GO WEST... WITH CAUTION: China's effort to improve the standard of living in the hinterland has manufacturers following

摘要

We've seen the TV commercials touting the expediency of China's shiny new and sleek high-speed passenger trains rushing through a lush, green environment. But what we don't see is the inferior, inefficient freight rail system or the chaotic traffic jams on Chinese highways that can slow down a company's supply chain by days. Clearly, China is a work in progress relative to the transportation and logistics infrastructure required to support industrial development slowly shifting to the country's interior to take advantage of cheaper labor and numerous incentives. Multinational manufacturers need to think holistically about how far west they should consider going to establish a manufacturing facility that makes sense economically and logistically.