Earthquake in Honduras Affects Apparel Manufacturers

Apparel factories in San Pedro Sula, a large city in northern Honduras that has become an apparel-manufacturing hub, were shaken when a 7.1-magnitude earthquake hit that country at 2:24 a.m. on May 28.

The epicenter was located off the Caribbean coast, 80 miles northeast of the beach town of La Ceiba. At least six people were killed.

While many factories suffered only minor damages, many workers didn’t show up for work on May 28.

John Strasburger, vice president and general manager, VF Americas Sourcing, part of VF Corp., said the company owns one cutting factory and one sewing factory in San Pedro Sula, with 1,500 workers making uniforms. “There was no major damage at the factory or within the industrial park where the factory is located,” Strasburger said. “But they did have some high absenteeism.”

Strasburger said he checked with several contract factories that VF uses in Honduras to make knit tops, and they had no major damages. But scores of workers did not report for work.

David Gren, the general manager and a partner in Rio Garment, a factory in San Pedro Sula that makes fashion knit tops for Aeacute;ropostale and Abercrombie & Fitch, said there were some loose tiles in his factory, but no other damage was evident. Nevertheless, production started three hours late, and many employees didn’t show up for work.

While most factories seemed to be in good shape, the country’s only port, Puerto Cortes, located near San Pedro Sula on the Caribbean coast, was temporarily closed because of damaged equipment, according to apparel-company sources.

No one was sure when the port would open, but the earthquake could have major consequences for apparel companies because most ship their goods from Puerto Cortes to Miami or Houston.

Also, one of three bridges spanning the Ulua River and connecting San Pedro Sula with the rest of the country collapsed. —Deborah Belgum