Manufacturing News

[Survey] U.S.-China trade dispute is forcing manufacturers to relocate their facilities

By Huileng Tan for CNBC

Apr 25, 2019

The U.S.-China trade dispute is pushing American multinational companies to relocate their factories and adjust business strategies for their supply chains in the next 12 months, according to a survey by Bain and Company.

Even though China has had a significant cost advantage that propelled the country to its leading position as the world’s manufacturing hub, that advantage is eroding as costs rise, Gerry Mattios, vice president at consulting firm, Bain, said.

However, some manufacturing will still remain in China as the country moves toward being a consumption-driven economy, he said. Items that would’ve been exported will see some assembly lines move to Southeast Asia, Mattios said.

Still, he added, “we don’t think Southeast Asia will become the factory of the world in the way China did two decades ago.”

To learn more, read "Southeast Asia may not be the next ‘factory of the world’ even as production moves away from China" from CNBC.

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