Will Your Asian Manufacturer Always Be Producing Your Product?

November 6, 2017

The number of upper middle class and affluent households in China continues to rise to a projected 30% of urban households, up from a 17% share in 2017. 

This affects the woodworking industry because as the Chinese economy continues to grow, manufacturers as we know them today will be changing their emphasis to accommodate this change.  

In the past, the majority of Asian manufacturers produced products with American hardwoods and shipped those items back to US consumers.  

This caused many US manufacturing companies to close their doors and liquidate their equipment. The end result was US manufacturing companies now have to rely on their Asian suppliers to manufacture their items.  

With a rising economy, Chinese manufacturers are increasingly working to serve their own consumers. They are not accepting orders from existing export customers in order to serve their home markets. 

This is making it almost as cheap to manufacture in the US as it is in China in 2017 (Furniture Today Magazine) as a result of China’s increasing costs for labor, electricity, and natural resources. 

The current problem is that because US manufacturers have closed their plants, companies are struggling to find suppliers in the US that are able to adapt to the needs of US consumers.  

It will be interesting to see what happens in the next ten to fifteen years as more companies in Asia produce less for export and more for their local economy.  

The WPMA is constantly working to help educate members on some of the trends that will affect their business and help them remain competitive in the global economy.    

For more information you may contact Philip Bibeau, Executive Director at 978/874-5445.

Comments

There are currently no comments

Submit a Comment

Please be sure to fill in all information. Comments are moderated. Please no link dropping, domains as names; do not spam and do not advertise.

*