Home / Knowledge / News / High labour cost may lead to massive downsizing - Experts
High labour cost may lead to massive downsizing - Experts
16
Sep '08
China has been known for its cheap labour availability for many years and the country's manufacturing industry is one of the most labour incentive sectors.

However, since the implementation of new labour law in 2008, Chinese companies are beginning to loose the advantage of cheap man-power.

This has become a huge burden on the industries who are already suffering from several other international problems like slowdown of the US economy, rise in raw-material prices and RMB appreciation.

Today, an employer with 200 workers has to spend more than 1 million yuan in salaries. Though the salary of workers is high, it is not helping them, because many manufacturers are bearing heavy losses and are struggling to survive.

Analysts believe that in an attempt to stay afloat many enterprises might opt for drastic measures like downsizing, leaving many workers jobless.

Besides, this ups-and-downs in textile industry, is directly affecting about 20 million workers, and indirectly have an impact on over one hundred million Chinese farmers.

Experts say that the low-cost labour advantage of China will be completely non-existent within next five years.

Thus, they say, that Made-in-Vietnam and Made-in-India products as well as that from other South-Asian nations will slowly replace China in the global market.

Fibre2fashion News Desk - China


Must ReadView All

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

Courtesy: Tintex

Textiles | On 21st Jun 2018

'Price ratio is key factor for knitted fabrics market'

The price ratio is a key factor for the global knitted fabrics market ...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search