Southern California transition takes hold

Bobbin, Sept, 1998 by Judi Kessler

Since the 1950s, Southern California has defined a look that has evolved into a lexicon of hip contemporary casual wear. At the same time, the region's manufacturing base has continued to grow - even while most other garment production centers in the United States have experienced a steady decline. However, underneath this ostensibly successful development is an industry currently under pressure and transition. Political battles, globalization trends and the lure of Mexican production sources all are changing the face of this apparel mecca.

On the one hand, statistics show a steady increase in apparel employment and company start-ups in Southern California. The region's unique niche, often dubbed "the California look," is characterized by contemporary women's and misses' wear, and specialty sportswear. The distinctive demands of the industry - including rapid turnaround and six fashion cycles - have created a strong and geographically concentrated garment center in the Los Angeles district, fueled by waves of immigrant workers, mostly from Mexico and Central America.

On the other hand, international exporting of finished goods produced in Southern California is practically nonexistent. Technological upgrading is but a twinkle in the eye of the region's yet-to-be-realized government/industry partnership, and sweatshops continue to flourish - while legitimate contractors struggle to keep their heads above water with small-volume, rapid-turnaround orders. Additionally, Southern California's large manufacturers and designers continue to consolidate through buy-outs or licensing agreements, widening the gap between the giants and the small to very-small firms.

Finally, and most importantly, while it once was standard operating procedure for apparel firms in Southern California to manufacture "in-house," most apparel production in the region is now sourced out, either to local contractors or offshore. And over the past five years there has been a steady, rapidly accelerating increase in Mexican production sourcing.

What will ultimately emerge from this period of transition is speculative. However, if the trends continue, in one decade it's conceivable that Southern California's apparel district will be headquarters for a relatively few large, "hollow" manufacturers that produce outside the United States. Concurrently, it will remain the production center for a nucleus of small and very small manufacturers that span the price point spectrum from "budget knock-offs" to "better." The smallest firms will be likely to remain captive to small-scale production within the greater Los Angeles area. As the numbers catch up with the action, employment figures will probably level off, or perhaps continue to grow at a modest pace. The key question is whether overall industry growth will be healthy and vigorous, or simply at the margins of genuine development.

A Different World

The roots of California's apparel production can be traced back to the 1850s. Prior to World War I, the industry was centered in San Francisco and focused on men's wear. After the war, Los Angeles emerged as the dominant center of production, and it is now home to approximately 80 percent of California's apparel production, most of which is in the women's wear domain.

Today, the industry embodies several characteristics that render it unique in design, structure and size.

Design Culture. First, the area's design culture, which is often characterized as "innovative" and "quick-moving," is distinct from the design cultures emblematic of other major garment production centers in the United States.

As Ilse Metchek, executive director of the California Fashion Association (CFA), points out, "In New York, the career path is to come out of [design] school and train under an existing manufacturer. [In Los Angeles] they come out of design school, go into their garages, and they design. They [tell their parents]: 'Give me $150,000 - I want to start a business.'"

Metchek's reflections are supported by statistics that paint a picture of an industry with a high failure rate among small start-up companies. Nevertheless, the design schools continue to churn out fledgling designers at a steady pace who, in turn, often create their own companies rather than join the ranks of established manufacturers and designers.

Distinct Areas of Specialization. According to recent California Employment and Development Department (EDD) figures, women's, misses' and children's wear account for close to 80 percent of Los Angeles County's apparel sector employment, as shown in Table 1 on page 33.

The majority of women's wear producers hang with the budget-to-moderate lines sold in department stores such as Macy's and Robinsons May, and in the mass merchandizers' world of Kmart, Mervyn's and Wal-Mart. A smaller but thriving subset of the industry specializes in active sportswear, geared toward the active California lifestyle and distinct recreational activities, such as cycling and snowboarding.

Large, Diverse Work Force. In terms of employment, Los Angeles is the largest apparel center in the United States. However, the business of accurately counting apparel employees is formidable, if not impossible, given the differing methodologies between state and federal entities, as well as the high proportion of unregistered shops and undocumented workers.