We have all seen the famous label with the words “Made in China” printed on it. It’s really incredible that almost everything we touch is made from the country off east. Sure, there are some other countries who produces products as well. Maybe you have seen “Made in Thailand” or some other country. But I’m willing to bet that most of it is made in China.
So what makes companies choose China as their manufacturer?
What sounds most correct is money, and to some degree that is indeed the case. The production cost in China compared to other countries like the USA, is really low. This means that factories in China can hire more workers for less money. Sounds like good business, right? It is. The factories can charge big money for the production and shipping, and still keep the paychecks low.
But… this is not the only reason why things are made in China.
Since China have been the main production factory of the world, they have built up a remarkable knowledge and expertise. Chinese workers are quick and effective. They are capable of producing items very fast.
Take this as an example; When Steve Jobs decided to change the screen of the iPhone one month before release, the Chinese factory who produced the iPhone gathered about 8000 workers within one day. They then managed to produce 10.000 iPhones each day for 96 hours. That is incredible!
Yet another reason for companies to choose China over other countries like Thailand to manufacture their products, is the infrastructure that China possess. By that we mean how things are easily connected. The supplies are easily accesible and tranportation is close by. Some of the factories are located near the ocean, so it’s quick and easy to transport the items to countries like USA. This is a key factor in choosing China as a manufacturer.