Manufacturing Suppliers – Sourcing in China

Article Description : This article titled ‘Manufacturing suppliers – Sourcing in china’ demonstrates an overview of the current Metalworking manufacturing market of China.

The Manufacturing industries in China commenced to flourish around the 1980’s. Since an epiphany in the industry, the country started to lead the market. China manufactures almost 50% of the world’s share of industrial goods. It is considered as the lead manufacturer and exporter among the global giants in the market. China holds a strong sourcing strategy when it comes to procurement in heavy industries.

Several factors indicate why potential supplier sourcing in China is preferred by buyer-based industries or establishments. Below mentioned are a few reasons why Buyers find manufacturing suppliers in the Chinese manufacturing sector more reliable.

1. Low cost of living: The wages of the Chinese factory workers are relatively low yet manageable for a living. Yet the industry output is never compromised. This is one factor which makes the procurement teams across the world to prefer supplier scouting for their metalworking products or services.

2. Production of raw materials: China is a rich source of minerals. The country produces its own raw materials which cuts down the overall manufacturing cost of a product. Apart from this, ores are the highest imported material in China. The city of Anshan is well known as the ‘Capital of Steel’.

3. Outsourcing: This is a major factor that is responsible for the growth rate of the sector. China outsources several world-class services that supports the country to be supplemented with technologically advanced facilities provided by its tie-up countries. This is because of the wide range of raw material availability in the country.

4. Global competition: The more the sector grows, its competition increases in the global manufacturing businesses simultaneously. The advancements in technology adapted by industrial top players like Germany, India and Italy pose a challenge to China. It requires an expansion of the production processes at a wider and faster rate. Yet, China is smart in terms of market sizing and corresponding procurement management. This makes Buyers from several countries opt China when it comes to metalworking supplier sourcing process.

The metalworking market is a diverse unit of the Chinese manufacturing sector. It plays a key role in influencing the global economy largely. Shangai,a city in China is where the major manufacturing activities are carried out. With the expansion in the sector, the country is witnessing a rise in the wages. The rise of labor cost relatively increases the demand for the quality of products.

The ‘Made in China 2025’ movement started by 2013 focuses on the consistent innovation in the industrial sector comprising several manufacturing units. It aims to reinforce the expansion of manufacturing volume in the country. This proposal has driven consumers to demand for high quality products through increased awareness. This has coerced China to revise its technologies according to Industry 4.0.

These changes focused by the ‘Made in China 2025’ entices investments on a large scale in the goods or service sector. These resolute actions derived by the movement aligns several companies to meet the demands of the sector.

With increasing demands, the consumers are facing a hard time in finding the right supplier network who can fulfill all their demands at the required time.

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Yet, the rebound of the Chinese market in the recent months from August 2019 makes its plausible to accept a well certain fact. It is – China is stabilizing at a surprisingly faster rate. To prove this, the Purchasing Managers Index (PMI) of more than 50% indicates an expansion in the sector after months of contracted economy. This marks the back-breaking efforts of China and its government for achieving efficient supply chain management and continue to lead the manufacturing sector of the globe. But the measures undertaken by the industry has started to re-boost the sector on a relatively good pace making it favorable for supplier discovery.

Some important Metalworking Associations in China:

  • China Association for Quality
  • China Foundry Association
  • Foundry Institution of Chinese Mechanical Engineering Society (FICMES)
  • Resources:

  • Sourcify
  • Wikipedia
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