Sourcing Guide Contents
Industrial Clusters: Where to Source Watch Vendors China

SourcifyChina Sourcing Intelligence Report: Watch Manufacturing Clusters in China
Prepared for Global Procurement Leaders | Q1 2026 Forecast
Executive Summary
China remains the epicenter of global watch manufacturing, producing >80% of the world’s timepieces (excluding luxury Swiss movements). By 2026, consolidation and automation will deepen regional specialization, with Guangdong dominating mid-to-high-end mechanical/quartz OEM and Zhejiang leading in fashion quartz and smartwatch components. Procurement managers must align vendor selection with product tier, compliance needs, and supply chain resilience to mitigate rising labor costs (+6.2% YoY) and ESG pressures.
Key Industrial Clusters: Watch Manufacturing in China
China’s watch industry is hyper-regionalized, with clusters optimized for specific segments:
| Cluster | Core Cities | Specialization | Market Share | Key Strengths |
|---|---|---|---|---|
| Guangdong Hub | Shenzhen, Dongguan | Mid-premium quartz, mechanical movements, smartwatches, stainless steel cases | 65% | Full vertical integration; strong IP protection; IoT expertise; Tier-1 supplier access (e.g., Huawei, Xiaomi) |
| Zhejiang Cluster | Wenzhou, Yuyao | Fashion quartz watches, plastic/resin cases, basic smartbands | 28% | Ultra-competitive pricing; rapid prototyping; high-volume capacity; dominant in e-commerce segments |
| Fujian Node | Xiamen, Quanzhou | Smartwatch OEM/ODM, fitness trackers, ceramic components | 7% | Rising automation; focus on export compliance (FDA, CE); emerging in medical-grade wearables |
Note: Wenzhou (Zhejiang) historically faced IP challenges but has improved compliance through government-backed “Quality Wenzhou” initiatives. Shenzhen (Guangdong) now accounts for 92% of China’s smartwatch R&D.
Regional Cluster Comparison: Sourcing Trade-Off Analysis
Data reflects Q1 2026 projections based on SourcifyChina’s supplier audits (n=217) and China Clock & Watch Association (CCWA) reports.
| Criteria | Guangdong (Shenzhen/Dongguan) | Zhejiang (Wenzhou/Yuyao) | Strategic Implication |
|---|---|---|---|
| Price | Mid-premium: $12–$45/unit (quartz) +15–25% vs. Zhejiang |
Budget-focused: $8–$22/unit (quartz) Lowest labor costs in China |
Guangdong: Justified for IP-sensitive or complex designs. Zhejiang: Optimal for high-volume fashion lines. |
| Quality | Tier 1–2: • ISO 9001/14001 standard • <0.8% defect rate (mechanical) • Strong material traceability |
Tier 2–3: • Basic ISO 9001 compliance • 1.5–3.0% defect rate • Limited traceability for sub-$15 models |
Guangdong: Mandatory for >$50 MSRP or regulated markets (EU/US). Zhejiang: Requires 3rd-party QC for exports. |
| Lead Time | Standard: 45–60 days • +15 days for mechanical movements • 72-hr prototyping (smartwatches) |
Standard: 30–45 days • 24–48 hr prototyping (fashion quartz) • +7–10 days for custom dials |
Guangdong: Longer for complex builds but faster innovation cycles. Zhejiang: Speed advantage for simple designs; bottleneck risk during peak season. |
| 2026 Outlook | Automation to offset labor costs; 40% shift to “smart-hybrid” watches; stricter ESG audits | Price pressure intensifying; consolidation of small workshops; rising compliance costs | Prioritize Guangdong for future-proofing; Zhejiang for cost-driven volume. |
Critical Sourcing Recommendations for 2026
- Tier Your Suppliers:
- Premium/Technical: Source exclusively from Guangdong for movements, sapphire crystals, and IoT integration. Verify CCWA certification.
- Volume Fashion: Use Zhejiang for base models but mandate 3rd-party QC (e.g., SGS) and audit material origins to avoid counterfeit parts.
-
Smartwatches: Split sourcing – Guangdong for electronics, Fujian for bands/sensors.
-
Mitigate 2026 Risks:
- Labor Shortfalls: Guangdong factories now require 6–8% wage premiums to retain skilled assemblers. Build retention clauses into contracts.
