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Why These Analysts Believe Robotic Automation Could Save Footwear, Apparel Industries

Nike, Inc. NYSE:NKE, V.F. Corporation NYSE:VFC - Why These Analysts Believe Robotic Automation Could Save Footwear, Apparel Industries
  • Labor costs accounts for 20–30 percent of total manufacturing costs for several footwear and apparel manufacturers.
  • Annual wage hikes of 10-15 percent have pushed manufacturers out of China and into other cheaper labor countries like Vietnam.
  • Macquarie Capital analysts noted that labor costs in Vietnam (and inland China) are growing at an "unsustainable" double-digit rate as their middle classes emerge.
  • Labor costs on average represent 20 to 30 percent of manufacturing costs throughout Asia and are growing at an "unsustainable" double digit-rate, according to Laurent Vasilescu of Macquarie Capital.

    According to Vasilescu, the hike in labor costs is putting "pressure"...


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