Electronics Production | February 28, 2008
Stadium under pressure from rising wages
EMS provider Stadium would have been more profitable if it wouldn’t have been for the rising wages.
Hartlepool-based Stadium Group reported strong results but the company is raising a warning flag about rising wages in China. Stadium however said the company’s competitiveness wouldn’t be threatened. Nigel Rogers, chief executive of Stadium Group, said while new legislation in China had contributed to rising staff costs, a strong performance in cash-flow - which was boosted by the sale of freehold property - had helped to reduce debt. “Although new legislation has effectively introduced a minimum wage in China, which has driven up costs, the country’s wage structures still compare favourably with other parts of the Far East and Asia,” he said. “Our production facility in China will still allow the Hartlepool operation to source component parts at relatively low costs and remain competitive in the local market”, he added.