12/31/2023 0 Comments Factory town limit of general storesDepartment of State, minimum wage in Vietnam was as low as USD $50 per month and in Cambodia USD $100 per month. Consider that, according to a 2013 report from the U.S. One major concern for importers is the local minimum wage and its effect on the cost of producing goods. So be sure that there are no conflicts vis-à-vis your agreement and laws governing your factory location. When it comes to manufacturing a product, particularly abroad, you'll want to confirm that both you and your supplier are complying with local law. That's why it's important to keep in mind the effect local weather can have on your product. This difference can affect the composition and moisture content of the wood used in your furniture during production, transportation and storage. The dry and frigid winters characteristic of Northern China differ quite a bit from the hot and humid summers of Southern China. ![]() Timber, as a raw material used in furniture production is most commonly harvested in the north. Guangdong Province is well-known as a manufacturing hub for furniture and many other consumer goods. Let's consider again that you're an importer of furniture that is manufactured in Southern China. Weather conditions can not only affect the integrity and delivery time, but the raw materials used in manufacturing your products as well. Factory Location and Weather ConditionsĪ more frequently overlooked way that factory location can affect your order is the weather. You should consider infrastructure - especially the presence of high-speed rail, in China's case - in addition to distance. ![]() Even though Guangzhou, Foshan and Maoming are all located in the same province, Maoming is a more remote location, farther from Guangzhou. But what if you're buying furniture in Maoming, and the closest city in which you have QC staff is Guangzhou? Now you should expect travel expenses for inspectors to be considerably higher. Travel expenses to that particular location should be relatively low, since the two cities are quite close and mutually accessible. Maybe you're manufacturing furniture at a factory in Foshan, China, and have quality control staff in Guangzhou, for example. If you find yourself enlisting the help of a third party, even if the company has local staff in the country in which your supplier is located, there are always costs associated with getting to the factory. On a similar note, rather than personally traveling to assess order status and product quality, many importers opt to hire a third party inspection firm to send qualified auditors on their behalf. There are also financial costs associated with traveling and accommodation that should be factored in to a visit. However, if the same importers are manufacturing in Mexico, a somewhat casual regular visit to the factory is much more feasible. Most aren't able to personally visit their supplier every few weeks to check up on their order if, for instance, their supplier's factory is located in Bangladesh. Let's consider importers based in the United States, for example. Wherever you choose to manufacture, the factory's physical distance from you will inevitably affect your ability to visit, meet with staff and management and check the status of your order. This first point is perhaps the most obvious. (Prefer to listen to the manufacturing podcast that covers this article? Click here!) Factory Location and Travel Distance ![]() But what if we told you that factory location can, and almost always does, greatly impact all of those factors and more? When importers are selecting among an endless list of possibilities, factory location can often take a back seat to factors like price, product quality and shipping deadline.
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