A strong supply network and favorable policies elevate the city’s status as primary hub for small home appliances.
Bolstered by an extensive support network, plentiful material resources and strong government backing, Ningbo has developed into a principal manufacturing base in China for smallhousehold appliances.
This city in Zhejiang province boasts a well-established chain of auxiliary industries, which include factories dedicated to mold-making and electric stamping. The hub also accounts for about 30 percent of the country’s output of molding equipment, with the district of Beilun, Ninghai county and Cixi city as the key locations. The growing number of providers of specialized services helps position Ningbo as a profitable base for OEM. Additionally, the area hosts more than 1,000 suppliers of materials and components.
The hub also benefits from a good transportation system. The Port of Ningbo is among the largest and busiest deep-water seaports in the world. It spans five districts, including Beilun, Zhenhai, Daxie and Chuashan. A number of national highways also connect the sourcing center to neighboring cities. Direct train lines to domestic industrial centers such as Beijing and Shanghai are likewise in place. Immediate access to materials and strategic geographical location allow local makers to save on transportation costs and expedite delivery.
The hub’s development can also be attributed to strong assistance from local authorities. Ningbo’s administration has invested about $110 million in the establishment of China’s largest plastic distribution center in the county-level city of Yuyao. All variants of the material are available in the manufacturing zone, where inspection, certification and research are likewise conducted. In addition, the government has allocated an estimated $315 million for building an industrial park dedicated exclusively to molding services. Also located within the area, it is a place where makers can avail of training, mold creation and equipment.
To strengthen the city’s manpower pool, the Labor Security Administration of Ningbo has accredited 35 schools and universities to develop workers’ skills. The department and their respective employers are responsible for subsidizing the staff’s tuition fees.
More than 70 percent of the hub’s labor force is from neighboring towns and provinces. To attract and retain personnel, the local government has implemented special policies for nonresident employees. The measures include providing health and medical insurance, which is not deductible from the workers’ salaries.
Fueled by these advantages, Ningbo commands between 20 and 30 percent of the domestic small household appliances line. Designs range from aesthetically pleasing models in classical styles to innovative releases such as bladeless fans, superslim panel heaters and robotic vacuum cleaners.
These have translated to considerable growth in overseas revenue. From January to October 2011, for instance, export sales from the line reached $3.05 billion, an increase of 20 percent YoY.