DTG2Go, the direct-to-garment printing subsidiary of activewear and lifestyle apparel producer Delta Apparel Inc., plans to open a new printing facility in Phoenix following a surge in revenue growth during the coronavirus lockdown.
The new facility, expected to open in August, will help to meet increased demand for garments produced at on-demand manufacturing facilities, according to DTG2Go, which saw April revenue jump 25 percent year over year followed by a 25 percent bump in May.
Along with expanding DTG2Go’s printing capacity, the facility’s distribution capabilities will also allow the company to provide one-day shipping to 60 percent of the United States, said Delta Group president Deborah Merrill.
“The additional equipment for the new Phoenix location provides production capacity to meet the impressive demand we are experiencing,” Merrill said in a statement, pointing to DTG2Go’s history of double-digit operating profits.
DTG2Go is augmenting its printer count by 10 percent with the purchase of eight new Kornit Atlas printers for the Phoenix facility, which has the capacity to operate 16 such machines.
“We believe customer adoption rates to the innovative, on-demand model will accelerate in the upcoming year, and we expect the addition of our eighth facility, further expanding our capacity and reach to consumers, will further solidify our leadership position in the market,” Merrill said.
The Phoenix facility marks the eighth digital printing location under the DTG2Go banner. Currently, the company operates facilities in Miami, Dallas, Cranbury, N.J, Clearwater, Fla., Reno, Nev., Storm Lake, Iowa and Fayetteville, N.C.
DTG2Go’s manufacturing and distribution facilities specialize in producing and shipping custom graphic products to the U.S. and more than 100 countries around the world, over 30 percent of which is printed on Delta-branded apparel.
“We are the only digital print supplier in the world that can offer a seamless, vertically-integrated solution, utilizing our proprietary software and internal supply chain to offer a fully-decorated, on-demand product shipped directly to the consumer, eliminating non-value-added costs and reducing the risk of third-party supply chains,” Merrill said. “We see this as a tremendous competitive advantage.”
DTG2Go says it has drawn an influx of new shoppers in the wake of the pandemic. Around 40 percent of the increase in orders over the current quarter have come from new customers on the platform, the company said.