Why are garment factories frequently located in low-wage countries?

Garment factories are frequently located in low-wage countries primarily because the assembly of clothing remains a highly labor-intensive process, despite advancements in automation for other stages of production. This creates inexorable pressure on manufacturers to seek out environments where labor costs are lower to remain competitive.1

While technological innovations have improved efficiency, the fundamental sewing process still requires significant human labor. By shifting production to countries with lower wages, manufacturers can reduce their overall operating expenses. This trend was further facilitated by the transition from protectionist trade policies—which once used quotas and tariffs to keep production in high-wage nations—to a globalized, free-trade approach.1

It is important to note that this pursuit of low-cost production often raises serious ethical concerns regarding the exploitation of workers. In many of these regions, workers may face unsafe conditions, long hours, and retaliation for refusing overtime. Upholding the dignity and safety of workers is a fundamental moral imperative that must take precedence over the economic drive for lower manufacturing costs.1