The New York Times addresses the problem

New York’s garment center, once the heart of an industry that employed hundreds of thousands of workers and produced most of the clothing in the United States, is in danger of extinction.
For decades, cheaper foreign competitors and rising rents forced many of the sewing and cutting rooms and the button and zipper shops that once thrived on the side streets south of Times Square to close, shrink or move as mass production shifted to China, India and Latin America.
Now, even the remaining factories and shops that make the couture coats, dresses and other apparel for glamorous fashion designers like Nicole Miller, Yeohlee Teng, Anna Sui and Nanette Lepore are in jeopardy. Owners say they are caught in a vise between declining retail sales and landlords eager to find better-paying tenants.
Some city officials and industry leaders worry that if manufacturing is wiped out, many of the designers who bring so much luster to New York will leave, along with the city’s claim to be a fashion capital rivaling Paris and Milan.
The Bloomberg administration is now considering designating one or more large buildings in the garment center solely for manufacturing and related businesses.






