A survey of U.S. importers who sell to major American retailers report that they have moved, or plan to move, a portion of their manufacturing outside of China due to increased costs of raw materials and logistics, as well as the difficulties China-based factories face in obtaining financing.
Half of U.S.-based importers polled have moved some of their manufacturing outside of China and a third (34.2 percent) are considering moving manufacturing outside of the continent, according to Capital Business Credit’s (CBC) Global Retail Manufacturers and Importers Survey.
“While China will continue to be the dominant player when it comes to the manufacturing of goods sold in the U.S., there is an interesting shift that is occurring,” said Andrew Tananbaum, CBC executive chairman, in a press release.
“The lending environment combined with a number of other factors including cost of labor, raw materials, and logistics have made manufacturing in other countries—most importantly the U.S.—more attractive,” he said.
Asked which countries manufacturing is being moved to, Vietnam is most popular at 33.3 percent, followed by the U.S. at 27.8 percent. Other popular manufacturing destinations include Pakistan (22.2 percent) and Bangladesh (16.7 percent).
The survey, which polled more than 50 manufacturers and importers, was conducted during the week of February 27, 2012, CBC said. Respondents consisted of manufacturers and importers in the apparel, houseware, home furnishings, fashion accessories and furniture industries.
Photo: archer10
