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

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.