The central tenet that drives economy of a country is its manufacturing prowess. However, what are the factors that promote manufacturing in a country and what China has done to be the center of manufacturing?
The major factors that help to be manufacturing hub are:
• Favorable demographic environment
• Availability of skilled workforce
• Strong domestic demand
• Apt technical and engineering skills
• Research and development centers
• Relatively cheap labor
At one point in history, these factors propagated the manufacturing boom in Europe and North America, as it was where the scientific innovations were going on. However, over the time, as the economy got bigger, the middle class came into existence and grew at staggering rate, and labor became costly. Around the 1970s and 1980s, manufacturing units moved towards east. It was China, among many Asian countries such as Taiwan, Japan, South Korea, opened their market for business. However, it was China, under the leadership of Deng Xiaoping, embraced the world of manufacturing most effectively. Special economic zones were opened, universities were set up, and research and development hubs came into existence.
China is still leading the race of being center of manufacturing. Let us see with example how it is happening. As it is the leading manufacturers of injection molding machines, it is helping to be the biggest injection molding components manufacturer, too. The cycle is intricately linked, as other factors are already favoring the country. The country boasts numbers of custom, or prototype mold manufacturers.