How much do you think it costs to make a pair of Nike shoes in Asia?
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Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#2bottom line there's very actual margin for the companies to play with on tariffs.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#3>The second thing we see is that Asian manufacturing in Asia produces US jobs. You go to Footlocker to buy a pair of $100 shoes because you can afford them. This creates jobs for the Footlocker employees, Nike designers, marketing teams, and other US people throughout this chain.
In all fairness, most of those jobs would still exist if manufacturing was brought onshore. The fact that they were manufactured in Asia makes no difference here, except for perhaps the longshoremen that was included in "other US people."
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#4It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter.
Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#5All around the "developed world", the shop/retailer/supermarket/distribution part of the price of a product is around 50%. Whatever the product or its price.
I'm wondering if part of our issue with crazy inflated prices despite low margin for industry and manufacturing actors is not because of this abused margin for retailers. That have also a huge power as it is difficult to negotiate when you depend on your product to be buyable in the market.
To me, that explain a big difference with asian world, where you notice, even for asian shops in western countries that prices are still quite cheap.
Something parallel to that that I have noticed is that decades ago we were used to buy from small individual shops, but now a few retailers and chains have almost a monopoly on the market.
I see the same pattern for movie theaters. They used to be independent mostly with affordable prices. Now 2 or 3 big chains bought them all, and it is very rare to still encounter independent movie theater. And once they got a good monopoly, ticket prices skyrocketed to insane levels.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#6>The second thing we see is that Asian manufacturing in Asia produces US jobs. You go to Footlocker to buy a pair of $100 shoes because you can afford them. This creates jobs for the Footlocker employees, Nike designers, marketing teams, and other US people throughout this chain. In all fairness, most of those jobs would still exist if manufacturing was brought onshore. The fact that they were manufactured in Asia ma…
The author’s point is that the lower cost of goods coming from Asia results in increased demand, which then generates more jobs in the post-manufacturing part of the chain.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#7All around the "developed world", the shop/retailer/supermarket/distribution part of the price of a product is around 50%. Whatever the product or its price. I'm wondering if part of our issue with crazy inflated prices despite low margin for industry and manufacturing actors is not because of this abused margin for retailers. That have also a huge power as it is difficult to negotiate when you depend on your product…
Isn't what you're describing the effect of hedge funds moving into everything in order to "maximize returns"?
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#8It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.
I saw a video today on Instagram (from Tiktok), AI generated of course, where rows and rows of people sit at sewing machines sewing shirts, but instead of the typical Asians one commonly expects to see, they're all overweight American-looking people...
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#9It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.
I think you're missing that the bigger value is having the manufacturing on your home soil instead of depending on being in the good graces of China.
Re: How much do you think it costs to make a pair of Nike shoes in Asia?
#10It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.
I saw a video today on Instagram (from Tiktok), AI generated of course, where rows and rows of people sit at sewing machines sewing shirts, but instead of the typical Asians one commonly expects to see, they're all overweight American-looking people...
Apparently China propaganda making fun of the US.