Outsourced Manufacturing: Ethical and Environmental Concerns Grow

Some interesting trends around the ongoing trade war between the United States and China, as well as continuing challenges with environmental issues and health and safety, have emerged. That’s according to AsiaInspection’s (AI) quarterly barometer of outsourced manufacturing and the quality control services industry for Q1 2018.

Highlights of the report include:

• As many as 73 percent of North American companies consider China their top sourcing destination and more than 85 percent of them have voiced concerns about tariffs and protectionism.
• Chinese manufacturers remain unperturbed, with a 5.9-percent year-on-year increase reported in inspection volumes.
• Sourcing outside of Asia maintains an upward trajectory, reflecting the ever-increasing diversification of sourcing patterns. The Latin America region is seeing a large increase, with first-quarter demand for inspections and audits increasing more than 26 percent year-on-year.
• Health and safety issues are still a big concern in 2018. This year, these issues overtook other challenges such as wage compliance.
• Brands and manufacturers are still struggling with environmental challenges, leading to a stronger demand for environmental audits. Pollution and waste management accounted for 80 percent of non-compliances, with more than two-thirds of these cases classified as major, finds AI.