Newsletter - October2020

Centrolene
NewsEdge Know more.
Page: 13
even during the pandemic. It’s like the pandemic was never there.”
However, even though China’s exports to the US were hit earlier in the year,
Poskus noted that by June and July they had not only recovered but were also
growing year-over-year.
And Martin Holst-Mikkelsen, Head of Europe for Ocean Freight at Flexport,
said China would remain a major manufacturing hub for many years to come.
China has the infrastructure
“It’s simply infrastructure,” he added. “The skills and capacity that has been
established over decades cannot be replaced in a short period of time.
“Some manufacturing, of course, is easier to move than others. And if you
think apparel or furniture, you actually have good alternatives emerging
elsewhere in the world.”
But, he said, for industries reliant on technology, shifting sourcing countries
was difficult.
“A lot of the technology that’s being built or made is in China requires skills
that are just not easily transferred elsewhere. And it’s also not just about
labour and factories; it’s also about raw materials which are [available] in
China and not easy to shift away.
“I think the Indian Subcontinent and South East Asia are emerging very fast
because of shifts away from China because of Trump tariffs also imposed in
the US, but that doesn't necessarily mean that Europe has shifted to the same
extent.
“So, I think we are going to see a shift in manufacturing away from China, but
it will be gradual and we’ll see some segments shifting before others.”