The Blog:

Is it time to leave China? 8/23/2010

A great article in the Wall Street Journal this morning titled “Southeast Asia Tries to Link Up to Compete”.  Like many others, the authors discuss the impact of rising wages in China.  What I found most interesting though, is that these authors brought up a good point that I have been sharing with our customers for months – the point that, despite these wage increases, China is still the best option for many companies sourcing goods from low cost regions.  I have chatted with tens of companies over the last few months about Vietnam, India, etc.  While these geographies do have very competitive labor rates, often significantly cheaper than China’s, they lack the infrastructure, skilled workforces, and production experience required to support robust supply chains.

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