Changing Global Pattarns

There is a changing pattern in Global sourcing ,for example china the one country that has seen its GDP grown astronomically in recent times then any other developing nation in that region and indeed the world, is currently seeing less and less investment in terms of companies using china as the destination for low cost country sourcing, for example in the clothing market more and more companies are considering and even setting up shop in other far eastern countries like Vietnam, where production cost and labour cost is a lot cheaper, also with the growing concern about quality issues e.g. the Toy recall issues and the recent problem with Milk from china.

China is even becoming less an attractive destination but that’s on the one hand, because despite these challenges the Chinese government is putting a lot in place to change the perception of chain as a low cost sourcing country, its trying to develop china’s capability so that china can bee seen as a country that can offer considerable level of technology and quality, its also trying to develop internal level of production and consumption of Chinese goods by Chinese.

From recent publication I have read and seen online a lot of funding is going into development, to shit infrastructural developments to the hinterland where there’s has been less development and as such an uneven spread of wealth and development in the country.

All of this will have far reaching effects on global logistics, sourcing in and from chain.

There’s actually an ongoing preference for Mexico over China as a manufacturing hub by US manufacturers, but even this has its own challenges as is been seen now, with border congestion issues, cultural issues, and the most important the lack of certain skilled labour in México, often times companies have had to send staffs to and fro, from the US to México just to cover some important roles or functions.

Most of this manufactures, will like to keep the core of the business in the US, things like product design, marketing, etc and take the other part which is mainly the production aspects to places like México due to the availability of cheap land and labour, hence we can see major development or congestion of manufacturing plants in border towns on the side of the developing countries such as México in this case

I believe it’s by having a global perspective of what’s happening around the world in times like these where there’s a lot of uncertainty, due to global recession and the present financial crisis hitting some of the western nations.

It was even on the news today (13/11/2008) that the US, China and Germany are all under recession at the moment.

If the people in government in an undeveloped country like Nigeria, the policy makers, economist etc should do any thing, I feel the one thing they should do is learn from the experience of the western world and better manage our own economies as we strive to move to the status of developing a economy


Popular Thoughts