Is a Big Clothing Factory Better Than a Small Factory?

Evaluating Factory Size: Is Bigger Always Better for Ethics, Efficiency, and Sustainability?

Written by Frankie Hewitson (FrankCo & The Chain Director)

I've been asked this question for years now. Sometimes, it comes up when I question the ethics or practices of a factory a brand works with. The response? "It's a big factory producing for big brands, so it must be good."

On the flip side, when I've questioned audit results—or the lack of audits altogether—the response shifts: "They're good; it's a boutique operation, and they only work with small brands they trust."

Photo taken in Chinese factory

The size of a clothing factory can play a huge role in how it operates. But when searching for new factories, should your brand look for large over small? Or small over large? Or does the answer depend on more nuanced factors, including the business's specific goals, the scale of production, and the values around sustainability and human rights?

Some of the best factories I've ever seen have been large, shiny factories in China, so clean they glisten in the sunshine. Thread rooms are so large, full of brightly coloured threads, every shade you can imagine perfectly lined up. Large rooms play different music on shared iPads with workers as the DJs. Sewing machines are so high-tech they look like they could take off. Canteens serve incredible food, and the smell makes your mouth water.

The worst I've seen are in London. Hygiene is so poor that there's no toilet other than the wall outside leading to an open grate (yes for women too). Machines are so old and worn that they look like they would start a fire just by turning them on, and buckets surround the floor, collecting rainwater from the many holes in the roof.

And yes, both factories produced for large global brands.

Advantages and Disadvantages of Large Factories

Larger factories benefit from economies of scale, meaning they can produce goods more efficiently and at a lower cost. And this isn't just on the 'cut and sew, you may find their networks and relationships with fabric mills better, meaning that pricing on fabrics tends to be lower as well. These points make them capable of handling massive orders and global demand. They're also more likely to have the resources to invest in advanced machinery, employ larger workforces, and leverage better supply chain connections, all of which can speed up production and reduce costs.

Larger factories are more likely to have multiple regular audits a year and have scope certificates for materials such as organic cotton and recycled fibres, which ensures another angle of external assessments.

However, larger factories can sometimes struggle with flexibility. They may find it harder to adapt to rapidly changing trends or customer demands, and their production runs are often over a certain amount. The days of finding 100 pcs per style are not possible in large factories. It's becoming more common, however, that larger factories will have a few production lines designated for shorter productions or trial orders. However, the sheer size of the operation can make it difficult to ensure consistent quality across all products.

Larger factories can also face human rights concerns. In some cases, workers could be subjected to poor working conditions, low wages, long hours, and even health risks, particularly in developing countries with weak labour laws. The complexity of large supply chains can also make it hard to monitor all the factories involved, leading to issues like child labour or forced labour in subcontracted facilities. While larger factories working with big-name brands are often subject to pressure from consumers and regulatory bodies to uphold better labour standards, the effectiveness of audits and certifications can sometimes be questionable, and "greenwashing" is very common.

This is photo I took from a newly build factory in China.

Advantages and Disadvantages of Smaller Factories

Smaller factories are often more agile and able to adapt quickly to changes in consumer demand or trends. This flexibility is especially valuable for niche or high-end fashion brands that must remain responsive to their customer base. Additionally, smaller factories can emphasise quality control and craftsmanship, making them popular for luxury or bespoke items.

Smaller operations also tend to have a more personalised, community-oriented environment. With fewer workers, there's typically greater transparency and a closer relationship between management and employees. This relationship can lead to better working conditions, more reasonable work hours, and fairer wages. Many small factories also have a more substantial commitment to sustainability and ethical practices, particularly those that cater to consumers who prioritise transparency, local sourcing, and small-batch production.

However, smaller factories aren't without their downsides. Depending on how small they are, they may not be audited factories or have digital systems in place, which means workers' payments are not reliable and are at risk of underpayment or lack of benefits, especially in regions with weak labour regulations. While they may say they offer more ethical practices, proof is essential for any factory. Additionally, their limited resources may make it harder for them to invest in advanced technology or machinery, affecting both production efficiency and their ability to scale quickly if demand increases. Due to their size, they may lack the network or financial ability to source materials from more responsible and tracked sources, such as organic cotton, (as a very basic example).

