By Karen E. Thuermer, AJOT The manufacturing climate in China is changing. Not only is the worldwide economic slowdown, which the Chinese like to refer to as “the economic tsunami” having an impact on manufactured volumes there; this awakened dragon is realizing more potential for its own domestic market. Shing Hing Industrial Limited offers a good example. Headquartered in Hong Kong, Shing Hing has three factories totaling 30,000 square meters (including employee dormitories) in Yan Tian by the border of Shenzhen and Dongguan, A contract manufacturer of precision made screws, nuts, rivets, washers, lathe parts, stamping parts, and fasteners, in 2008 the company experienced an increase in revenue turnover of approximately 800 percent. At that time, it employed some 1,300 workers. Last year its revenue turnover decreased 30 percent and, consequently, the company downsized its workforce to between 800-900 workers. This year revenues have returned to “normal”, as Dr. Edward Tsui, chairman of Shing Hing Industrial Limited and vice president of the Chinese Manufacturers’ Association of Hong Kong said during an interview in Hong Kong. Now the workforce is up to around 1,000 – a sign that things are improving. Dr. Tsui attributes this to the fact the company now sells to the domestic market. “As a result, we expect a growth of 30 percent this year,” he said. In addition, Shing Hing has a new customer in both China and the United States. In fact, last October Shing Hing Group started a new trading company in Orange County, CA. Dr. Tsui was attracted to Southern California due to personal connections. Shing Hing opened its office there in January. The company also benefits from its network of 100 sales representatives around the United States. Dr. Tsui revealed that the company exports approximately $25 million worth of product per year. “We sell most of our product to the United States and Europe,” he reported. But today 50 percent of what Shing Hing manufactures is for the Chinese domestic market. One of its customers is a world leader in sports equipment, in particular golf shoes, soccer shoes, ski boots and snow boards. That which is sold overseas is shipped direct to customers. The screws, fasteners and metal products are used primarily in aerospace, automobiles, electronics, communications, home appliances, sports, toys, medical and precision industrial engineering. The final product is shipped to Europe and the United States. “We do not make standard screws and fasteners,” Dr. Tsui said. “They are not sold to retailers. Each is tailor made to specifications.” Companies contracting the parts give Shing Hing engineers their concept and required size for the parts, in addition to their intended uses. “Different uses require us to use different materials and different manufacturing processes,” Dr. Tsui commented. “It’s a complicated process.” The company has won the “2004 Hong Kong Quality Awards for Industry Certificate of Merit in Quality” and the “2007 Hong Kong Awards for Industries: Productivity and Quality Award.” Metals used in the products are sourced predominantly from Taiwan and Japan. “Some special aluminum comes from the United States and Europe,” he added. “Our product is of a high quality and precision made.” Most of the shipments to Europe and the United States are transported by steamship line with the exception of emergency shipments. “These go by air,” he said. Those shipments going to the United States enter at the Port of Los Angeles. According to Dr. Tsui, this West Coast port is used primarily based on steamship line rotations. Shipments for the domestic market leave the Pearl River Delta plants every day. Those for export depart once a week via Hong Kong. “The factories are two hours away from Hong Kong—one hour to the border and one hour to the factory,” Dr. Tsui commented. Packaging requirements for the shipments depend largely on the product and the customers. “Sometimes they re