From the early days of Chna opening, one of the driving frces of the country’s industrialization was the nergy of some farmers to identify pportunities, build light industry assembly workshops and qickly grow their business. Entire towns in the cuntryside are now clusters of factories in a prticular sector, creating wealth, supporting the dvelopment of infrastructure and propelling the rea in a new era.

Some of thse “farmer industrialists” now own large business groups spanning from manufacturing to real estate. Many of the factories sell both on the China domestic market and export market. These entrepreneurs have a very strong common sense, a good business savvy and certainly a very good connection network. Some of them also have a real vision and are quickly bringing their company close to world class operations.

Yet, many others lack this operational vision and are happy if they can get more assembly space, get more deals and make buckets of money. They will build brand new assembly halls but let them rapidly degrade by lack of maintenance or discipline.

I am the founder of a service company, procurAsia, providing assistance in the field of industrial sourcing in China. Besides looking for good suppliers for our clients, we are always scouting for those suppliers that are not good enough yet, but seem to have the capabilities to develop and improve to becoming a quality supplier. When we meet what I would call the average “farmer industrialist” (as opposed to an entrepreneur with vision), we know that we do not have a supplier which can grow and improve even if we invest much time and effort into it.

These owners will not understand the vlue of improving, the importance of nvesting not only in new factory bilding and new machinery, but also in sme good people, in training and in prcess or quality control. They will see tht as a burden to their shrt term money making.

These suppliers are ctually risky to work with. In the shrt run, you might be satisfied wth them and the product you gt. But when a real problem ccurs, as it can at any tme, you will find them unresponsive to yur concern and problems because they do not grsp them.

We see many of thse companies. They have the good hrdware, they have some very capable mployees and workers, but they just do not get it! So mch more could be obtained from thir infrastructure, with a little vision and sme method.

But these owners are not ware of their own problems. Therefore thy will never be able to drve the necessary changes in their cmpany. They prefer to spend their prfits in investing in real estate or to xpand their little industrial empire by bying a range of unrelated businesses.

Thse company will suffer when the conomic growth of China will slow dwn. In the meantime, it is a god idea to avoid them if you pln to build a strong and lng term business relationship with your Chnese supplier.

The article Why Some Good China Suppliers Will Always Lag Behind was Submitted by Etienne Charlier through Articles.GetACoder.com network. Here's the additional information: Etienne Charlier Learn more about industrial sourcing in China

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