed,' she said. Cost Considerations Producing jeans domestically offers key advantages — such as speed-to-market, quality control and the flexibility to adapt designs to shifting demand — but these benefits come at a growing cost, driven by limited manufacturing capacity and tariffs introduced during the Trump administration. 'The single greatest challenge to producing denim apparel domestically is cost,' Brodt said. Not only has it become more difficult for Ginew to obtain premium fabrics, but the cost of cut-and-sew has increased exponentially since 2017. And the market, while proud of 'Made in USA' items, is not willing to pay the necessary end prices for clothing made domestically, he said. Despite being a small customer, Crawford Denim has provided consistent business to its U.S. factory partners for 12 years, even during the ups and downs of COVID-19. Founder Susie Shaughnessy chooses to buy deadstock denim and overstock fabrics from L.A. rag houses for her small-batch brand. The strategy prevents fabrics from ending up in landfills and helps fill the material void left by the great exodus of U.S. mills. 'The biggest challenge is sourcing denim domestically,' Shaughnessy said. 'Fewer mills are producing in the U.S., limiting options and elongating the time it takes to receive yardage. Ordering from North America and overseas suppliers is harder by the day.' She added that the instability with current tariffs is driving brands and suppliers to increase their pricing because no one knows what costs will be levied against them when suppliers deliver. Rucci's greatest hurdle now is tariffs on imported fabrics. A $5 per yard fabric from China becomes $18 per yard with duty, tariffs and shipping, she said. On average, a jean requires 1.5 yards, which means it costs $27 for fabric alone. With a general CMT (cut, make, trim) of $35 for a minimum order of 1,000 units, plus $5 for trims and $20 for washes, the jean costs $78 right out of the factory, and that's not factoring in shipping and other logistic fees. Rucci said only direct-to-consumer brands can work with this costing, and those companies are often challenged by MOQ (minimum order quantity) and price, especially niche start-ups pursuing domestic manufacturing. Rucci's solution is to group together small brands and to encourage them to share raw materials when possible. 'I can set up a line with one color thread and sew three brands in one place,' she said. Rucci has embarked on a sourcing journey in the Americas, sourcing denim from mills like Cone Denim in Mexico and cutting and sewing in the U.S. Her clients are mostly smaller brands like Raimundo Langlois, MarkWest Denim, Ginger + Dandelion and Corby Holbrook, all of which are making jeans in L.A. for their DTC businesses. Patriot Jeans Co. is her only client using 100 percent 'Made in USA' components — from buttons to tissue paper — and manufacturing in El Paso, Texas. The men's brand sources fabric from Mount Vernon in Trion, Ga., the only denim manufacturer in the U.S., and supplier to brands like Imogene + Willie and Origin USA. Fabrics are not the only issue, either. Rucci said most American trim manufacturers want 10,000 to 20,000 for custom trims and they're not always willing to do smaller quantities even with an upcharge. She must source certain trims outside the U.S. for that reason. 'There are also many suppliers who stock imported fabrics and trims which are U.S.-based, which I consider U.S.-sourced,' she said. Rucci's core U.S. suppliers are YKK, A&E Thread, Carr Textiles, Copen United and American Made Knitters. She uses Caroda, a New York City-based factory, for raw denim programs. For bigger volumes with lower retail costs, she works a factory in El Paso for sewing and laundry. For larger volumes, she turns to factories in Mexico. Her network in L.A. includes American Made, Star Fades and Cotton Cloob. Since the Maquiladora Program in the 1960s, which allowed U.S. companies to set up manufacturing plants in Mexico, and later NAFTA in 1994, Rucci said 'Made in Mexico' is widely accepted in the U.S. jeans sphere — though Rucci prefers to use the term 'Made in North America.' 