Chinese Manufacturing Statistic
China’s huge economic growth in the 1980s and 1990s was partly fueled by a huge Chinese manufacturing boom that produced low-priced goods for export. But now wages are rising and a growing middle class demands high-quality goods and services. The China Manufacturing economic model is changing in response. Today in “What Is China,” CGTN’s Nathan King goes to Guangzhou, where former factory workers are finding new jobs.
Outsourcing Your Products To China Manufacturing
It’s time to look at outsourcing some or all of your products to China Manufacturing. On the surface, it looks like you’ll be exchanging labor, material, and overhead for freight charges, but let’s take a closer look. Chinese manufacturers pay their labor force something like 90% less than US labor costs. Material costs are lower in China, and so is the tax. Thus, if cost = labor material overhead, then you have a low-cost solution by utilizing a Chinese manufacturer.
Quality is high with products made in China because they have a large economy that now supplies the world. Wal-Mart, for example, is a large customer for products made in China. The lesson of low price and poor quality that once plagued Japan was learned well by the rest of Asia. If you bring in your products in container loads, the cost per piece is unbelievably low. If you outsource 100% of your manufacturing to Chinese manufacturers, you can switch your factory into a warehouse and realize even greater savings.
An excellent question is just how one finds these Chinese manufacturers.
The most effective answer is to schedule either a personalized trade visit with Asiatic Sourcing or meet with them during your attendance at a World Expo trade show. They locate ideal contacts for you, introduce you, supply translation and assist you in the negotiation process.