{"id":5458,"date":"2022-10-19T00:00:00","date_gmt":"2022-10-19T00:00:00","guid":{"rendered":"http:\/\/bpddev2.uk\/clients2023\/metro\/sourcing-insight-buyers-strategically-moving-production-from-china-to-india\/"},"modified":"2024-02-02T08:58:41","modified_gmt":"2024-02-02T08:58:41","slug":"buyers-moving-production-from-china-to-india","status":"publish","type":"post","link":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/buyers-moving-production-from-china-to-india\/","title":{"rendered":"Sourcing insight;\u00a0Buyers\u00a0strategically\u00a0moving production from China to India"},"content":{"rendered":"\n

Post-pandemic globalisation is not dead, but as China\u2019s zero-COVID strategy continues it is evolving, as buyers reassess China sourcing risks and diversification and the alternative production capacity that India offers is badly needed, particularly given that Vietnam and much of Southeast Asia are hitting their limits.<\/strong><\/p>\n\n\n\n

As widely reported in the international media this week, new COVID outbreaks are creating further lockdowns in China and this quote from The Loadstar outlines the logistics impact, as of yesterday.<\/p>\n\n\n\n

\u2018\u2019Lockdowns in key Chinese port cities are again hampering supply chains, despite a \u201cmuted\u201d peak season and President Xi gave no indication of a change to China\u2019s zero-COVID policy at the Communist Party Congress this week, where he is expected to obtain a record third five-year term in office.<\/p>\n\n\n\n

Indeed, in what has now become a regular occurrence, COVID restrictions are impacting supply chains in Ningbo, Shanghai, and Tianjin. Ningbo is the worst affected, with forwarders reporting disruption to the area around the port going into lockdown.\u2019\u2019<\/p>\n\n\n\n

Apple has already moved 5% of its iPhone 14 production to India and US importers are increasing their sourcing from the country, with inbound shipments from India rising over 12% in 2022, though this growth is eclipsed by the UK\u2019s goods imports from India, which grew by over 50%.<\/p>\n\n\n\n

Apple has been manufacturing iPhones in the southern Indian state of Tamil Nadu since 2017 and by 2025, analysts expect a quarter of all iPhones to be produced in India, as trade tensions between Beijing and Washington show no signs of letting up.<\/p>\n\n\n\n

Over 5% of the UK\u2019s importers – >14,000 – are already importing from India and the number is likely to grow exponentially, as many companies looking to “de-risk” global supply chains are looking at alternative supply sources, because of political uncertainty and China’s “zero-Covid” policy.<\/p>\n\n\n\n

China\u2019s zero-COVID strategy for eradicating the pandemic has already led to factory closures and large-scale supply chain disruption, with buyers  increasingly adopting a \u201cChina plus one” strategy, or avoiding the country entirely and re-engineering their supply chains.<\/p>\n\n\n\n

The trend towards dual and omni-sourcing is clearly good news for emerging manufacturing power-houses like India, Vietnam, Turkey and Mexico.<\/p>\n\n\n\n

Metro\u2019s footprint in India continues to grow, to meet our customers demand, with our expanding team of 50 relocating to a much larger, custom-built, facility in Chennai next year, driven in part by the government\u2019s commitment to building manufacturing capability.<\/p>\n\n\n\n

Prime Minister Modi’s government is offering financial incentives to companies that are keen on making India their production hub, which is attracting foreign investment in sectors such as manufacturing and electronics, including semi-conductors, which are critical components for many of our customers.<\/p>\n\n\n\n

Encouraged by these production-linked incentives a renowned mining conglomerate is investing \u00a317bn to set up a semiconductor plant in India in collaboration with the Taiwanese electronics manufacturing giant Foxconn, taking India a step closer to its own ‘Silicon Valley\u2019.<\/p>\n\n\n\n

The ascendancy of India as a sourcing region, mirrors near-shoring activity closer to home and in particular within the EU, sub-Saharan Africa and Turkey, where we have integrated transport networks, designed to support JIT manufacturing requirements.<\/p>\n\n\n\n

These transport networks are ideally positioned to support new sourcing requirements, de-risking and simplifying a critical strategic decision.<\/p>\n\n\n\n

If you would like to discuss our India capability, or learn how we can assist your ability and strategy to source from the EU and Turkey, or other evolving global manufacturing  regions, <\/strong>EMAIL<\/strong><\/a> Elliot Carlile to arrange a consultation and scoping discussion. We have it covered from a logistics perspective with immediate ability, agility and results to ensure you have a streamlined supply chain regardless of where you are sourcing your products. It\u2019s what we do\u2026..<\/strong>.<\/strong><\/h3>\n","protected":false},"excerpt":{"rendered":"

Post-pandemic globalisation is not dead, but as China\u2019s zero-COVID strategy continues it is evolving, as buyers reassess China sourcing risks and diversification and the alternative production capacity that India offers is badly needed, particularly given that Vietnam and much of Southeast Asia are hitting their limits. As widely reported in the international media this week, […]<\/p>\n","protected":false},"author":3,"featured_media":4618,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[95,60],"tags":[],"class_list":["post-5458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-trade","category-supply-chain"],"acf":[],"yoast_head":"\nSourcing insight;\u00a0Buyers\u00a0strategically\u00a0moving production from China to India - Metro<\/title>\n<meta name=\"description\" content=\"With buyers moving production from China to India, Metro's expanding team of 50 is moving to a larger, custom-built, facility in Chennai\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sourcing insight;\u00a0Buyers\u00a0strategically\u00a0moving production from China to India - 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