Stanley Black & Decker has closed the Shenzhen factory, which is a major U.S. tool and household hardware marker, according to SCMP. The company’s wholly-owned China unit’s closure marks a retreat from the manufacturing business amid rising labor and land costs.
- The sudden closure of the factory reflects Shenzhen’s transition to a technology hub from being a manufacturing base.
- The closure of the Shenzhen factory due to the overall market environment and growing competition.
- Following the factory’s closure, labor agents and human resource managers swarmed the site to recruit laid-off workers as Shanghai already faces labor shortages.
- Currently, China’s manufacturers are embracing “smart shops” in line with changing customer tastes.
Stanley Black & Decker, Inc. stock closed on Monday at 1.51%