Few Wood Furniture Firms Moved to Mexico from the Los Angeles Area

T-NSIAD-91-31: Published: May 8, 1991. Publicly Released: May 8, 1991.

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GAO discussed the relocation of U.S. wood furniture manufacturing firms from the Los Angeles, California, area to Mexico, focusing on: (1) how many firms relocated to Mexico between January 1988 and December 1990; (2) reasons for relocating; and (3) whether Mexico established standards to regulate the firms' air pollution emissions from applying paints and solvents. GAO noted that: (1) between 1 percent and 3 percent of all wood furniture manufacturers in the Los Angeles area relocated all or part of their manufacturing operations to Mexico between 1988 and 1990; (2) reasons for relocation included the high cost of workers' compensation insurance and wages and stringent air pollution emission control standards; and (3) Mexico lacked air pollution control standards for wood furniture firms.

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