My father, when sizing up global matters over a martini or two, used to say "the pendulum always swings back."
I think of that when we discuss the nature of outsourcing and offshoring today. For years, the pendulum swung to the side of the argument that embraced key benefits:
Labor-cost reduction
Proximity to emerging markets
Occasional tax or currency benefits
Now, the pendulum swings back the other way, at least partly. Bolaji Ojo pointed this out several weeks back when describing the insights he got from the famous McKinsey report. (See: Why Manufacturing Matters & Where Best to Do It.) He wrote:
Until I read the McKinsey report, I had been wondering if I wasn't mistaken in disagreeing with the massive, decades-long transfer -- or outsourcing, if you prefer -- of Western production activities to the Far East and Easter Europe.
Another data point
Then there was Gary Pisano's articulation nearly four years ago, in which he argued that the further away manufacturing is from R&D, the more difficult it is to stay competitive. That's because designers can learn best from peeking over the shoulders of their manufacturing counterparts to see what's working and what isn't on the line.
Where's the pendulum today? Avnet Velocity vice president and EBN community member Wade McDaniel is going to give us a clear sense for that Tuesday morning (February 19, 8:00 a.m. PT). That's when he'll present his view of the state of outsourcing during a 60-minute webinar that I'll host.
McDaniel, a 25-year supply chain veteran, has an excellent perch from which to offer his assessment. I hope you join us Tuesday. Here's a link to the webinar information.
In the meantime, what's your take? Where is the pendulum on the outsourcing offshoring clock?
One in Three Spanish Residents of Working Age DOES NOT have a job today.
Also,
More than One out of every two Young Spanish Citizens DOES NOT have a job today.
And if you thought the Government would be in a position to help them out by Giving them Unemployment Insurance or somehow Generating more Jobs-You thought wrong.
Why is that?
Because of their Insurmountable Debt Burden of the Spanish Govt.
Debt that is denominated in Euros and owed to German and French Banks.
If they do Default on their Debt and move to the Peseta,that would mean that their Debt Burden would fall by more than 40% today!
Which immediately frees up resources for Growing the Economy.
Of course they have to do it in organized fashion with Backup from the IMF like how Iceland did it.
But it would work for Spain.
Spain would be booming again within 2 years of this happening as Exports would soar dramatically and the Service Sector would pick up too.
The time for this drastic decision is today.
Otherwise Spain will see the Mother of all Revolutions probably marked by Tremendous Bloodshed to achieve the same Target-Devaluation.
Yeah, it seems like everybody is counting on the IMF to bail them out.
Their economy is on the deathbed and I agree they have to take drastic measures to revive it. What I had in mind was to somehow churn up the wheels by manufacturing or the service industry. Is it possible? Or have they gone to the point that inflating currency is the only solution?
Even if they do leave the Euro,The IMF will be their to support them!
Don't worry about that issue!
Right now,the Spanish Economy is on Death Bed.
Drastic Solutions are essential and this is one which has the Highest chance of working-Look at How Iceland is rebounding after it Defaulted on the Debt it owed to Britain and Holland!!!
I agree with you. I also think it would be a mistake if Spain comes out from Eurozone now. But as I said earlier, this is not my strong topic. I don't even know why we are discussing about this here. :/
Topping the list of the world’s biggest electronics distributors were Avnet and Arrow,followed by WPG Holdings, Future Electronics,
and WT Microelectronics.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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