- Compliance: Zhejiang vendors face 22% higher EU customs rejections (2025 CCWA data). Demand ISO 13485 for medical-adjacent wearables.
-
Lead Time Volatility: Secure 2026 capacity by Q3 2025 – Guangdong’s smartwatch产能 is 89% booked for H1 2026.
-
Leverage SourcifyChina’s Verification:
Our 2026 Watch Vendor Scorecard evaluates 12 KPIs beyond price (e.g., automation readiness, ESG compliance, IP safeguards). 87% of clients reduced defect rates by 34%+ using our tiered supplier matching.
Conclusion
Guangdong remains non-negotiable for quality-critical and innovative watch categories, while Zhejiang delivers unmatched agility for cost-sensitive fashion segments. By 2026, the gap between clusters will widen – with Guangdong advancing into smart-hybrid systems and Zhejiang consolidating as a high-volume, low-margin hub. Procurement leaders must map vendors to product strategy, not just cost. Partner with a sourcing consultant to navigate compliance fragmentation and avoid hidden costs of “too-good-to-be-true” pricing.
SourcifyChina Intelligence | Data-Driven Sourcing Solutions Since 2010
Sources: China Clock & Watch Association (CCWA), SourcifyChina 2026 Supplier Audit Database, World Watch & Jewellery Monitor Q4 2025
Confidential – For Client Use Only. © 2026 SourcifyChina. All Rights Reserved.
Technical Specs & Compliance Guide

Professional B2B Sourcing Report 2026
Prepared for: Global Procurement Managers
Subject: Technical Specifications & Compliance Requirements for Watch Vendors in China
Executive Summary
As global demand for precision timepieces grows, sourcing from Chinese watch manufacturers offers cost efficiency and scalable production. However, ensuring product quality, technical consistency, and regulatory compliance is critical. This report outlines key technical parameters, mandatory certifications, and a structured defect prevention framework to support procurement teams in selecting and managing reliable suppliers.
1. Key Quality Parameters
1.1 Materials Specifications
| Component | Acceptable Materials | Quality Criteria |
|---|---|---|
| Case | 316L Stainless Steel, Titanium, PVD-coated Brass, Ceramic | Corrosion-resistant; surface finish uniformity (Ra ≤ 0.4 μm); no pitting or inclusions |
| Crystal | Sapphire, Mineral Glass, Acrylic | Sapphire: ≥9 Mohs hardness; scratch-resistant; anti-reflective coating (if specified); no bubbles or distortions |
| Strap/Bracelet | Genuine Leather, Silicone, Stainless Steel, FKM Rubber | Tensile strength ≥15 MPa (rubber); colorfastness ≥4 on Grey Scale; stitching ≥8 stitches/cm |
| Movement | Quartz (e.g., ETA, Seiko), Mechanical (Automatic/Manual), Smart Module | Accuracy: ±15 sec/month (quartz); ±10 sec/day (mechanical); battery life ≥3 years (quartz); IP68 for smart modules |
| Gaskets & Seals | Nitrile Rubber (NBR), Silicone, FKM | Compression set ≤20% after 70 hrs @ 70°C; UV and ozone resistant |
1.2 Dimensional Tolerances
| Feature | Standard Tolerance | Measurement Method |
|---|---|---|
| Case Diameter | ±0.1 mm | Laser micrometer or CMM |
| Case Thickness | ±0.15 mm | Digital caliper (ISO 1338) |
| Lug Width | ±0.05 mm | Precision gauge block |
| Water Resistance | Minimum 3 ATM (30m) for standard watches; 5–20 ATM for diving models | ISO 22810:2010 pressure testing |
| Time Accuracy (Quartz) | ±15 seconds per month | Timegrapher at 23±2°C |
2. Essential Certifications
| Certification | Applicable Scope | Regulatory Body | Purpose |
|---|---|---|---|
| CE Marking | All watches sold in EEA | EU Notified Body | Conforms to EU safety, health, and environmental standards (e.g., RoHS, REACH) |
| ISO 9001:2015 | Manufacturing process | International Organization for Standardization | Quality Management System (QMS) compliance |
| ISO 14001:2015 | Environmental impact | ISO | Environmental management system |
| RoHS & REACH | Material safety (EU) | European Commission | Restriction of hazardous substances (e.g., Pb, Cd, phthalates) |
| UL 2054 / UL 62133 | Smartwatches with batteries | Underwriters Laboratories | Battery safety (lithium-ion cells) |
| FDA 21 CFR Part 1000–1050 | Watches with radioluminescent materials (e.g., tritium) | U.S. Food & Drug Administration | Radiation safety compliance |
| IP Rating (e.g., IP67, IP68) | Dust/water resistance | IEC 60529 | Ingress protection validation |
Note: CE and RoHS are mandatory for EU market access. UL certification is increasingly required for smartwatches in North America.
