Shenzhen, China, April 08, 2014 - AsiaInspection, a leading provider of quality control services for businesses importing from Asia, Africa, Southern Europe and Latin America, today announced its Q1 2014 Barometer, a quarterly synopsis of manufacturing outsourced services and quality control industry.
China exports reach all time high
Due to the seasonality of Chinese New Year, February export figures plummeted 18% compared to 2013. The media has been reporting that the Chinese economy is on the brink of recession.
What is not mentioned is that China remains the dominant region sourcing huge volume. December and January set new records for total exports, exceeding $ 207 billion as months.1 Fit for Chinese New Year holiday, comparing November to January 2013/2014, the total Chinese exports rose 9% compared with the same period in 2012/2013.
ChinaInspection figures topped this with a growth of 12% for ordered inspections in China. More revealing perhaps a leading indicator of export figures of wine, advancing 26.2% in March compared to the previous year.
Why the increase? In Q1 the Chinese Yuan was the first big break of currencies since 2005, depreciation of 2.7%. For companies looking to emerging markets for manufacturing, this has been little more than a "China plus One" strategy: manufacturing has remained behind in China. China has continued to maintain a healthy balance of wages, a developed infrastructure and the world's largest labor force.
China and One More
The countries of South and Southeast Asia have offered opportunities to reduce labor costs. Although their economies are much smaller, emerging markets were the clear winners in percentage growth. Inspections ordered in Bangladesh increased 70% compared to 57% and Vietnam. Cambodia increased 32% despite the unrest in the garment industry, which has led to protests across the country, climbing in January, when police fired on demonstrators, killing at least four people and wounding 38 more.2 in Indonesia, where the textile industry is set to become the largest segment of the country's exports, inspections increased 22%.
Brands and retailers take control of their supply chains
there has been a growing awareness and consumer demand, not only for high quality product, but a supply chain of high quality.
AsiaInspection Q1 2014 data shows an increase by 156% yoy in ethical audits and manufacturing in Asia. Rana Square highlighted how factories often illegally sub contract out the orders after major retailers reported that their products were never allowed to manufacture there. An increasingly common practice is to weave ethical audits programs with on-site product inspections to ensure manufacturing actually takes place in a factory approved.
"There are remarkable traction grip to supply chains around the world: corporations who put their money where their mouths are and governments to advance the legislation," said Sebastien Breteau, CEO of AsiaInspection.
The American Chamber of Commerce surveyed 400 member companies that buy in China and found that 40% plan to spend considerably more ethnically based companies compliance.3 EU face more stringent guidelines that require them to report on their policies regarding ethical issues, corruption and the risks they pose to human rights throughout its supply chains.4
China has not been without problems of ethical compliance. In Q1 16 workers died in a fire at the factory Hangzhou5 and 11 died in a factory fire off Shantou in Guangdong Province province.6
Africa, a region Electronic Up-and-coming
Labor intensive manufacturing low cost is increasing in Africa. ChinaInspection ordered inspections increased 65% year over year. The American Apparel and Footwear Association reports that companies are choosing to invest in manufacturing for markets like South Africa closer to the intended consumer market, rather than Asia.7 Africa also represents the greatest potential for population growth in the next 20 years, providing both business and end customers to companies that think in the long run. Ethiopia, a leader in terms of foreign investment, is targeting a goal of U.S. export $ 1 billion in 2014, as part of a four-year growth and transformation Plan.8
About AsiaInspection - Your Eyes in the Factory ™
AsiaInspection is a provider of quality control that is associated with leading international brands, retailers and importers to secure and manage their global supply chain. With a unique quality control management web based, AI provides Product Inspection, Factory Audit and laboratory services to over 3,000 clients worldwide.
China exports reach all time high
Due to the seasonality of Chinese New Year, February export figures plummeted 18% compared to 2013. The media has been reporting that the Chinese economy is on the brink of recession.
What is not mentioned is that China remains the dominant region sourcing huge volume. December and January set new records for total exports, exceeding $ 207 billion as months.1 Fit for Chinese New Year holiday, comparing November to January 2013/2014, the total Chinese exports rose 9% compared with the same period in 2012/2013.
ChinaInspection figures topped this with a growth of 12% for ordered inspections in China. More revealing perhaps a leading indicator of export figures of wine, advancing 26.2% in March compared to the previous year.
Why the increase? In Q1 the Chinese Yuan was the first big break of currencies since 2005, depreciation of 2.7%. For companies looking to emerging markets for manufacturing, this has been little more than a "China plus One" strategy: manufacturing has remained behind in China. China has continued to maintain a healthy balance of wages, a developed infrastructure and the world's largest labor force.
China and One More
The countries of South and Southeast Asia have offered opportunities to reduce labor costs. Although their economies are much smaller, emerging markets were the clear winners in percentage growth. Inspections ordered in Bangladesh increased 70% compared to 57% and Vietnam. Cambodia increased 32% despite the unrest in the garment industry, which has led to protests across the country, climbing in January, when police fired on demonstrators, killing at least four people and wounding 38 more.2 in Indonesia, where the textile industry is set to become the largest segment of the country's exports, inspections increased 22%.
Brands and retailers take control of their supply chains
there has been a growing awareness and consumer demand, not only for high quality product, but a supply chain of high quality.
AsiaInspection Q1 2014 data shows an increase by 156% yoy in ethical audits and manufacturing in Asia. Rana Square highlighted how factories often illegally sub contract out the orders after major retailers reported that their products were never allowed to manufacture there. An increasingly common practice is to weave ethical audits programs with on-site product inspections to ensure manufacturing actually takes place in a factory approved.
"There are remarkable traction grip to supply chains around the world: corporations who put their money where their mouths are and governments to advance the legislation," said Sebastien Breteau, CEO of AsiaInspection.
The American Chamber of Commerce surveyed 400 member companies that buy in China and found that 40% plan to spend considerably more ethnically based companies compliance.3 EU face more stringent guidelines that require them to report on their policies regarding ethical issues, corruption and the risks they pose to human rights throughout its supply chains.4
China has not been without problems of ethical compliance. In Q1 16 workers died in a fire at the factory Hangzhou5 and 11 died in a factory fire off Shantou in Guangdong Province province.6
Africa, a region Electronic Up-and-coming
Labor intensive manufacturing low cost is increasing in Africa. ChinaInspection ordered inspections increased 65% year over year. The American Apparel and Footwear Association reports that companies are choosing to invest in manufacturing for markets like South Africa closer to the intended consumer market, rather than Asia.7 Africa also represents the greatest potential for population growth in the next 20 years, providing both business and end customers to companies that think in the long run. Ethiopia, a leader in terms of foreign investment, is targeting a goal of U.S. export $ 1 billion in 2014, as part of a four-year growth and transformation Plan.8
About AsiaInspection - Your Eyes in the Factory ™
AsiaInspection is a provider of quality control that is associated with leading international brands, retailers and importers to secure and manage their global supply chain. With a unique quality control management web based, AI provides Product Inspection, Factory Audit and laboratory services to over 3,000 clients worldwide.
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