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Nike, other U.S. companies, move some manufacturing out of China

Vietnam surpassed China in 2010 as the largest supplier of Nike footwear.

Via tutor2u, Cara
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Cara's curator insight, March 14, 2014 6:02 AM

China used to be the place to go for cheap manufacturing, however since labour is becoming more expensive due to a rise in wages China now doesn't have this competitive adavantage over cheaper countries. Furthermore the nation’s working-age population has been declining since 2012 as a result of the one-child policiy which means that it's harder to find the worers that you need for manufacturing.These changes have led global manufacturers such as Nike to begin shifting production to countries such as Bangladesh and Vietnam.

U.S. and European clothing makers are also looking elsewhere to places such as  Bangladesh, Vietnam and India which are predicted to be the top three destinations for the coming five years. It is thought that Mexico would be the new favourite destination for the US manufacturing since Mexico benefits from its proximity to the U.S. market and lower transportation costs.

How are China going to stay comeptitive though? Sureky if the economy is becoming more developed then they can afford to train the labour to produce high quality products and therefore focusing more on the product than the price.

Jack Murray's curator insight, March 17, 2014 12:37 PM

Nike show the attraction of lower wages elsewhere including Bangladesh and Vietnam as rising Chinese wages look to bring their competitive production edge to an end.

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Ford ups China investment as sales surge

Ford ups China investment as sales surge | UK economic market and China | Scoop.it
Ford Motor Co. plans to double its research and engineering capabilities in China in the next few years as it aims to gain market share in the world's largest auto market.

Via Cara
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