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WHY DO BIG COMPANIES MANUFACTURE IN CHINA?

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WHY DO BIG COMPANIES MANUFACTURE IN CHINA?

Release time:
2015/10/09
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Other than cheap labour costs why do companies manufacture in China.

China's rapidly growing domestic market, sourcing of materials and components is much much faster and competitive ---> the companies have easy access to large masses of things needed for production.

 

Flexibility in production---> Chinese factories and workers adapt fast to changes in production simply because the amount of workers is so high. This makes production start-up time shorter, saving a lot of money.

 

Experience and specialization---> Most of the managers in china have been working on their field for their whole lives, same goes for workers. Few other countries can offer this volume of skilled work force.

 

Amount of work force---> other places have just as low labour costs (e.g. Romania), but China has more work force, it offers the companies tens of thousands of workers.

 

Future markets---> China's economic growth indicates that the future market is there and in Asia in general. It only makes sense to have the products where the consumers are.

 

other reasons: Infrastructure, supply chains, engineering and design talent at low cost, value