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El Paso move becoming reality for Korean American apparel industry

November 25, 2015
Los Angeles' jobber market located in the downtown fashion district (Korea Times file)

The Korean American apparel industry’s move from Downtown Los Angeles’ fashion district to El Paso, Texas, is picking up speed. (Korea Times file)

The Korean American apparel industry’s move from Downtown Los Angeles’ fashion district to El Paso, Texas, is picking up speed.

According to the Korean American Garment Industry Association (KAGIA), which along with its counterpart apparel manufacturers and textiles organizations has taken the reins of the effort, said Tuesday 10 businesses have taken a look at factory spaces in El Paso and that five have entered talks to secure sites.

The so-called Korean “jobber market” businesses — which make up an estimated third of the fashion district — are eyeing a stretch of space on Zane Grey Street, about five minutes outside Downtown El Paso, as their new home base.

According to Choi Dae-sung, KAGIA president-elect, the location offers factories sized 12,400 to 58,000 square feet.

Word of Korean apparel factories’ move to Texas has reportedly spurred Chinese and Vietnamese apparel businesses to consider the same.

“The addition of [Chinese and Vietnamese] interest in El Paso’s factories may affect rent prices there. It’s a problem,” Choi said.

KAGIA said interested businesses should sign contracts through its channels, as it has already reached an agreement with El Paso city government and local realtors to provide agreeable conditions for apparel factories.

According to WorkForce Solutions, El Paso has more than 1,300 skilled workers, and about 1,500 unskilled laborers, available for hire by the Korean apparel industry.

Texas, which has no state income tax, has a minimum wage of $7.25.

The jobber markets have faced toughening conditions in Los Angeles in recent years, with tighter labor enforcement, a state minimum wage set to rise to $10 an hour next year and the downsizing of its labor force, which went from 104,000 jobs to 45,600 over 20 years.

Money laundering scandals, and the resulting federal raids on the fashion district, have added pressure on the area, which forms one of the city’s most concentrated industries.

KAGIA is gathering Korean American businesses to take a trip to El Paso for a look at its available factory spaces next year on Jan. 6. Call 213-389-7776 for more information.