Chinese Manufacturing Solutions Blog

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Oct 20, 2017

Paul Stepanek Took the Stage at the Scale Up Summit

Can Scaling Up be applied successfully in China?  “Absolutely,” explained Paul Stepanek, President, Complete Manufacturing Solutions, as he took the stage at the ScaleUp Summit Fall 2017 Conference in St. Louis on October 17th.  “We make it personal, we make it real, and we make it part of a daily routine.”

Sep 5, 2017

Steeped in Tradition, Chinese New Year Welcomes the Coming of Spring

 The origins of Chinese New Year are rooted in history more than 2,000 years B.C. -- to mark the end of winter, celebrate the beginning of spring planting, and honor ancestors. The actual day of Chinese New Year is tied to the lunar calendar and changes each year, typically occurring at the end of January or beginning of February.  

Sep 5, 2017

Five actions to minimize supply chain disruption during Chinese New Year 2018.


Factories will close for up to 40 days around Chinese New Year.  What’s your plan? These five tactics will minimize costly disruptions.

 Celebrated for over 1000 years, Chinese New Year is THE mega social and economic holiday of the year. For nearly the entire month of February and the first few days of March, there will be significant slowdowns - and complete stoppages - of production related to the 2018 spring festival. 

Aug 22, 2017

New regulatory enforcement is disrupting supply chains in China. Is yours at risk?

China wants high-polluting, undesirable industries to clean up their act or get out of China.  While environmental laws have been on the books for years, evidence is mounting that enforcement is catching up with policy.  Even a minor violation can trigger disruption or even disaster within your supply chains. 

Jun 27, 2017

Leaving China?  Avoid getting burned.

Maybe an acquisition has resulted in overlapping assets.  Or China is no longer a focus due to a shift in business strategy. Or perhaps it is more cost-effective to outsource China operations. Regardless of the reason for a China wind-down, there are many hurdles and regulations that are critical when divesting of your China assets, buildings, and most importantly—your people—of which you’ll want to be aware.

Jun 5, 2017

Improve Profitability in China: Blue Collar Productivity

 The days of working fat and happy in China are over. It’s time to get LEAN. For many years increasing productivity has been at that forefront of any plan to increase profitability where manufacturing is involved. This applies in China and everywhere.

May 23, 2017

Improve Profitability in China: Tax Incentives

 

In the ongoing struggle to stay profitable in China, tax incentives are often overlooked.  It is true that during the initial period when companies are developing their China entry strategy, tax incentives play a key, if not pivotal role in determining where a facility is going to be located. 

May 23, 2017

Improve Profitability in China: Scrutinize Material Costs

One of the most tried and true ways to improve profitability when contract manufacturing with China suppliers is to reduce material costs.  But it’s not about reducing them, per se. it’s about scrutinizing them, because reductions must also sustain goals for quality. Too often, material cost reductions give a short term benefit but put long-term quality at risk.  It’s all about balance. At CMD, here are three ways we scrutinize costs with China suppliers on behalf of our clients.

May 23, 2017

Improve Profitability in China: Innovation

The days of being able to take a mature product from Europe or America, bring it to China, and develop a business are long gone. Business expectations from 30 years ago are outdated.  Thirty years ago Volkswagen famously took the Scirocco production line from Germany, moved it to Shanghai, and began selling the Santana brand.  As an early mover in the China market, VW sold millions of vehicles and made the company massively profitable in the process.  That China no longer exists today.

May 23, 2017

Improve Profitability in China: White Collar Productivity

White collar productivity should not be overlooked when looking for opportunities to increase profitability in China. In the past, wages represented a relatively small percentage of the cost structure of doing business in China.  This is no longer true today.  Over the course of the last 20 years, China has undergone a massive transformation, and during this period, wages have increased an average of 10% per year.  As a result, wages now, and specifically white-collar wages, represent a significantly higher percent of the overall cost structure.  As such, white collar labour requires increasing attention for improving productivity.