Planet Money had t-shirts made so they could better understand where such clothing comes from:
The Planet Money men’s T-shirt was made in Bangladesh, by workers who make about $3 a day, with overtime. The Planet Money women’s T-shirt was made in Colombia, by workers who make roughly $13 a day, without overtime… With a long tradition of apparel manufacturing and better technology, the Colombians can make T-shirts much, much faster than the Bangladeshis can. In Bangladesh, on one sewing line for our T-shirt, 32 people can make about 80 shirts per hour. One sewing line in Colombia has eight people and can make about 140 T-shirts per hour. The two lines aren’t perfectly parallel — the Bangladeshi workers are completing a few more details of the shirt than the Colombians are. But the difference is striking nevertheless.
Yet Colombian manufacturers are losing business. Why? Labor costs, mainly:
Colombia’s economy has been growing like crazy for the past decade, and wages have been rising. That’s good for the country as a whole, but it may wind up driving away the T-shirt industry. ”There is a saying that is going to sound horrible,” Crystal’s CEO, Luis Restrepo, told me. “Our industry follows poverty.” It’s an industry “on roller skates,” he said, rolling from Latin America to China, to Bangladesh — wherever costs are lowest.