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Local sourcing cheaper, trader says

T-shirt maker says China can be more expensive
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While companies who want to cut costs turn to China for its cheaper manufacturing rates, a local businessman says looking for domestic solutions can actually be cheaper.

According to Miguel Naguiat, co-owner of apparel store Analog Soul, businesses that require smaller volumes of products should opt for local production, as Chinese companies often have minimum volume requirements.

“The problem is, what do you do with the excess products when you only need so much? Trying to fill the minimum order quota can be counterproductive for smaller companies, because you don’t have scale, especially now in times of crisis when sales are slow” he said.

To maximize efficiency and minimize idle inventory, Analog Soul relies on short production lines of customized t-shirts, introducing as many as four new designs per month.

“For businesses like ours, it’s cheaper to source materials and production locally, at least the minimum volume requirements aren’t as high, and the production quality is excellent,” Naguiat said.

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