Why Source from China?

By Jeff Angelovich

You are determined to be competitive in your industry and are eager to cut costs as much as possible without sacrificing quality. Your careful research traversed many countries, but ultimately it has led you to China, Asia’s – and perhaps the world’s – most impressive marketplace of the current global stage and you are here now trying to benefit from this knowledge.

China’s growing influence over world markets, especially since 2002, is well known. With exports reaching almost $600 billion in 2004 and poised to reach close to $700 billion at the end of 2005, the amount of products, machinery and materials flowing out of China is staggering. Added with the knowledge that only 3 years ago exports were only $325.6 billion, according to the PRC’s General Administration of Customs, the rise of this nation as a manufacturing powerhouse is undeniable.

However, why should you and your business work with and source your manufacturing needs from China?

Undoubtedly, this question can be answered with one simple fact: cost effectiveness. With an average wage of $.90 / hour as compared to an average wage of $21.53 in the United States for example, the costs involved in producing goods and machinery are miniscule. With labor costs so low, more savings can be passed on to the end user and more attention to service can be given in the long term, which thus increases the effectiveness and efficiency of the overall production process, guaranteeing larger profits.

However, there has always been a negative stigma on Chinese products and services and in the past these perceptions were well founded. Shoddy workmanship, slow turn around time, and a general malaise were just some of the problems that affected early corporations and businesses eager to work with Chinese manufacturers. Yet in the current time, this is rapidly changing. Thanks to larger corporations, with tremendous buying power and political clout, the bar has been raised significantly on quality across most industries to cater to Westernized standards and ideas about quality and service.

Right now is the best time to be utilizing China’s vast potential to help the efficiency and productivity of your business, no matter what it is. Indeed, after researching where to invest more time and energy, the question in the title quickly becomes “Why aren't you sourcing from China?”

Jeff Angelovich is the Director of Sales at Atrillion Corporation, a leading China sourcing company for machinery and factory lines.

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