All Eyes on China
As the holes widen, new competition is slipping in, with significantly smaller economies moving to capture low-paying manufacturing. But their progress is slightly hampered by their governments’ inability to provide additional incentives to foreign manufacturers.
China's great advantage is its monolithic powerhouse structure and willingness to tap its deep reserves. But when smaller players, like the Philippines, snag an international deal, the payoff is great.
What this means for large international manufacturing groups, particularly within the consumer electronics and appliances area, is that more countries are willing to extend significant incentives to get their business. This allows for stronger negotiating power when dealing with a traditional partner. The result could mean more lower or at least more stable prices for consumers.