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That issue becomes a logistics issue. You can pay one worker in Bangladesh to oversee the machine, or you can pay one worker in the US (or Europe) to oversee t
by pwg 9y ago
That issue becomes a logistics issue. You can pay one worker in Bangladesh to oversee the machine, or you can pay one worker in the US (or Europe) to oversee the machine.
But, if your target market is US (or Europe) you've got shipping costs to get your finished shirts to the US (or European) market. If the machine is in the US (or Europe) those shipping costs are substantially lower (and with much less latency).
The lower latency (meaning you can sell shirts in a more "on-demand" manner) and much lower shipping costs might well outweigh the labor savings of the Bangladesh worker overseeing the machine.
- gozur88 9y agoI remember reading an article on shipping, and they claimed shipping costs for a t-shirt from China to the US are something around $0.02. I'm thinking the biggest advantage to outsourcing t-shirts is in a lot of places you can dump used dyes into the local river instead of dealing with rules on toxic waste.
- flukus 9y agoI assume shipping the raw materials (wool and cotton) to Bangladesh would cost more than the shirt on the return trip.