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How much can I save by moving production from Europe to China?

Posted: 2010-12-23

Full Question

I currently manufacture a product in Europe but would like an estimate as to how much can I expect to save by moving production to China?

Answer

There is no set formula but there are general rules that apply. Labor intensive products made of readily available materials offer the greatest savings. Products with specialized materials which need to be imported into China may not encounter larger price reductions by moving production overseas. Other major issues to consider are shipping and duties. Buyer needs to look at the total supply chain, door to door, to ensure savings are achieved.

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