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China again in the spotlight for product safety problems. Ethical violations remain a top concern as factory audit scores show no improvement. Vietnam predicted to have explosive export growth in 2016. The environmental situation in China remains grave.
HONG KONG, JANUARY 7, 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 Q1 Barometer, a quarterly synopsis on outsourced manufacturing and the quality control services industry.
CHINA STILL IN THE SPOTLIGHT
FOR PRODUCT SAFETY PROBLEMS China made headlines in 2015 for product safety issues, such as exploding hoverboards. Together with Hong Kong, it accounted for 60% of all consumer goods recalls in the EU in Q3 2015.
CHINA’S QUALITY ISSUES CONTINUE TO
RAISE INTERNATIONAL CONCERN For 2015, AI data shows nearly one in three product inspections performed in Chinese factories have failed for exceeding the allowed level of defects.
Pakistan +13% +11% +9% +4%
Thailand Vietnam Cambodia 2015 Inspection Failure Rate Growth OTHER LOW MANUFACTURING COST COUNTRIES SEE QUALITY ISSUES RISE
Q4 2015 CONFIRMS GROWING CONCERNS
IN SUPPLY CHAIN ETHICAL ISSUES Thailand remains in the spotlight under more accusations of modern slavery. A recent investigation revealed extensive use of slave labor in the peeling of shrimp only one step removed from major Thai seafood exporters.
TURKEY NAMED AMONG THE WORST
FOR LABOR RIGHTS AND WORKER SAFETY The overall safety situation in the country is not improving, with the death toll reaching 1593 in 11 months of 2015.
GROWING ETHICAL CONCERNS AS FACTORY
AUDIT SCORES SHOWS NO IMPROVEMENT Cambodia saw its average factory score decrease by more than 2 points (out of 10) in Q4 2015 vs. 2014, and Pakistan, Indonesia, and Vietnam also saw compliance drop.
Currently pollution in China accounts
for 17% of the nation’s annual death toll, killing more than 1.5 million people every year. Combined with the heavy water pollution - 60% of ground water not fit for human contact. THE ENVIRONMENTAL SITUATION IN CHINA REMAINS VERY GRAVE
Cambodia +129% +119% +114% +108%
Thailand Peru Vietnam 2015 Inspection Growth GLOBAL TRADE: A NEW START IN 2016? Experts anticipate a global trade rebound in south-to-south exchanges which has been reflected in increased inspections by AI in 2015.
VIETNAM PREDICATED TO BE A
2016 WINNER While already among the US’s top ten trading partners, it is predicted that when the Trans Pacific Partnership takes effect, Vietnam will see explosive growth in exports - some reports estimate by +50%.
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. 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 4pm the 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 sourcing and 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. The Guardian. UK
retailers recall hoverboards following government advice. December 16, 2015. http://www.theguardian.com/technology/2015/dec/16/uk-retailers-recall-hoverboards-consumer-protection-act 2. Retail Times. Stericycle Index reveals 60% of all EU consumer product recalls last quarter originated in China and Hong Kong. November 20, 2015. http://www.retailtimes.co.uk/stericycle-index-reveals-60-eu-consumer-product-recalls-last-quarter-originated-china-hong-kong/ 3. The Guardian. Shrimp sold by global supermarkets is peeled by slave labourers in Thailand. Decemebr 14, 2015. http://www.theguardian.com/global-development/2015/dec/14/shrimp-sold-by-global-supermarkets-is-peeled-by-slave-labourers-in-thailand 4. Todays Zaman. Turkey named among worst countries for workers. June 25, 2015. http://www.todayszaman.com/anasayfa_turkey-named-among-worst-countries-for-workers_391833.html 5. Todays Zaman. 1,593 Turkish workers die on job in first 11 months of 2015. December 02, 2015. http://www.todayszaman.com/business_1593-turkish-workers-die-on-job-in-first-11-months-of-2015_405893.html 6. Time. China Issues ‘Red Alert’ Over Devastating Air Pollution. December 19, 2015. http://time.com/4155365/china-red-alert-smog/ 7. Reuters. RPT-More than 60 pct of China’s underground water rated unfit for human contact. June 4, 2015. http://www.reuters.com/article/china-environment-water-idUSL3N0YQ3CV20150604 8. Trade and Export Finance. Global Trade Set For Bumper 2016, Says HSBC. December 8, 2015. http://www.txfnews.com/News/Article/5374/Global-trade-set-for-bumper-2016-says-HSBC 9. Fibre2Fashion. ‘TPP may boost Vietnam apparel export by 50% in 10 years.’ December 7, 2015. http://www.fibre2fashion.com/news/apparel-news/-tpp-may-boost-vietnam-apparel-export-by-50-in-10-years--176275-newsdetails.htm