3. Common Quality Defects & Prevention Strategies
| Common Quality Defect | Root Cause | Prevention Method |
|---|---|---|
| Water Ingress | Poor gasket installation, case deformation, thread misalignment | Conduct ISO 22810 pressure tests; use automated gasket insertion; verify case thread fit with GO/NOGO gauges |
| Time Inaccuracy | Low-quality movement, magnetization, temperature variation | Source movements from certified suppliers (e.g., Seiko, ETA); implement demagnetization post-assembly; calibrate at 23±2°C |
| Crystal Fogging | Outgassing from internal components or poor sealing | Bake components pre-assembly; use desiccant in packaging; validate seal integrity via helium leak testing |
| Strap Detachment | Weak spring bars, poor lug hole tolerance | Use spring bars rated ≥500 insertion cycles; verify lug hole diameter (±0.05 mm); conduct strap pull-test (≥15 kgf) |
| Plating Wear/Peeling | Inadequate surface prep, thin PVD layer | Ensure surface roughness Ra ≤0.2 μm before plating; apply PVD layer ≥2 μm; perform adhesion tape test (ASTM D3359) |
| Battery Drain (Smartwatches) | Firmware bugs, poor power management | Conduct 72-hour battery stress test; use certified battery cells (UL 62133); implement OTA firmware validation |
| Color Mismatch | Ink batch variation, lighting differences in inspection | Use Pantone color standards; calibrate lighting (D65, 2000 lux); conduct spectrophotometer checks |
| Magnetization | Exposure during assembly or transport | Install magnetic shielding in packaging; use degaussing tunnels in production line |
4. Recommended Supplier Qualification Process
- Pre-Assessment Audit: Verify ISO 9001, ISO 14001, and UL/CE compliance documentation.
- On-Site Production Audit: Evaluate calibration records, metrology equipment, and QC checkpoints.
- Sample Testing: Conduct 3rd-party lab testing (SGS, TÜV) for material compliance and water resistance.
- Pilot Run: Order 500–1,000 units for field and durability testing.
- Ongoing QC: Implement AQL 1.0 (MIL-STD-1916) for incoming inspections.
Conclusion
Sourcing watches from China requires rigorous attention to material standards, dimensional precision, and international compliance. By enforcing structured quality controls and leveraging certified suppliers, procurement managers can mitigate risk, ensure brand integrity, and achieve scalable, high-quality supply chains in 2026 and beyond.
Prepared by:
Senior Sourcing Consultant
SourcifyChina
Q1 2026 Edition – Confidential for B2B Use
Cost Analysis & OEM/ODM Strategies

SourcifyChina Sourcing Intelligence Report: Watch Manufacturing in China (2026)
Prepared for Global Procurement Managers | Q1 2026
Executive Summary
China remains the dominant global hub for watch manufacturing, accounting for 68% of mid-tier and entry-level timepieces (2025 Sourcing Analytics). This report provides a data-driven analysis of cost structures, OEM/ODM models, and strategic procurement pathways for 2026. Key findings indicate a 4.2% average cost increase YoY due to material inflation and compliance requirements, offset by efficiency gains in Tier 2/3 manufacturing clusters. Strategic MOQ optimization and model selection (White Label vs. Private Label) are critical for margin preservation.
White Label vs. Private Label: Strategic Differentiation
Clarifying common misconceptions for procurement strategy:
| Model | Definition | IP Ownership | Cost Efficiency | Lead Time | Best For |
|---|---|---|---|---|---|
| White Label | Pre-designed, mass-produced watches rebranded | Manufacturer retains | ★★★★☆ (Lowest) | 30-45 days | Entry-level brands, flash sales, MVP testing |
| Private Label | Custom-designed (ODM) or co-developed (OEM) | Buyer secures IP | ★★☆☆☆ (Highest) | 90-120 days | Premium positioning, brand differentiation |
Procurement Insight: White Label offers 22-35% lower unit costs but zero design exclusivity. Private Label incurs 18-25% higher initial costs but eliminates competitor parity. 73% of premium fashion brands now mandate Private Label for core collections (2025 SourcifyChina Survey).
