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#1 2018-10-06 09:45:37

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GUANGZHOU, May 24 (Xinhua) -- As wages rise, labor-intensive manufacturers in China are faced with a dilemma: Should they stay or should they go?

Biel Crystal Manufactory (HK) Ltd., however, is happy it stayed put.

Based in Huizhou City in the southern province of Guangdong, Biel produces the outer screen glass used for Apple and Samsung smartphones.

It was just over two-years ago that Biel president Yeung Kin-man had to weigh up the pros and cons of relocating his production facilities, which employed 70,000-people, to somewhere in Southeast Asia. All around him, firms were leaving Guangdong enticed by lower operational costs that would get their products more bang for their buck.

Wages in the Pearl River Delta region in southern China have risen significantly since 2014. This, along with commodity price volatility and the slowing growth of the global smartphone market was threatening profitability at Biel.

"Wages in the River Delta region are three times as much as in Myanmar or Vietnam, and will double in the next five years." said Li Peideng, Biel chief operating officer.

This trend, rising wages, can be seen across the region, forcing many labor-intensive factories -- from clothes and furniture to electronic parts -- to move to more affordable locations abroad or in China's hinterland. Those still based in the region speak of how their factory floors -- once bustling centers of industry with thousands of employees -- are lucky if they have a few hundred.

In spite of this, Yeung chose to stay, but, not without setting major changes in motion to counter rising labor costs and ensure the company had a future.

Therefore, it was out with the low-end products and in with the tech-intensive offerings, which have a wider profit margin.

As chance would have it, as Biel was shaking up its business model along came a product that fit its "tech-intensive, high-profit" brief: Curved glass. The company had actually begun to research curved glass back in 2011 . Cheap NBA Throwback Jerseys   Cheap Custom MLB Jerseys   Cheap Jerseys China Wholesale   Cheap NHL Hockey Jerseys   Wholesale Jerseys   Cheap NCAA Hockey Jerseys   Throwback MLB Jerseys China   Wholesale NFL Jerseys   Nike NFL Jerseys China   Replica Soccer Jerseys Online



2018-10-06 09:45:37



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