Hong Kong, July 10, 2014
AsiaInspection a leading global provider of quality control services for businesses importing from Asia, Africa, Southern Europe and Latin America, today announces its 2014 Q2 Barometer, a quarterly synopsis on outsourced manufacturing and the quality control services industry.
In Vietnam, textile & apparel
exports increased year-on-year between January and May, reaching $7.5 billion USD However, recent protests due to political tensions with China sent fear into supply chains Vietnam Undeterred by Rioting 18%
AI figures show May 2014
ordered inspections to be 3.3 times higher than the previous one year average. This is due to increased concern from foreign buyers to ensure their supply chain and quality have not been disrupted.
In the first months of
the year apparel imports from Vietnam into the US saw a well ahead of rival China at 0.9%. 12.7% increase
China Sees Largest Industrial Disputes
in Living Memory Chinese government stimulus efforts appear to have worked in Q2, with manufacturing activity & output up nationwide. This was during the same period that over 40,000 workers engaged in an industrial dispute.
TOXIC CHEMICALs RAMPANT: 5% OF
ALL AZO DYE LAB TESTS FAIL When the Australian Competition and Consumer Commission screened for azo dyes in imported clothing over 200,000 items were recalled. AsiaInspection found over 5% of all azo dye lab tests in 2014 failed
Time and time again we
see outsourced manufactured products putting consumers at risk. The fact that 200,000+ products made it to store shelves containing a known cancer causing carcinogen shows the need for stricter controls and testing at the source. This reflects the sheer scale at which consumers are being placed at risk. Sebastien Breteau, AsiaInspection CEO. “ ”
The Sourcing Journal reported that
while brands and retailers increasingly place huge importance on information in their value chains, specific information is often exceedingly hard to obtain. of respondents said that they do not have sufficient data from within their supply chain. 50%
africa gains momentum Ordered inspection
growth in Asia remained strong with 21% year over year growth. This was surpassed by Africa with 31% inspection growth Interestingly, growth for inspections in Africa was led by Swaziland which saw 50% growth in just the last quarter.
At the same time, Swaziland
is losing benefits from the United States under the African Growth and Opportunity Act for its failure to make progress towards internationally recognized workers’ rights.
india challenges china, becomes world’s
2nd largest textiles exporter India is rising as a regional power, taking up a new position as the world’s 2nd largest textiles exporter with a global share of 5.2% India’s Textiles Minister has projected the value of exports to reach $50 billion USD in the current fiscal year.
The growth is being largely
driven by its apparel manufacturing, for which exports grew almost 25% in May. Apparel export growth is being driven by non-traditional markets such Latin America, Southern Africa, and East and West Asia. Latin America Southern Africa East Asia West Asia
bAngladesh inspection groups raise tensions
North American and European inspection groups The Alliance and The Accord are together inspecting 2,100 of Bangladesh’s 5,600 garment factories which employ some and account for 80% of the country’s exports. 4 million workers
AI data for 2014 shows
that for factories that underwent ethical audits, 27% are at serious risk 59% are not compliant
The groups are involved in
a debate with stakeholders over the process by which they shut non-compliant factories. It’s feared that the disruptions may contribute to slowing export growth, with buyers turning to sources they deem more stable, such as China, India and Vietnam.
While the groups exist to
protect workers, there are practical issues at stake – the protection of jobs and provision of worker compensation during extended shutdowns for repairs which are often ordered without notice. So far 14 factories have been shut down and 5 have had their operations limited.
Factory closures should only be
undertaken if employees are at immediate risk, and such scenarios are rare. AI’s experience has shown that in the course of a properly executed audit program many of the faults found can be fixed with corrective action, training and education, contributing to the long term economic value of the factory and country.
a leading global provider of
quality control services that partners with international Brands, Retailers and Importers to secure and manage their global supply chain. about asiainspection your eyes in the factory™
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 about asiainspection your eyes in the factory™