Cheaper than China: By The Numbers

Study shows China might be losing its competitive edge to neighboring nations.

For years now, China has been a hub of overseas manufacturing for thousands of U.S. companies. But according to a recent study conducted jointly by management consulting firm Booz Allen Hamilton and the American Chamber of Commerce Shanghai, a variety of factors are getting manufacturers to start looking outside their comfort zone and explore markets in other low-cost countries. Of course, they also provided plenty of reasons for their operations to stay put -- but who knows for how long?

88 percentage of companies manufacturing products in China that originally chose China for its lower labor costs

54 percentage who believe China is losing its competitive edge to other low-cost nations (namely Vietnam and India)

20 percentage of manufacturers who say they have concrete plans to relocate or expand China operations

63 percentage who cite Vietnam as their top low-cost sourcing alternative to China

37 percentage who cite India as their top low-cost sourcing alternative to China

83 percentage who say that despite the rising costs of manufacturing in China, they will maintain their current operations

Source: Booz Allen Hamilton/American Chamber of Commerce

See Also

TAGS: Procurement
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.