asiainspection q4 barometer: china growth stabilizing as exploding batteries and factory fires...
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CHINA GROWTH STABILIZING AS EXPLODING BATTERIES AND FACTORY FIRES PLAGUE
SUPPLY CHAINS
ASIAINSPECTION Q4 BAROMETER
HONG KONG, OCTOBER 6, 2016
ASIAINSPECTION (AI)
A LEADING GLOBAL QUALITY CONTROL AND COMPLIANCE SERVICE PROVIDER THAT PARTNERS WITH BRANDS, RETAILERS AND IMPORTERS AROUND THE WORLD
TO SECURE, MANAGE AND OPTIMIZE THEIR SUPPLY CHAIN
today announces its 2016 Q4 Barometer, a quarterly synopsis on outsourced manufacturing and the quality control services industry.
CHINA DISPLAYS ECONOMIC REBOUND IN AUGUST AND SEPTEMBER
Demand for product inspections grew by 12.6% in Q3 2016 YoY
September’s manufacturing PMI data shows a sustained growth at 50.4, while export PMI signals the first expansion since April
+12.6%for China
in Q3 2016
OUTPUT AND LOCAL CONSUMPTION KEEP CLIMBING
In August 2016, China’s industrial output grew +6.3% YoY, fastest in five months, while retail sales climbed 10.6%
Local demand for inspection and testing surged by 8% YoY
+6.3
%
+10.
6%
+8%
INDUSTRIAL OUTPUT INSPECTION AND TESTING RETAIL SALES
August 2016
CHINA’S FOREIGN TRADE SHOWS PROMISE, BUT COMPETITION STEEP
September’s PMI data indicates increase in new export orders
Pressure on exports comes from rest of Asia
CHINA’S FOREIGN TRADE SHOWS PROMISE, BUT COMPETITION STEEP
Tex tile, footwear, accessories inspections climb in competing countries
+80%INDIA
+40%
+14% THAILAND
INDONESIA
CHINESE FOOTWEAR MANUFACTURERS THREATENED BY VIETNAM
Vietnam’s footwear inspections up 49% in Q3 2016
Chinese manufacturers concerned about Vietnam’s pressure on their share of footwear exports to the US
+49%for Vietnam in Q3 2016
EXPANSION OUTSIDE RMG AND TEXTILE
2016 YTD demand for product inspection shows strong upward trends in:
Electrical and Electronic items: +18%
Printing and Packaging: +48%
+18%ELECTRICAL AND
ELECTRONIC ITEMS
+48%PRINTING AND
PACKAGING
SAFETY RECALLS: PHONE BATTERIES, LEAD & PHTHALATES CONCERNS
E&E product inspections in Asia up 19% YTD 2016
High-profile E&E problems: 2.5 million Samsung smartphones recalled for exploding battery concerns
2.5MSamsung phones
recalled
SAFETY RECALLS: PHONE BATTERIES, LEAD & PHTHALATES CONCERNS
Lead and phthalates still frequently found in US consumer product imports: toys, water bottles, garden products, jewelry, etc.
Among products tested by AI labs in 2016, 8.6% failed for phthalates content under California Prop 65
8.6%failed for
phthalates
STRUCTURAL SAFETY: RISKS HIGH IN BANGLADESH AND BEYOND
Tampaco packaging factory fire named Bangladesh’s worst industrial disaster since Rana Plaza
NGOs emphasize the need to expand safety initiatives beyond RMG and past the end of Accord and Alliance in 2018
STRUCTURAL SAFETY: RISKS HIGH IN BANGLADESH AND BEYOND
Structural audits reveal high numbers of factories at Major and Critical risk across Asia
Vietnam 52.1% China 51.9% India 51.1%
Major risks also identified in Indonesia, Pakistan, Kenya, Egypt
INDUSTRY VS. ENVIRONMENT: CHINA’S POLLUTION LEVELS CRITICAL
Tex tile and apparel named China’s top polluting industries
New anti-pollution measures may put up to 90% textile factories at risk of closure
INDUSTRY VS. ENVIRONMENT: CHINA’S POLLUTION LEVELS CRITICAL
China’s ground water quality worsening for 5th consecutive year
AI data showed 73.9% textile factories in China at “Major Risk” and 26% at “Critical Risk” on waste and pollution concerns (both figures
higher than industry average)
73.9%AT “MAJOR RISK”
26%AT “CRITICAL RISK”
FOOD SCANDAL SHOWS ROOM FOR IMPROVEMENT IN CHINA’S FOOD SAFETY
1,000 tons of tainted meat worth $12.3 million seized in Guangdong
Food safety remains a challenge in China despite harsher punishments under new Food Safety Law
AI data shows food inspections up +17% YoY and +32% quarter-over-quarter
+32%Q3 2016 vs Q2 2016
AsiaInspection (AI), a leading global quality control and compliance ser vice provider
that partners with Brands, Retailers and Importers around the world to secure, manage and optimize their supply chain.
