LVMH’s Texas Factory Faces Operational Challenges and Controversies

​LVMH’s Louis Vuitton factory in Alvarado, Texas, inaugurated in 2019 by CEO Bernard Arnault and then-President Donald Trump, has encountered significant operational challenges. Despite initial plans to create up to 1,000 jobs, the facility has employed fewer than 300 workers. The factory has struggled with a shortage of skilled leather artisans, leading to quality issues such as high leather waste—reportedly up to 40%, double the industry norm. Efforts to meet production quotas have sometimes resulted in compromised quality standards. ​

In response to these challenges, LVMH plans to expand its operations in Texas, including consolidating production from California by 2028. This move aims to streamline operations and address ongoing issues despite the logistical complexities involved.

The factory’s opening was not without controversy. Artistic Director Nicolas Ghesquière publicly criticized President Trump’s involvement, leading to calls for boycotts of Louis Vuitton products. ​

These developments underscore the complexities luxury brands face when expanding manufacturing operations internationally, balancing production goals with maintaining brand integrity and navigating political landscapes.