Do you think that Henry Ford would have imagined that in a few decades from revolutionizing industry, we will have a global economy with a global workforce?
Perhaps one of his most valuable visions was his understanding of industry, but today in our world of manufacturing so much of our products are manufactured with parts from all over the globe. It is difficult to purchase a single product today that was manufactured 100% in the USA - or solely in any other country for that matter.
Manufacturing in China has taken the manufacturing industry by force. With low cost labor and world class factories it is a very viable country to consider when thinking of manufacturing your product. Large corporations have taken advantage of this for many years but with the right contacts and infrastructure smaller firms can now also reap the rewards of manufacturing in China.
Dallas-based manufacturing consulting firm, Global Manufacturing Services works with small-to-mid size firms in the USA who desires to take their product to China for manufacturing. They have a pre-established network of factories in China in a multitude of industries. They work with US-based business from Design-to-Delivery and make it possible for the everyday-USA smaller firm to also get their product manufactured in China with great cost savings.
China is a very appealing country for international manufacturing of all industries, while some countries in the Asian region have found a more niche market. India and Pakistan are more powerful into textiles at this point of time, but still a viable options for global manufacturers.
Although globalization has brought American countries lower wages and lower cost to their manufacturing needs, we have to consider the impact it has to our local economy. More manufacturing needs are being shifted offshore and less manufacturing jobs are being filled on the mainland USA. But when businesses save cost, they can now pass those savings onto their customers in a win-win situation.
Showing posts with label china sourcing. Show all posts
Showing posts with label china sourcing. Show all posts
Tuesday, May 22, 2012
Friday, September 2, 2011
Import Product From China - At What Cost?
The manufacturing job market is growing rapidly in China and sure is not declining a bit. Currently the manufacturing sector is one of the largest employment sectors in China and at the rate it is growing it sure is a concern for US manufacturers.
Economists believe if a sector grows in all parts of the world, then it is advantageous for all. But now we find that the manufacturing sector in China is growing and that is not the case for US manufacturers.
The boom started prior to 2001. Initially it was primarily private investors who initiated the boom, but today it is governments and businesses from all over the globe who seeks out to reap the reward of Chinese manufacturing.
According to analysts, China holds over 100 million workers in the manufacturing industry, while the US holds close to 60 million. These 100 million workers exclude the millions of migrant workers that China utilizes.
In China factories that are outside of city limits are frequently overseen by a different agency or body. The China Ministry of Agriculture oversees rural factories and the Ministry of Labor oversees urban factories. Rules and guidelines are stricter for the Ministry of Labor and thus on many occasions it will be more cost effective as a rural factory, not being obligated to pay employees certain benefits and the likes.
Consider this startling fact. There are 300 million people in the USA. China has a population of 1.3 billion. Of this 1.3 billion, approximate 200 million people are unemployed. Almost as much people as the USA has alone. Thus China has a huge reserve of labor and costs will still stay low for some time in the future. "Low" in terms of international standards.
Having looked at all of these considerations, China is a country rich in human capital to drive the manufacturing industry and definitely worth to be considered.
Economists believe if a sector grows in all parts of the world, then it is advantageous for all. But now we find that the manufacturing sector in China is growing and that is not the case for US manufacturers.
The boom started prior to 2001. Initially it was primarily private investors who initiated the boom, but today it is governments and businesses from all over the globe who seeks out to reap the reward of Chinese manufacturing.
According to analysts, China holds over 100 million workers in the manufacturing industry, while the US holds close to 60 million. These 100 million workers exclude the millions of migrant workers that China utilizes.
In China factories that are outside of city limits are frequently overseen by a different agency or body. The China Ministry of Agriculture oversees rural factories and the Ministry of Labor oversees urban factories. Rules and guidelines are stricter for the Ministry of Labor and thus on many occasions it will be more cost effective as a rural factory, not being obligated to pay employees certain benefits and the likes.
Consider this startling fact. There are 300 million people in the USA. China has a population of 1.3 billion. Of this 1.3 billion, approximate 200 million people are unemployed. Almost as much people as the USA has alone. Thus China has a huge reserve of labor and costs will still stay low for some time in the future. "Low" in terms of international standards.
Having looked at all of these considerations, China is a country rich in human capital to drive the manufacturing industry and definitely worth to be considered.
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