As India and China transform, Australian manufacturers must follow
Vas, C. (2014) As India and China transform, Australian manufacturers must follow. The Conversation, 29 May 2014 .
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As Australia laments the decline of its manufacturing sector, China is actively taking steps to accelerate its move up the value chain.
Historically a low-cost operating environment, China was once an attractive option for multinational companies seeking to minimise production costs. However with a burgeoning middle class aspiring for a better place in the global ecosystem, the cost advantages are rapidly eroding.
A Bloomberg Businessweek article examined how tech manufacturer Knowles has grappled with these changing conditions, and their experiences aren’t unique.
The rapid increase in wages, increased cost of doing business – physical infrastructure and raw material - and a higher Yuan are all contributing to manufacturing cost pressures. These challenges, and the pace at which they are taking place, are forcing multinational companies in China to rethink their local strategy to remain competitive.
|Publication Type:||Non-refereed Article|
|Murdoch Affiliation:||School of Management and Governance|
|Publisher:||The Conversation Media Group|
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