'I worked for two years for a large Mexican jeans manufacturer, and they make for all the top American brands, which all had their own staff and offices within the factory,' she said Blurring Borders According to the FTC, for a product to be called 'Made in USA' it must be 'all or virtually all' made in the U.S., meaning the final assembly or processing of the product occurs in the U.S., all significant processing that goes into the product occurs in the U.S., and all or virtually all ingredients or components of the product are made and sourced in the U.S. If brands can't produce a garment that meets the strict criteria for a 100 percent 'Made in USA' label, should they abandon domestic production altogether? It's a pressing question for companies and organizations striving to scale and support U.S. manufacturing. Stephen Lamar, president and CEO of AAFA, said the strict standards for using the unqualified 'Made in USA' label — requiring nearly the entire supply chain to be domestic — can discourage U.S. production. Many manufacturers are unwilling to invest in partial domestic operations if they can't fully meet the criteria, especially since they can't charge premium prices for products labeled with qualifiers like 'Made in USA of imported materials.' As a result, he said the all-or-nothing nature of the labeling system can undermine its intended purpose of encouraging domestic manufacturing. In the denim sector, many brands that manufacture in Los Angeles embrace 'Made in L.A.' as their signature identity. Hiroshi Kato opened its fully vertical factory in L.A. in 1991 and debuted its brand in 2013. Cut, sew, wash and finishing all take place in L.A., where the company recently launched a water recycling plant and a solar power system. 'We aim to recycle 75 to 85 percent of the water used in processing jeans and return them to the factory. Additionally, more than 90 percent of the electricity used will be self-generated,' said Muneyuki Ishii, founder of Hiroshi Kato. The brand's signature four-way stretch selvedge fabric — used in popular styles like the Pen Slim and Hammer Straight — is sourced from Japan, but Hiroshi Kato remains committed to preserving its strong American roots. 'Jeans were born in the U.S. Throughout the history and evolution of jeans, the value of jeans made in the U.S. has consistently remained significant and will continue to do so in the future,' Ishii said. 'Every aspect of our process, from design and manufacturing to marketing, is based in the U.S., incorporating cultural evolutions into our American-made jeans.' However, without the factory Ishii said producing jeans in the U.S. would be nearly impossible. 'Many factories in L.A. have ceased operations, making business challenging for us. We adapted by redesigning our supply chain and incorporating in-house operations to become fully vertical,' he said. Despite the growing challenges of U.S. jeans production, commitment can help overcome these obstacles. 'Adopting advanced technologies and innovative business models is essential rather than repeating old methods,' he added. Searson isn't looking to shake things up anytime soon. By sourcing premium Japanese fabrics at fair prices and crafting garments in San Francisco's last remaining factory, Tellason maintains a steady approach, honoring tradition while embracing necessary change. 'Now, if the factory we use closes, we'll have to go somewhere else. That's life. We're big boys,' he said. 'We can handle it, and we will pivot when needed, just as we did from White Oak to Kaihara. But if the green light is on at our factory in San Francisco, we will continue to make there. If the prices need to go up, we understand that, and we won't bark about it.' Demand vs. Supply Though Rucci applauds brands that want to make 'Made in USA' jeans, the industry vet warns of setbacks, adding that the 'sad truth' is the industry is lacking in every aspect imaginable, from machinery and garment wet processing to skilled sewers. A persistent lack of skilled labor, especially in sewing, is one of the industry's biggest issues, Lamar said. As companies consolidated factories due to labor shortages, they eventually closed facilities. Workers left for better-paying or more appealing jobs in other industries, like automotive or tech. Rebuilding the U.S. workforce would require textile and apparel companies to offer stronger incentives and rethink the image of factory work, especially the perception of spending eight hours a day at a sewing machine. 'As a country, we should not be reliant on other nations for our goods. Apparel can be made quickly, ethically and reasonably priced in the U.S.,' Shaughnessy said. In her experience working for U.S denim brands domestically and overseas, Shaughnessy said there's a need for both, but that it must be recalibrated. Though she's encouraged by a resurgence of small-batch sewers using vintage machines, business has tipped too far to imported consumer goods, impacting a knowledgeable workforce in the U.S. and artisans who view apparel manufacturing as an art form. 'Having designed for larger brands while they still had domestic production, I know they can return to it,' she said. 