AI 2014 Q2 Barometer: Riots, Strikes & 200,000 Toxic Products

1. AsiaInspection Q2 Barometer
riots, strikes
& 200,000 toxic products

2. 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.

3. 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%

4. 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.

5. 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

6. 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.

7. Year over year, the largest growth in Asia was Cambodia
then Bangladesh & Vietnam : 73% each
India 63%
and China 10%
up 99%

8. In growth by industry category,
quarter over quarter across all regions,
food and food container inspections were
up 55%

9. 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

10. 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.
“
”

11. 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%

12. 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.

13. 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.

14. 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.

15. 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

16. 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

17. AI data for 2014 shows that
for factories that underwent ethical audits,
27%
are at serious risk
59%
are not compliant

18. 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.

19. 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.

20. 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.

21. 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™

22. With unique web-based quality control management,
AI offers Product Inspection, Factory Audit
& Laboratory Testing services
for more than 3,000 clients worldwide.

23. 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
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about asiainspection
your eyes in the factory™

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Press Contact
Michael Mesarch • Tel: (+86) 755 2223 9888
Email: press@asiainspection.com