China is the best country to outsource manufacturing requirements because of the excellent export facilities available there. Over 40% of the Chinese city dwellers depend upon export for their daily livelihood working in electronics or electrical goods manufacturing companies or apparel exporting companies.
The industrial spare parts export market is also growing tremendously in China, making most automobiles and machines we use to have at least one Chinese equipment piece. China remains the top country to outsource manufacturing needs due to five main reasons listed below.
China has numerous sourcing agents, sourcing agencies, and sourcing websites acting as a connecting platform between the country’s manufacturers and the importers who use their services. They provide easy access to the Chinese manufacturing market to traders situated in different parts of the world.
A right China sourcing agent like Easyimex.com enables the traders to overcome language barriers easily and explain their quality requirements to the suppliers. They also help negotiate the best price, provide inspection services, packaging assistance, and ship the goods, acting like the importers representative. The sourcing agencies and sourcing websites collect a reasonable fee for the services they provide.
Extraordinary freight management
China has several well-developed harbors and advanced packing and delivery systems controlled by AI. Their robot filled warehouses pack, sort, and fill goods in millions of containers a day that gets shipped to the respective addresses.
Their intricately well-developed and advanced logistics systems, which transport goods across the country and various parts of the world, are a significant plus for its booming export.
China’s manufacturing market highly depends upon finishing orders on time and delivering them to the required areas on the specified date, made possible only through their well-coordinated road, air transport, and shipping system.
Abundant cheap labor and affordable cost
Nearly one-fifth of the entire world’s manufacturing takes place in China, mostly through outsourcing. The sharp growth in outsourcing made many Western countries look for cheap manufacturers to partner with, and China offered them a red carpet welcome. China is a very populated country and has abundant cheap labor and raw material availability.
Chinese manufacturers were looking for new markets to explore, and the birth of the internet and e-commerce made the entire world their market. Chinese companies mass manufacture products at a vast scale, and hence, they can provide them for a cheap cost. The traders who buy them for a low price can offer considerable discounts to their customers in various countries.
Flexibility in adjusting requirements
Contract manufacturers in China often produce goods for various companies belonging to the same industry in the same factory. Their factories can adjust to the sudden change in manufacturing needs, model redesign, and increase or decrease the number of manufactured goods.
The contract manufacturers stop producing a particular item and switch to another if the product requirement dwindles because of low demand.
The companies outsourcing the projects to China take advantage of this flexibility, which allows them to increase or decrease the product quantity without much hassle. And the best part is the contract manufacturers do it without charging extra as they have to reassign their workforce to produce a similar product for another company.
Abundant growth of technology
The demand for Chinese technological products grew by 7% in 2020 and continues to gain a steady market globally. Chinese products upgrade their quality to match the German and Japanese innovative products, making them the lead exporters of electrical and electronics products in the world.
The availability of advanced technology and good education had created nearly 2 million engineering graduates providing active outsourcing services to the global community. China redirects a significant chunk of its best talent into research and development, designing and marketing unique, high-quality technology solutions, which the international companies import and sell in their country.