Shoe Manufacturing moving from China to Ethiopia as costs increase

An article in the New York Times (June 1, 2017) titled “Chinese maker of Ivanka’s Shoes Looks for Cheaper labor”, describes the Chinese shoe manufacturer, Huajian International, moving some of their production from China to Ethiopia in response to decreased labor availability for factory work and increased wages in China. The 5,000 workers in Ethiopia are described as a trend that will expand as China sheds repetitive manufacturing jobs to other low wage countries. But will the high logistics costs to ship from Africa result in higher overall manufacturing costs ? Will increased automation and associated customization of shoes move their manufacturing back to the USA ? Or will ecommerce companies like Amazon enable direct shipping against customer orders from Africa to the USA?

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About aviyer2010

Professor
This entry was posted in Africa, Capacity, China, consumer, Cost, delivery, Global Contexts, logistics, Made in USA, shoes, supplier, Supply Chain Issues, technology, Uncategorized and tagged , , , , , . Bookmark the permalink.

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