AsiAinspection Q2 BArometer
riots, strikes& 200,000 toxic products
Hong kong, July 10, 2014
AsiAinspectionA leAding gloBAl provider of QuAlity control services for Businesses importing from AsiA, AfricA, soutHern europe And lAtin AmericA,
today announces its 2014 Q2 Barometer, a quarterly synopsis on outsourced manufacturing and the quality control services industry.
in vietnAm, textile & AppArel exports increAsed
year-on-year between January and May, reaching $7.5 billion USD However, recent protests due to political tensions with China
sent fear into supply chains
vietnAm undeterred By rioting
18%
AI figures show May 2014 ordered inspections
to be 3.3 times higher than the previous one year average.
This is due to
increAsed concern from foreign Buyers to ensure tHeir supply cHAin
and quality have not been disrupted.
In the first months of the year
AppArel importsfrom vietnAm into tHe us sAw A
well AHeAd of rivAl cHinA At 0.9%.
12.7%increAse
C HIn A S e e S L A rge S t InDUSTrIal DISpUTeS
In LIvIng MeMory
Chinese government stimulus efforts appear to have worked in Q2,
witH mAnufActuring Activity & output up nAtionwide.
this was during the same period that
over 40,000 workers engAged in An industriAl dispute.
year over year, the largest growth in asia was Cambodia
tHen BAnglAdesH & vietnAm : 73% eAcH
indiA 63%
And cHinA 10%
up 99%
In growth by industry category, quarter over quarter across all regions,
food And food contAiner inspections were
up 55%
toXIC CHeMICALS rAMPAnt: 5% OF all aZO DYeL AB teStS FAIL
When the Australian Competition and Consumer Commission screened for azo dyes in
imported clothing over 200,000 items were recalled.AsiaInspection found
over 5%of All Azo dye lAB tests in 2014 fAiled
time and time again we see
outsourced mAnufActured productsput ting consumers At risk.
the fact that 200,000+ products made it to store shelves containing a known cancer causing carcinogen
shows the need for stricter controls and testing at the source.
tHis reflects tHe sHeer scAle At wHicH
consumers Are Being pl Aced At risk.
Sebastien Breteau, AsiaInspection Ceo.
“
”
the Sourcing Journal reported that while brands and retailers increasingly place huge importance on information in their value chains,
specific informAtion is often exceedingly HArd to oBtAin.
of respondents sAid tHAt tHey do notHAve sufficient dAtA from within their supply chain.
50%
AFrICA gAInSmOmenTUm
Ordered inspection growth in asia remained strong with 21% year over year growth. This was surpassed by africa with
31%inspection growtH
Interestingly, growth for inspections in africa was led by Swaziland which
saw 50% growth in just the last quarter.
at the same time, Swaziland is losing benefits from the United States under tHe AfricAn growtH
And opportunity Act for its fAilure to mAke progress
towards internationally recognized workers’ rights.
in di A c H A lle nge s c Hin A , Becom e s wOrlD’S 2nD largeSTteX tILeS eXPorter
India is rising as a regional power, taking up a new position as the
world’s 2nd lArgest textiles exporter witH A gloBAl sHAre of
5.2%
India’s Tex tiles minister has projected the value of exports to reach
$50 Billion usd in the current fiscal year.
tHe growtH is Being lArgely drivenBy its AppArel mAnufActuring, for wHicH
exports grew Almost 25% in mAy.
Apparel export growth is being driven by non-traditional markets such Latin America, Southern Africa, and east and West Asia.
Latin America
Southern Africa
east Asia
West Asia
BA ngl A de s H ins pection grou p s
raISe TenSIOnS
north American and european inspection groups the Alliance and the Accord
are together inspecting 2,100 of Bangladesh’s 5,600 garment factorieswhich employ some
and account for 80% of the country’s exports.
4million workers
AI data for 2014 shows that
for fActories tHAt underwent etHicAl Audits,
27% Are At serious risk
59% Are not compliAnt
the groups are involved in a debate with stakeholders over the process by which they shut non-compliant factories.
it’s feAred tHAt tHe disruptions mAy contriBute to slowing export growtH,
with buyers turning to sources they deem more stable, such as China, India and vietnam.
while the groups exist to protect workers, there are practical issues at stake –
tHe protection of JoBs And provision of worker compensAtion
during ex tended shutdowns for repairs which are often ordered without notice.
So far
14 fActories HAve Been sHut down and 5 have had their operations limited.
Factory closures should only be undertaken if employees are at immediate risk, and such scenarios are rare.
AI’s experience has shown that in the course of a properly executed audit program
mAny of tHe fAults found cAn Be fixed witH corrective Action, trAining And educAtion,contributing to the long term economic value of the factory and country.
A leAding gloBAl provider of QuAlity control services
that partners with international Brands, retailers and importersto secure and manage their global supply chain.
aBOUT aSIaInSpeCTIOnyou r e y e s in t H e fActory ™
With unique web-based quality control management,
Ai offers product inspection, fActory Audit & lABorAtory testing services
for more than 3,000 clients worldwide.
dedicAted Account mAnAger
A supply chain partner offering advice on your specific needs
compreHensive online mAnAgement
Use your real-time dashboard to benchmark and identify your high performing suppliers
product expertise
Hundreds of off-the-shelf customizable product specific checklists
moBile
Book, check reports and make decisions on the go
industry leAding turnAround
onsite within 48 hours. reports the same day 80% of the time
flexiBle
Cancel or modify orders up to 4pmthe day before the inspection for free
trusted And truly independent
100% QC. AI is not involved in sourcingand protects your factory information
All-inclusive pricing
easy to budget. no hidden costs
aBOUT aSIaInSpeCTIOnyou r e y e s in t H e fActory ™
tWItter.CoM/ASIAInSPeCtIon
FACeBook.CoM/ASIAInSPeCtIon
LInkedIn.CoM/CoMPAny/ASIAInSPeCtIon
W W W . A S I A I n S P e C t I o n . C o M
press contAct Michael Mesarch • tel: (+86) 755 2223 9888
email: [email protected]