Manufacturing Cost on the Rise in China

Chinese manufacturers are being hit by rising raw materials prices, increased inflation and currency appreciation all at the same time. This is leading some companies to look outside China for their low manufacturing cost solution. While these trends are likely to continue, I think that China will remain a competitive and attractive manufacturing hub for much of the world for many years to come.

While input cost are on the rise, productivity gains are only beginning to be felt and companies in China should look towards increasing worker productivity as the next frontier of COGS savings.

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