Auditors pay the price for Beijing Olympics
19th September 2008 by Alex Briggs
The tightening of visa restrictions around the recent Olympic Games in Beijing has had unintended consequences on the Quality Assurance industry, according to this Ethical Corp article.
Global brands producing in China have been unable to secure the auditors needed at Chinese factories to ensure that the quality of their products is right. A major fall out will be that people who have talked about moving production to other countries for some time are now actually having to do it to meet deadlines.
Even if (and there are no guarantees) things return to normal in September, it will be too late for these firms who need to get gear on boats in October for the holidays.
Now many are scrambling to find capacity in Vietnam, Bangladesh, etc., while any number of Chinese garment manufacturers (two thirds of whom operate on margins of less than 1.5% already) will go under.
A number of companies with production runs already underway are having to stall or delay work as they cannot get visas for their Quality Assurance (QA) staff to enter China.