Good News for Notebook Makers in China as Minimum Wage Hike is on the Horizon

by Frank Tu 0

Jiangsu Providence is located in Eastern China. This location is where notebooks are manufactured. There is plenty to smile about in such a facility too as the minimum wage is about to go up very soon. It is going to increase by 14.86% in July of 2014. In addition, the workers will see an increase in other benefits. They include allowances for insurance.

There are many factories located in Jiangsu Providence where the notebooks are manufactured. Many are surprised at the minimum wage hike though and the benefits to those workers. This is because of the shrinking gross margin that has been steadily identified.

The notebook has decreased in price in recent years, making the profits smaller. Add to the mix that there is more competition from China, and that further shrinks the bottom line. A wage increase for these workers is also going to influence the gross profits from notebook sales.