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The cheese is changing

Evaluate alternative offshore production sites

Chinese manufacturing costs are rising

With China accounting for one-fifth of global manufacturing output, “Made in China” has become one of the most recognizable labels in the world. When labour costs were low and the country was trying to incent investment in China through tax holidays, setting up a manufacturing plant just about anywhere in China made sense.

China is changing

As the Chinese economy strengthens and the standard of living rises, the benefits of offshoring are starting to disappear – and the savings once realized by foreign companies with Chinese operations are shrinking.

Failure to review your offshore operations could lead to dwindling profit margins, especially for industries that manufacture in China but sell outside the country. To protect your profits, you need to understand how changes in China affect your supply chain.

Read The cheese is changing to learn how to properly evaluate the benefits of low-cost manufacturing in China and help management make well-informed decisions on those locations and jurisdictions that are most appropriate for future production sites.

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