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Firms need to lift efficiency: AmCham
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As China becomes more costly as a production base, companies need to raise their productivity by establishing new business models and improving supply chain mechanism to meet growing challenges of manufacturing in the country, participants told a forum organized by the American Chamber of Commerce in Shanghai yesterday.
Despite rising labor costs and higher environmental standards for manufacturing, China remains attractive for foreign industrial companies due to its reliable business environment, participants said at the 2013 AmCham Shanghai Manufacturing Summit.
“We focus on the growth of China because the market is here,” said Jeremy Burks, president for China at Dow Corning, a global chemical company. “We want a safe and reliable market environment that enables us to get quality right, and we find that in China.”
Dow Corning set up a billion-dollar facility in Zhangjiagang in Jiangsu Province five years ago after studying several other locations in neighboring countries, Burks said.
To cope with the challenges of rising costs, Jeff Dobbs, a KPMG senior executive, said firms have to integrate their supply chain to minimize problems when some manufacturers moved their plants to inland cities.
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