Focus on China
Rising Costs
Even though China continues to be a magnet for even more investment of plant and equipment from abroad, the costs of doing business in China are increasing dramatically. Inflation within China is a partial driver of these rising costs. But emerging macro-economic background issues are causing dramatic cost increases. This represents a challenge to foreign owned companies who invested in China at a time when it was much cheaper. The need is to not rely on merely a per-hour labour cost advantage which is shrinking. The requirement is to beat your competition by being more efficient, more lean.Labour Mismatches
While there continues to be a huge influx of migrant labour into the coastal manufacturing zones, China's central government is predicting that the ability of the internal areas to continually supply inexpensive labour is decreasing. The net effect is that labour costs will continue to increase.Cities such as Dongguan, Shenzhen, Suzhou, all have either raised their minimum wages in 2007 or are planning to raise them.
Contributing to the net tightening labour situation is a "skills-set" mismatch. Although Chinese universities graduate more engineers per year than any other country, the quality and ability of these graduates continues to be a problem from the perspective of their ability to create a strong and cost-effective manufacturing base.
(Source: Duke University, Framing the Engineering Outsourcing Debate: Placing the United States on a Level Playing Field with China and India, English, 311KB PDF)
Your Factory in China Can Do The Job
But they probably need help to do it. Asia Management Consultants works with your local entity in China to get them to a level playing field with world-class competitiveness. Depending on your specific requirements, we supply your operations what you need to become world-class in as short of time as possible.- Lean Champion Training
- Owner and Senior Management Coaching
- Line level lean activity training
- Cell Re-design
- Kaizen
- Project Management Training
- 5S + Safety gap analysis and corrective action plan
- Policy Deployment: Cascade of Objectives
