2. a quarterly synopsis on outsourced manufacturing
and the quality control services industry.
AsiaInspection Presents the 2014 Q1 Barometer
AsiaInspection,
A leading provider of quality control services
for businesses importing from Asia, Africa, Southern Europe and Latin America
3. The media has been reporting that
the Chinese economy is on the brink of slowdown.
but China continues to be the dominant sourcing region by sheer volume.
December and January set new records for total exports,
surpassing $207bn in both months.1
CHINA EXPORTS
REACH ALL-TIME HIGH
$ 207 bn
4. +9%
China Export Figures Per Three Months (USD Billion)
Nov 12
Jan 13
Feb 13
Apr 13
May 13
Jul 13
Aug 13
Oct 13
Nov 13
Jan 14
0
50
100
150
200
566 509 543 562 +9%
/ Y-1
619
Adjusting for the Chinese New Year holiday by comparing November through January 2013/2014,
total Chinese exports increased compared with the same period in 2012/2013.
5. AsiaInspection figures surpassed this with year over year growth of
+12%+12%
+12% for ordered inspections within China.
More telling and perhaps a leading indicator of the export figures to come,
March was up +26.2% compared with the year before.
6. Why the increase?
In Q1 the Chinese Yuan had the first major currency reprieve since 2005,
depreciating 2.7%
China has continued to preserve a healthy balance of wages,
a developed infrastructure and the world’s largest workforce.
7. CHINA PLUS ONE
South & Southeast Asian countries
have offered opportunities to reduce labor costs.
Though their respective economies are much smaller,
emerging markets were the clear winners
in percentage growth.
8. Inspection Figures by Country
2014 Q1 vs. 2013 Q1
Source: AsiaInspection Inspection Figures
Bangladesh
Vietnam
Cambodia
Indonesia
India
China
+70%
+32%
+22%
+16%
+12%
+57%
AsiaInspection
9. despite unrest in the apparel industry
which has a resulted in protests across the country
escalating in January when police fired upon protestors
Cambodia Increased 32%
people killed people wounded
2
4 38
10. In Indonesia, where the textile industry
is set to become the country’s largest export segment,
inspections were up +22%
11. There has been a growing awareness and demand from the consumer
not only for a high quality product, but a high quality supply chain.
AsiaInspection’s 2014 Q1 data shows a year-on-year increase
in Ethical and Manufacturing Audits in Asia
BRANDS & RETAILERS
TAKE CONTROLOF THEIR SUPPLY CHAIN
+156%
Ethical & Manufacturing Audits
12. An increasing practice is to interweave Ethical Audit Programs with on-site product inspections
to ensure manufacturing actually occurs at an approved factory.
Rana Plaza highlighted how factories often illegally sub contract out orders after major
retailers reported that their products were never authorized to be manufactured there.
13. There’s notable traction taking hold in supply chains worldwide:
Governments moving forward
on legislation
Corporations putting their money
where their mouths are ““
““
Sebastien Breteau, CEO of AsiaInspection
14. The American Chamber of Commerce surveyed
400 member companies sourcing from China and found that 40% have plans
to spend significantly more on ethical compliance.3
EU based companies are facing stricter guidelines
that require them to report on their policies regarding ethical issues,
corruption and the risks they pose to human rights throughout their supply chains.4
15. during a factory fire in Hangzhou 5
in a factory blaze outside of Shantou
in the Guangdong province 6
Workers killed
Workers killed
1616 1111
China has not been exempt from ethical compliance issues. In Q1:
16. Low cost labor intensive manufacturing is on the rise in Africa
AFRICA,ANUP-AND-COMING
SOURCING REGION
AsiaInspection ordered inspections were up +65% year over year
The American Apparel & Footwear Association reports that
companies are choosing to invest in manufacturing
for markets such as South Africa,
closer to the destined consumer market rather than in Asia 7
17. Ethiopia, a leader in terms of foreign investment is aiming for an export goal of
as part of the four year Growth and Transformation Plan 8
Over the next 20 years Africa also represents
the greatest population growth potential
providing both labor and end customers to companies planning for the long term
US$ 1 billion in 2014
18. Dedicated Account Manager
A supply chain partner offering advice
on your specific needs
Comprehensive Online Management
Use your real-time dashboard to benchmark
and identify your high performing suppliers
Product Expertise
Hundreds of off-the-shelf customizable
product specific checklists
Mobile
Book, check reports
and make decisions on the go
Industry Leading Turnaround
Onsite within 48 hours.
Reports the same day 80% of the time
Flexible
Cancel or modify orders up to 4pm
the day before the inspection for free
Trusted and Truly Independent
100% QC. AI is not involved in sourcing
and protects your factory information
All-Inclusive Pricing
Easy to budget. No hidden costs
... AI serves 2,700 clients with twenty offices worldwide... AI serves more than 3,000 clients with twenty offices worldwide
ABOUT ASIAINSPECTION
YOUR EYES INTHE FACTORY™
ABOUT ASIAINSPECTION
YOUR EYES INTHE FACTORY™
19. 1 / Trading Economics. China Exports. April 2nd, 2014
http://www.tradingeconomics.com/china/exports
2 / CNN. At least 3 dead after Cambodian security forces open fire on protesters. January 3, 2014
http://edition.cnn.com/2014/01/03/world/asia/cambodia-protests/
3 / The Sourcing Journal Online. New Study: Costs of Compliance in China Expected to Rise. April 2nd, 2014
https://www.sourcingjournalonline.com/new-study-costs-compliance-china-expected-rise-ik/
4 / The Guardian. EU to force large companies to report on environmental and social impacts. April 2nd, 2014
http://www.theguardian.com/sustainable-business/eu-reform-listed-companies-report-environmental-social-impact
5 / China Daily. 16 dead, 5 injured in China factory fire. January 14th, 2014
http://europe.chinadaily.com.cn/china/2014-01/14/content_17235557.htm
6 / South China Morning Post. 11 dead, six injured in Guangdong factory blaze. March 27th, 2014
http://www.scmp.com/news/china/article/1458357/11-dead-six-injured-guangdong-factory-blaze
7 / Just Style. Analysis: Is Africa the next frontier in apparel sourcing?. April 2nd, 2014
http://www.just-style.com/analysis/is-africa-the-next-frontier-in-apparel-sourcing_id120902.aspx
8 / Just Style. Ethiopia a rising star for sourcing garments. March 6th, 2014
http://www.just-style.com/analysis/ethiopia-a-rising-star-for-sourcing-garments_id120731.aspx
Footnotes
20. W W W. A S I A I N S P E C T I O N . C O MW W W. A S I A I N S P E C T I O N . C O M
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