CSCMP's Supply Chain Quarterly
December 14, 2017
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Survey finds production continues to flee China

Comment
The United States, Vietnam, and South Asia are proving attractive to more manufacturers of retail goods, says a new report.

Research conducted by the supply chain financier Capital Business Credit (CBC) indicates that an increasing number of retail goods are now being produced outside China. Half of the 50 retail suppliers that participated in a CBC survey have moved some production out of China in the past year, according to The Global Retail Manufacturers and Importers Survey, which details the survey results.

In addition, another 34 percent of survey respondents said they are considering moving manufacturing outside China in 2012. CBC polled manufacturers and importers in the apparel, housewares, home furnishings, fashion accessories, and furniture industries that supply major U.S. retailers.

Where is all that manufacturing going? One-third (33 percent) of survey takers said they had shifted production to Vietnam. More than one-fourth (28 percent) had moved to the United States. Other countries that have captured a significant amount of manufacturing from China included Pakistan, cited by 22 percent of respondents, and Bangladesh (17 percent).

In releasing the survey results, CBC's executive chairman, Andrew Tananbaum, noted that a number of factors, including the costs of labor, raw materials, and logistics, have started to make manufacturing outside China more attractive. The difficulty some Chinese manufacturers are having in obtain financing is also contributing to the shift, he said.

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