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by AndrewDP
3371 days ago
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My wife works in fashion. What they have found is instructive. They have spent 20 years outsourcing their production to China. After 20 years of economic and wage growth in China the cost savings once you take into account shipping etc is eroding. Adding to increased demand from the local economy, the value for outsourcing is quickly eroding and most fashion companies are looking for the next low cost production region (Vietnam and Pakistan are two). I am no economist, but I believe that there will be a global rebalancing in the near future: manufacturing will return as the rents in low-cost regions approach the local cost of manufacturing. |
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