Louis Vuitton’s Alvarado Facility Faces Unmet Goals And Operational Challenges

Six years after its highly publicized launch, the Louis Vuitton factory in Alvarado, Texas—opened by LVMH CEO Bernard Arnault and former President Donald Trump—continues to struggle with performance issues. Intended to bolster U.S.-based production amid tariff concerns, the factory has consistently ranked among the brand’s worst-performing sites globally, according to former employees and internal assessments.

A major hurdle has been the shortage of skilled leatherworkers capable of meeting the brand’s rigorous standards. Production challenges led to material waste rates as high as 40%, double the industry norm. Several former staff members described intense pressure to meet output targets, sometimes resulting in concealed product flaws, a practice acknowledged by company leadership as a past issue tied to a now-departed manager, as reported by Reuters.

Despite local support—including a 10-year, 75% property tax break—the factory has not met initial hiring goals. LVMH had projected 500 jobs within five years and later raised expectations to 1,000, but by early 2025, headcount remained below 300. Recruitment difficulties were compounded by the COVID-19 pandemic and weaker-than-expected local demand.

Still, LVMH is expanding its presence in Texas, investing $23.5 million in a second facility completed in 2023, following the original $30 million plant. Plans include consolidating operations in California and relocating workers to Texas, though management has found the transition challenging. “We underestimated the fact that Texas is far away from California,” said Louis Vuitton’s industrial director Ludovic Pauchard.