Your 2017 Outlook for China Manufacturing

The United States and China have something in common, in addition to the working relationship regarding China manufacturing services.  The median age of the people in both nations is 36-37 years.

In comparison, the median age of India’s population is 26-27, which is ten years younger. In 2015 the number of older Chinese exceeded the number of younger people for the first time and, by 2020, more than half of China’s population is expected to move into the middle class, a demographic that was almost non-existent a short time ago.  Interestingly, these facts are core drivers for the future of China manufacturing.

The Chinese government is making big changes in response to these changing demographics.  Older workers are typically more experienced, have higher pay, and are not as interested in lower-level positions. This has the potential to increase labor costs and could make exports less competitive.

In response to this economic challenge, the Chinese government is working with manufacturers by:

  • Putting an increased emphasis on quality control. They want “made in China” to stand for well-made products
  • Adding further economic incentives for foreigners in some of the large industrial zones
  • Placing more emphasis and producing more high-value products such as electronics, medical equipment, and supplies
  • Investing heavily in robots particularly in the automotive, plastics, chemical, and metal sectors

What does this mean for an American business that is interested in having their custom products manufactured in China? It means that China manufacturing will definitely be open for business and looking to remain competitive in 2017 and every year leading up to the new decade. Why? Because the Chinese economy depends heavily on exports.

The China manufacturing sector has had its ups and downs, but automation (robotics) may prove to be a mixed blessing. While robots may be more efficient for very large production runs, the human workforce remains highly skilled, trained, and is more cost-effective and flexible for the larger number of smaller production runs.

China’s manufacturing base has a large “boutique” manufacturer base that depends on the production of foreign export products. Whether someone is interested in selling high-end embroidered belts, electronic game systems, chemicals, or any other product, the nation is committed to offering China manufacturing services at competitive rates and supplying consistently high-quality products.

ITI Manufacturing has been representing their clients and helping them benefit from Asian manufacturing services for nearly 45 years. Their in-depth knowledge and China-based staff know how to get quality products made to your specifications at competitive landed prices.  They are experienced in all phases of the process, from the initial contract negotiations to the delivery of company products into the U.S.

They can manage your off-shore supply chain and sync it perfectly with the domestic side.  They also ensure shipments are free of manufacturing defects and the proper raw materials are used in the production of your products BEFORE they leave the factory.  You remain in full control of your product.  ITI Manufacturing does the work.  You may be surprised how easy and worry-free China manufacturing can be.  Call us today at (281) 242-7030.

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