Sep 07 2011
China is still the place to be. As this Financial Times article indicates, China is still the a place to be, even for the apparel industry. Yep, the really low-end manufacturing is moving to Bangladesh and Vietnam, but the higher-end stuff is staying put. China’s increasingly first world infrastructure, the higher productivity of its workers …
Jun 09 2011
A voice from the apparel industry says that China is still relevant for low-cost manufacturing. A month ago, the Boston Consulting Group came out with a report stating that by 2015, Chinese net labor rates would match those of the USA. Needless to say, many with an over-focus on labor rates, and some with a …
May 24 2011
Employing a well-compensated Chinese workforce may be more cost-effective than chasing “cheap labor” elsewhere. Here are a few reasons why: 1. DO THE MATH Rising labor costs may not be that significant to your business. You need to asks what percentage of your manufacturing costs are direct labor. If it’s 10%, and your direct labor …
Mar 13 2011
A blog post from The Atlantic states my position in a new way. The blogger is one Liam Casey, CEO of a manufacturing and supply chain organization based in Ireland with operations in Shenzhen. As Mr. Casey seems to know what he’s talking about (and since he agrees with my thinking on this subject and …
Feb 23 2011
Manufacturers not leaving China to seek cheaper labor as rising productivity and “cost-push inflation” will offset cost increases. The Financial Times weighs in on China’s manufacturing competitiveness in the face of labor scarcity, rising costs and even imminent exchange-rate loss. Basically, the article (registration required) states that for many factories operating here, China’s manufacturing environment …
Jan 30 2011
It has been announced that labor costs in Guangdong will be rise again, and we are hearing the inevitable hue and cry from manufacturers. Rather than moan about incremental increases in labor costs, manufacturing executives should be more creative in finding ways to add value to their production. Actually, a better-compensated and better educated labor …
Jul 25 2010
Just because I in my infinite wisdom, say rising labor costs are no big deal, and that China is still competitive for lots of manufacturing, doesn’t mean everyone agrees with me. In fact, the PRC government, via it’s China Daily article “‘Made in China’ – but for how long“, ask the rhetorical question: How long …
Jul 21 2010
In a response to the much blogged and tweeted Economist article “Is the era of cheap Chinese labour over?“, Economist guest contributor Tyler Cowen answers the question intelligently in his response “The important thing is Chinese productivity is rising“. Anyway, the money quote comes at the end of the article: In the question stated above, …
Jul 16 2010
There was some balanced perspective on the China labor situation from a July 1 Reuters article. Just wanted to share some of the main points: Yes, the fact that there were strikes is significant. But no, the actual effect of those strikes has not been significant because of their limited scope. (It is, however, …
Jul 11 2010
The SCMP shows that chasing cheap labor may be too expensive A pair of recent articles in the South China Morning Post offer some more perspective on the much-predicted exodus of manufacturing from the Pearl River Delta and why, for the most part, it just ain’t gonna happen. (a paid subscription is required to access …
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