Friday, October 08, 2010

Are There Still Production Advantages in China

A lot of US citizens and, particularly, those that have been involved in domestic manufacturing, have been hopeful that recent changes in China will make them less competitive. A couple of internet accounts have discussed this:

One, an article at Omaha.com relates how China Moves Away from Low Cost Manufacturing.

However, at one of my favorite blogs, the China Law Blog, they have a position and have a good debate going stemming from the post of Competing with Chinese Companies on Price, In Your Dreams.

There are definitely signs that rising costs in China are making it more costly to produce, but as mentioned in the China Law Blog, it is still very difficult to beat the total costs advantages. There may be some return to more US manufacturing of some products, but I would venture to believe that will not be in labor intensive type products.

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posted by A Bryson (formerly) in China @ 1:55 AM Comments: 0

Monday, March 10, 2008

The Wheel is Moving

This area of China has been the hub of the world for manufacturing. Where I am in Dongguan, it has even been the new center of furniture manufacturing. A lot of that is changing fast. Costs are rising fast, and manufacturers are looking for options inland or to other countries, particularly Vietnam. Estimates now say that 10,000 factories have already closed, and more are closing.

The Guardian had a very interesting article today about the change in attitudes of workers and some of what is happening here. It’s worth a scan or good read, if you wonder how the world is changing.

Click here to open the article.

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posted by A Bryson (formerly) in China @ 6:19 PM Comments: 0