China continues its amazing economic growth and has become the world's major manufacturing source. A recent study by Booz and Allen showed that companies who use Chinese manufacturers enjoy greater profits. However, they did cite that the key to success in future will be to fully leverage Made in China capabilities for sustained profit growth.
By broadening your exposure to more Chinese manufacturers and distributors, you are more likely to successfully utilize all the opportunities that these companies may offer. It may make all the difference to your company's survival.
Far from being a threat to producers in North America and Europe, the China industrial revolution is an opportunity that can't be ignored.
Chinese producers are making companies around the world more competitive and that can mean the difference between prosperity and failure for many global companies and their own country's economy.
The advantage of product sourcing in China is many. From clothing to agricultural chemicals, this country's workforce is providing exceptional value for manufacturers. Ten years ago, it was difficult to find a China supplier or manufacturer, however the repatriation of Hong Kong went very well and China has opened itself to economic expansion.
Thousands of companies have sprung up to fill the huge demand for China products. Now the term Made in China refers to the spirit of limitless possibilities for product manufacturing.
Limitless Manufacturing Capability
The country is estimated to have more than 100 million workers making every conceivable type of product from basic agricultural chemicals to big screen televisions. Its position as the globe's manufacturer is solidified by the fact that most countries depend on China for not only low prices, fast production, and timely shipping but also for customized product development.
Annual flows of foreign direct investment grew to 75 billion dollars in 2007 and its growth in GDP is above 11%. The country's tremendous purchasing power and scale of imports of production materials gives it a sizable cost advantage.
China definitely has the lead in terms of perception of low cost products. Chinese manufacturers are growing in leaps and bounds in terms of numbers and in size. Millions of workers are migrating from the interior to work in factories near the coast. Right now China has everything global manufacturers are looking for in a reliable source of goods.
China's major production is in mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, clothing, toys, electronics such as televisions, computers, mp4 players, cell phones, electronic parts, food processing; transportation equipment, including automobiles, auto parts, rail cars and locomotives, ships, and aircraft; telecommunications equipment, and even satellites. This range of products is constantly changing and growing.
Economic and Cultural Growth
Chinese citizens have access to growing technology given how accessible products are. Over 130 million Chinese now have access to the Internet. This in itself will generate a boom in demand from Chinese consumers who eager to know more about the world and products they might buy
For North American and European consumers and manufacturers, the Internet is making contact with Chinese product sellers and Chinese manufacturers and distributors. Large China trade portals have been developed and act as a source of contact for Chinese manufacturers and buyers abroad.
One of the largest problems that remain for manufacturers looking for Chinese suppliers and distributors is locating them and communicating with them. The demand of Made in China products and manufacturing services is so strong though, that new trade portals are serving the key needs of buyers and sellers.
Sometimes finding a potential suppliers or manufacturing service provider comes simply from searching on search engines for a particular product. North American manufacturers are always looking ahead to future demand and new products.
A search for the latest technology or new generation products can be fruitless on search engines however. Web sites that cover serious leads for let's say MP4 players and parts are few and far between. Often it might only be a commentary web site where there are reviews. Not the kind of information North American retail buyers and manufacturers need.
To source for the latest electronic products, you want to search for a portal that has a membership of China manufacturers. On this portal, you might find some of their products, learn of their basic capabilities and how to contact them.
Many Chinese companies have English speaking representatives to enable effective communication. What North American companies have learned is that the Chinese companies are competent and can deliver the customized products they need.
If you're considering outsourcing your manufacturing or to source product availability, these trade portals can help you learn more about China manufacturing partners.
The goal of these portals is bring manufacturers and buyers together. Made in China is a key term for global buyers and you'll find your source at a Made in China portal.
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