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    Financial Times: Dongguan'S "Third World Wages And The Infrastructure Of The First World"

    2011/3/28 9:49:00 36

    Chinese Manufacturing Clothing

    The news of shortage of labor in manufacturing industry has been occupied.

    China

    The front page of the media, but it turns out that some companies are better at recruiting than others.

    Smaller factories are suffering from labor market tightening, but large enterprises that can provide better benefits can find ways to recruit the workers they need.


    Dongguan, Guangdong is a lot of light industry in China.

    manufacturing industry

    The location of the factory.

    Here, enterprises give many promises to recruit workers, including annual bonus, annual leave, and even give rewards to employees on their birthdays.

    "Now the workers are God," complained a factory owner.


    This is exaggerated, but it also highlights an important demographic change.

    The endless supply of labor in China is no longer endless at the moment.

    Feng Guoguan, managing director of the world's largest supply chain company, Li Feng, said that the world should be prepared to meet "a wave of cost driven inflation".


    According to statistics from Longzhou Economic Research Institute, from 2003-2010 years, China

    clothing

    The labour productivity of the manufacturing industry increased by 13% annually, offset most of the increase in wages.

    In addition, for the electronics assembly and other industries, a highly efficient and tightly structured supply chain, from factories in Japan or Taiwan, China, has shipped products to the Pearl River Delta for labour intensive processing, which determines the difficulty of pferring production facilities.

    In addition to the issue of RMB exchange rate, China's infrastructure level is comparable to that of Korea.

    This means that China combines "the wages of the third world and the infrastructure of the first world".


     
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