Excerpt from a discussion about how rising input costs disproportionately affect lower-priced goods (because of thin margins), and how distributors are shifting manufacturing/sourcing away from China toward India, Pakistan, and other parts of Southeast Asia.
The margins on some of these products are quite low, so it's hard to imagine that you can absorb that much. That's the other thing is that lower priced products will tend to see the biggest price increases because they have the least amount of margin built into their supply chains and built into their final goods. So the lower priced products will go up the most.
I was talking to a large industrial related distributor a couple of weeks ago and they'd commented that they've already been hearing they've been working to move their a lot of their business out of China into either India, Pakistan or other parts of Southeast Asia.
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