Analyst Insight: The demand for increased efficiency in China distribution is driving some incremental improvements in supply chain. Growth is on the rise for domestic transportation, localized supply chain IT solutions are experiencing revenue growth, and the amount of automation installed in new facilities is on the rise. Changes are also happening in real estate and there is an increase amongst importing and exporting. - Jim Serstad, Managing Director Asia, Tompkins International

Analyst Insight: Though logistics in China has historically been resistant to change, improvements in express delivery will have a noticeable impact in 2015 due to the rapid growth of e-commerce, food safety concerns, and government measures. The limited supply of land for logistics purposes will affect warehousing costs, and the extra cost will drive the need for storage efficiency. Manufacturing will see modest expansion and gradual migration out of China to lower cost countries. – Jim Serstad, Managing Director, Tompkins Asia

Analyst Insight: Both the public and private sectors in China are taking bold steps to respond to challenges of the new consumption-driven economy. Government measures, though stuck at a policy level in many cases, are addressing the right issues. At the same time, domestic companies are rising up to meet new demands. In 2014, China will see big changes in its core logistics and manufacturing industries. Some of the top areas seeing change include domestic transportation, distribution, import and export, as well as sourcing. - Jim Serstad, Managing Director Asia, Tompkins International