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Asia Plant Comparison April 2012

Asia Plant Comparison April 2012

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Published by Orion Constellation

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Published by: Orion Constellation on Apr 17, 2012
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04/17/2012

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Confidential
 –
Jabil Proprietary Information
Asia Plant Comparison
April 2012
 
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Confidential
 –
Jabil Proprietary Information
China Cost Increase 
 As you know, China’s labor rates are increasing and new levies have been added for foreign
businesses
For labor wages, in early CY2012 our China plants see DL wages increasing at 15% andIL salary increasing at 8%
Inflation in China
RMB may appreciate at a slower pace
 –
With CPI inflation falling and commodityprices easing, the incentive for appreciation has weakened
We think fundamentals still support appreciation when the market stabilizes, howeverthe pace of CNYUSD appreciation could slow to 2-3% in 2012
Contributions will now have to be made by employers and employees to Social SecurityFunds
If you need additional information, please contact the Pricing Intelligence Team
Due to these changes, we wanted to provide you with China labor rate trend, Asia rate
comparison, tax considerations and Asia sites’ capability overview
 
 
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Confidential
 –
Jabil Proprietary Information
China DL Rates
 –
Recent History 
0%20%40%60%80%100%120%140%160%180%Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013GMS China Average DL Rate/HrGMS China Average DL rater fully loadedSE Asia Average DL Rate/HrSE Asia Average DL rater fully loaded

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Very interesting Site Assessment that you may want to keep in view and/or share with you guys.

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