Chinese labor cost hikes may lead to pricier electronics

Posted on Wednesday, June 09 2010 @ 5:31 CEST by Thomas De Maesschalck
Engadget reports rising wages at Chinese manufacturing plants may lead to pricier electronics and even relocations to cheaper locations, such as Vietnam, India and Indonesia.
All good news, you might think, but these worker-friendly measures are taking their toll on manufacturing costs, and now there's talk of companies relocating production to cheaper locales.

Vietnam, India and Indonesia are the prime suspects for taking production duties away from China, with some companies also apparently contemplating shifting to poorer regions within the nation. These changes are unlikely to perturb high-end electronics manufacturing in the short term, due to its more sophisticated infrastructure and supply chain, but the end consumer might still feel their effect in the form of higher prices.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



Loading Comments