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kjosefschmidt
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Stock Keeper
Reshoring Jobs in US in the 21st Century
kjosefschmidt   12/4/2012 5:07:16 PM
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Western companies are learning that offshoring jobs en masse, while the cost savings looks favorable on the financial statements, isn't always the optimum solution when productivity, time zone, language and cultural barriers are taken into account. As wages in China continue to rise, and as search for overseas talent becomes more difficult, we can expect jobs to trickle back to the US on a case-by-case basis, but not in significant volumes.

Barbara Jorgensen
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Blogger
Reshoring jobs
Barbara Jorgensen   12/3/2012 1:25:11 PM
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The impression I get is the jobs that come back onshore will be final-assembly-type jobs that deliver a finished product to the end-market. These might be as high-value as auto assembly or as simple as boxing and shipping. Whether or not people want these jobs depends on how bad things get: but taking a wage cut must be better than no wages at all.

pocharle
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Supply Network Guru
Re: Consolidate vs Diversify
pocharle   11/30/2012 7:57:35 PM
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I understand that but it's mostly jsut words.
What is actually going to make companies WANT to bring those jobs back?

Hospice_Houngbo
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Supply Network Guru
Re: Consolidate vs Diversify
Hospice_Houngbo   11/30/2012 3:58:46 PM
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@pocharles,

As president Obama said: "There Are Some Jobs that Are Not Going to Come Back". But he will have to keep his promisses and make sure that his administration devise strategic plans to motivate manufacturers to bring operations back to the US. The improvement of the economy also depends on that.

Hospice_Houngbo
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Supply Network Guru
Re: Consolidate vs Diversify
Hospice_Houngbo   11/30/2012 3:50:35 PM
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@TaimoorZ,

"it's better to move one operation at a time rather than the entire supply chain."

That makes sense. But won't this delay the whole "relocation" process? Some companies would like to move their operation plants faster to save time. But it depends on each company's goal or business vision.

pocharle
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Supply Network Guru
Re: Consolidate vs Diversify
pocharle   11/30/2012 3:46:12 PM
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What's the risk/reward for doing so?

In most industries, now that the election is over, what would motivate the manufacturers to bring operations back on-shore now?

TaimoorZ
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Supply Network Guru
Re: Consolidate vs Diversify
TaimoorZ   11/30/2012 3:24:55 PM
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"What aspects of the global supply chain are easier to move back to the US"

@Mr Roques: I guess it differs from industry to industry. In some industries you may be able to move the entire supply chain operations back to the US. This may not involve considerable labor or manufacturing costs. In any case, it's better to move one operation at a time rather than the entire supply chain.

Mr. Roques
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Supply Network Guru
Re: Consolidate vs Diversify
Mr. Roques   11/30/2012 3:06:43 PM
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What aspects of the global supply chain are easier to move back to the US? 

Also, are those companies creating different products based on the market their will be selling or do they sell the same one? It would require a different supply chain (or at least, some changes).

TaimoorZ
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Supply Network Guru
Consolidate vs Diversify
TaimoorZ   11/30/2012 11:32:07 AM
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I think a common problem that most global companies face is the decision between what strategy should they go for when it comes to serving global markets. Should they consolidate their operations together to take advantage of economies of scale or should they diversify into different markets and serve the local market better from those local operations.



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