Published: 29 January 2024
Summary
To seize business growth opportunities, chief supply chain officers need to optimize their manufacturing footprint in China. They can do this by evaluating business opportunities within China and the emerging risk scenarios.
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Overview
Key Findings
Despite the various risk diversification strategies employed by China-based manufacturers, 81% of companies surveyedthat operate in the APAC region keep their manufacturing activities in China. China is still an important end market for most industries, with GDP forecast to grow more than 4% per year over the next three years.
Companies are adopting different strategies to navigate the complex business landscape. Sixteen percent of companies surveyed plan to reduce their manufacturing capacities in North Asia (mainly China) in the next three years, while 27% plan to expand them.
The top drivers of manufacturing capacity decisions for operations in APAC
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