Monday, December 5, 2022

China Manufacturing Slows: Will there be a trend in Global Supply Chain Carving?

As relationships between the U.S. and China go through changes we will find the global market adjusting based on the sphere of influences and business connections that come from each of these powerhouses. China has recently experienced a decline in manufacturing and there may be many reasons why this might be happening. Let us learn together.....

Read the article Manufacturing orders from China down 40% in unrelenting demand collapse and particularly the piece on increased trade between U.S. and Europe and decline of Chinese manufacturing in China loses grip on global manufacturing.

As tensions rise there will be increased risk of geopolitical supply chain carving and that could impact manufacturing and economic, social, and business relationships. Companies will consider that risk in their manufacturing selection and may want to opt for North American, Europe, and other pro-Democracy nations where relationships are stronger (An opportunity for the U.S. to rejuvenate advanced manufacturing. Doors close and doors open.). 

The big questions might be.....

1.) Will this trend continue?

2.) What will the relationships between U.S. and China be in 5 years (i.e. investment purposes)?

3.) What are the places I can manufacture in the U.S. (Do we have a web index listing all of our manufacturers and is this index functional in a way that can help companies find alternative manufacturing plans?)

4.) Will there be an internal dialogue in China that seeks to understand the benefits of being the supporter of a global free market? Will they seek to reduce tensions and improve relationships in order to maintain international investment and business prospects?

A few misc. things of interest I found will exploring the topic.................

BLS has some stats on US Manufacturing Jobs, Employment Industry.

Gov. Cook on economy and productivity in manufacturing HERE

You may also want to read U.S. manufacturing sector contracts in November - ISM

Kind of an interesting study just came out about mapping Chinese industries geographically. Looks like some of the researchers are playing with machine learning. I sort of just found it while browsing on Chinee manufacturing trends. Either way you can read about it and gain broader knowledge of how different manufacturing economies operate by perusing China’s Gridded Manufacturing Dataset

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