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It's no secret that large-scale retailers outsource their manufacturing to third world countries. The phrase "Made in China" has been ubiquitous on clothing tags for decades, for better or worse.
Now, it seems, a transition is underway in the garment industry.
As reported by NPR, China is projected to lose 85 million manufacturing jobs in the coming years as labor costs and quality of life continue to grow throughout the country. As a result, clothing manufacturing will likely soon be viewed as an unfavorable career choice, and major garment companies have started to make their clothes elsewhere. Namely: Ethiopia, Myanmar, and Haiti.
Despite dire infrastructure shortcomings, Ethiopia's access to a continental market with six of the 10 fastest-growing economies and one of the world's largest cattle (leather) stocks spurs "China 30 years ago" comparisons and makes the nation an attractive long-term investment.
The Chinese and Turkish certainly seem to think so. Huajian Shoes and Akya Tekstil, two of the world's largest apparel-makers, are planning multibillion-dollar "apparel-cities" fit for up to 60,000 workers and 50 different manufacturers each.
H&M, the Swedish apparel giant, has staked an early claim in Ethiopia as well. By partnering with nonprofit Swedfund, it's championing a "responsible" way forward with three new sustainable factories, and more planned. The move by an early entrant to set an ethical foundation in a country mirrors the work of Gap in Myanmar, also known as Burma, this past June.
While the move may keep consumer costs down, it is yet to be seen whether these new garment hubs will emerge as desireable blue collar jobs or merely glossy sweatshops. We respect global brands like H&M and Gap and we sincerely hope that they go the former route during this transition.
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