The Advantages of Direct Manufacturing Outsourcing in China

At least the latest results show the company is now making a small profit, with its Sames semiconductor business now enjoying the manifold benefits of manufacturing in China, thus avoiding the capacity and quality issues that were the problem at its old plant. Though Labat’s history shows no signs of shooting the lights out, its future has been given a considerable boost by New York based alternative investment group Global Emerging Markets, which clearly believes there is some potential and has extended the company a US$100m line of equity credit.

The benefits of manufacturing in China include scalability and flexibility, not just price

These are the views of Jonathan Reuvid, author of 'Business Insights: China', a seminal work of business advice, statistics and other data written for the manager aspiring to set up a commercial enterprise on Chinese soil. On the face of it, this has always been a good idea, with ample opportunity for the adventurous – as in the case of Sir James Dyson – to exploit the labour-cost advantage and other benefits of manufacturing in China.

China versus Other Developing Economies

Canada Brio has enabled our oversea customers to be able to work with a local company while enjoying the cost benefits of manufacturing in China Below is a transcription of a section of the interview which brings light into the changing consumer market in China and its implications upon the British manufacturing industry. The programme then delves into the perceived benefits of manufacturing in China and how a host of macro-economic factors are beginning to change the way the global manufactures’ select the host countries for their manufacturing activity.

Benefits of Localizing Production in China - Launch Factory 88

"There are about 1,000 mini-protests per week in China, mostly over the pollution in industrial cities. You find it in blogs: Workers have great unrest and want to be paid more, which affects cost benefits of manufacturing in China. It makes more American companies want to bring (purchasing) back to the U.S. because cost advantage is disappearing. The cost advantage (for buying from China) is disappearing. It was beginning to happen when I researched my book and happening more and more."

China Manufacturing Case Studies | ITI Manufacturing


At least the latest results show the company is now making a small profit, with its Sames semiconductor business now enjoying the manifold benefits of manufacturing in China, thus avoiding the capacity and quality issues that were the problem at its old plant. Though Labat’s history shows no signs of shooting the lights out, its future has been given a considerable boost by New York based alternative investment group Global Emerging Markets, which clearly believes there is some potential and has extended the company a US$100m line of equity credit.