In recent years, China has emerged as one of the top manufacturing destinations for a majority of brands. From telecom majors to auto giants, China attracts several key players from all over the world. A combination of factors has made China the most popular destination for overseas manufacturing. Here are top five reasons why China scores big.
One of the main attractions to manufacturing products in China is the availability of low cost labor. In fact, according to statistics, manufacturing in China can help reduce costs by 30% to 80%, depending on labor intensity of production.
China also benefits from its proximity to a number of growing markets such as India and South Korea. Moreover, moving production to China gives manufacturers access to China’s rapidly growing domestic market.
Low Raw Material Costs
At a time when manufacturers in all industries are trying to cut expenses, China provides a cost-effective option. Access to affordable raw materials helps bring down manufacturing costs to a considerable extent. As a result, having suppliers who are local to the manufacturer has gained importance as a way to cut costs.
Access to Cutting-edge Technology
Realizing the potential of its market in the era of globalization, China has spent the last few years developing its technology. Heavy investments in research and development have helped the country gain an edge over other emerging countries.
Evolved Supply Chain Management
To make the most of the growing interest in their country as a manufacturing hub, many Chinese suppliers have stepped up in recent years. By identifying a reliable local supplier, international companies have a simpler, more efficient option for increased production. This has encouraged even more Chinese suppliers to update to the latest technologies and raise their standards in order to attract more customers.
With a growing market, access to low cost labor and technological advantages, China is becoming the favored destination for overseas manufacturing. Call us today to get a quote and see how much you could save by taking your manufacturing to China.