In a small town in northern Wisconsin is a giant factory from the 30s, 40s, 50s and 60s that produced fine quality men's shirts—Arrow, I believe—that were carefully and proudly produced by local workers. Alas, the factory is quiet now, and the town has fallen on hard times, like so many others. Fast forward to 2000 when all of those shirts were now labeled “Made in China.” Cheap labor, and lots of it, produced good quality at a rock bottom price and big margins.

Now turn to yesterday's Wall Street Journal where it was reported that the search for “Cheaper Labor Leads to Africa.” Yes, China is now suffering from rising production costs driving western companies to seek yet again, cheaper alternatives. Africa is where the action is, and Ethiopia is now the top sourcing destination by apparel companies for new cheaper production options according to McKinsey & Co. China is still the 900 pound gorilla, so it will take time for it to lose its advantage, just like Wisconsin.