From China to Cambodia – shifts in the global apparel supply chain

An article in Bloombergbusinessweek (Jan 16,2012) describes the impact of the rising yuan, environmental rule enforcement and rising wages (18 to 20% annually the past three years) driving manufacturing to locations out of China – such as Cambodia. With weekly wages that are 4 to 6 times lower, production is reported to have increased 35 % this year alone. But the lack of an apparel supply chain in Cambodia implies that all components, including thread and needles have to be imported. Will the new global apparel supply chain keep higher end apparel in China and move basics to Cambodia ? Will capital investments in Cambodia remain low, enabling suppliers to move to, e.g., Myanmar, if it opens up ? Should manufacturers in Cambodia be held t0 the strict environmental compliance expected in the US to placate end consumers ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues, Sustainability and tagged , , , , , , , , , . Bookmark the permalink.

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