China: The global manufacturing powerhouse
China’s manufacturing offers unique advantages that can’t be found elsewhere.
Glovendor's journey so far
Glovendor’s China Procurement Network
Top Destinations
Overview
China is the world’s largest manufacturer in terms of output and has gained a reputation as the “world’s factory.” China accounted for 30 percent of the global manufacturing output in 2021. Despite facing geopolitical challenges, China remains the leader in the manufacturing world with a robust supply chain ecosystem, top engineering talent, and advanced machinery.
Trends
- China remains the top manufacturing choice for most global brands.
- US brands have started to diversify their Chinese dependency.
- China’s labor costs continue to increase which in turn is increasing production costs.
- AI & automation continue to play a bigger role in manufacturing.
Benefits
1:Low costs
2:Easy to scale with higher capacity
3:Top engineering talent and specialized factories for complex product design and development
4:Low order quantities accepted
5:Faster turnaround times
Risks
Increased tariffs by the US government
US-China trade war and high geopolitical risk
Difficulty in finding the right vendor out of the many options available
Language barriers
Intellectual property risks for sensitive products
Top Products
Chemicals
Pharmaceuticals
Medical
Oil & Gas
Technology Products
Machinery
Food & Beverage
Sporting Goods
Verdict
Obviously, China is your only option if you have specialized products that can only be made there. But it’s also your best option if your products require highly skilled engineers or if you’re a new company with low-order quantities since geopolitical threats are minimal to non-existent for small orders.