Very interesting figures:
U.S. Balance of Trade in
(NAICS 339115) Ophthalmic Goods
With All Countries
As of APRIL 2005
(In Thousands U.S. dollars)
That should show you were most of the stuff comes from.
Very interesting figures:
U.S. Balance of Trade in
(NAICS 339115) Ophthalmic Goods
With All Countries
As of APRIL 2005
(In Thousands U.S. dollars)
That should show you were most of the stuff comes from.
That would depend on what you want to portray Chris.
I think it’s obvious that most frames are manufactured outside the US. Since each SKU/FPC counts as a single item, the numbers are massive. Same for equipment vendors.
A good portion of semi-finished lens blanks are made outside the US as well, but made into finished products within the US.
So what’s your point?
J. R. Smith
Thanks Chris, I love stuff like that!
:drop: Ever wonder what business would be like if suddenly we could recieve nothing from China?? Come on you Economic PHD's out there what do you think it'd be like?
SCARY!!!! Very scary!
FVCCHRIS: <<Ever wonder what business would be like if suddenly we could recieve nothing from China?? Come on you Economic PHD's out there what do you think it'd be like?>>
Slightly higher inflation, significantly increased imports from other developing countries and some increased US produced products. The key fact is that most of the imports from China no longer have a meaningful production base in the US to compensate for China imports disappearing. Most products would take considerable time and investment to rebuild capacity and other countries would still have a cost advantage.
The US economy has moved upstream to higher value products and services. Not good for many US workers of course but good for limiting inflation.
It is also notable that the US government's deficit is now financed by oil money and the cash flow from Asian exports. Were it not for China money buying US treasury bonds, our interest rates would be much higher with a negative impact on economic growth here. Not a good situation but it is where we are today.
Many uncertainties in the future re China and US trade imbalances. Will China let the RMB float in a meaningful way? Will the US impose a punitive tariff? Will costs in China rise to the degree that other East and South Asian countries begin to take away business from China?
It may well get worse. At some point China may decide to send our money used to buy imports from China someplace else rather than back to us via buying our bonds.
Mike Schaus
The numbers reflect the reality of a changing world. We as a country are a consumer of products and no longer a manufacturer of products.
We have developed a family of new innovative coating products which are in demand by lens manufacturers in Asia. We as a country can compete as long as we are innovative and different.
If the US consumer lost access to these goods, in the short term the cost of living would dramatically increase. Last year, after much pressure as well as its desire to slow down its economic boom, China discontinued its locked RMB value to the USD. It now trades in a narrow band against a pool of currencies. In that time the RMB strengthened against the USD by 3%.
The US government is pushing China to let the RMB float on the market. If this actually occured, the RMB's value would continue to strengthen making Chinese made products less affordable. The thinking is that this would increase the US domestic manufacturing sector. In fact this would not be the case. Manufacturers would be forced to move to other countries where they could lower their operation costs. The US consumer and the people of China would be the ones injured by a floating RMB. US goods are considered luxury items in China and much sought after. As income levels continue to increase in China, the Chinese people will continue to purchase more and more overseas products.
Good point DocInChina:
ICE-TECH is already in meaningful talks to utilize some of our technology for high end prescription lenses in Asia including. The hunger for Western brands in China is very big.
I think today you have major frame companies owning retail outlets in China selling fashion designer named frames that they license for big money in the larger cities in China. They actually have these high dollar frames made in the smaller towns in China.
Once the "BRAND" is on them the thirst for the product changes in China.
Those are some good explanations. Not being an economics wiz I have to ask: Since so much seems to come from China in our line of business what's to prevent a Chineese entrepreneur or even a chineese government company from coming here and marketing their products directly to the U.S. consumer Lenscrafter's style??
What should anything prevent a Chinese entrepreneur or company from doing that? Nothing. (Most companies are not government owned any longer) This is not the Chinese way though of doing business. If a Chinese company has the kind of capital to come into the US market they would much prefer to buy a company in the US or elsewhere that already has sales and distribution. They have watched foreign companies come to China and buy local chains and local manufacturers for years.
Partially true. If the quality is not excellent they do not care if the brand is on it. Chinese comsumers examine products carefully before they purchase. Their memories of extreme poverty are not more than 10-15 years ago. When they spend their money they want to have value for the luxury they are buying.Originally Posted by AWTECH
The overseas famous brands that do manufacturer some of their product in China MUST export the product back to their country to "finish" the goods. They cannot sell the goods that they are making in China, directly in China. The tax situation would be much different for them. Every raw material they imported into their factories in China would be taxed as a domestic consumeable item. Every finished product they sold within China would also have VAT added onto the item they were selling to optical chains/distributors. Not feasable.Originally Posted by AWTECH
This thread has evolved into an interesting discussion..................but there is not only China, Taiwan and Hong Kong.
There is also Malasia, Thailand and Singapore that seems to become an interesting factor.................while India is still nowhere on the list.
Are they only a factor because some of the large corporations produces their lenses in that part of the world or could it be something else?
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