Capacity

With demand for China-made products still rising, many suppliers across all industries are planning expansion.

In fact, nearly half of the survey respondents will augment capacity by more than 20 percent in the next year, with some targeting above 50 percent. Many of them belong to segments with fast-moving products such as eyewear and compact fluorescent lamps, and to emerging industries, including children’s furniture.

Source:http://www.globalsources.com/

Quoting from [ange]:

Capacity

With demand for China-made products still rising, many suppliers across all industries are planning expansion.

In fact, nearly half of the survey respondents will augment capacity by more than 20 percent in the next year, with some targeting above 50 percent. Many of them belong to segments with fast-moving products such as eyewear and compact fluorescent lamps, and to emerging industries, including children’s furniture.

Fashion bag, solar panel and bicycle suppliers will also carry out expansions, albeit moderately. With capacity utilization averaging 65 percent, makers in these sectors have more room to absorb increased orders.

Capacity Expansion

Nearly 70 percent of survey respondents will upgrade existing facilities in the next 12 months as means to bolster production capacity.

The approach proves to be favorable to many companies, especially large ones, since factory upgrades yield higher productivity without necessitating land acquisition and workforce expansion. Increased investment in fully automated metalworking, plastic-injection, spray-painting and assembly lines will be more prevalent in coming months.

Some suppliers will also be relocating to new facilities, mostly in the central or northern parts of China, where land and labor costs are relatively inexpensive.

 

 

 

 

 

 

 

Source:http://www.globalsources.com/