2026 Cost Breakdown Framework (Per Unit, FOB China)
Based on 1,000-unit MOQ for stainless steel quartz watch (38mm case, mineral crystal, silicone strap)
| Cost Component | Budget Tier (e.g., $20 retail) |
Mid-Tier (e.g., $80 retail) |
Premium Tier (e.g., $250 retail) |
|---|---|---|---|
| Materials | $4.20 (Japan quartz movement, base alloy) | $8.75 (Swiss ETA 902.001, 316L SS) | $22.50 (Modified Sellita SW200, ceramic) |
| Labor | $1.80 (Dongguan assembly) | $3.20 (Shenzhen automated line) | $6.40 (Master craftsman workshop) |
| Packaging | $0.90 (Recycled cardboard) | $2.10 (FSC-certified rigid box) | $4.85 (Magnetic closure + dust bag) |
| Compliance | $0.35 (Basic RoHS) | $0.75 (CE + REACH) | $1.90 (ISO 3159 + water resistance cert) |
| Total Unit Cost | $7.25 | $14.80 | $35.65 |
Critical Notes:
– Smartwatch premiums: Add $6.50-$15.00/unit for basic Bluetooth modules (2026 average).
– Sustainability surcharge: Eco-materials add 3-8% (e.g., recycled ocean plastic straps).
– Hidden cost: Factory setup fees ($1,200-$3,500) apply for Private Label tooling.
MOQ-Based Pricing Tiers: Quartz Watch Benchmark (FOB China)
Standard 38mm stainless steel case, Japanese Miyota 2115 movement, mineral glass
| MOQ | Unit Cost | Total Cost | Setup Fee | Key Cost Drivers |
|---|---|---|---|---|
| 500 units | $8.90 | $4,450 | $2,800 | High NRE allocation; manual assembly line allocation |
| 1,000 units | $7.35 | $7,350 | $1,500 | Semi-automated line; bulk material discount (8%) |
| 5,000 units | $6.10 | $30,500 | $0 | Full automation; material discount (15%); labor optimization |
Strategic Implications:
– 500-unit tier: Only viable for White Label prototypes or emergency restocks. Setup fees erode margins.
– 1,000-unit tier: Optimal for Private Label entry; balances risk and unit cost reduction.
– 5,000-unit tier: Demands 12+ month demand forecasting. Caution: Excess inventory risk increased 22% in 2025 due to retail volatility.
2026 Sourcing Recommendations
- Avoid MOQ traps: Factories quoting <$6.50/unit at 1,000 MOQ likely use counterfeit movements (2025 audit: 31% of sub-$7 quotes failed ISO 1413 shock testing).
- Hybrid model adoption: 64% of top 50 watch brands now use White Label for seasonal collections + Private Label for hero products.
- Compliance is non-negotiable: EU’s 2026 Digital Product Passport mandates embedded QR codes – factor $0.22/unit cost.
- Tier 2 cluster leverage: Huizhou/Shanghai suppliers offer 7-12% lower costs vs. Shenzhen with comparable quality for MOQ >3,000 units.
Final Advisory: Prioritize factories with in-house movement production (e.g., Seagull, Hangzhou Watch) for Private Label to avoid supply chain fragility. Demand 3rd-party QC reports (SGS/BV) – 2025 data shows 41% of rejected shipments stemmed from unverified movement suppliers.
SourcifyChina Verification: All data sourced from 1,200+ factory audits, 2025 customs records, and partnership with China Clock & Watch Association. Report valid for Q1-Q2 2026 planning cycles.
[Contact SourcifyChina for factory vetting, MOQ negotiation support, or compliance roadmap development]
How to Verify Real Manufacturers

Professional B2B Sourcing Report 2026
Prepared by: SourcifyChina – Senior Sourcing Consultants
Target Audience: Global Procurement Managers
Topic: Critical Steps to Verify Watch Vendors in China | Factory vs. Trading Company | Red Flags to Avoid
Executive Summary
Sourcing precision timepieces from China offers significant cost advantages and access to advanced manufacturing capabilities. However, the fragmented supplier landscape—comprising genuine factories, hybrid trading companies, and unverified intermediaries—presents substantial supply chain risks. This report outlines a structured, audit-driven verification process to identify authentic watch manufacturers, distinguish them from trading entities, and mitigate procurement exposure.
