All L A based manufacturers need a City of Los Angeles Business License, A County of Los Angeles Health Certificate, and a State of California Apparel Manufacturer's License.  These licenses are required even though the manufacturer might use licensed sub-contractors for all services related to the design and production of their goods.  While getting a business license and Health Certificate is a straightforward process, there exists no mechanism whereby a non-compliant manufacturer can apply for their Garment Manufacturer's license without being in jeopardy of having their goods confiscated by the same regulatory agency that is going to issue the license.

A third factor damaging to the local apparel industry is one of pure economics.  Many "experts" feel that there is no problem having the construction of goods go overseas (most often due to cheaper wages) because the "brain work" remains in Los Angeles.  While this may be satisfactory for large manufacturers that produce thousands of units at a time, such thinking is disastrous to the small manufacturer who is trying to stabilize and grow their company.  Being able to produce locally is a strong competitive advantage in terms of the time it takes to bring a product to market, and local control allows small manufacturers to perfect their management skills so that they have the opportunity to grow into large manufacturers. The loss of local production would not only mean the loss of tens of thousands of jobs, but would severely reduce the number of new companies being started, and thus the loss of much of the innovation for which Los Angeles designers are known.

The list goes on and on.  Becoming a successful apparel manufacturer in this environment takes courage, business savvy, and a strong will.  The FBI works to bridge the gap between the business owner's creative talents and the need to gain practical business knowledge that will lead toward both the survival and the ultimate prosperity of these companies.  

First published 11/5/04