Do you believe in everything you hear?

By Relaxnews, Updated: 14/10/2012

Forty percent of US importers and manufacturers are thinking of moving their manufacturing bases away from China according to a new business study, reported Taiwan-based daily WantChinaTimes this past week.
This is one of the findings of US-based financial consultancy firm Capital Business Credit (CBC)’s quarterly “Global Retail Manufacturers and Importers Survey,” which also revealed that about 26 percent of importers of retail goods surveyed have already moved some of their manufacturing out of China.
The main reasons cited for this trend are concerns over the quality of goods manufactured in China, the country’s rising operating costs, as well as rising competition from other increasingly popular manufacturing countries in Southeast Asia.
“While we at CBC continue to believe that China will remain a strong manufacturing partner for retail goods importers in the U.S., there is a shift taking place to either low cost manufacturing destinations like Vietnam and Pakistan, or on the opposite end of the spectrum, to cities in the U.S. where importers can keep an eye on quality control and produce goods faster due to the elimination of overseas shipping times,” Andrew Tananbaum, executive chairman of CBC said in a statement.
In the report, 31.3 percent of respondents of the study indicated they are moving their manufacturing to the US, followed by 18.8 percent to Vietnam, 10.9 percent to Pakistan, 9.4 percent to Bangladesh and 3.1 percent to the Philippines.
According to Canadian publication TheGlobe and Mail last month, several big Western manufacturers have already decided to move production out of China, including automated teller machine maker NCR Corp., and iconic toy maker Wham-O Inc.
Some Korean companies are also moving their manufacturing base out of China’s Guangdong province as a result of rising operating costs in the country, according to Korean news website Hankyoreh. The daily added, without citing names, that the outgoing companies were from labor-intensive industries such as textiles, shoes and toys.
Most important considerations are production facilities that can produce quality goods that is closest to your markets, where governments create tax incentives for corporations to be based there, it is a stupid move to put all your eggs in a single basket, so majority will base their operations and manufacturing closest to their markets, and that is what is happening now, consolidation where China still has it’s advantages, especially due to it’s huge domestic markets, those who do not want to access this market will move out, those who want to make money in China will stay put, the above article is biased until it seems real but is not the true picture.
– Contributed by Oogle.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Multiple OS, Security, Data & Internet , Interests include AI and Big Data, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader. I am capable of finding any answers in the world you want as long as there are reports available online for me to do my own research to bring you closest to all the unsolved mysteries in this world, because I can find all the paths to the Truth, and what the Future holds. All I need is to observe, test and probe to research on anything I want, what you need to do will take months to achieve, all I need is a few hours.​

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