Firms are looking for factory space to cut dependence on China. Countries like India, Mexico, Vietnam and Cambodia are competing on subsidies, tax breaks and other perks to lure those companies.
Per the UN, China’s share of global manufacturing was 31% in 2021, up from 26% in 2017. India was 3%, Mexico was 1.5% and Vietnam was 0.6%. However, companies have been shaken by trade/national security spats between the U.S. and China, also supply chain snarls caused by COVID and the Russia-Ukraine war. Per Chinese data, foreign direct investment into China in 2022 fell 43% to $190 Billion. China share of U.S. goods imports also fell to 17% in 2022 from 22% in 2017 based on U.S. Census Bureau data.
If you want to diversify/improve your manufacturing, MOSIMTEC simulation modeling can help. Shine a light on the status quo. Explore new locations, ways to increase manufacturing/supplier capacity or reduce shipping cost/delays, and options to improve processes with ports and transporters. Assess options virtually in a sandbox environment to change strategy, raise production/inventory, cut cost, enhance fluidity, reduce risk or meet other goals. Manufacturing success is key to survive and thrive. MOSIMTEC can help you future-proof your business.
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Read More: https://www.wsj.com/articles/countries-compete-to-lure-manufacturers-from-china-adf46d9a