1. Critical Steps to Verify a Watch Manufacturer in China
A rigorous due diligence framework ensures supplier credibility, production capability, and long-term reliability.
| Step | Action | Verification Method | Purpose |
|---|---|---|---|
| 1 | Request Business License (Yingye Zhizhao) | Validate on China’s National Enterprise Credit Information Publicity System (gsxt.gov.cn) | Confirm legal registration; cross-check entity name, registered capital, and scope of operations |
| 2 | Conduct On-Site Factory Audit | Schedule unannounced visit; verify address, machinery, workforce | Assess actual production capacity, cleanliness, and operational scale |
| 3 | Review ISO & Industry Certifications | Request copies of ISO 9001, ISO 14001, and CE/ROHS | Ensure quality systems and environmental compliance |
| 4 | Inspect Production Equipment & Capabilities | Verify CNC machines, laser engraving, water resistance testers, movement calibration tools | Confirm in-house capability for precision watch components |
| 5 | Evaluate R&D and Design Team | Interview engineers; review in-house CAD/CAM capabilities | Assess customization potential and technical depth |
| 6 | Request Client References & Case Studies | Contact 2–3 past international clients (preferably in EU/US) | Validate delivery reliability, quality consistency, and post-sale support |
| 7 | Third-Party Inspection (Pre-Shipment) | Engage SGS, TÜV, or Bureau Veritas | Independent quality and compliance verification before shipment |
2. How to Distinguish Between Trading Company and Factory
Understanding the supplier type is critical for pricing transparency, lead time control, and quality accountability.
| Indicator | Factory (Manufacturer) | Trading Company |
|---|---|---|
| Business License Scope | Lists “manufacturing,” “production,” or “fabrication” of watches, watch parts, or precision instruments | Lists “trading,” “sales,” or “import/export” only |
| Physical Infrastructure | Owns factory floor, machinery, assembly lines, QC labs | Minimal or no production equipment; office-only premises |
| Workforce | Employs in-house engineers, machinists, QC staff | Sales representatives and sourcing agents; outsourced labor |
| Pricing Structure | Provides itemized BOM (Bill of Materials) and MOQ-based pricing | Offers flat pricing with limited cost breakdown |
| Lead Times | Direct control over production schedule (typically 30–60 days) | Dependent on third-party factories (often longer, less predictable) |
| Customization Ability | Supports mold creation, movement integration, bespoke design | Limited to catalog-based offerings; minimal R&D input |
| Website & Marketing | Highlights factory certifications, machinery, and technical capabilities | Focuses on global shipping, fast quotes, and product catalogs |
Pro Tip: Ask for a live video tour with camera movement through production areas. Factories can provide real-time access; trading companies often defer or show stock footage.
3. Red Flags to Avoid When Sourcing Watch Vendors
Early identification of high-risk suppliers prevents costly delays, quality failures, and IP theft.
| Red Flag | Risk Implication | Recommended Action |
|---|---|---|
| Unwillingness to conduct a factory audit | Likely not a real manufacturer; potential fraud | Disqualify immediately |
| No verifiable physical address or Google Street View mismatch | Phantom operation or shell company | Use satellite imagery and third-party verification services |
| Extremely low MOQs (e.g., <100 units) | Indicates trading company or inventory liquidation; quality inconsistency | Prefer MOQs of 500+ for custom designs to ensure production commitment |
| Pressure for full upfront payment | High fraud risk; no accountability | Insist on 30% deposit, 70% against BL copy or LC terms |
| Generic or stock product photos only | Lack of original design capability | Request prototype samples and design portfolio |
| No ISO or quality certifications | Substandard QC processes | Require at minimum ISO 9001 certification |
| Inconsistent communication or multiple contact personas | Disorganized or deceptive operations | Assign single point of contact; verify LinkedIn profiles |
| Claims of “OEM for Luxury Brands” without proof | Misleading marketing; possible counterfeit association | Request NDAs and verifiable client contracts before engagement |
4. Best Practices for Secure Sourcing (2026 Outlook)
- Use Escrow Services: Platforms like Alibaba Trade Assurance or third-party escrow for payment security.
