China Surpasses U.S. as Exporter

Recently I read an article on China surpassing the United States as the world’s second-largest exporter last year. As I read this article, I kept thinking about my trips to China and India and how much manufacturing growth I witnessed in both countries. I would like to share some facts on India and China as global competition continues to heat-up, such as; one in three people worldwide lives in either China, the largest communist country, or India, the largest democracy.

Export growth from China grew 27% last year, helping China finish behind only Germany in total exports. At the current growth rates, China will over take Germany as the world’s biggest exporter in 2008. China's emergence as a world economic power follows years of expansion, with growth of 9% or more the norm.

India has also seen dramatic growth, of more than 7% a year, as it is the recipient of large sums of foreign investment. India’s total export mostly manufactured goods, are rising at a 26% annual clip. The manufacturing sector in India is growing at 9.4 % annually. India is going all out to lure foreign manufacturers to its shores. Special economic zones that spearheaded China’s export-led industrialization are now spreading across India.

India’s city of Chennai developed 1,400 acres as a special economic zone and 2,000 more acres are under development. 30 manufacturers have already set up factories to take advantage of tax breaks and efficient infrastructure. Companies like Hyundai, Infosys, BMW and Madras Engineering are in the process of building factories. By 2009, this special economic zone expects to employ over 50,000 people. Chennai because of its growing reputation as a manufacturing hub, is being referred to as the Detroit of India.

General Motors recently announced plans to ramp up production and sales in India, one of the world's fastest-growing auto markets, the company introduced the Chevy Spark - a mini car - to Indian customers. General Motors Corp. is also scaling up procurement of low-cost auto components from India to lower costs at its plants in other parts of the world.

India wants to imitate China's low-cost manufacturing success. Manufacturing is proving to be the next big growth industry for India. I have personally witness this growth first hand in both China and India and know U.S. manufacturing companies must continue to pursue Lean Manufacturing to compete.

Fred Shamburg
President, Leanovations
Contact Leanovations at:
www.leanovations.com

Leanvoations is a consulting group with extensive international experience, who train and coach companies to compete worldwide with lean manufacturing techniques and to win profitable growth through innovations. We focus on developing a partnership with our clients and tailor our approach to meet their specific cultural, organizational and performance needs.