Nike and other shoe-making companies are facing new challenges
As President-elect Donald Trump takes into consideration pulling USA from trade deals, American companies try to give him a little preview of what is next to come: most of the manufacturing jobs were lost and the consumers are facing higher costs.
The sneaker industry faced lower cost of production in China and Vietnam, making the moving to Asia very possible. Nike Inc, one of the most important companies in this sector, takes into consideration the likely possible trade deal made by Donald Trump, showing singes that Asia will held the dominance as the industry's wheel nave of manufacturing.
Nike and companies alike have invested in lower-wage economies a little bit too much to take into consideration now moving their factories. And the situation remains the same, analysts say, even if we're talking about higher costs for the American consumers. Same goes for other industries, like the car makers, that moved their production in Mexico.
Like other manufacturing industries, the shoemakers will be forced to imply higher costs on consumers in case of a NAFTA agreement. Even so, nobody is seriously think of hiring or moving their manufacturing hubs in the USA, no matter the change of tariffs on imports.
Hi-tech International Holdings BV declared that "The idea of moving shoe manufacturing to advanced countries is a little bit of a farce" . The company sells in the USA almost 30% of its shoes.
The U.S. shoe-making industry imports up to 98% of its footwear, and due to the intensive labor process of shoe-making, the industry took their industry's wheel nave in China and Vietnam.
Matt Priest, president of Footwear Distributors and Retailers of America said "The ones that stand to lose out here are consumers, because (...)they’ll be paying a lot more for shoes” , when talking about the elimination of trade deals.
The average salary of a shoe worker in Vietnam is $245/month, adding shoe tariffs of 48%.
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