The best time to set up your new China Factory
Over 25% of the world’s production is done in China with one of the few growing markets in the world. The process to move another 300 million people from countryside to cities under the next decades with further rise in living standard will fuel continued growth.
There are many opportunities in the China market. But, to be competitive long term, local production is an enormous advantage. This does not have only to do with costs, but possibility to adapt and localize and not the least have quick delivery times.
Also, there has been a time when imported foreign products has had an image of superiority, but as quality goes up in nearly every aspects of production and life in China so does the image of Chinese produced products.
Not to participate directly in the market could mean that Chinese competitors take over and soon with a large home market becomes very competitive exporters also in the global marketplace.
To start manufacturing in a new country is always a challenge. Not everyone have enough internal resources to support such a project. This is where Scandic Sourcing comes in. With a technical team on site, with western engineers, we assist and support were it is needed to get the project rolling. This includes feasibility studies, project management, factory construction, recruitment of staff, set-up of administrative systems and interims management.
After a few months of low activity due to the COVID-19 situation our team is now actively scouting new factory buildings in the greater Shanghai area. There are many possibilities and local governments eager to support.
Håller dina leverantörer i Kina focus på dig som kund?
Tillverkningsindustrin i Kina har under det senaste året påverkats av både handels-konflikten mellan USA och Kina och nu på senare tid av COVID-19-viruset.
När det gäller handelskonflikten mellan USA och Kina kommer den troligen att pågå under en tid oavsett administration i USA, eftersom obalansen i handelsflödet och undaröjande av handelshinder fortfarande har en lång väg att gå.
Detta har haft både positiva och negativa effekter på kinesiska fabriker. I vårt arbete med mestadels Europeiska kunder har fabriker i det förflutna ofta haft ett begränsat intresse för mindre orderstorlekar och har haft en preferens för Amerikanska företag som brukade beställa stora volymer och betala bra. Vi har sett en viss förändring i attityd under förra året och mer flexibilitet när det gäller mindre batcher.
Samtidigt finns det naturligtvis en ökande risk för att företag som förlorat amerikanska affärer antingen stänger ner, men mer troligt ändrar inriktning. I båda fallen kan du riskera att förlora en leverantör.