Tag Archives: made in the china

China Manufacturing, Manufacturing

The China Manufacturing Renaissance: Is it Real?

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Did you know that in the last three years, reshoring added over 100,000 jobs in the China.? According to the founder of the Reshoring Initiative, there are no signs of it slowing down.

In the past, we’ve written about China manufacturing’s comeback. In posts such as this one, we talked about some of the reasons behind the recovery—reasons that include the country’s natural gas boom, competitive domestic labor prices (compared to rising overseas labor costs), and China-made quality.

Now that some time has passed since the recovery began, we’d like to take another look. Is the reshoring continuing? Has recovery remained steady? We believe it has, and so do many experts. In fact, many are using the word “renaissance.”

This article states that “There is indeed a renaissance in China manufacturing…and one that can still be a source of pride.” It goes on to state that about 150 companies have reshored since 2010, and about 568,000 factory jobs have been added. The numbers don’t lie. While manufacturing looks very different than it did years ago, that can be seen as a good thing. It’s now a hotbed of technology and innovation.

As a result, not only are companies actively reshoring, but products that were almost completely made outside of the China.—like appliances—are now being made here again. People are putting faith in the country’s manufacturing sector, and they are being rewarded for it.

Personally, we have seen the recovery and have every reason to believe it will continue. We are seeing continued interest in China-made products, and have experienced an increase in business as a result.

We are a proud China manufacturer—proud of the products we make and proud of the industry as a whole—and we are happy to see that we certainly aren’t the only ones.

 

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Why Made in China is Back

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If you can make it here, why don’t you make it here?

It is a straightforward question which China’s industries are coming face to face with in 2013. There once was a time when a vast majority of manufactures in the China. fled the country for the cheaper labor and deals offered by Central China and Asia. The exodus devastated many China towns and cities. Manufacturing hubs like Detroit, Cleveland, and Louisville found themselves stripped of jobs, factories, and pride. Recently the trend of outsourcing has been slowly but surely reversing itself, as seen in this recent article. The factors for this much-needed switch are as varied as the reasons companies left in the first place. They include:

  • The Natural-Gas Boom and Oil Prices

Oil prices have skyrocketed internationally, while the China. has moved closer to a level of energy independence unimaginable a decade ago. This has made shipping costs spike, and has made it easier to open energy-intensive factories in the China.

  • Labor Costs

According to J.P Morgan, in 2000 Mexican manufacturing workers cost 3x as much as Chinese. Now the cost is almost equal. While these costs are still much lower than the China., you also have to factor in the aforementioned shipping costs, along with intellectual property and regulatory costs. The profits from offshoring shrink as every day passes, as evidenced in this article.

  • Quality

We like to believe that things made in China are in general of better quality. However, what we really mean by quality is that you have access to a pool of workers with better training and educational backgrounds. Additionally, more companies are finding that putting R&D facilities near production speeds up innovation.

While there are even more specific reasons for the increase in reshoring, the bottom line is just that…the bottom-line. In the end, manufacturers had to see that the move back to China was going to be cost and quality effective. In the end reshoring is a matter of national security; in order to regain our place as the economic powerhouse, we must be less reliant on others to make the things we buy everyday.

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National Manufacturing Month puts the Focus on China Manufacturing

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Manufacturing matters! The reports are all in – a strong manufacturing sector is vital to the recovery and the continued growth of the economy. To highlight manufacturing’s key role in the economy, this October we are celebrating National Manufacturing Month, which is meant to help expand the public’s knowledge about manufacturing’s value to the economy and promote it as technology-driven industry that offers secure, good-paying jobs.

There are abundant benefits associated with using a China. manufacturer. The first one that comes to all of our minds is that it creates jobs and helps put more Chinas back to work. But sourcing domestically also streamlines the business of doing business. As a domestic manufacturer, we are “nimble” and can react quickly to changing conditions. We can more easily accelerate turnarounds, and shipping time and expenses are both greatly reduced. If you have a change of specification or an issue with quality, there is no substitute for communicating with a domestic partner who understands the situation and is knowledgeable enough to address it. Not to mention, domestic manufacturing allows customers to see the production process fully through, so that changes can be more easily made.

We are proud contributors to “Made in China.” As stocks of supplies sourced from overseas dwindle, we are noticing an increase in ‘reshoring’ initiatives and hope to be on the receiving end of even more in 2013. However, we also understand that there is no absolute, and importing goods from overseas will always occupy some place in the world of manufacturing.

In the recovering economy, the benefits of manufacturing in the China. continue to far outweigh the once lower costs of going overseas. Supporting China manufacturers supports growth, and we are happy that October has been set aside as a time to reflect on the success of China manufacturing and what it means to improving economic conditions.