Asia Business Podcast Manufacturing in Asia: Challenges and Opportunities Beyond China with Jeffrey Goldstein
Manufacturing in Asia: Challenges and Opportunities Beyond China with Jeffrey Goldstein
Join us for an insightful episode of the Asia Business Podcast where we had the pleasure of interviewing Jeffrey Goldstein, CEO of Onward Global. This episode explores the complexities of supply chain management in China and beyond, providing expert advice and identifying future trends for businesses looking to diversify their manufacturing bases.
Connect with Jeffrey Goldstein
Visit Onward Global
Meet Jeffrey Goldstein
Jeffrey Goldstein is an industry leader with 15 years of experience based in China and eight years at the helm of Onward Global. His expertise in managing and scaling supply chain operations for U.S. brands across Asia provides valuable insights for businesses navigating the evolving landscape.
The Current State of China's Supply Chain
Jeff highlights that despite changes, China's supply chain remains competitive due to its diversity, flexibility, and cost-effectiveness. However, two macro changes impacting this landscape include:
- Financial instability within China's economy, leading to factory bankruptcies.
- A labor shortage due to demographic changes and shifts in young workforce preferences.
Goldstein emphasizes the significance for brands to understand the financial health of their suppliers amidst these challenges.
The Geopolitical Landscape and China Plus One Strategy
With geopolitical tensions and trade policies affecting sourcing strategies, Goldstein stresses the growing trend of the "China Plus One" strategy. This approach involves maintaining China as a primary manufacturing hub while diversifying production to additional countries to mitigate risks. He notes that while some relocation has occurred, it presents strategic and operational challenges.
Emerging Manufacturing Hubs
Jeffrey points out that Vietnam, Cambodia, and India are becoming key manufacturing destinations, each with their strengths and weaknesses. He elaborates on the growing sophistication and diverse capabilities within Vietnam's supply chain, Cambodia's focus on apparel exports, and India's potential despite its domestic-market-focused factories.
Risks and Challenges in New Markets
While sourcing in these emerging hubs presents opportunities, Goldstein warns of the risks involved, such as the complexities of unknown markets and the challenges of building new relationships. He stresses the importance of applying best sourcing practices, thorough market research, and building local relationships as companies venture into new territories.
Best Practices for Successful Supply Chain Diversification
Goldstein advises businesses to practice due diligence, from verifying potential partners and understanding local legal frameworks to engaging with local experts. He emphasizes the need to be realistic in terms of time, cost, and resources required for effective diversification.
The Future of Global Supply Chains
Looking forward, Jeff predicts an acceleration of the current trends: reduced capacity in China's manufacturing sector and increased interest in developing supply chains in other Asian countries. For smaller companies, he highlights the importance of starting preparations early to stay competitive amidst these shifts.
Conclusion
For more information or to connect with Jeffrey Goldstein, visit Onward Global’s website or reach out via LinkedIn.
Timestamps
00:00 Introduction and Guest Welcome
00:23 Jeffrey Goldstein's Background and Onward Global
01:18 China's Supply Chain Evolution
03:59 Geopolitical Tensions and Trade Policies
05:08 China Plus One Strategy
08:12 Challenges of Sourcing Outside China
20:35 Best Practices for Sourcing
24:12 Automation and Labor Costs
29:29 Successful Supply Chain Diversification
35:33 Future Trends and Final Thoughts
38:20 Conclusion and Contact Information