Microfactories: Future of textile printing or a thing of the past?

Microfactories with digital textile printing solve many problems that the textile industry is struggling with. This is because they bring the production of individual clothing close to the markets. This reduces the carbon footprint and prevents waste. Why isn’t there more in Europe?

What are microfactories?

Microfactories are generally  defined   as compact, highly automated production environments that rely on digital technologies and flexible workflows. In the textile industry, fabrics are no longer pre-produced in large quantities.  Instead, they are digitally printed, cut and made up according to customer requirements. Other digital production methods are often used for this purpose, such as digital cutting, automatic sewing machines or  advanced knitting machines.

Microfactories are often  located in shopping malls. One example is the “Shift Microfactory” at Bikini Berlin. It was opened in March 2025 as a cooperation between the School of Management and Law and VORN and supported by the German Federal Environmental Foundation (DBU). However, consumers cannot shop there. The initiative is intended as a place of learning for fashion designers and students.

Epson supports the Microfactory Future Fashion Lab Hamburg (FABRIC) in the Galleria Passage. The design, production and sale of sustainable fashion are spread  across three floors  and cater to professionals and students from the fashion and textile industry. Since 2024, they have been able to design and produce individual pieces and small series with the help of various Epson printers. As part of events and pop-up campaigns, customers can get in and buy fashion items.

Kim Lea Kaufmann, head of the workshop of the FABRIC Future Fashion Lab, explains: “We attach great importance to sustainability, upcycling, recycling and sustainable business models away from fast fashion.”

Challenges of the textile industry: Is the microfactory the solution?

The textile industry is under a lot of pressure. Overproduction, unstable supply chains and increasing sustainability requirements are key problems. According to industry analyses, millions of tonnes of unsold textiles are still destroyed every year. This is not only harmful  to  the environment, but economically unsustainable.

“As a specialist in digital textile printing and textile microfactories, I continue to see the topic as strategically relevant,” says Joachim Rees, Managing Director of Multi-Plot Europe GmbH. “However, my outlook is also much more pragmatic than it was a few years ago. In Germany and Europe, local production is not increasing across the board, but selectively: wherever time-to-market,  product variety, personalization and risk reduction are the decisive factors.

At the same time, the textile industry in the European Union is  under significant  pressure from rising costs, weak demand and import competition. This is slowing  down microfactory investments especially where the business case is not clear. But new online sales channels with the support of AI in design, sales and marketing via social networks offer good conditions for success.”

Epson also continues to support the  concept  of microfactories because, according to Epson Germany, this production method   aligns very well with the company’s strategy and provides customers with essential advantages:

“Microfactories improve the efficiency of   resource use within  the production line and reduce the CO2 footprint and costs due to the significantly lower logistical effort. They also increase the reliability of a supply chain by avoiding risks due to trade barriers, tariffs and other disruptions.”

Opportunities for print service providers and manufacturers

“On-site,  on-demand production avoids waste, can significantly reduce costs and increases the flexibility of a production chain thanks to small, independent manufacturing steps. These are all  factors that strengthen a producer’s market position and clearly speak in favour of microproduction,” says Epson Germany: “For this reason, we offer a broad portfolio of suitable solutions that make efficient and cost-effective microfactories feasible.”

“I see a stable future for microfactories with digital printing, but not as a one-size-fits-all solution,” says Joachim Rees. “Growth occurs above all where on-demand and short series are in demand – i.e. fast reactions, many variants and fewer warehouses. The hype about DTF textile printing is a good example. Instead of a large Mega factory, a network of several smaller locations close to the sales market will prevail to shorten delivery times and distribute risks.

Process simplification and, above all, automation will also be crucial: the better the workflow and handling are automated, the lower the throughput times and complexity.”

However, Rees also draws very clear boundaries: “Mass goods will continue to be produced where unit costs are unbeatable. Microfactories do not win through the cheapest price, but through speed, variety of variants, lower risk and often also sustainability logic. Whether this pays off depends heavily on the business case: capacity utilization, process stability, colour management, material handling, data quality, quality assurance, know-how and energy prices are the typical factors.

In practice, the microfactory will establish itself as an operating model: AI-supported workflow, high-quality digital textile printing, software-controlled order and production control, and automated finishing/handling end-to-end. The winners will PSPs that not only print but also deliver end-to-end – from web shop/ERP to production and shipping labels.”