SJ Special Report: A New Role For the Americas As Near Sourcing Comes Home
Fred Isenberg, NGC's President of Consulting Services was interviewed by Sourcing Journal Editor Patrick Lamson-Hall for a Sourcing Journal Special Report about “A New Role For the Americas As Near Sourcing Comes Home”
Here is what he had to say:
Q: Why are firms leaving China?
A: Costs in China are rising. There’s always uncertainty in sourcing, and people are beginning now to look at the total cost. What does it really cost me to make it? Not just the cost of the goods, but what is the cost of the time? In Asia you can’t source anything in less than 90 days. It’s impossible. Here, you can turn goods in 3-5 weeks if you have your supply chain set up. In Asia, you’re going to deal with anything from 18 to 23 or 24 days on the water, plus cost of country transportation if you’re bringing goods East.
Q: What do the Americas have to offer?
A: Denim, khakis, t-shirts, and intimate apparel (which has always been there). Those are being made there. Workwear, like work pants and work shirts. Companies like Cintas and Dickey’s and VF’s workwear divisions have a large sourcing mix there. You can get the fabrics in the US and the factories down there know how to make it.