Amid the recent economic turmoil in Asia, specifically China, you might be wondering: what's destabilizing labor overseas? The answer is not a simple one, and the issues contributing to China's recent market troubles are not black and white.
Just recently the Shanghai Index started crashing leaving everyone asking “why?” Did it have to do with the price of oil being so low, was it because the Federal Reserve thinking about raising its interest rates? Perhaps it was as simple as the Chinese stock market just needed a correction. There are many different theories on the horizon, but as the world's second largest economy, those working in the manufacturing sector were a bit rattled to say the least. How does the Chinese stock market affect the manufacturing of goods overseas?
Manufacturers continually face pressures to reduce costs to maintain profitability, and new suppliers entering the market increase competition and put pressure on selling prices. Another factor affecting the bottom line is the strong dollar that makes it easier for offshore companies to undercut domestic companies. Review these ways to protect your manufacturing bottom line by adopting lean manufacturing processes.
Monetary consideration when it comes to manufacturing poor quality products, while challenging, is not the benchmark for negative results and costs associated with said, poor quality products. The loss of consumer perception and goodwill, has been the downfall of many companies who inadvertently were saddled with products of inferior quality than expected. Regardless of the reasons for such low quality, consumers, large or small, are quick to judge and slow to return, when there is a negative perception on the quality of a product.