1.
NEW TRADE DIRECTIONS EMERGE, WHILE
FORCED LABOR AND STRUCTURAL RISKS
PLAGUE GLOBAL SUPPLY CHAINS
ASIAINSPECTION Q2 BAROMETER

2.
HONG KONG, APRIL 7, 2016
ASIAINSPECTION (AI)
A LEADING GLOBAL QUALITY CONTROL AND COMPLIANCE SERVICE PROVIDER
THAT PARTNERS WITH BRANDS, RETAILERS AND IMPORTERS AROUND THE WORLD
TO SECURE, MANAGE AND OPTIMIZE THEIR SUPPLY CHAIN
today announces its 2016 Q2 Barometer, a quarterly synopsis
on outsourced manufacturing and the quality control services industry.

3.
CHINA SHOWS SIGNS OF RECOVERY
China’s manufacturing sector showed expansion in March, giving rise to hopes
for a continued recovery, recording a Q1 2016 global growth of 6.7%.

4.
2016 GLOBAL TRADE POISED TO REBALANCE,
BUT QUALITY STILL AN ISSUE
AI data showed the number of inspections in Brazil has tripled in Q1 2016
compared to Q1 2015, but a 13% increase in Beyond AQL rates.
Q1 2016 vs Q1 2015 Inspection Growth Q1 2016 vs Q1 2015 Beyond AQL Rates
x3
+13%
AQL

5.
STRUCTURAL RISKS RUN HIGH
IN VIETNAM, BANGLADESH AND EGYPT
Vietnam is the highest-risk country for structural issues, with 71% of
structural audits assessing facilities as “at risk” or “need improvement.”

6.
STRUCTURAL RISKS RUN HIGH
IN VIETNAM, BANGLADESH AND EGYPT
In Bangladesh, demand for structural audits tripled YoY in Q1 2016 in
the wake of the inspections by Accord and Alliance.
Q1 2016, Egypt showed the greatest growth of structural audits outside
Asia, AI data states 50% of structural audits revealed that facilities are at
risk or need improvement.

7.
FORCED LABOR AND TRACEABILITY NAMED
HIGHEST SUPPLY CHAIN RISKS OF 2016
The movement of Syrian refugees resulted in a dramatic spike of forced and
child labor in Turkey’s RMG sector. Demand for ethical audits tripled YoY in
Q1 2016 vs. Q2 2015.

8.
FORCED LABOR AND TRACEABILITY NAMED
HIGHEST SUPPLY CHAIN RISKS OF 2016
Traceability remains a top supply chain challenge, as highlighted by the
recent unauthorized subcontracting scandal around the Australian surfwear
brand Rip Curl.

9.
87% APPAREL TESTED FAILED
METAL DETECTION TESTS
As apparel brands feel the pressure to improve quality and safety, demand for
metal control detection has become more significant.
Concerns may be justified, as 87.5% of metal control audits in Q1 2016 showed
improvements were required.
87.5%
Fe

10.
AsiaInspection (AI), a leading global quality control
and compliance service provider
that partners with Brands, Retailers and Importers around the world
to secure, manage and optimize their supply chain.
ABOUT ASIAINSPECTION
YOUR EYES IN THE FACTORY!™

11.
ABOUT ASIAINSPECTION
YOUR EYES IN THE FACTORY!™
DEDICATED ACCOUNT MANAGER
A supply chain partner
offering advice on your specific needs
INDUSTRY LEADING TURNAROUND
Onsite within 48 hours.
Reports the same day 80% of the time
COMPREHENSIVE ONLINE MANAGEMENT
Use your real-time dashboard
to benchmark and identify
your high performing suppliers
FLEXIBLE
Cancel or modify orders up to 4pm
the day before the inspection for free
PRODUCT EXPERTISE
Hundreds of off-the-shelf customizable
product specific checklists
TRUSTED AND TRULY INDEPENDENT
100% QC. AI is not involved in sourcing
and protects your factory information
MOBILE
Book, check reports
and make decisions on the go
ALL-INCLUSIVE PRICING
Easy to budget. No hidden costs

12.
FOOTNOTES
1. http://www.thestandard.com.hk/breaking-news.php?id=72981
2. http://www.theguardian.com/business/2016/apr/01/chinas-factory-output-grows-for-the-first-time-in-nine-months
3. http://www.ft.com/cms/s/0/699def92-dbb3-11e5-9ba8-3abc1e7247e4.html#axzz44Th4VBsU
4. https://sourcingjournalonline.com/vietnam-bangladesh-enjoy-biggest-share-gains-of-u-s-apparel-imports
5. http://www.huffingtonpost.co.uk/2016/02/01/syryan-refugee-children-labour_n_9131020.html
6. https://maplecroft.com/portfolio/new-analysis/2016/02/15/human-rights-outlook-2016/
7. http://www.theguardian.com/australia-news/2016/feb/22/rip-curls-use-of-north-korean-factories-leads-to-calls-for-industry-transparency