Impact of imports on traditional sectors - construction materials and furniture - is protectionism practical?

Implications: The extra demand for construction materials created by Katrina may also be diminishing, as manufacturers bring on the extra capacity they needed in the aftermath. Imported materials were able to gain a foothold in some parts of the low end market for construction materials, as prices of bulk commodities rose.

Analysis: Much of the labour intensive product sector has already shifted overseas as far as China, where manufacturers will continue to build market share in USA and Europe. Even gypsum board became competitive for a while from China in the peak demand following the hurricane, and when that happens, it means just about any product sensitive to changes in supply/demand will find its way into US distribution channels. It implies that capital intensive industries are not always immune from low cost countries ability to penetrate domestic markets. Protectionism is never the answer, if any lessons from the furniture industry, or steel sector are to be learned. Overseas manufacturers shift to new countries with remarkable agility. As the USA examined Chinese furniture manufacturers records two years ago for evidence of anti-dumping, the factory owners were already buying land in Vietnam, in readiness for resuming exports to circumnavigate the punitive tarriffs levied on wood bedroom furniture.