Manufacturing outsourcing spreads in Shaoxing

Shaoxing's ascendancy has been boosted by the financial crisis, from which Shaoxing has suffered less than other counties in Zhejiang. Data shows that the export volume of Shaoxing county amounted to 146 million pieces in 2009, up 5.3 per cent y/y while the output volume of Shaoxing county was 125 million pieces in 2009. The gap between export and output reflects that more and more textile manufacturers in Shaoxing are outsourcing assembly. Contract manufacturers are becoming the new production partners for many Shaoxing s manufacturers.

In a high incidence of trade friction and the financial crisis, Shaoxing's foreign trade commodity export structure is quietly undergoing a welcome change: from the only low-value-added products, to high-tech products. "While some might think that apparel manufacturing in Shaoxing is becoming a sunset industry because of worker shortage and rising labour cost, we feel that Shaoxing still provides a very viable site for the business, as international apparel brand owners still respect local manufacturers of shaoxing because of their reliability and trustworthiness," Xu Aihua, president of Shaoxing Garment Associationsaid, "This helps to maintain our market share in the textile and apparel manufacturing business".