From The Blog

Manufacturing location trends

Author:Danny / time:2018-09-11 / The number of clicks:142

With the development of connectors, there have been a growing number of connector manufacturers. Most of them are creating new product plans and location trends. However, what matters in the end is for connector manufacturers to have more profit and lower cost.  
Manufacturers in Taiwan and China are projected to gain profit. With abundant resources and cheaper labor and properties, Mainland China has become the center of migration for many manufacturers. The price of materials, additional product costs such as utilities and land charges are crucial to production, and China is able to positively address these aspects. Many regions send “invitations” with great offers and attractive deals for companies to build factories in China. Not only does this bring career opportunities to the country, but it also helps develop local businesses. Some connector manufacturers choose to start their businesses in cities along the coastline because they offer bigger markets for business. Even if the price is higher, they are compensated by market share.

 Many electronic manufacturers choose China because their businesses rely on export. However, there are a lot to consider when investing overseas. There are problems like investment risks, production and sales risks, credit risks, and political risks. Political risks in particular should be taken into account because laws and regulations in Taiwan and China are different. One cannot do business in China with a Taiwanese style of management. As the saying goes, “When in Rome, do as the Romans do”. It is common for Taiwanese manufacturers to encounter problems like difficulty in obtaining loan approval, frequent change of laws, and different fees in different regions. There are also social problems like transient population from the countryside and high crime rate. These problems do not only cause pressure to the local government, but also make it hard for manufacturers to operate. Having a harmonious social environment can help create maximum profit and a win-win solution. If cost control is the main consideration when making an investment, then local government should be the next factor for consideration.