Photo: This is a photo I took in a large but less polished but still highly rated audited factory in China.

Human Rights in Large vs. Small Factories

In large factories, human rights concerns are often more pronounced due to the sheer scale of operations. Workers in these facilities, especially those located in low-wage countries, can face exploitation, including low wages, long hours, and unsafe working conditions. In many cases, the complexity of global supply chains makes it difficult for brands to monitor labour practices fully, and subcontracted factories may violate human rights without detection. While larger factories are subject to audits and certifications, there is a risk that these checks are not always comprehensive or meaningful due to the auditors being on site for 1-2 days max and factories sometimes employing 2-4 thousand employees. It would be physically impossible to check 4 thousand payrolls in 2 days, let alone check the health and safety and do enough worker interviews to get a true view of the factory's treatment of workers.

On the other hand, smaller factories tend to have more direct oversight, making it easier to maintain better working conditions and uphold human rights standards. The personal relationships between management and workers can lead to fairer treatment, more reasonable work hours, and better overall conditions. Smaller factories are also more transparent and, in my experience, have been more open to self-assessment surveys and sharing their struggles or concerns with me, allowing for more accountability and building relationships. However, they are not immune to issues such as exploitation or unsafe working environments, particularly in countries with weak labour laws or insufficient enforcement. When it comes to audits, they may not have the money or capacity to have them done.

Key Factors in Upholding Human Rights

Whether large or small, the regulatory environment is crucial in protecting workers' rights. Factories located in countries with weak labour laws or poor enforcement are more vulnerable to human rights violations. I mentioned above that the worst factory I have seen is in London; this may surprise some of you, but it's sadly very common due to the majority of the manufacturing units in the UK being squashed and bent into old buildings. I have seen great factories in the UK but sadly the majority of them have been very poor. With no audits required, some brands producing in these factories never visit, even if the factory is down the road from the brand's head office. Most of the workers are immigrants on extremely low pay and little to no benefits; this manufacturing industry in the UK, unlike other countries, is hidden from sight. I have also seen terrible factories in countries worldwide, pollution flowing out of factory pipes that still makes my eyes and nose hurt thinking of the smell. I've also seen beautiful but vulnerable places such as women's beading communities in India; this is a lovely way of producing beaded dresses using local communities, especially celebrating their local cultural designs and talent. However, the risk of ensuring those women are paid and treated fairly, with little to no external support from unions or standard organisations, means they are at risk of cultural and worker exploitation.

Consumer and market pressure also play a significant role—both large and small factories are under increasing scrutiny from conscious consumers, NGOs, and activists demanding better working conditions and more transparency. Ultimately, a factory's commitment to human rights will depend on the values of its leadership and how seriously it takes worker welfare and ethical practices.

Conclusion: Which is Better?

When looking for new factories (or reviewing your current ones), the most important thing is their human rights commitments, above their prices or quality of production.

Both large and small factories have pros and cons, and every factory is very different. In general, large factories can take advantage of economies of scale and efficiency but may also struggle with human rights issues, a lack of flexibility, and quality control. Smaller factories offer more personalised relationships, better transparency, and often more ethical practices, but they may face limited resources and oversight challenges.

When evaluating whether a factory is ethically responsible, the size isn't the key factor. When looking for new factories (or reviewing your current ones), the most important thing is their human rights commitments, above their prices or quality of production. You should focus on the factory's commitment to living wages, safe working conditions, and transparency. Regardless of size, it's essential that you visit the factory, meet the management team, spend time with the workers, and see first-hand how the factory operates with respect for its workers' rights and ethical practices across the board.

For more information on responsible sourcing or human rights within your supply chains feel free to get in touch below or directly: frankie@thefrankco.com