Chinese Manufacturing Begins Outsourcing
Believe it or not:
Outsourcing has hit the hub of China’s Pearl River Delta, with soaring costs pushing the world’s longtime workshop for low-cost goods to move its factories overseas.
Rising raw material and energy prices, the strengthening of the yuan against the dollar and new business regulations are forcing labor-intensive factories — particularly those in the footwear, toy and clothing industries — to hunt for rock-bottom production costs elsewhere.
Many are choosing to move abroad to low-cost countries such as Vietnam and Indonesia, while others are seeking cheaper places to do business in China.
Don’t look for the Chinese manufacturing lock on America to fall apart anytime soon, but this is a move in the right direction.
