Planning your production in China. Watch out for CNY.

What people are saying about Mulberry Fields
“I have already learned a great deal about China and your business through your website and blog posts. Very impressive.”   a successful mompreneur in Toronto

 

The headline in the China daily today was about labor shortages in China now.  This is of course peak time for labor shortages in China, as many workers do not return to their factories after Spring Festival.  In many cases they find when they go home that there is more opportunity than when they left.  And this is why in Guangzhou, the principal city in Guangdong Province there is a shortage of 110,000 workers now across many industries. In Guangdong itself the shortage is over a million workers currently.  In Eastern China it is better but there are also massive shortages of workers in cities there as well.

This is why it really helps to learn about the areas where you are going to be making your product and planning your production so as to avoid having important orders that are produced or are due to ship at or around Chinese New Year.  You also have to anticipate last-minute price increases on your orders as vendors need to raise wages to entice the old workers to come back or hire new workers. I personally would not advise putting ship dates on POs that are not at least 6-8 weeks out from the beginning or end of Chinese New Year.

www.theeastasiaco.com

 

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