China Manufacturing: That's The Way I Like It
Interesting post up at the brand new Smart Cube blog, entitled, "Survey: Global Manufacturers Staying Put in China," on how Mattel's problems have had almost no effect on foreign manufacturing in China.
The post is based on a survey finding that the recent recalls of tainted and toxic China-made products has not caused foreign companies to rethink their sourcing strategies and quality control processes, nor has it caused them to rethink their continued presence in China. According to the survey, nearly 80% "of respondents (all of whom were manufacturers who currently manufactured their products in China) reported that they felt no need to review their supply chain activities in the wake of the well-publicized toy and toothpaste recalls." Seems these manufacturers believe the recent recalls are "aberrations and not symptomatic of some more fundamental issue inherent within Chinese manufacturing."
The post goes on to say that though the "overwhelming majority of manufacturers did not feel compelled to review their supply chains" they will "be more cautious” about their future supply chain activities. In other words, they will continue doing what they have been doing, but be more mindful of it. None of the respondents "indicated that they would stop outsourcing manufacturing altogether" and "almost all of the companies that outsourced to China indicated they would continue to do so." According to the post (and what we have been saying on this blog for some time) the recent problems with China products "could happen anywhere."
The respondents felt the "onus was on them to ensure effective supply chain management and quality control" and "at the end of the day, it is the individual company’s responsibility to ensure safety and quality of the end product."
Difficult for me to do any real analysis on these findings though because I could not find the survey itself. Seems, however things are essentially the "same as it ever was."
Comments
Chinas manufatcurers are moving. The Chinese regulations and tax regime broiught in this year is squeezing many out. Maybe not Mattel, but they are a major manufatcuer also supplying the China market. Manufacturing for export people are moving elsewhere or certaonly looking to.
Posted by: Huodini | December 7, 2007 1:27 AM
Any company who is obtaining supplies from China saying they are looking for alternatives means what they are selling now are substandard. That should keep a lot of their products on the shelves. Why would anyone say so before they have actually found alternatives and have replaced all their Chinese outsourcing partners with safer alternatives ?
Posted by: Larry | December 7, 2007 7:15 AM
i found it interesting that many intl manufacturers had no desire to defend Mattel at all - yes, there are ongoing moves/expansion to vietnam, india, etc., but most companies are still too hooked in to China and were more than happy to throw Mattel under the bus in order to keep their operations safe.
Posted by: lingling | December 7, 2007 1:49 PM
@ Lingling: when bullets are flying, you generally run for cover and say "there but for the grace of God go I."
Posted by: Todd Platek | December 7, 2007 5:43 PM
Some Taiwanese manufacturers may be leaving because they don't like the new Employment Contract Law. Taiwan has a similar labor regime which was one of the reasons they left there in the first place.
Posted by: Michael Fahey | December 7, 2007 5:58 PM