'We need to give consumers high-quality and abundant options to choose from.' Even as major brands continue to offshore production to reduce costs, smaller companies still face a David-versus-Goliath struggle when trying to access U.S. manufacturers. Rucci said big brands are starting to approach L.A. factories, laundries and dye houses with 10,000 to 20,000 units and she fears smaller brands will be dropped due to cost and margins. To make matters worse, she noted that many large companies are turning to U.S. or L.A. manufacturing merely as a temporary marketing tactic, rather than as part of a long-term sourcing strategy. 'I have seen it happen repeatedly,' Rucci said. 'It's also hard on smaller brand owners because they're often self-financed and don't have steady monthly jeans production. Most of the factories bring in workers based on volume.' On top of that, she said ICE raids in L.A. are making it more difficult to secure a workforce. 'As many garment workers are immigrants, some workers are fearful to come to work. Just as we are promoting 'Made in USA,' the U.S. government is cracking down on the very skilled labor force we need to make here,' she said. Government Support As if convincing U.S. consumers to spend more on domestically made products weren't already difficult — especially in a time of tightened budgets — brands face an added challenge: the nation's deteriorating global reputation. Shaughnessy said overseas customers are turning away from U.S. products, both in protest of the current administration and the costs. Outside of the U.S., Brodt said the recent trade disputes have resulted in a geopolitical shift away from 'Made in USA' with some blocs boycotting American items. 'This has definitely been difficult for our business as international order cancellations are far outpacing new domestic orders,' he said. Compared to other countries, Brodt said federal and state governments can do more to support U.S. textile and garment manufacturing. 'While other countries have subsidized their manufacturing sectors for decades, this sector in the U.S. has fallen behind in capacity, quality and skill. I think it is a critical time to evaluate the role of both federal and state governments in supporting USA manufacturing, to be able to compete at the cost, scale and quality of offshore and nearshore factories,' he said. The government at all levels can help in a variety of ways. At the state and city level, offering tax incentives in specifically zoned manufacturing areas could be a highly effective strategy. Shaughnessy noted that organizations like SF Made in the Bay Area play a crucial role by helping brands access more affordable manufacturing facilities. She emphasized that investing in local businesses not only supports entrepreneurs but benefits the broader community by keeping spending and economic activity circulating locally. At the federal level, Shaughnessy emphasized the urgent need to eliminate inconsistent tariffs. 'They have been proven historically to be ineffectual and have driven up the everyday consumer's cost of goods,' she said. 'Incentives to larger American brands to offer U.S.-made product will also work, if the companies work at a different profit margin. There are large-scale manufacturers that work with the U.S. military that can accommodate larger orders for these big brands.' But without decisive policy changes, Shaughnessy fears the outlook will continue to worsen. She suspects more brands, businesses and suppliers will fold if government officials fail to acknowledge the impact of U.S. President Donald Trump's tariff policies and their frequent, unpredictable revisions. 'It is economically challenging not to know what your duties and tariffs will be day to day,' she said. Brodt echoed these concerns, warning that small apparel businesses may become the unintended casualties of the current global trade environment. 'We anticipate that supply chain disruptions will continue,' he added. Pearson was even more direct, challenging the assumption that domestic denim manufacturing can be revived through tariffs alone. 'You're not just going to whip up a factory, are you? The idea of bringing denim manufacturing back to America by imposing tariffs — it's not true. No one will open a factory to make denim again. It's way too technical,' he said. Instead, he argued, the policies are actively undermining companies committed to U.S. production. 'Why punish us for buying from Japan? I can understand if there was a solid mill, but we would have never gone to Japan because we like the USA story. It doesn't exist. This broad stroke of tariffing everything — that's a mistake,' he said. This article was published in SJ Denim's 'Made in America' issue. Click here to read more. 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