You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #6: Good Question [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (Through 2005) Donate to DU
togiak Donating Member (114 posts) Send PM | Profile | Ignore Fri Feb-20-04 11:59 PM
Response to Original message
6. Good Question
I used to work down in the DR overseeing the manufacture of apparel for the US market. So hopefully I can help with a good answer.

First, the sewing itself is usually a relatively small component of overall cost. The piece goods themselves have a much greater % of the cost of a garment than the sewing. Cost of fabric doesn't vary from country to country like the cost of labor does.

Second, most of the large apparel firms outsource product to independent contractors. While these contractors may only pay their employees $1 per hour (including benefits), they bill their work out at a much higher rate. For example, we were based in the Dominican Republic and we paid our employees around $1.5 per hour (including benefits). We billed out, on the other hand, $6.00 per hour for our work.

Third, transportation costs and tariff costs (when they apply) will also raise the costs of outsourcing overseas.

So when it is all said and done, the cost difference of doing it locally vs overseas isn't a great as it would seem at first glance.

That difference, however, does usually end up as profit for the company.
Printer Friendly | Permalink |  | Top

Home » Discuss » Archives » General Discussion (Through 2005) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC