The True Impact of Rising Labour Costs in China, in Manufacturing Digital

NORWICH, ENGLAND, June 14, 2012 (Press-News.org) For decades manufacturers from across the globe have moved production out of their respective domestic countries and relocated the huge distance, for many, to China. What started with textiles and toys has seen China grow to become the most important manufacturing hub on the planet, producing everything from basic, low-end commodities to the most expensive, luxury goods, and everything in between. For better or worse, both domestically and internationally, the supply chains of some of the world's most recognised and successful brands are intrinsically intertwined with the lives of the Chinese workers employed in production facilities scattered across the region.

There have been many words written about what the main driving force was behind companies' original decision to relocate to China, essentially boiling down to an incredibly populated labour market coupled with markedly lowered labour costs. However, as more manufacturers came to the area, the savings to be made went beyond just wage bills, with more lucrative benefits becoming apparent as a direct result of the increased manufacturing taking place in the area.

Overtime the Chinese government has invested heavily to improve the logistical infrastructure of the country, developing ports, train lines and facilities, helping to create established trade routes throughout the region. Coupled to this is the application process for such things as construction permits, hiring workers, credit lines and establishing utilities, processes which have all been streamlined and simplified, much in part due to experience and repetition.

Manufacturing Digital considers some of the potential causes behind these recent wage increases and the influence it is having on manufacturers, both old and new.

Read more here: http://www.manufacturingdigital.com/

About Manufacturing Digital

Manufacturing Digital is a leading digital media source of news and content for C-level executives focused on business and up-to-date news in the manufacturing industry. Manufacturing Digital is the industry-dedicated arm of the WDM Group. Founded in 2007 by entrepreneur Glen White, WDM Group retains a diversified portfolio of websites, magazines, mobile apps, daily news feeds and weekly e-newsletters that leverage technology to innovatively deliver high-quality content, analytical data, and industry news.

Manufacturing Digital is headquartered in San Diego, California, with additional offices in Boston, Toronto, Mumbai, and Norwich, England. For more information, contact 1-760-827-7800 or visit http://www.manufacturingdigital.com/.

Press Contact
Jonathan Williamson
Manufacturing Digital
Telephone: +44 (0)1603 217 571
Email: jonathan.williamson@wdmgroup.com