In a new report - Next-shoring: A CEO's Guide, January 2014, McKinsey Quarterly shows that robtoics and 3-D printing do not necessarily spell the end of outsourced manufacturing to emerging markets. Click here
What Mckinsey terms "Next-shoring" means -
"Proximity to demand and innovative supply ecosystems will trump labor costs as technology transforms operations in the years ahead".
"Next-shoring isn’t about the shift of manufacturing from one place to another but about adapting to, and preparing for, the changing nature of manufacturing everywhere".
"In the world we’re entering, the question won’t be whether to produce in one market for another but how to tailor product strategies for each and how to match local needs with the latest veins of manufacturing know-how and digital expertise".
At the end of the day, the world's rapidly changing and much more diffused technology and innovation landscape translates into how best to make things better and more cost-efficiently across the globe and how best to supply the biggest customers that bring in the largest revenue streams.
China with her rapidly rising middle class is poised to become at least one of the world's largest consumer markets.The exploding consumer demand is characterized by huge differences in regional tastes, trends and supply chains. Click here
Additionally, where economics dictate, China is also starting to embrace the latest technologies such as robotics and 3-D printing, which, after all, are not rocket science.
Moreover, the rise of internet-savvy Chinese business giants such as Alibaba and Tencent is rapidly shaping how consumer demand is met, making China the world's largest "e-tailing" marketplace. Click here
China has built up a peerless, super-efficient, global supply and production chain supported by excellent infrastructural links to the four corners of the globe, including six of the world's busiest container ports.
On the basis of McKinsey's "Next-shoring" findings, therefore, China may not necessarily lose her position as the world's most vibrant manufacturing and consumer business hub any time soon.
However, a recent McKinsey Quarterly report (3-D Printing Takes Shape, January 2014) shows here how fast-evolving disruptive technolgies and capabilites of additive manufacturing are vastly shortening product development cycles, creates efficient besspoke products, and spawns new manufacturing strategies and footprints. China's manufacturing and consumer business hub will need to harness these new technologies and strategies quickly to stay ahead of the game.