Special Report: Has China Lost Its Low-Cost Edge?

For years, the labor rate has been the primary advantage benefiting Chinese manufacturers. However, wage rates in China are growing at an accelerated rate, and IHS predicts that China will lose its low-cost edge for some products in the near term.

By predicting and capitalizing upon price fluctuations, organizations can thrive amidst global economic uncertainty and achieve a competitive advantage.

The IHS Pricing and Purchasing solution uses a proven cost modeling framework that can help you effectively manage your business.

With a team of over 350 economists and industry-leading analysts dedicated to each major market, IHS delivers timely and accurate price and wage forecasts and analysis to help buyers negotiate prices effectively, strategically time purchases, and generate cost savings.

With a database of more than 80,000 historic prices and thousands of price, wage and input cost forecasts, IHS offers more coverage than any other provider in the market.

The IHS Pricing and Purchasing solution can help you with:

• Timing buys. Identify the best time to purchase raw materials, locking in favorable prices today to avoid prices increases later
• Cost benchmarking. Benchmark spend in order to take advantage of tactical market opportunities and evaluate quotations more strategically
• Contract negotiation. Understand your supplier’s cost structure to gain the leverage you need to negotiate prices effectively and gain valuable price breaks
• Cost estimation. Gain valuable market intelligence to quantify key inputs, examine critical supply issues, and more effectively estimate a project’s final cost
• Long-term contracting. Negotiate forward pricing contracts for improved cost planning, analysis, and savings over the life of a contract

Download the special report to obtain cost insights and answers to your global sourcing questions, including:

• How should increasing wage rates in China impact your sourcing decisions?
• Are there other countries that you should consider?
• How do shipping costs, exchange rate appreciation, and supply chain risks factor in?