Subject: expected to favor companies
Author: ysherryroberts
Posted on: 05/16/2016 08:21:11 AM
The fight over tariffs comes as American New Balance 574 2016 Prix manufacturing appears on the cusp of a revival, driven by forces expected to favor companies like New Balance. Wages in China have risen nearly 20% a year since 2007prompting many producers to shift labor-intensive work to lower-cost countries, such as Vietnam. But costs are rising in other parts of Asia, as well. A recent study by the Boston Consulting Group predicts that by 2015 there will be only about a 10% cost difference between China and the U. S. in making products such as machinery, furniture and plastics. But shoes aren't among them.
Hal Sirkin, the BCG consultant behind the study, says too much labor is required to justify making all but the most-customized or expensive shoes in the U. S. "It's unlikely Homme Baskets New Balance 574 Fresh Foam soldes you'll see mass amounts of shoes made in the U. S. again, " he says, adding that even two years from now it will be 17% to 20% cheaper to make shoes in China than in the U. S. The cost advantage will be even greater in Vietnam, America's second-largest shoe supplier. Opponents of the tariffs say that the proposed trade deal would affect only a small share of U. S. shoe imports. That's mostly because China isn't one of the 10 other Pacific Rim nations, along with the U. S., that would be included in the deal. But the move would New Balance ml574lcm Vente benefit Vietnam, which supplies just over 8% of America's imported shoes.
Among those fighting the tariffs is New Balance rival Nike Inc., based New Balance NB 574 Chaussures Femme Par Cher in Beaverton, Ore. "Lower duties would let us reinvest savings in innovation and in maintaining our global competitiveness, resulting in high-paying jobs in the U. S., " says Greg Rossiter, a company spokesman. It would also help offset rising foreign labor and material costs. Matt Priest, president of the Footwear Distributors and Retailers New Balance 580 En France of America, an industry trade group, says cutting tariffs would set the stage for lower consumer prices. "There's also a fairness issue, " he says. "We're taxing Americans to protect jobs that are no longer here. "
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