Are companies moving out of China for good?

The US-China trade war is heating up. Both sides are issuing a new and lengthy list of items imposing 25 percent tariffs. And now Chinese manufacturers are starting to respond by relocating to Southeast Asia. US The based B2B manufacturing platform is shifting its business focus from China.  Although he has historically focused on his ties in China, tariffs are scaring him. The companies' CEOs commented on the shift, saying that labor costs outside China are more affordable, so for products like apparel where there's a lot of cut-and-sew labor, most companies are moving out of China anyway. If you are looking for buying the Best laptop under 50000, then be ready to pay more as many manufacturing companies are moving out of China.

Chinese manufacturing is changing

Tariffs are undoubtedly putting additional pressure on companies to relocate their manufacturing. But many manufacturers were in the process of moving out of China even before the recent tariffs. Chinese manufacturing has been evolving over the past decade, and it is no longer the cheapest option.

China is moving towards a more automated assembly line. They are now one of the world's largest producers of robotics used in the construction of assembly lines. And that means they're pushing for more low-cost, labor-intensive manufacturing.

Although Beijing supports more high-end manufacturing, they are less supportive of a large-scale move into Southeast Asia.

The government announced that they would do everything possible to help their economy amid the trade war. Some speculate that this is likely to come in the form of loose monetary policy from the central bank.

"Made in Vietnam" is giving China some competition

China is often the first country people hear the word "manufacturing". But Vietnam is not far behind either. And it is fast catching on.

Vietnam's GDP grew 7.38 percent in the first quarter of this year, while growth in neighboring countries slowed.

Much of this growth is due to the increase in mobile phone manufacturing in the country. Vietnam currently produces one out of every ten smartphones. And in 2017 alone Samsung products accounted for a quarter of the country's $226 billion in exports.

Much of this technical prowess is being spearheaded by the coastal city of Da Nang. Vietnam's largest IT company, FPT Corporation, wants to turn this metropolis into a smart city by 2020. They have invested $658,000 in pilot projects across the city to make this change a reality.

Vietnam is expanding its innovation. And it is starting in Da Nang.

While manufacturing is largely led by investment capital and workforce capacity, it is also driven by technological creativity. Chinese manufacturing reached a new level of quality when it focused on smart technology in its factories. This maker space could be exactly what Vietnam needs to capture China.

The only obstacle Vietnam is fighting right now is the limited education of its employees—only 9 percent have university-level qualifications. And without skilled labor, there can be no transformation into smart manufacturing.

Changes in packaging can improve your supply chain

Product packaging does not just refer to the cardboard box. It refers to the complete system of preparing goods for efficient, safe, and cost-effective movement through the supply chain. If done properly, packaging can maximize consumer value, sales and profits.

Product packaging has three main functions that you should consider: market, flow, and environment.

The function of the marketer is to design with the intention of satisfying the customers. Flow function considers the ease with which packages are handled during delivery. And Environmental Action is all about limiting the environmental impact of your packaging system.

Tips for improving packaging and optimizing your supply chain

Eliminate design flaws. Study consumer insights to improve your design and analyze pack functions to increase efficiency.

Purchase packaging. Consider standardizing your raw materials and working with suppliers who have a global footprint—especially if your business has a global presence.

Standardize sizes and equipment. Doing so can help reduce change-over time and give you higher line utilization.

Optimize packaging. Even a design change that takes off packaging a few millimeters can have a big impact when you're mass-producing.

Identify obstacles to increasing line speed. Watch for production jams at every step: leaflet insertion, labeling, sizing, etc.

End-of-line solution. Increase efficiency by targeting end-of-line solutions such as handpicking, case forming, and semi-automatic case taper.