November 21, 2016

ONLY OUR ROBOT OVERLORDS CAN BRING THEM BACK:

Sneakers show limits of trade policy in reviving jobs for Trump (Timothy Aeppel and Mai Nguyen, 11/21/16, Reuters)

Nike Inc (NKE.N) and its smaller, privately held rival New Balance Shoes Inc split over the question of whether the United States should back the Trans Pacific Partnership (TPP) trade deal. But if Trump and a Republican-controlled Congress nix that trade deal as expected, both companies and the analysts who track them agree Asia is poised to keep its dominance as the industry's manufacturing hub.

Companies like Nike have invested too much in those lower-wage economies to consider moving factories, even if tariffs rise and push up costs for American consumers, analysts say. Any new hiring in the United States will be years down the road and depend on refining production technologies like 3-D printing that could make it profitable to hire relatively small numbers of American production staff. The same dynamic applies to other industries, like auto parts, which have moved production to Mexico over the past two decades, executives say.

That suggests a problem that the Trump administration will bump against if it tries to pursue a harder line on trade agreements from NAFTA to TPP. Shoe companies, like other manufacturers, could be forced to pass on higher costs to consumers, but few executives see a serious case for new hiring in the United States because of a change in tariffs on imports.

Posted by at November 21, 2016 5:56 PM

  

« RAP SHEET: | Main | WHAT THE ELECTION WAS NOT: »