"Made in the USA" manufacturing about to get a huge boost
Posted on 13 September 2013
FASHION FUNDThe citywide program will cover all five boroughs, and not just in the 13-block area known colloquially as the Garment District. Rosen believes that we’re witnessing a sea change in the way companies will do business. Asia, for one, is losing its competitive edge in terms of cost. “For a time, it really was less expensive to manufacture in China, but that’s now changed,” Rosen told WWD on Tuesday. “Between the rising prices in China, the freight and the duty rates, there is no advantage price-wise in manufacturing in China.” Still, overseas factories have one edge over their domestic rivals: up-to-date technology. “If these factories develop the technology, designers will come back in droves,” Rosen said.
The initiative, which will begin accepting applications September 16, plans to raise a startup kitty of $3 to $5 million. (The NYCEDC has given $1 million in funding, with Rosen chipping in another $500,000.) Much like the CFDA/Vogue Fashion Fund, the selection process will be executed in rounds. The winners will be announced in December, and their grants disbursed in February.