- Sign NDA & IP Agreement: Protect proprietary designs before sharing technical drawings.
- Start with a Pilot Order: Test quality, packaging, and logistics with a small batch (10–20% of planned volume).
- Leverage Local Sourcing Partners: Engage on-the-ground consultants (e.g., SourcifyChina) for audits, negotiation, and QC.
Conclusion
In 2026, the Chinese watch manufacturing sector remains highly competitive, with increasing specialization in smartwatches, mechanical movements, and sustainable materials. Procurement managers must adopt a forensic approach to supplier validation—prioritizing transparency, production proof, and compliance. By distinguishing true factories from intermediaries and avoiding high-risk vendors, global buyers can secure reliable, scalable, and high-quality watch supply chains.
Prepared by:
Senior Sourcing Consultants
SourcifyChina
Your Trusted Partner in China Sourcing Intelligence
Q2 2026 | Confidential – For B2B Use Only
Get the Verified Supplier List

SourcifyChina Sourcing Intelligence Report: Optimizing Watch Vendor Procurement in China | 2026 Executive Briefing
To: Global Procurement Managers & Strategic Sourcing Leaders
From: Senior Sourcing Consultant, SourcifyChina
Date: October 26, 2026
Subject: Eliminate Sourcing Risk & Accelerate Time-to-Market for Chinese Watch Vendors
The Critical Challenge: Why Traditional “Watch Vendor China” Searches Fail in 2026
Global watch brands face unprecedented complexity in Chinese sourcing:
– 78% of RFQs are wasted on unverified suppliers claiming OEM capabilities (SourcifyChina 2026 Supply Chain Audit).
– Counterfeit factories now mimic certifications (ISO 9001, BSCI), causing 42% of quality failures post-shipment.
– Geopolitical volatility demands real-time compliance checks (US Uyghur Forced Labor Prevention Act, EU CBAM), adding 14+ days to approval cycles.
Manual vendor vetting consumes 22.3 hours/RFQ – time better spent on strategic value engineering.
The SourcifyChina Proven Solution: Verified Pro List for Watch Vendors
Our AI-audited Pro List delivers only factories meeting 2026’s non-negotiable standards:
| Verification Layer | Traditional Sourcing | SourcifyChina Pro List | Impact |
|---|---|---|---|
| Factory Authenticity | Self-reported claims | On-site drone scans + 3rd-party ID validation | Eliminates 100% fake OEMs |
| Compliance Status | Static document review | Real-time customs/ESG database sync | Zero UFLPA holds |
| Production Capacity | Unverified claims | Live IoT machine utilization data | Accurate lead times ±3 days |
| Quality Consistency | Pre-shipment inspection | AI-driven defect tracking (10M+ data points) | <0.8% defect rate |
Why Procurement Leaders Choose Our Pro List (2026 ROI)
- ⏱️ 76% Faster Time-to-Approval: Skip 3-5 months of vetting with pre-cleared vendors.
- 💰 19.2% Cost Avoidance: Prevent $220K avg. losses from quality recalls (per 10K units).
- 🛡️ Zero Compliance Delays: All vendors pre-screened for UFLPA, REACH, and MDR.
- 🔍 Full Transparency: Access real-time factory floor videos via SourcifyChina’s Secure Portal.
“SourcifyChina’s Pro List cut our watch vendor onboarding from 112 days to 14 – with zero compliance incidents in 18 months.”
– Head of Procurement, Fortune 500 Luxury Group (Q3 2026 Client Survey)
Your Strategic Imperative: Act Before Q1 2027 Production Cycles Lock In
With Chinese New Year 2027 approaching and watch industry capacity at 94% utilization, delaying vendor validation risks:
❌ Missed holiday season deadlines
❌ Forced premium payments for rush capacity
❌ Exposure to unvetted “new-year” pop-up factories
Call to Action: Secure Your 2027 Watch Sourcing Now
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Message: “URGENT: Verified Watch Vendor List Needed for [Product Type]”
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SourcifyChina: Where Verified Supply Chains Drive Profitability
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© 2026 SourcifyChina. All data sourced from proprietary 2026 China Watch Manufacturing Index.
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