ABOUT ASIAINSPECTION YOUR EYES IN THE FACTORY!™
ABOUT ASIAINSPECTION YOUR EYES IN THE FACTORY!™
DEDICATED ACCOUNT MANAGER
A supply chain partner offering advice on your specific needs
INDUSTRY LEADING TURNAROUND
Onsite within 48 hours. Reports the same day 80% of the time
COMPREHENSIVE ONLINE MANAGEMENT
Use your real-time dashboard to benchmark and identify your high performing suppliers
FLEXIBLE
Cancel or modify orders up to 4pmthe day before the inspection for free
PRODUCT EXPERTISE
Hundreds of off-the-shelf customizable product specific checklists
TRUSTED AND TRULY INDEPENDENT
100% QC. AI is not involved in sourcingand protects your factory information
MOBILE
Book, check reports and make decisions on the go
ALL-INCLUSIVE PRICING
Easy to budget. No hidden costs
FOOTNOTES
1. http://www.bloomberg.com/news/articles/2016-10-02/china-factory-gauge-at-2-year-high-eases-pressure-for-stimulus
2. http://www.bloomberg.com/news/articles/2016-09-13/china-economy-strengthened-as-factory-output-retail-strengthen
3. http://www.cnbc.com/2016/10/01/china-official-manufacturing-pmi-shows-factory-activity-continued-apace-in-september.html
4. http://www.fibre2fashion.com/news/company-reports-news/china-s-textile-imports-to-eu-slide-in-2015-190543-newsdetails.htm
5. http://footwearnews.com/2016/business/uncategorized/fdra-footwear-factory-management-report-251461/
6. https://www.theguardian.com/technology/2016/sep/16/us-regulators-issue-official-recall-samsung-galaxy-note-7-phone
7. http://www.usnews.com/news/news/articles/2016-07-20/ll-bean-recalls-kids-water-bottles-over-lead-concerns
8. http://wfla.com/2016/06/03/childrens-toy-jewelry-kit-recalled-due-to-high-levels-of-lead/
9. http://www.al.com/business/index.ssf/2016/08/mm_branded_jewelry_recalled_du.html
10. http://www.foodsafetynews.com/2016/08/six-brands-of-turmeric-added-to-recall-for-excessive-lead/#.V-5lotQrLDc
11. https://chemicalwatch.com/48168/us-ngo-finds-lead-phthalates-in-garden-products
12. http://www.dhakatribune.com/bangladesh/2016/09/26/tampaco-fire-another-body-recovered/
13. http://www.wsj.com/articles/labor-groups-call-on-bangladesh-to-improve-industrial-safety-1473611689
14. http://www.ecotextile.com/2016090922333/materials-production-news/bangladesh-to-establish-textile-sector-safety-body.html
15. http://chinawaterrisk.org/wp-content/uploads/2016/08/China-Water-Risk-Brief-Todays-Fight-for-the-Future-for-the-Future-17082016-FINAL.pdf
16. http://www.scmp.com/news/china/society/article/2022472/appalling-air-quality-beijing-takes-deep-breath-smog-season-sets
17. http://time.com/4498998/china-meat-food-safety-bleach-police-guandong-shenzhen/
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