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Asia labor costs and China manufacturing relocation impact considerations

By VentureOutsource Staff

For companies relocating manufacturing to alternative locations like Thailand, Indonesia, Vietnam or India, cost analysis for manufacturing labor must be taken into consideration. While China might have higher labor costs, it could be challenging for companies to locate and retain enough skilled labor in alternate regions.

Additionally, ramping up production and overall labor efficiency in early stages could take longer and impact quality, throughputs, and shipping commitments compared to factories with long operational histories.

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Below, the annual cost (average) per manufacturer worker in China, Thailand, Malaysia, Indonesia, Pakistan, Philippines, India, Vietnam per Japan external trade organization (JETRO).

Average annual cost of a manufacturing worker (US$, 2017)

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