U.S. Manufacturers Find More Expansion Options in Southeast Asia

摘要

If China is too expensive, companies can find low-cost alternatives throughout the region. The economy of China is evolving. The cost of manufacturing in the world's most populous country - notably in the coastal regions - is getting more expensive as the skill level of its workforce continues to increase. Manufacturers, especially those in low-margin industries, have begun to investigate other options for Southeast Asian expansion projects. And there are a number of viable alternative options coming to the forefront to help improve their bottom lines. "There is always more than one factor, but cost of labor is important," says Daniel L. Gardner, CEO at RF International and Ocean World Lines, subsidiaries of Pacer International, Inc. "Over time, coastal China and Hong Kong have seen their economies evolve to higher value-added-type industries with higher skills. So, you see a shift away from more labor-intensive industries."