Chinese manufacturers beat US counterparts

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While low labour costs may have fuelled China’s production growth, that country’s vigilant pursuit of Western manufacturing standards and capabilities may eventually secure it industrial preeminence.

A new study that compares leading Chinese manufacturing facilities with US plants finds that while low labour costs may have fuelled

’s production growth, that country’s vigilant pursuit of Western manufacturing standards and capabilities may eventually secure it industrial preeminence.

The study – The China Vision: Opportunities and Challenges for US Manufacturers – indicates the quality-driven Chinese manufacturers already top their US counterparts in several world-class operating practices.

The new Grant Thornton LLP analysis, based on research conducted by the Manufacturing Performance Institute (MPI) and IndustryWeek magazine, assessed 406 Chinese facilities with ISO 9001 certification and 681 US manufacturers.

Among other findings, the survey reveals that the best of China’s facilities spent a median of 20% of their sales on capital equipment compared to just 3% at US plants. This also held true for spending on information technology (IT), with China plants spending a median 5% of sales on IT versus a median 1.4% at US plants.

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