Scribd
Upload
18 views1 page

Current Cost Analysis

Uploaded by

Nhung Mỹ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
18 views1 page

Current Cost Analysis

Uploaded by

Nhung Mỹ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Current Cost Analysis

Raw Materials

 Recycled Polyester:
o Current Price: Recycled polyester typically costs about $1.50–$2.00 per
pound in 2023. Prices can vary depending on oil prices and demand.
o Historical Price Trends: Over the past three years, recycled polyester prices
have fluctuated by 10–15% annually, primarily due to shifts in crude oil prices
and the increased demand for sustainable materials. A 15% spike was observed
in 2022 when global demand for sustainable textiles increased rapidly.
o Sourcing and Tariffs: Sourcing from Taiwan, where FENC is based, is
currently subject to a 0-5% import tariff into the U.S. However, any
geopolitical changes in Asia-Pacific could influence these rates.
 Thermoplastic Polyurethane (TPU):
o Current Price: TPU costs approximately $4–$6 per pound, depending on
quality and supplier.
o Sourcing Location and Trends: TPU prices have been relatively stable, but
demand in other industries (automotive, electronics) often affects its market
price. Price shifts of 8-10% have occurred annually in recent years due to
growing multi-industry demand.

Logistics Costs

 Transportation:
o Sea Freight: Transporting materials from Taiwan by sea costs about $0.10–
$0.20 per kilogram for large shipments. Each container (typically 20 or 40
feet) could cost $1,000–$3,000 depending on fuel prices and season.
o Air Freight: For urgent shipments, air freight costs are significantly higher,
averaging $4–$6 per kilogram from Taiwan to the U.S., with express
shipments sometimes reaching $8 per kilogram.
 Warehousing and Handling:
o Warehousing costs in the U.S. range from $7–$15 per square foot annually.
Handling fees add another $1–$3 per unit, depending on processing needs.

Labor Costs

 Manufacturing and Quality Control:


o Wages in Taiwan: Skilled labor in the textile and fiber industry in Taiwan
averages around $1,200–$1,500 monthly, with overtime costs about 1.5 times
the standard wage.
o Quality Assurance: Nike’s quality control costs can be around $0.05–$0.10 per
unit for thorough testing and inspection, given the high standards associated
with Flyknit materials.

You might also like