Posted on 06/04/2003 8:27:30 AM PDT by budanski
China production to outstrip Western Europe by 2005 Electronics production in China will be an US$80 billion ($124 billion) business by 2005, larger than the estimated US$73 billion ($113 billion) production in all of Western Europe claims a new study.
More than 77 percent of the growth of manufacturing in developing countries will be in China, increasing its share of global electronics production from 8% to 14%, says the study from International Finance Corporation (IFC), the private sector arm of the World Bank Group, and management consulting firm Booz Allen Hamilton.
The study found that electronics production activity in emerging markets will nearly double, from US$65 billion ($100 billion) in 2001 to US$125 billion ($194 billion) by 2005 - accounting for 43 percent of total worldwide manufacturing growth. The growth rate that is twice as fast as any other region.
Emerging market growth outside of China will primarily be in other developing South-east Asian countries, Eastern European countries and Mexico.
Gains in developing countries will not be limited to manufacturing. In a move which has significance to the design-oriented Australian electronics sector, higher value services such as engineering and design functions will increasingly migrate to developing nations over the next few years, although this transition will be slower than the rapid shift in production. India and Russia in particular have an abundance of highly skilled labour, at costs not only lower than high-salary areas like the US and Europe, but also undercutting Australian pay rates.
-[The] main driver of this trend is the rising importance of economies such as China as end-user markets for these products, which increases their competitive advantage in the manufacturing process,? says Dick Ranken, director of IFC?s Global Manufacturing and Services Department.
-Large multinational corporations are leading the drive to emerging markets - and taking their smaller suppliers with them,? adds Barry Jaruzelski, Booz Allen Vice President
The SARS epidemic has raised concern about economic growth in China and other emerging markets. However, a follow-up to the original study found that most respondents expect SARS to have a very limited and only temporary effect on the shift of electronics production toward developing markets. None of the respondents to the study?s survey expect SARS to have a significant impact on the long term growth of electronics production in developing markets.
Elsewhere, a second study has found that electronic component distributors expect China revenue to grow by 35% in 2003.
The results of the Electronic Buyers ? News survey show that component distributors in China expect to achieve average revenues of US$27 million ($42 million) in 2003, up by 35 percent from last year. International, Hong Kong and local distributors tend to distribute components to China?s high-growth communications and consumer electronics industries.
But while most distributors expect more business this year, they also foresee difficulties. When asked about the greatest challenges facing them in the China international, Taiwan and Hong Kong distributors cited erratic buyer purchasing behaviour. Mainland distributors were most concerned with an increasingly competitive marketplace.
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Will the has beens finally acknowledge that it is time that they...
Learned some manners, know their place and kept their mouths shut?
Finally accept reality?
Sucks to be them...
Why?
Because they are largely a homogenous society.
As the American work force and society in general becomes more diverse, work place and social tensions will only increase.
In the US, the muliCULTural paradigm is that we need a "diverse" work force that mirrors the world market.
Total BS.
Even the Chinese aren't foolish enough to believe such Maxist nonsense and they will simply over-produce us while we're trying to workout an every inceasing arry of social problems caused by an ever increasing diverse society.
DIEversit is our future and DIEversity will be our death.
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