Manufacturing Insights’ Survey Reveals Intellectual Property Protection as Top Risk for Companies Operating in China; Leading Research Firm Analyzes Data on Operational Efficiency in China

FRAMINGHAM, MA – AUGUST 10, 2006 – In a recent report published by Manufacturing Insights, an IDC company, supply chain research director Bob Ferrari reveals the results from the annual Low Cost Manufacturing in China survey. Top findings reveal intellectual property protection and supplier strategies remain as the top two risk areas facing manufacturing and retail executives with operations in China. Other risk areas, outlined in last year's report and ranked by respondents in this year's survey, include logistics and transportation, infrastructure, and national as well as local political events.

"By identifying and ranking these risk areas, our aim to help supply chain executives understand current trends for manufacturing lead times, inventory, and transportation costs associated to products originating in China, as well as to anticipate future changes" says Bob Ferrari, Program Director of Supply Chain Strategies at Manufacturing Insights, and author of the report.

In addition to ranking the top risk areas, survey respondents also identify the top information technology (IT) tools impacting operations in China. The majority (70%) rank enterprise resource planning software (ERP) as the most effective IT tool. Supply chain collaboration portals, advanced demand or supply planning system, transportation management and control systems and storage resource management (SRM) or procurement system are also ranked by respondents.

Adds Ferrari, "The increased use and effectiveness of IT and applications is a positive sign for the region. This, coupled with data showing some improvement in lead times, indicates that all in all, operations are progressing."

Ferrari will present survey findings and make recommendations for manufacturers with operations in China in a Manufacturing Insights' web conference later this month (8/30/06). To register for the web conference, go to: . Ferrari's report, "Low Cost Manufacturing in China: Annual Survey and 2Q06 Update" (Doc # MI202112), is online at .

About Manufacturing Insights (an IDC company)

Manufacturing Insights, an IDC Company, provides business and IT decision-makers with fact-based research and analysis to inform and support critical business decisions. The global independent research and advisory firm closely follows processes associated with the design, development and distribution of goods across markets including Discrete Manufacturing, Process Manufacturing, High Tech/Electronics Manufacturing, Consumer Packaged Goods and Retail. Manufacturing Insights' research and analysis is critical for end-users, as well as hardware and software vendors, service providers, and purveyors of IT outsourcing. Founded in January 2005, Manufacturing Insights is headquartered in Framingham, Mass.

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