Report: Manufacturing Growth In China Remains Strong
RALEIGH, NC— More than 60 percent of respondents to a recent Tompkins Supply Chain Consortium survey say manufacturing is still on the rise in China.
The report, China Supply Chain Perspectives: Operations and Future Investments, reveals the results of a survey completed by nearly 100 North American supply chain executives across all major industry segments that have supply chain operations in China.
“Considerable opportunities for supply chain improvement exist in China and steady progress is being made to continuously improve these operations,” says Bruce Tompkins, Executive Director of the Consortium and author of the report. “In fact, we found that more than 41 percent of respondents plan to invest in distribution operations within the next 12-18 months.”
Companies see China as a way to grow their business and gain more market share, as well as boost service levels and reduce logistics cost. And nearly three-quarters of the respondent companies have been in China for more than 5 years. They know the culture and the benefits that China has to offer.
Additional findings include:
A significant number of companies have more than 2,000 employees in China.
An average of 56.3 percent of companies internationally source products, while approximately 38.2 percent source products in China.
Companies’ distribution networks in China are rapidly changing, making them less than optimal for all products and channels.
More than 54 percent of companies use a logistics service provider for distribution in China.
Many companies are planning to invest in equipment and technology rather than buildings.
For more information, download the China Supply Chain Perspectives Report at: http://www.tompkinsinc.com/publications/reports/china-supply-chain/default.asp.
The Consortium also has a LinkedIn group and Xing group for organizations that are interested in staying current on the latest in supply chain benchmarking and best practices.
About Tompkins Supply Chain Consortium
Tompkins Supply Chain Consortium is the premier source for supply chain benchmarking and best practices knowledge. With more than 350 participating retail, manufacturing and wholesale/distribution companies, the Consortium sponsors a comprehensive repository of over 10,000 data points complemented by search capabilities, online analysis tools, topic forums and peer networking for supply chain executives and practitioners. The Consortium is led by the needs of its membership and an Advisory Board that includes executives from Domino’s Pizza, GlaxoSmithKline, Hallmark, Ingram Micro, Kane is Able, Miller-Coors, The Coca-Cola Company, Target and University of Wisconsin. To learn more about how your company can become a member of the Supply Chain Consortium, contact John Foley, 919-855-5461 or visit www.supplychainconsortium.com.