Philippines’ EMS Comparative Analysis The Philippines has gained global attention as preferred High Volume/Low Cost EMS region. In a comparative study of Asian countries with emphasis on Labor costs, Engineering, Infrastructure, Business Ethics and Government Benevolence reveals of the Philippines’ attributes is realized.
Although the Philippines does not have the least expensive Labor force it all of Asia, it is certainly less expensive than all of the other developed nations.
A report by the Japan External Trade Organization shows the minimum monthly wage of a worker in China rose from $328 in 2010 to over $500 in 2015. Today, China is more expensive than other neighboring LCR countries: Philippines ($349), Vietnam ($101 to $146), Cambodia ($145), India ($325), and Pakistan ($77). Industry projections have China’s labor minimum wages rising approximately 13% annually in the near future.
Adding to the Labor advantages of the Philippines are a multitude of factors which makeup the unique value proposition of the Philippines
The following are features tied to the Philippines EMS profile:
- Philippine labor rates are generally less expensive than China’s
- TAC (Total Acquired Cost) for Philippines manufacturing is the same or lower than China.
- Philippine based EMS companies are stable and experienced servicing global OEMs.
- Free import duty to USA via GSP (Generalized System of Preferences) status.
- World-class quality, a derivative from supporting Japanese OEMs for years.
- Full IP protection advocated by Philippines government.
- Business law in the same realm as American business law.
- Strong engineering education and resources.
- Education system strengthens its work force.
- Filipino is the official national language of the Philippines.
Below is a Comparative Matrix Analysis of the Philippines versus Asian Countries. Also included in this study is Mexico. Our findings are based on a variety of inputs and industry feedback. The results were tabulated in June 2015.