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10 Compelling Factors Driving Onshoring

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Hailey Lynne McKeefry
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Re: Re : 10 Compelling Factors Driving Onshoring
Hailey Lynne McKeefry   4/29/2014 5:02:27 PM
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I would argue that there are two kinds of transparancy: internal and external. You are really focusing on the external kind. However, different departments within the organization having visibility and insight into planning and activites of the various departmetns can be really useful.

anandvy
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Re : 10 Compelling Factors Driving Onshoring
anandvy   4/26/2014 5:25:47 AM
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Transparency for a large company would indeed be disastrous. Not only would it show the companies' failures, but also it would leave the company open for attack from competing companies.

anandvy
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Re : 10 Compelling Factors Driving Onshoring
anandvy   4/26/2014 5:24:57 AM
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Asian markets are seeing the rise of skilled workers and management people, too much for American based companies to handle? These same companies complained about unskilled labour that was damaging their economic models, and now these same companies cannot afford labour? 

Hailey Lynne McKeefry
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Re: Automation
Hailey Lynne McKeefry   4/9/2014 8:38:53 PM
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The finance issues you mentioned are very interesting, Finance Guy. it's something that we don't focus on enough.

Eldredge
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Re: Automation
Eldredge   4/6/2014 9:36:59 PM
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@Finance guy - You are probably right, and currently another aspect in favor of NA is that China probably doesn't perceive a need to pursue full scale automation. Also, as you pointed out, there are, and will continue to be, other forces in the marketplace that may work to level the playing field. Access to energy supply, and impacts of water and air pollution on the health and attitudes of the population come to mind, as well as economic pressures of a society that desires to improve their standard of living. It will be intersting.

Finance guy
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Re: Automation
Finance guy   4/5/2014 7:08:28 PM
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I agree, but higher end boards will keep pushing the limits, and NA is better equiped to maximize the labor/capital benefits in production. 

The bottom line is a move towards capital intensive production works for the USA, particularly for products that will be sold in the USA.

I also beleive the the long held undervalued Chinese currency (although improving) may be creating problems which are just starting to wreck havoc in China. Remember this is a Communist country that really does not understand free market dynamics. 10-12% historic GDP growth, and where's the inflation???

 When left alone the market works very well, if the particpants behave. That can not be said of China for many reasons. Stay tuned, this should be interesting!       

Eldredge
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Automation
Eldredge   4/3/2014 9:50:07 PM
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While America may have the ability to address productivity through automation, I have often thought that off-shore production could also pursue that avenue, while simultaneously maintaining at least some labor cost advantage. That strategy may take some time to evolve (build skill base and capital investment), but it has the potential to tip the scales back toward off-shore manufacturing.

Eldredge
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Re: Another compelling factor
Eldredge   4/3/2014 9:43:14 PM
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@Hailey - I would put 4, 6, and 8 (Intellectual Property Protection, Risk Management, and Quality Control) as my top three compelling reasons, although it may be more difficult to put an accurate dollar amount on these compared to labor and shipping/handling/distribution costs.

Hailey Lynne McKeefry
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Re: Another compelling factor
Hailey Lynne McKeefry   4/2/2014 10:43:16 AM
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Readers, Finance Guy makes a great point. is there anything that you would add to the list? Which points would make your top three list?

Hailey Lynne McKeefry
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Re: Another compelling factor
Hailey Lynne McKeefry   4/2/2014 10:42:32 AM
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@Finance Guy, you are right.... Counterfeiting is a huge conversation. So much so that we focused on it in our recent Velocity e-Mag which can be found here. It's a huge issue of sourcing, especially when a verifiable source can't be found.





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