China’s status as one of the least expensive manufacturing centers in the world is under direct threat from other Asian countries according to a report by KPMG. Indonesia and Bangladesh in particular are challenging China’s monopoly and have seen a steady increase in offshore customer orders.
“Sourcing goods in China purely because of ultra-low costs is a thing of the past,” said Nick Debnam, KPMG’s Asia-Pacific chair. “With demand still soft in many Western consumer markets, it is also proving difficult for companies to pass on higher costs to consumers. This changing environment is forcing companies to reassess sourcing strategies.”
Source: BBC News
