The End of 'Made in the USA'?

○ Los Angeles’s fashion industry is feeling the effects of a workers’-rights push

- Cristina Lindblad

Los Angeles has long been the country’s premier hub for garment manufacturing, churning out T-shirts, swimwear and dresses for fashion brands around the world. But a combination of new labor legislation and rising costs is threatening the future of “Made in the USA” clothing.

California’s Garment Worker Protection Act is a year-old law that takes aim at the industry practice of paying workers a piece rate, rather than an hourly wage, which often results in them earning less than the minimum wage. It also renders fashion brands liable for labor abuses across their supply chains. Similar bills are under consideration in New York state and in the US Congress.

Fashion’s race to produce clothes faster and cheaper means brands are ultrasensitive to costs, making overseas manufacturing all the more attractive when expenses rise even incrementally. Companies interviewed for this story said making clothing in Los Angeles has become more costly as a result of the state act, cutting into margins and forcing some to raise prices, which puts them at risk of losing business. Those that can’t make the math work are seeking out new locales, accelerating an exodus that’s hollowing out the city’s once-vibrant Fashion District.