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labor cost statistics 10 yr comparison

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ttwjr32:
here is an interesting set of stats comparing the rise of wages in manufacturing here in China

                                         1998                             2008

guangdong                        10,337                          25,249
guangxi                              6,153                            21,181
hunan                                 6,108                            22,188
guizhou                               6,193                            22,224
bejing                                  11,370                          39,076
shanghai                             12,944                           42,311
zhejiang                               8,321                             23,816
jiangsu                                  7,398                            25,688
chongqing                             6,392                             24,131
sichuan                                  6,488                             22,046
inner mongolia                       5,127                             22,352
tibet                                        5,612                            19,486

thought it was an interesting item to post as you can see it has changed a lot over the past 10 years and if it continues to rise
dramatically it will remove the advantage that China has in this sector, by not making them the first choice for companies looking
to manufacture here.


   

Jason B:

--- Quote from: ttwjr32 on July 20, 2010, 09:35:31 pm --- it will remove the advantage that China has in this sector, by not making them the first choice for companies looking
to manufacture here.
--- End quote ---

I understand what you are saying Ted, so many companies from Australia outsourced to China to make manufacturing cheaper.  When the wages go up where are they going to outsource to then? India I suppose and when their wages rise maybe the business will move back home?  Kind of like a full circle thing.

ttwjr32:
Jason,

correct for example Apple has i phone items and others made in a plant in Shenzhen were all the people have been jumping off the building committing suicide because of the wages. they make them for 200 and sell to Apple for 220  in the USA it can be made for 300 and sold for 320
but with more being produced during the day so if china ends up rising to like 260 or 280 then they could just stay with the USA firms and forgo
all the shipping charges also. but India is at the point of having better prices for this

shaun:
Ted,

I just looked at AT&T to see what they are charging for the iphone.  The lowest price is 1000RMB or $149.00US.  I know they have to pay import/export taxes and shipping fees but AT&T and Apple are making a boatload of money on each phone.  I wonder if Americans realize that this is the same place where people are committing suicide over wages.?  I hear since the new iphone has come out they sold over 2 million the first day they came out and expect to sell over 25 million by years end.

Vince G:
Word has spread of problems with the newest iPhone so sales have slowed up already.

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