Hi Ricky. With all due respect, I looked at the same argument in 2009/2010 when there were a lot of announcements of capacity expansion. The future increase in capacity did worry me as an investor back then. In hindsight, however, much of the online capacity were nicely absorbed by the market. Your analysis is good. But it would be better if you could show us the demand side economics
Blog: Capital cycle - Why the glove industry is unlikely to repeat its past performance
2016-07-08 20:28 | Report Abuse
Hi Ricky. With all due respect, I looked at the same argument in 2009/2010 when there were a lot of announcements of capacity expansion. The future increase in capacity did worry me as an investor back then. In hindsight, however, much of the online capacity were nicely absorbed by the market. Your analysis is good. But it would be better if you could show us the demand side economics