China Sourcing

Regardless of what emotions and reactions the phrase "Made in China" might elicit, we all must come to terms with the fact that it will be with us for the foreseeable future. In many industries, "Made in China" is a compelling sourcing option. In some sectors, it is an competitive imperative.

The Problem at Hand

Is your product or service labor-intensive? Did you know the the average hourly wage in China is roughly 50 cents? Compare that to India at 80 cents and Mexico at $2.30. You will also find that raw and processed materials are often cheaper in China and are of comparable quality. To put it bluntly, if your business isn't taking advantage of the cheaper labor pools in Asia, then you are taking a risk of slowly bleeding your business to death. You cannot stop your customers from seeking out the best value, even with the most impassioned pleas to Buy American and stop exporting American jobs overseas. The global economics juggernaut mandates that if your business is to compete successfully, then it should leverage opportunities to improve efficiencies and lower costs where that makes sense through globalization. The big guys already know this. Take this challenge: Try to find an American made product (non-grocery) in your local Wal-Mart. Not a shopping cart full of items - just one. What percentage of items did you see with "Made in China" stickers on them? So, how can your small or medium size business to take advantage of similar cost savings as your competitors and the larger companies?

What Can You Do About It?

Need boots on the ground in China? Having trouble finding people or materials in China? Let's talk! Click here to send an email to Gee (English or Mandarin Chinese).