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The apparel industry in Los Angeles, California is riding a small but growing wave of "insourcing" as costs in China and India rise and the city's factories cater to demand for high-quality garb and fast-turn fashion.

One company bucking the offshoring trend by bringing jobs back home is Los Angeles-based Karen Kane, which sells women's clothing—primarily dresses—in department stores like Nordstrom and Dillard's.

The privately held company is shifting 80 percent of its production to Southern California from China as manufacturers take a second look at the true costs and complications related to traditionally low-cost foreign labor markets.