Outsourcing isn’t about low labor costs anymore

Outsourcing has traditionally been the province of Purchasing and Operations. Focused on lowering costs, these departments would generally look to a small number of low wage countries. There are two dynamics that are causing production locations decisions to change: Increasing labor costs are making outsourcing for lower labor costs less attractive. Secondly, politicians are increasingly … Continue reading Outsourcing isn’t about low labor costs anymore

China rises to the challenge of increasing labor productivity

  I recently returned from China where I attended my employer's first customer event in China, KronosLive. Over 100 companies attended. They ranged from large privately held white good manufacturers, network equipment manufacturers and shoe manufacturers to many multi-national manufacturers with locations throughout China.   As this was a workforce management conference, the topic was … Continue reading China rises to the challenge of increasing labor productivity

China’s GDP Dilemma

With the announcement that China GDP growth has slowed to 8.1%, the unbridled demand for labor will also cool off. It’s a tricky time for China as its previous strategy of pushing hard on the gas pedal to grow GDP at any cost won’t work any longer. Now China faces the challenge of growing its … Continue reading China’s GDP Dilemma

Who will win the war for talent in China

While in Beijing recently I met with the head of Human Resources for an American based multi-national manufacturing company. Its division in China currently employs 5000. We spoke on a number of topics with the war for talent being the most pressing. China’s manufacturing sector is vibrant. Companies continue to see growth from exports as … Continue reading Who will win the war for talent in China