Manufacturing in Barbados: Why this is shrewd.
I'm in global supply chain (20 years and counting, until I become an ex-supply chain guy due to Monk's lockdowns) and have a few opinions about why the Barbados manufacturing deal makes sense. This is not about economy of scale. For that, you go to China. This is about (a) economy of means and (b) local content.
Means economy
Allows EIGH to quick-turn changes as opportunities arise. They will not have to deal with a 4-week ocean transit time for their goods from Asia to the US, and then another 2 weeks to crossdock the goods to Barbados. Means economy will allow EIGH to make what they need, precisely when they need it, with a minimum of delay. Means economy will allow EIGH to be dependent on no one that they can't put their hands on. This is shrewd.
Local Content
EIGH can leverage it's employment of Barbados staff in the mill and in the manufacturing facility with the Barbados government, qualifying for preferential treatment, tax subsidies, and other benefits. EIGH will receive strong nationalism and promotion from the government as a result of the decision to source locally, putting "Made in Barbados" on every piece of clothing worn by the Barbados teams. The government now has a compelling reason to promote EIGH's products. This is shrewd.
I look forward to seeing more from this exciting company. Still proud to say it's my largest holding.
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