Earlier this year, U.S. states began making history. In a decisive move against wasteful, costly fashion production, major states on both U.S. coasts proposed and passed bills taking aim at fashion sustainability and supply chain transparency. In California, the Responsible Textile Recovery Act established the nation’s first Extended Producer Responsibility program for textiles, making apparel producers responsible for the end of the lifecycle of their products. On the other coast in Massachusetts, the H420 bill requires more detailed supply chain mapping and disclosure, due diligence reports, and verification of sustainability.

In the U.S. and globally, the message is clear: the era of cheap, disposable clothing is incompatible with the future they want to build. Around the world, regulators, consumers, and investors are waking up to the fact that the apparel industry, as currently structured, is unsustainable — both environmentally and economically.

Regulators are responding to what the public already knows: the traditional apparel supply chain — long, wasteful, and opaque — no longer fits consumer expectations or planetary needs. Overproduction has become an endemic business model, with some estimates suggesting that over 30% of apparel is never sold at full price, much of it destined for landfills or incinerators.

But these recent actions toward a more sustainable future are only a symptom of the larger issue. The fashion supply chain is broken — and has been for quite some time. It’s by far the world’s oldest, largest, most complex supply chain — yet holistically inefficient —resulting in overproduction, needless markdowns, supply chain disruption, and waste. Unfortunately, the status quo isn’t affordable or profitable anymore.

Adapting to new market forces like sustainability requires producers to inject agility into the market because waste is no longer an unfortunate side effect. It’s a liability — one that brands, retailers, and manufacturers will increasingly be forced to address.