Labor shortages are gripping China as young people shun factory jobs and migrant workers stay home. With demand for Chinese goods surging, factory owners can’t fill jobs and strain to meet orders.
The “world’s factory” is struggling. Problems reflect long-term demographic shifts, including the legacy of their one-child policy which ended in 2016. China’s working age population dropped 45 million from 2010-2020 and is expected to drop 35 million more by 2025. College graduation rates are at record levels, but most graduates want white collar jobs. These changes are pushing manufacturers to raise pay, cutting profits if they take new orders, especially with rising prices for raw materials and shipping.
These changes have big ramifications for U.S. manufacturers, near-term and long-term. How should you modify your manufacturing strategy? Should you continue to manufacture in China, move to other countries, or re-shore to the U.S.? What does it mean for your inventory strategy, your just-in-time strategy, and your supply chain? MOSIMTEC simulation modeling can help. Explore options virtually to see what works, what doesn’t, and the best ways to thrive with such uncertainty. MOSIMTEC data scientists/industrial engineers are here to help. Learn more about our simulation consulting services here: https://mosimtec.com/simulation-consulting/
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Read more here: https://www.wsj.com/articles/chinese-factories-are-having-labor-painswe-can-hardly-find-any-workers-11629883801