MANUFACTURING

Taking Advantage of the Push for Made in USA

photo

Doing production at the California Rain Co. on 14th Street in the Los Angeles Fashion District

When Jack Chang invested in an apparel business in 1988, a good number of California labels were still making their clothes in California.

Then the North American Free Trade Agreement came along in 1994, and many of those clothing labels—particularly California surfwear—headed south of the border to Mexico, where apparel production costs were lower and clothes could be brought back into the country free of duty.

Then China became a member of the World Trade Organization in late 2001, opening the door for that country to become the clothing factory to the world with super-low wages and production costs. Quotas on Chinese-made garments expired at the end of 2008, making that country even more competitive. But despite those major trade developments, Chang and his California Rain Co. have continued to survive on the edge of the Los Angeles Fashion District, growing into a thriving apparel factory that is getting a renewed burst of energy from retailers and manufacturers still interested in that “Made in USA” label.

“We are getting the benefit of people like Walmart and Target saying they want to do more U.S.-made production,” Chang said.

Today, California Rain employs about 150 people—many of whom have worked with the company for decades. The sewing staff includes approximately 90 people, and another 12 to 14 employees work as cutters. When Chang started out, he had only about 10 employees and was using clothing contractors to cut and sew his orders.

But soon, California Rain grew into a full-package company. The company’s specialty is knitwear, producing tops, dresses and bottoms. “We make everything from little kids’ onesies to men’s XXXXXXL,” said Bob Lindenbaum, a sales rep who has been with the company for 22 years.

Past clients include Billabong, Gotcha, Hurley, Tilly’s, Urban Outfitters, Quiksilver, True Religion, Macy’s and Junk Food Clothing.

The advantage of domestically produced goods is that California Rain can whip up samples in two to three weeks and make production garments in four to eight weeks—all inside a 40,000-square-foot facility that encompasses two red-brick buildings separated by an alley. California Rain’s production schedule is a vast improvement over the three to six months it takes to get goods ordered and shipped from China.

Other services provided by the company include having a designer on hand to help with creating trendy garments and a staff to help develop special fabrics, trims and custom garments.

photo

California Rain: When Jack Chang opened California Rain Co. in 1988, he had about 10 employees and sent production to an outside contractor. Today the Los Angeles company employs about 150 people—including about 90 sewers and nearly 15 cutters.

One California manufacturer, who asked not to be identified, said he has been working at the California Rain Co. for around 15 years and likes the fact that domestic production gets him goods sooner than sourcing in China. “If you are manufacturing in the USA, there are not a lot of people who are the size of Jack’s company,” he said.

On a recent visit, garment workers were sewing red-and-green polar fleece pajamas for the upcoming holiday season. In another wing, recently sewn striped knit dresses were hanging on rolling racks. Nearby workers were rolling a long bolt of bright-green reflective fabric onto a cutting table to be fashioned into togs for safety workers.

In the world of just-in-time delivery, California Rain Co. has found a niche with manufacturers and retailers.

Recently, Target Corp. was touring the factory to make sure California Rain Co. was compliant with various employment laws and environmental standards required by the big retailer. Wal-Mart Stores Inc. has approved the factory for production as has Costco Wholesale Corp. California Rain also has a certification from WRAP, a global nonprofit that inspects factories around the world for social compliance and proper work conditions.

Chang’s latest challenge to keeping his factory up and running is the proposed increase in Los Angeles’ minimum wage, which will raise workers’ basic salary from its current $9 an hour to $15 an hour by 2020.

Many Los Angeles clothing manufacturers have threatened to leave the city and set up production in nearby Commerce or Vernon. But even that might not be a solution if the state passes a similar proposal.

“The rise in the minimum wage is so scary for us,” Chang said. “But we feel if we can be more efficient and get the right price, we can prevail.”

He is already looking to the future. His three children are working at his factory, learning the ins and outs of the fashion world.