Triad companies search for alternative socks sources to replace quota saturated China
16 May '05
3 min read
The problem for some Triad companies has just begun as they have exhausted Chinese-made socks capacities for the year, forcing them to seek alternate production capacity, while domestic firms hope to peg their sales.
Before the deadline import expiry deadline of October 28, 2005, position as of May 9, states 90.1 percent of the 42.4 million dozen pair quota has been utilized. Industry executives predict that by the end of May the quota, imposed at the request of U.S. sock makers who felt threatened by Chinese producers, will be exhausted.
On October 29, 2004, the quotas, restricting the amount of socks that can be imported from China was implemented and will expire October 28 this year. Now, American importers of Chinese-made socks will turn to other sources to meet their orders.
Sounding serious, Jim Williams, CEO of Gold Toe Brands Inc said that a few manufacturers would face problems if they have relied only on China. He added that such companies must have planned on diverting product to other countries in order to survive, which led him to quip, "I think that some people will miss some shipments to retailers."
Williams' Burlington sock company is however, safely ensconced as it has a plant in Burlington, and has plans to move its Chinese production in other countries.
Significantly, China's loss will be India's gain as companies would need to replenish their stocks from other overseas sources.
There may be a situation where some importers during the quota ending phase face situation where shipments are stuck in warehouses, unable to be sold in the United States as they arrived after the completion of the quota limits.
marketing@alchempro.com
