By Paul Pannone
By now everyone is aware one of the key ingredients that keeps our economy from a rebound is unemployment; loss of jobs and the inability to create enough jobs for American workers keeps the current national unemployment rate at about 9%.
eWedNewz watches the possibility of some production lost to China could be returning home.
Results of an ongoing eWedNewz investigation involving manufacturing companies cites the laziness of American workers, higher wage expectations and the need to keep prices competitive by leveraging the lower cost of foreign workers. But with higher unemployment comes lower spending that also inhibits the growth of the economy that has slowed to 1.3 percent, according to the latest figures; not nearly enough to lead to a full-blown recovery.
“It’s going to take a concerted effort to bring back jobs to this country and stimulate growth in order for us to come out of the nose-dive we’ve been in,” according to wedding analyst, Christine Boulton. In her story involving a glimmer of hope regarding manufacturing in America she writes,”I saw one report on NBC about a small lamp manufacturer that had been manufacturing in China. Now he is bringing half of his jobs back home.”
Boulton told eWedNewz she was encouraged by some of the reports that pointed to some manufacturers waking up and getting our own people employed rather than helping to build foreign countries’ labor forces and economy.
In the ongoing investigation the following encouraging information from a WWD story says;
” With recent upheavals in the economy — ranging from faster speed to market to retailers’ antipathy toward holding inventory — denim companies like Seven have been bringing production closer to home in the past year. If they’re not overseeing manufacturing under their own roof, then they’re migrating certain processes to Los Angeles-based contractors from overseas facilities.”
In a recent trip to China, Steve Lang, owner of Mon Cheri, gave a negative outlook to production in China. In a condensed statement Lang cites troubles with monetary policies.
“The exchange rate to the dollar used to be 8 Yuan (Remimbi as it is also called) for each US greenback. It is now under 6.5 and will be 6 by December. It could fall as low as 5.5 before the Yuan stops appreciating. The US Government is pushing this issue threatening trade sanctions if the Chinese do not allow the Yuan to appreciate against the dollar more. The US wants the imports from China to slow. The theory is that production will come back to the US; the theory.”
In Chicago Lang and Mon Cheri walked away with three DEBI awards this year. eWedNewz asked Lang if there was a chance to bring back some production to the United States. He said it’s not likely, having invested heavily in his Chinese manufacturing systems over the past five-years.
eWedNewz is meeting with other manufacturing companies that say there is a good chance of bringing some production to the states, agreeing with all the reasons Lang prescribed in his analysis. The difference some say rests with growing concerns on total dependency of off-shore production. Some manufacturers say they’re exploring faster turnaround time for products in key times of their season.
eWedNewz continues our investigation and welcomes your thoughts.
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