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China's middle class growth offers shoe export opening
Minnesota exports to China last year totaled $1.93 billion, up 89 percent from three years ago. firms on Chinese investments and acquisitions. "All of these conditions translate into greater demand and greater imports from everywhere, including Minnesota."
Both Allen Edmonds, which is majority-owned by Minneapolis private equity firm Goldner Hawn Johnson Morrison, and Red Wing Shoes are capitalizing on the Midwest export surge to China.
"A $300 pair of shoes over here is $580 over there," Grangaard said in a recent interview. "A guy who makes $60,000 over there doesn't spend it on an [expensive] home. They spend it on clothing and shoes. I think [China] could be $100 million in sales by 2020."
That's impressive for 900-employee Allen Edmonds,[url=http://woolrichdeutschlandarcticparka.albirank.net/][b]Woolrich Parka women[/b][/url], which only crossed $100 million in total sales in 2011.
Dave Murphy, president of Red Wing Shoes,[url=http://monclerjacketsformenssale.albirank.net/][b]http://monclerjacketsformenssale.albirank.net/[/b][/url], the Minnesota shoe and boot maker, said Asia, including China, "is the fastest-growing part of our business."
Peter Engel, a Red Wing Shoes vice president, said the company's footwear exports to Hong Kong nearly doubled to $8.5 million between 2009 and 2011, although some of that product ended up in Vietnam and other Asian destinations.
In 2006,[url=http://woolrichdeutschlandarcticparka.albirank.net/][b]Woolrich Online Shop[/b][/url], Red Wing Shoes,[url=http://peutereyjacketsuppliers.webmium.com/][b]Peuterey Jacket[/b][/b][/url], which employs 1,[url=http://peutereyjacketsuppliers.webmium.com/][b]Peuterey sale[/b][/url],135 at Red Wing-area plants,[url=http://woolrichdeutschlandarcticparka.albirank.net/][b]Woolrich Parka Günstig[/b][/url], shipped $900,[url=http://woolrichdeutschlandarcticparka.albirank.net/][b]woolrich deutschland women online shop Woolrich Parka Günstig outlet[/b][/url],000 worth of prepared leather from its Red Wing tannery. "Leather and labor are the major cost components in footwear, so this helps us remain competitive. It also allows us to make a better product in China at two factories we work with there."
The Minnesota Trade Office recently reported that state exports to China in the first half of 2012 are up 15 percent -- the biggest percentage gain among all Minnesota's trading partners.
Ed Dieter, acting director of Minnesota Trade, said companies such as 3M, Hormel, Cargill, CHS, Loram Maintenance of Way and others are selling more soybeans, turkeys, railroad, medical products and other equipment to the Chinese.
America still imports about $4 in Chinese goods for every $1 of goods we sell to them. That compares with Chinese imports to America that grew 23 percent in 2010 and 9.4 percent, to $399 billion,[url=http://duveticadoudoune.halod.com/][b]Femmes Manteaux Duvetica[/b][/url], in 2011.
The United States, with about 325 million people still boasts an economy that is larger than China. GDP per capita is $49,000; China's is about $6,000.
The Chinese economy has slowed in recent years from a torrid 12 percent annual growth rate in September 2010 to about 7.4 percent in September. Despite the slowdown, China still has the fastest-growing economy among the major trading nations. manufacturing and export surge is encouraging, but not likely to surmount China's advantages or export volume over the next decade. "Two-thirds of companies surveyed said revenue from their businesses in China grew by 10 percent or more in the past year. Seventy-five percent said profit margins from their China operations were the same as or better than their company's global margins.''
Jim Graner, chief financial officer of Minneapolis-based Graco Inc.,[url=http://duveticadoudoune.halod.com/][b]Femmes Duvetica Soldes[/b][/url], said the company, which makes industrial paint sprayers and fluid handling equipment,[url=http://wheretobuyrogerviviershoes.webmium.com/][b]where to buy roger vivier shoes[/b][/url], followed customers such as GM, Volkswagen and Toyota 20 years ago to China when the carmakers opened factories there.
Graco's Chinese sales have grown about twice as fast as the overall company, Graner estimated. That includes lubrication products for wind turbines as well as vehicle servicing and paint sprayers for auto factories, housing and commercial buildings.
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