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I ... the ... data suggests that China's losing its competitive edge at low cost manufacturing this to other countries in Southeast Asia ... Joe inning me now is Stanley's eat as CEO of love their style which manufactures ... the like said Ralph land and unit plans to expand its family for coming and ... so Stanley last time we spoke about the euro half again you are getting ready to move some manufacturing outside of China ... um what are you doing today and are higher wages in China are impacting how much or manufacturing ... absolutely we continue no push to move production from China to overseas ... and that I mean really stunning in Vietnam and were also looking to India Indonesia and a couple of the places ... of death only higher wages in China is making ... labor intensive production in ... the lead in industries such as ours and apparel manufacturing ... less competitive than before ... and you know we are no ... VeriFone crispy looking for ... offshore production ... how much of your production is now outside China and what ... what is your I maintain shame going forward ... a company that we use to be about a hundred ... he is the hundred percent in China as of eighteen months ago now with the five percent outside of China ninety five in China ... hopefully within a year or two ... we'll get to fall to twenty twenty five percent outside China that's it that's a significant amount and in in a relatively little time ... we spoke of that but you know I know what are the things you are doing as many manufacturers in China is pushing ... up a lot of the manufactured out of the Pearl River Delta in the self up north to the western regions where oh where wages are actually suppose to be lower up there is that not the case is still the case ... as western China is still twenty twenty five percent ... lower in wage costs and so some in China ... however he is trying to ignore them and be in all it's it's it's one country so this ... southern Chinese China it costs go up ... Weston China's costs also called for the bill probably always be a spread ... of twenty twenty five percent ... okay so how much are ... higher wages cutting into your business and you're in the end is actually paid for it is that passed ... down to um your your customers of going for chalet now industry has been deflationary for twenty years and it doesn't appear to stop ... so deftly consumers are not paying for it and therefore I'll cost ... the Browns ... aam are paying for it ... so it is to please a lot of the margin compression ... and also I think of this this is being moved offshore ... and in the low costs elsewhere and at the end of day where selling a ... in a way of commodity and a price taker ... so I just because Alcosta higher than everybody else's doesn't mean that we can charge more ... than what the market is this a bit I sat at the end of the past I had spoken to manufacturers to complain that manufacturing outside China ... but you can really compare you couldn't compete ... with the craftsmanship and the speed at which things get done outside China is this still the case where you seen skills in places like Vietnam really have come up to par ... photo Leah skills are improving in place like Vietnam in other places however there's still a cap ... with what they can do versus what China can do ... and is not just skills is also the infrastructure the servicing ... the speed of of how things can move ... so China still has an advantage there ... ok what other countries the site from Vietnam are attractive to you right now we're looking at Indonesia ... India ... to a lesser extent Cambodia ... of me and MAR and I was a very hot country full of love the cool cat ... uncertainly Bangladesh Bangladesh has already second-largest a ... pair of producing country in the world behind China ... the cayenne sale and if you're someone like you is considering moving around twenty twenty five percent outside of ... Thaiday you've got to ... believe that this is gonna have a a a significant impact ... see it that that that plea there's been a significant impact offices ... of the we got we got there we gotta go to site to ... the same thing as what happened to Hong Kong thirty years ago the Hong Kong was once a manufacturing base ... and is hopeful got more expensive than the production to migrate from Hong Kong ... into China and now from China on to other places and cake thanks Fran Maxim's lever style Stanley's eat it for joining me ... for more on that star a pink added Avista dot com I'm Deborah con ...