Monday, August 3, 2009

Sourcing and Manufacturing Products in China

China is the major hub for business sourcing. Worldwide countries turn to China to obtain the lowest prices on manufactured products of all types including: apparel, medical equipment, electronics, building materials, software, computers, chemicals and much more. While products are cheap in China, lately China has been singled out for selling unsafe goods to the world, a criticism that experts say does not reflect the vast majority of goods being produced in the country. Recent news would say otherwise. Mattel, the world's largest toymaker announced a third recall of millions of toys due to possible excessive amounts of lead and other potential dangers. Major home builders are forced to defend massive lawsuits tied to tainted drywall installed in thousands of home inn the South East United States. Needless to say if you are planning to manufacture products in China this is certainly an important consideration. What causes this negligence? Greed, carelessness and relentless pressure to push prices ever lower are at the core of the problem. Things are improving greatly now that China is the spotlight of a slew of manufacturing issues. On the positive side recently Starbucks the world's biggest coffee chain, said they plan to source coffee from China for the first time as the mainland is expected to become its biggest overseas market. Also European plane maker Airbus said it wants to source more parts from China as much as $400 million by 2015, compared with $60 million in 2007. Going forward if you do plan to manufacture products in China it’s important to do your homework. Check the background of the company you plan to outsource to and always have a favorable contract in place and a backup supplier on hand.