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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (64849)	3/27/2007 4:06:07 PM
From: ajtj99	Read Replies (1) \| Respond to of 116555

Because of the increase in the value of the real estate, moving is not an issue. It's pretty cheap to do over there. Many factories that have expanded do so by moving to more rural areas, taking their real estate profits and getting a bigger bang for their buck. The same thing can be applied to the inland areas, but to a much larger scale. Labor in some of the inland areas can be 1/3 the cost of that in the coastal metro areas of China. If you have a product that's got a large labor component like textiles, it could pay to move inland. The government is also giving incentives for such moves. Surface transport is up to a week more, so that needs to be part of the equation.