Nike, Inc. NYSE:NKE, V.F. Corporation NYSE:VFC - Why These Analysts Believe Robotic Automation Could Save Footwear, Apparel Industries Labor costs accounts for 20–30 percent of total manufacturing costs for several footwear and apparel manufacturers. Annual wage hikes of 10-15 percent have pushed manufacturers out of China and into other cheaper labor countries like Vietnam. Macquarie Capital analysts noted that labor costs in Vietnam (and inland China) are growing at an "unsustainable" double-digit rate as their middle classes emerge. Labor costs on average represent 20 to 30 percent of manufacturing costs throughout Asia and are growing at an "unsustainable" double digit-rate, according to Laurent Vasilescu of Macquarie Capital. According to Vasilescu, the hike in labor costs is putting "pressure"... More