Housed in the heart of Midtown Manhattan, the historic Garment District is a vibrant neighborhood that has long been synonymous with American fashion. This bustling hub, located between 34th and 40th Streets, west of Sixth Avenue, boasts the greatest concentration of fashion designers and manufacturers in the United States. Despite its compact size, spanning a mere 20 square blocks from Times Square to Penn Station along Seventh Avenue, this neighborhood has significantly shaped the fashion industry, from manufacturing to design and retail.
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The Beginnings:
The seeds of the Garment District were sown in the early 1800s when New York City emerged as a substantial center for garment production. Several factors contributed to this development. The city’s central location on the eastern seaboard, its robust and diverse immigrant population ready to provide labor, and its easy access to a variety of textiles and other raw materials made it a natural choice for the burgeoning industry.
The industrial revolution and the advent of the sewing machine in the mid-19th century further propelled the industry forward. The sewing machine revolutionized the manufacturing process, making it possible to produce clothing more quickly and efficiently. As a result, the cost of clothing decreased, making it more accessible to a wider range of people and fueling the growth of the garment industry.
The Consolidation:
By the late 19th century, the garment industry began to consolidate. Larger companies, with more resources at their disposal, started acquiring smaller businesses. This trend led to the formation of the Garment District as we know it today, a centralized location for the garment industry. This district became home to a vast number of garment factories, making it an essential hub for fashion designers and retailers. Showrooms sprang up, featuring the latest designs and facilitating transactions between designers, retailers, and manufacturers.
The Global Influence:
As the 20th century dawned, the Garment District started to leave its imprint on the global stage. The fashion industry began to reach beyond the borders of New York City, and the Garment District was at the forefront of this expansion. It became a significant hub for clothing production for export, making its mark on international fashion trends. It also served as a major center for the design and marketing of fashion, further solidifying its reputation as the “Fashion Center” of the world.
The Challenges and Resilience:
Despite its significant influence and success, the Garment District has not been without its challenges. The rise of offshoring and the surge in online shopping posed significant threats to the traditional business model of the district. However, the district proved its resilience by adapting to these changes. It shifted its focus more towards high-end fashion and worked to make itself a more welcoming and engaging place for tourists.
The Covid-19 pandemic dealt another blow to the Garment District. The pandemic led to widespread cancellations of orders and disrupted supply chains. Retail stores had to close their doors, leaving designers and manufacturers with excess inventory. But, true to its resilient nature, the Garment District responded swiftly to these challenges. Businesses pivoted to adapt to changing consumer needs, with many shifting their production to personal protective equipment (PPE) to survive.
The Impact and Future:
The Garment District has had a profound impact on New York City. It has been responsible for generating millions of jobs and contributing billions of dollars to the city’s economy. Furthermore, it has played a vital role in establishing New York City as a global fashion capital and a major tourist attraction. Looking to the future, the district appears to be on a promising trajectory. Many businesses are planning to enhance their digital presence,
The Garment District in New York City is a significant hub for fashion designers and manufacturers in America. It spans approximately 20 square blocks between Times Square and Penn Station along Seventh Avenue, also known as “Fashion Avenue.” These buildings might not be the most glamorous part of the fashion industry, but they are where the hard work, creation, and selling take place. This area has been synonymous with American fashion since its inception more than a century ago, and it is where true entrepreneurship in the fashion industry happens.
However, the Garment District was hit hard by the Covid-19 pandemic. Prior to the pandemic, the district was improving, with increasing interest in exploring the neighborhood and an upswing in ground floor retail. Unfortunately, the garment industry was hit early and hard by the pandemic. Orders were canceled, supply chains were disrupted, and retail stores closed, leaving designers and manufacturers with inventory that is now over a year and a half old.
Furthermore, small and medium businesses (SMBs) in the Garment District found themselves in the center of the initial epicenter of Covid-19 in the U.S., giving business owners no time to prepare for the crisis.
Several challenges arose as a result of the pandemic.
Firstly, in-person work was halted. The fashion industry is a physical business where garments pass through several hands before reaching the consumer. When shelter-in-place orders took effect, factory workers couldn’t work from home as in some other industries, which became a huge hurdle to manage. Secondly, design trends changed overnight. The demand for tailored, ready-to-wear garments dropped when people stopped going to the office and attending events. As a result, even if entrepreneurs overcame the hurdle of bringing back workers, there wasn’t much work for them to do.
Above-average labor costs also drove prices up. Wages in NYC range from $15 to $18 per hour, which is higher than in competing markets. As a result, the cost to produce garments made in NYC is higher. This presented a challenge to businesses: how to generate demand at a high enough price point to cover the cost of making locally-produced items.
To survive, many businesses in the Garment District, such as Sun’s team, which was accustomed to making $300 dresses, began sewing hospital gowns and other personal protective equipment (PPE). Veronica Kim, CEO of Panda International, also noted that making PPE helped them stay afloat during the shutdown. When they were able to reopen, they were heartened by how many people came back. Some businesses continue to make PPE, but many manufacturers and designers have returned to making activewear.
Looking ahead, SMBs plan to drive profits and resiliency by establishing their digital presence and exploring opportunities in e-commerce and social media. They also plan to play up the District’s association with luxury goods, looking to Europe for inspiration. There’s a sense of opportunity to define what it means to be “Made in NY,” which includes paying a living wage and funneling money back into the local economy. Purchasing a locally made garment is part of a beneficial cycle. When a SMB makes something in NYC, they’re purchasing supplies—hardware, zippers, tape, and more—from other local vendors, contributing to the local economy.
SMBs also believe that the Garment District has an opportunity to become a leader in on-demand manufacturing as a complement to their overseas sourcing. After locally producing pieces during the pandemic, many business owners realized they could transform the garment industry from a slow-moving supply chain into a fast one—a phenomenon referred to as “the reinvention of fast