DOING BUSINESS IN AFRICA
MANUFACTURING, TECHNOLOGY, COMMODITY EXPORT, VIABLE CHINA ALTERNATIVE
For most of the modern world it is widely known that the cheap labor has given China a really solid standing in the manufacturing of everything from plastic knobs and lighting to car parts, concrete and clothing to name a few.
There are a number of companies in the United States and Europe that have opted to either outsource their manufacturing or build manufacturing plants in China due to the cost effectiveness of producing products at a lower cost basis thus increasing their net profits by a long margin.
Companies such as General Electric, Emerson, Honeywell and Rockwell are now developing automation plants in China to develop computer chips and parts etc, as well as outsourcing to China.
Companies such as General Motors, Procter & Gamble and Motorola are benefiting nicely from dealing with China on an import basis and on an export basis companies such as Wal-Mart, Target, Home Depot and others are showing their shareholders nice returns due to the high profit margins from their selling China exports in their retail chains.
Here are some fun facts:
Manufacturing in China today has seen a continual increase in manufacturing prowess, the cost advantages go beyond the simple cheap labor cost, China is beginning to produce higher quality goods which makes it even harder for the United States to be a viable manufacturing solution.
More or less 30% of all television and air conditioners, 50% of all cameras, 25% of all washing machine come from China and that is just the tip of the iceberg.
Walmart purchases over US$18 Billion worth of merchandise from China every year thus flooding the U.S. market with China imports, while 40% of all microwave ovens sold in Europe come from China.
The issue for companies that are seeking to reap the rewards of manufacturing in China is that they first must build a solid relationship with the local and national politicians in order to even get in the door to speak about their desire to build a manufacturing plant, its not as easy as buying a lot to build, there are many steps that need to be taken before you even have a chance to be approved for anything. It can be a lengthy process.
Over the last decade a number of non-China based companies have been flocking to China to manufacture and that it is increasingly making the countries economic stance stronger thus making it harder for companies to build in China and with the United States and Europe being the major importers of China merchandise there is a definite open door of opportunity elsewhere in the world.
AFRICA A VIABLE CHINA ALTERNATIVE
FGA Partners has a viable alternative to China and that is West and East Africa.
Here are some really key points that make West and East Africa a viable alternative to China for building manufacturing plants and outsourcing. Both West and East Africa can be extremely competitive with labor cost, the governments in various nations in Africa are much more flexible than China, West African nations have the ports which are well oiled machines, most of the ports are free trade zones, they have the natural resources in place everything from timber and agricultural products to natural resources such as precious and non-precious metals used for computer manufacturing and automation.
FGA has developed strong relationships in Africa that allows us to be a major asset in bridging the gap between the United States/Europe and West and East Africa.
The growth in Africa has not even been tapped into as it relates to manufacturing which gives those companies seeking to reduce their production costs a true viable and smooth alternative to China.
So whether your company produces electronics, clothing, computer parts, electronics, auto parts, toys, automotive parts or vehicles, cement, or other construction material, FGA is your key to building in Africa. We will assist with everything from the negotiations with the various government officials for concessions to choosing the location for the manufacturing plants, developing educational workshops for workers and we will stay in line with your company for the long haul to maximize the benefits with manufacturing in the West and East African regions.
So whether you are looking to build in China or currently have manufacturing in China, FGA is your key to working in West and East Africa.
This includes oil refineries, agricultural development and more.
So if you find that working in Africa is the right fit for you then feel free to contact us.