Products from Ethiopia?

[Frog]

I recently read that because of lower labor costs, some Chinese manufacturers are moving production to Ethiopia.
(I actually saw mention of Ivanka's shoes) From what I understand, Ethiopia will not be included in the proposed tariffs.
So, are any of these trinkets making it to market yet? And, is the price even lower than the Chinese-made stuff?

[mk162]

interesting.  very interesting.  I haven't seen anything about this yet, but it's another example of businesses adjusting to new laws. 

[Frog]

interesting.  very interesting.  I haven't seen anything about this yet, but it's another example of businesses adjusting to new laws.

Or, just like our own business folks always trying to lower costs. Why pay $2.90 an hour if Ethiopians will work for $1.50?

[royster13]

Do folks seriously think any new duties will actually be applied?....

If the US imposes tariffs on imports (from anywhere) those countries will also impose tariffs on exports from the US....This will be a big blow to US companies that export.....Secondly, many large US assemblers (like Boeing) rely heavily on imported parts to create US jobs...So any attempt to impose new duties on imports will be very counter-productive....

So IMO no need to worry about any changes anytime soon....

PS...The bigger threat to US jobs is automation...Everytime one of your shops moves from a manual press to an automatic press jobs go out the door....

[Frog]

The Chinese move into Africa is more widespread than shoes and trinkets to Ethiopia. Upon review, I now find articles going back more than three years about Chinese companies opening production facilities in many parts of Africa. https://www.chinadialogue.net/article/show/single/en/6194-Shifting-production-overseas-brings-problems-for-Chinese-companies.

Turns out that the Chinese are not the only ones http://www.economist.com/news/middle-east-and-africa/21595949-if-africas-economies-are-take-africans-will-have-start-making-lot

btw, not trying to start anything political, but the picture at the top of the second article is where Ivanka's shoes are made.

[aauusa]

Champ Pro has all of there items manufactured in Ethiopia.   

[Frog]

I am learning how widespread across product lines this is, and now feel foolish posting in Promotional Products. Moving to General discussions.

[3Deep]

Business power from the top, you can fill in the blanks with whatever you think.

[Doug B]

  I have run into several polos we regularly order for embroidery from both
Heritage/VaT's and SanMar from there. Started maybe a year and a half ago.

[ebscreen]

I recently read that because of lower labor costs, some Chinese manufacturers are moving production to Ethiopia.
(I actually saw mention of Ivanka's shoes) From what I understand, Ethiopia will not be included in the proposed tariffs.
So, are any of these trinkets making it to market yet? And, is the price even lower than the Chinese-made stuff?

They've been into it for years. The Chinese are heavily invested in a lot of Africa. I don't recall where I was reading
about it but apparently it's not all above board either. (surprise surprise) The locals, as is unfortunate in these
scenarios, are happy for the work for the most part. For now.

Not unlike Gildan moving production from Honduras to Haiti. Saving a couple pennies an hour per employee
adds up to a multi-million dollar move making sense.

[blue moon]

my understanding is that Haiti needs work as right now they are surviving on subsidies with much opportunity to earn a living wage. Imagine a whole country being on welfare and nobody working (As I am being told). Any opportunity to teach ppl how to work and support themselves is a plus. While it is probably not the main, or even one of the bigger reasons, Gildan is trying really hard to be socially responsible and I can see something like this contributing to their decision. Again, this is just speculation on my part. . .

As far as Africa, I can see cultural issues with understanding what quality control or similar concepts mean. There are clearly big cities with western style culture there, but is that where they are building? I can't see Lagos with population of 21 million having the infrastructure and education to produce such goods, but labor there can't possibly be lower than in China? I guess I should read the articles.

pierre

[royster13]

I heard somewhere that if Walmart cuts just 1 second off the time it takes to unload each box from their trucks, the savings in labour is over 157,000 hours a year....That is only 25 hours per store per year....Big operations like Gildan are looking to save fractions of a cent on each item because it really adds up...

[ScreenFoo]

Been seeing a lot of Africa origins lately.

Business power from the top, you can fill in the blanks with whatever you think.

Reminds me of a great gif...

[mk162]

what exactly is a tate?  asking for a friend

[ebscreen]

I heard somewhere that if Walmart cuts just 1 second off the time it takes to unload each box from their trucks, the savings in labour is over 157,000 hours a year....That is only 25 hours per store per year....Big operations like Gildan are looking to save fractions of a cent on each item because it really adds up...

I understand economy of scale but some stuff seems like jumping over dollars to save dimes.

my understanding is that Haiti needs work as right now they are surviving on subsidies with much opportunity to earn a living wage. Imagine a whole country being on welfare and nobody working (As I am being told). Any opportunity to teach ppl how to work and support themselves is a plus. While it is probably not the main, or even one of the bigger reasons, Gildan is trying really hard to be socially responsible and I can see something like this contributing to their decision. Again, this is just speculation on my part. . .

As far as Africa, I can see cultural issues with understanding what quality control or similar concepts mean. There are clearly big cities with western style culture there, but is that where they are building? I can't see Lagos with population of 21 million having the infrastructure and education to produce such goods, but labor there can't possibly be lower than in China? I guess I should read the articles.

pierre

Absolutely. And while I'm sure they are happy for the opportunity the practice seems kind of predatory. And beyond that, what happens in
Villanueva when Gildan bails? I can't imagine it's good things. I don't think the local economy was brought up enough to move on to higher paying
manufacturing jobs as you are seeing in China and Mexico.