Are we getter closer to justifying bringing some production of consumer goods back to USA factories? Increased costs of goods produced in China (double, in some cases) will have to be factored-in at some point. Then shipping costs, container shortages, not to mention overall good "ju-ju" feelings of buying "made in USA" products. There couldn't be a more opportune time to spur on jobs and economy in USA. I dunno, just thinkin.
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Chinese Textile Companies Quoting 30% Price Increases
SportsOneSource Media Posted: 11/8/2010
Chinese textile companies were quoting price increases of as much as 30% at the massive Canton Trade Fair, telling customers that a global cotton shortage and persistent labor shortages were driving up costs, according to several reports.
Spot prices for standard grade Chinese cotton have risen to 30,000 Yuan from as low as 15,000 yuan earlier this year as a global shortfall of the fiber and speculators have driven up prices. Meanwhile, Chinese factories continue to have trouble recruiting and retaining workers, who increasingly have options closer to home or are demanding higher wages and benefits.
Chinese textile companies are expected to continue focusing on innovation and branding to prop up their margins, which are often below 5%.
While Chinese exports of textile products grew by 23% in the first nine months of the year, experts attribute the surge to the fact that more brands are importing apparel in bulk to ensure supply and avoid price increases.
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2 comments:
good post. another thing that's happening is the labor force is experiencing an improved standard of living. this results in organization of labor, increased wages, and loss of skilled labor to other industries...so, basically what took the better part of a century in North America is happening in a matter of a couple of decades in China.
that's where we (the USA) can best the Chinese - I have a feeling they don't give a rats ass about the environment... not yet anyway.
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