New Production Hubs Emerging

WASHINGTON — Sourcing is truly becoming a worldwide adventure. Two areas are ripe for growth in apparel and footwear sourcing — Africa and India — but Asia is expected to maintain its foothold as the prime hub this year, while Western Hemisphere production will continue to expand. Sourcing executives attending the American Apparel & Footwear Association’s International Sourcing, Customs & Logistics Integration Conference here last week pinpointed the new growth areas for sourcing, which has been impacted by rising costs in Asia and the development of new middle-class economies abroad. Duncan Scott, vice president of external products at New Balance Athletic Shoe Inc., who gave a keynote speech, said he believes Asia and India will remain strong sourcing hubs despite rising labor costs. “I don’t expect major shifts beyond Asia that are going to alter the epicenter of manufacturing,” he said. The reason for that, he stressed, is that China is becoming a larger consumer market and India is following behind. “The scale of those markets in terms of available dollars to spend as discretionary income is going to dwarf what is seen in the U.S. and European Union,” he said. “That is definitely going to shape the way our sourcing has to evolve. You are

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