the business
In the wake of the CoV pandemic and supply chain issues, some companies in Vorarlberg have doubts about China as a location and are looking at alternatives. Electronics companies in particular are looking for safe production countries, but not necessarily Europe.
19.01.2023 05.50
Online since today, 5:50 am
Bicycle manufacturer Simplon, for example, wants to return to production in Europe because partners have become “unpredictable” in recent years. “China is no longer calculable for us. This is not a decision against Asia per se, but China’s risk management, because China’s behavior also has a direct impact on other countries in Asia”, explains Simplon’s managing partner, Stefan Vollbach.
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The bicycle manufacturer is not alone in this regard. “There are companies that are looking very carefully at China as a production location,” says Michael Amann of the Chamber of Commerce. It’s usually about reducing the issues of the CoV crisis and beyond. That means the new location doesn’t necessarily have to be in the EU, it could just as easily be the US or Vietnam, says Amann. It’s being able to better control deliveries.
China no longer has a financial advantage
However, it can take years to set up a new location. Theoretically, the global political situation could also change in the meantime so that China could become more attractive again. According to the Chamber of Commerce, China’s location is no longer a financial advantage. Salary and location costs have increased significantly, says Amann.
Ohneberg: Exports from China will become problematic
Industry Federation president Martin Ohneberg says it depends on the strategy the company chooses. It will be more difficult for those who want to deliver from China to other countries. “Due to isolation efforts and geopolitical developments, China’s exports to other countries will certainly become problematic. So there could very well be migration in this area,” says Ohneberg. Overall though, China still has great potential due to its population and the need to catch up.