The coronavirus is the greatest problem facing the world, many countries have been in lockdown for more 3 than three months.
As a result, the world is changing. Many countries now realise that they are over exposed to China and they are either repatriating production to their own countries, reducing the length of supply chains or they are moving their production to other countries.
This You Tube video concentrates on South East Asia. However, we also suggest that India or Ethiopia could be good outsourcing manufacturing capacity alternatives to China.
The coronavirus has highlighted to the world, how China has taken a strangling hold over many key industries which has created substantial vulnerabilities for many countries. Many of those countries are considering or are planning to de-couple from China and return production capacity to their own countries or to move their outsourced production to another low risk and low cost location.
Due to the arrival of the coronavirus and China’s failure to warn the world of its likely effects many countries have lost confidence in China. There has been a breakdown in supply chain services, international airline air transport has been closed and reports indicate that 500,000 Chinese companies have declared bankruptcy. As a result many countries and companies are likely to reduce their reliance on China. They may relocate to their home country or to re-establish their outsourced capacity to new locations. Many will consider relocating to India, the Commonwealth countries and or the Middle East. This will offer us a once in a lifetime opportunity.
To develop our international business, we plan to negotiate and appoint around 30 UK specialist partner companies which have skills in a wide range of disciplines. As examples they plan to appoint companies which practice in legal, accounting, insurance, finance and risk management disciplines (etc). We will also partner with companies which specialise in fish farming, renewable energy, the medical industry, agriculture, civil engineering, architecture, construction, infrastructure, supply chains, (etc).
We expect that many countries will de-couple themselves from China over the coming years. Therefore, many countries may move their outsources manufacturing requirements to other low-cost locations. We plan that, with our partners, we will provide them with a unique service which will help them to re-establish themselves in their newly selected manufacturing destinations. Collectively we will advise them of the advantages or disadvantages of locating to various countries. We will provide information relating to air, sea and land transport to & from the country and within the country. We will have researched the political situation which will include stability within the country and its relationship of its neighbours, the availability and skills of local labour, the country’s past financial statistics.
Corruption is a major problem in many countries. We will advise them on the current situation in any country which they may be considering. We will provide information relating to import and export regulations, local taxation and any incentives which may be available to any incoming companies. We will provide information about living costs and conditions, local education, and personal safety risks which will help ex-pat employees.
The above are examples, but our advice could cover all aspects to setting up the new outsourcing facility and operating them over the long term. Together with our partners we will also provide services relating to planning, negotiating, designing, financing, legal and accounting and online marketing services, construction, moving, installing facilities and infrastructure.
We plan to provide ongoing services for many years after they have completed the initial move.