Sunday, March 25, 2012

And now for something completely different

Rising labor costs in coastal China, the engine of world manufacturing.

The Economist looks as causes and effects of increased wages and productivity among Chinese workers. One big reason contract manufacturing will stay despite costs is the excellent infrastructure and density of complementary businesses (stamping, machining, metal treating, etc. etc.) in Guangdong, Jiangsu, Tianjin and the rest of the east coast industrial powerhouse provinces. While other countries can offer cheaper labor they also suffer from an unreliable electric grid, undeveloped supply chains and less productive workers. An intriguing thumbnail sketch of how Chinese industry has changed over the past decade.

The Economist

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