PIERS, the Standard in Trade Intelligence, is pleased to offer a one of a kind report available for FREE download. The report examines China’s waning strength in labor-intensive exports like furniture, apparel and footwear, and its impact on other developing countries.
Understand how rising wages and labor shortages are prompting factory owners in China to relocate facilities inland or in many cases flee to other developing countries where wages are lower or competitive, and supply of unskilled and semi-skilled workers is abundant. To isolate developing countries most exposed to this trend, this report identifies 13 countries for which manufacturing represents more than 15% of their GDP and wages are lower than in China or globally competitive.
The results suggest that China’s waning strength in labor-intensive exports is benefiting some developing economies more than others, while a few appear to not be benefiting at all. Countries examined in this report include: Vietnam, Mexico, India, Thailand, Brazil, Honduras, El Salvador, Pakistan, Bangladesh, Indonesia, Poland, Philippines and Cambodia.
Key findings include:
- Favorable trade conditions and geographic proximity with Central American countries have led to growth rates of U.S. apparel imports that significantly outpaced that of China, in part because shortened transit time is particularly important to shippers of apparel.
- Lower wages and favorable exchange rates in recent years have given Vietnam an advantage over China in the footwear and apparel sector, leading to an increase in market share of U.S. imports in both of these sectors.
- While Poland represents a relatively small share of the global furniture market, significant currency depreciation against the U.S. dollar has resulted in a compound annual growth rate of U.S. furniture imports of 19.6% from 2001 through 2011.
Get a better understanding of how these trends effect the global supply chain and download your FREE report today!