BCG article: China will export more and more industrial goods

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BCG article: Why industrial goods are going next

A very good article from BCG explains why China, after consumer goods, will now export more and more industrial goods, and how committed western companies take advantage of this trend:

"The next wave of Western industries to move their manufacturing operations to China will be industrial goods. Already, pioneering companies are building factories and forging relationships with Chinese suppliers. The cost advantages can amount to an astonishing 20-35 percent-with no loss of quality. But sourcing in China isn't for everyone; it takes time and involves real risks. The most daunting barriers will be customer-related and employee-related."
"How is China managing to compete so effectively against Western factories? Unlike Japan, which reinvented manufacturing a generation ago by introducing continuous improvement and quality programs, China is deinventing manufacturing by removing capital and reintroducing skilled manual labor on the plant floor"...

BCG Industry insight "Made in China: Why Industrial Goods Are Going Next"
by Jim Hemerling, Thomas M. Hout, Jean Lebreton
November 10, 2003
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