China’s COVID lockdowns and higher shipping costs are helping USA-made goods compete with imports, according to New Jersey cap maker Unionwear, Voice of America reported on June 3, 2022.
Unionwear makes custom baseball hats, scarves and backpacks in Newark’s North Ward. Founder Mitch Cahn said the company has about 155 workers and hopes to hire 25 more right away.
How the price gap closed
- Cahn said his caps cost about 30% to 40% more than Chinese imports before the pandemic.
- He said a cap bought for $2.50 in China now ends up costing $8 to $9 once it reaches the USA, after tariffs, shipping, packaging and testing.
- Unionwear’s caps sell for about $8 to $10 each wholesale.
- VOA cited container rates of $15,000 to $18,000 per 40-foot container on China-USA routes.
Harry Moser of the Reshoring Initiative told VOA that 20% to 30% of companies could bring production back without raising prices or cutting margins once they count all the costs of offshoring.
“We manufacture everything from scratch right here in north Newark.”
Mitch Cahn, founder and president, Unionwear
FAQ
What does Unionwear make?
Custom baseball hats, scarves and backpacks.
Where is it located?
Newark, New Jersey.
How many people work there?
About 155, with plans to hire about 25 more.
Source & credit
Source: Voice of America, June 3, 2022, by Lin Yang: “COVID Helps ‘Made in USA’ Goods Compete With Chinese Exports”.