23008_Nearshoring Report

2021 MANUFACTURING WAGES

35

30

FAR EAST COUNTRIES

25

EUR PER HOUR

NON-EU NEARSHORING COUNTRIES

20

CEE COUNTRIES

WESTERN, SOUTHERN & NORTHERN EUROPE COUNTRIES

15

10

5

0

UK

ITALY

INDIA

SPAIN

CHINA

CZECH

SERBIA

FRANCE

POLAND

TÜRKIYE

SWEDEN

CROATIA

VIETNAM

ROMANIA

REPUBLIC

HUNGARY

SLOVAKIA

GERMANY

MALAYSIA

BULGARIA

THAILAND

MOROCCO

PORTUGAL

INDONESIA

NETHERLANDS

SOURCE: ILO, Eurostat, ONS, ERI

Alongside compelling production cost dynamics, the development of global logistics network s also benefited these new strategies. Transport networks, especially global shipping, became so efficient both in scale and scope that importers of finished goods were effectively able to move sufficient quantum of product that the cost per item was almost nothing. Developments in technologies particularly ICT and digital technologies also made monitoring both quality and timing of production and delivery over long distances far easier.

A lower regulatory environment in countries such as China, Vietnam, India and Bangladesh has meant that businesses have been able to set up operations more swiftly and less expensively in these countries. They are also more flexible and able to evolve (for example, upsizing or downsizing) more easily than in established markets especially where regulatory controls on factors like labour law, taxation and safety standards are more onerous. Additionally, environmental protection regulation has been less onerous in some countries which offers lower monetary costs (but at the expense of environmental impact).

9

10

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