1
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example I want

2
00:00:01,518 --> 00:00:02,078
to call out

3
00:00:02,078 --> 00:00:04,320
is a carpet

4
00:00:04,320 --> 00:00:05,440
company

5
00:00:05,480 --> 00:00:05,971
that had

6
00:00:05,971 --> 00:00:07,237
manufacturing as

7
00:00:07,237 --> 00:00:07,757
well as some

8
00:00:07,757 --> 00:00:09,568
suppliers in

9
00:00:09,989 --> 00:00:11,350
Southeast Asia.

10
00:00:11,350 --> 00:00:11,790
And so they

11
00:00:11,790 --> 00:00:12,411
were bringing in

12
00:00:12,411 --> 00:00:12,771
all these

13
00:00:12,771 --> 00:00:14,192
containers into

14
00:00:14,192 --> 00:00:15,173
North America,

15
00:00:15,173 --> 00:00:16,123
So

16
00:00:16,124 --> 00:00:17,244
a few years

17
00:00:17,244 --> 00:00:18,178
back when there

18
00:00:18,178 --> 00:00:19,089
was volatility

19
00:00:19,089 --> 00:00:19,890
in the ocean

20
00:00:19,890 --> 00:00:20,914
rates, you would

21
00:00:20,914 --> 00:00:21,594
see the

22
00:00:21,594 --> 00:00:22,355
container rates

23
00:00:22,355 --> 00:00:22,995
were

24
00:00:22,995 --> 00:00:24,167
spiking up.

25
00:00:24,167 --> 00:00:24,736
some of the

26
00:00:24,736 --> 00:00:25,427
executives were

27
00:00:25,427 --> 00:00:25,887
about to make

28
00:00:25,887 --> 00:00:26,567
a decision that,

29
00:00:26,567 --> 00:00:27,008
hey, let's just

30
00:00:27,008 --> 00:00:28,489
do nearshoring,

31
00:00:28,489 --> 00:00:30,290
move all these

32
00:00:30,930 --> 00:00:31,791
manufacturing

33
00:00:31,791 --> 00:00:32,995
units or lines,

34
00:00:32,995 --> 00:00:33,599
per se, to

35
00:00:33,599 --> 00:00:35,173
Mexico and

36
00:00:35,233 --> 00:00:35,814
there was not

37
00:00:35,814 --> 00:00:36,354
much more

38
00:00:36,354 --> 00:00:36,854
capacity

39
00:00:36,854 --> 00:00:37,575
available in the

40
00:00:37,575 --> 00:00:38,426
US itself.

41
00:00:38,426 --> 00:00:39,146
But they did

42
00:00:39,146 --> 00:00:39,957
this study before

43
00:00:39,957 --> 00:00:40,427
making that

44
00:00:40,427 --> 00:00:41,415
decision, the

45
00:00:41,415 --> 00:00:42,876
scenarios that

46
00:00:42,876 --> 00:00:43,437
we were able

47
00:00:43,437 --> 00:00:44,117
to

48
00:00:44,117 --> 00:00:44,818
bring in front

49
00:00:44,818 --> 00:00:45,098
of these

50
00:00:45,098 --> 00:00:45,889
executives were,

51
00:00:45,889 --> 00:00:47,800
hey, what if

52
00:00:47,800 --> 00:00:49,020
you kept

53
00:00:49,101 --> 00:00:49,882
your product in

54
00:00:49,882 --> 00:00:50,782
Southeast Asia?

55
00:00:50,782 --> 00:00:51,403
What's the worst

56
00:00:51,403 --> 00:00:52,440
case if ocean

57
00:00:52,440 --> 00:00:53,280
rates spike and

58
00:00:53,280 --> 00:00:54,491
they stay long

59
00:00:54,491 --> 00:00:55,172
for a period

60
00:00:55,172 --> 00:00:55,726
of 6 to

61
00:00:55,726 --> 00:00:56,706
12 months.

62
00:00:56,767 --> 00:00:58,068
Versus what if

63
00:00:58,068 --> 00:00:58,678
you bring

64
00:00:58,678 --> 00:00:59,309
everything into

65
00:00:59,309 --> 00:01:01,290
Mexico or what

66
00:01:01,290 --> 00:01:01,960
if you start

67
00:01:01,960 --> 00:01:03,011
another line

68
00:01:03,011 --> 00:01:03,942
hypothetically

69
00:01:03,942 --> 00:01:04,872
in the US.

70
00:01:04,872 --> 00:01:05,803
And by seeing

71
00:01:05,803 --> 00:01:06,734
those different

72
00:01:06,734 --> 00:01:08,435
cost parameters

73
00:01:08,435 --> 00:01:09,855
side by side,

74
00:01:09,936 --> 00:01:10,476
although there

75
00:01:10,476 --> 00:01:11,006
was a little

76
00:01:11,006 --> 00:01:11,667
dip in the

77
00:01:11,667 --> 00:01:13,398
Mexico option,

78
00:01:13,518 --> 00:01:13,968
they still

79
00:01:13,968 --> 00:01:15,059
selected to

80
00:01:15,059 --> 00:01:16,045
choose to keep

81
00:01:16,045 --> 00:01:17,346
the sourcing

82
00:01:17,346 --> 00:01:18,016
in Southeast

83
00:01:18,016 --> 00:01:18,867
Asia because of

84
00:01:18,867 --> 00:01:19,747
the relationship

85
00:01:19,747 --> 00:01:20,288
and the short

86
00:01:20,288 --> 00:01:20,968
term nature of

87
00:01:20,968 --> 00:01:22,089
this disruption.

88
00:01:22,089 --> 00:01:22,633
and