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To Reshore or Not to Reshore

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Hailey Lynne McKeefry
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Re: Regionalization is more of the trend
Hailey Lynne McKeefry   10/27/2013 10:10:09 PM
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Thanks, Eric! Do you find that people are surprised by what they find out from the calculator? Or is it just a time saver?

Eric H. Miscoll
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Re: Regionalization is more of the trend
Eric H. Miscoll   10/26/2013 11:38:57 AM
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Hailey,

 

Here is a link to a more detailed explanation of our TCO tool:  http://charliebarnhart.com/archives/phil-stoten-interview-eric-about-cbas-new-tco-tool/

 

Our TCO tool comprehends three distinct factors, all with multiple sub-factors that are embedded, which are:

1.. Global Pricing for services purchased

2.  OEM Internal Spend:  what OEMs spend internally to acquire and manage outsourced solution

3.  Geographich risk associated with solution chosen

 

Everyone focuses on the first element, but it is the second two that often tip the scales away from an LCR.

Hailey Lynne McKeefry
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Re: Regionalization is more of the trend
Hailey Lynne McKeefry   10/25/2013 6:25:32 PM
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@Eric Thanks for the distinction, and the information. If you have a link for the TCO tool, why don't you share it with us? What are some of the elements that need to be considered in true cost of outsourcing that might often be missed?

Jacob
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Supply Network Guru
Re: Motrola Smartphones
Jacob   10/9/2013 11:30:07 PM
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"Yes that is a valid point indeed. I think Motorola is trying to gain their market by promoting their name here but it's a 50-50 scenario for both Google and Motorola"

Nimantha, I thing Google is playing a dual role with Motorola. While continuing its Smartphone market with Motorola brand, they are renaming the same as Nexus for Google mobile.

_hm
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Better quality Better Society
_hm   10/9/2013 7:16:32 PM
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US has very urgent need for these jobs. Unemployment is very high and people has hgih hope from leaders. This will also bring better quality to product and society will also be regain its colorfulness.

My ffear is unions and productivity of one and all. Also, salary expectation and long term benefit cost must be kept very low.

 

nimantha.d
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Supply Network Guru
Re: Motrola Smartphones
nimantha.d   10/9/2013 7:34:03 AM
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@Jacob: Yes that is a valid point indeed. I think Motorola is trying to gain their market by promoting their name here but it's a 50-50 scenario for both Google and Motorola

Jacob
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Supply Network Guru
Motrola Smartphones
Jacob   10/8/2013 11:52:19 PM
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"Motorola has announced that its latest smartphone will be manufactured in Fort Worth, Texas. It says the Moto X will be the first such device to be assembled in the US"

Peter, if am not wrong, Google has acquired the Smartphone wing of Motorola in 2012. So any Smartphone from Motorola means, it's from Google

Eric H. Miscoll
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Regionalization is more of the trend
Eric H. Miscoll   10/8/2013 3:15:35 PM
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At Charlie Barnhart & Associates, we draw a distinction between "reshoring/onshoring" and "regionalization."  We see reshoring/onshoring as more politically motivated terms that hold out hope that the jobs lost to China and other low cost regions will come flooding back to the United States.  Our data actually points to regionalization, or build in region for region, as the definitive trend in this industry.  The primary beneficiaries of this will be the low cost countries that exist in all regions, such as Mexico, Eastern Europe, and Thailand and Malaysia, to name a few.  Capacity utilization rates for electronics manufacturing are increasing in all of these areas.  Regionalization also means that business will continue to go into China, which has some of the best factories in the world, although people will hopefully be more selective in what they choose to send there.

 

Deciding which geographic region offers the best business solution for your manufacturing based on a TCO (True Cost of Outsourcing) analysis is the best approach.  We recently released our TCO tool which allows for such analysis, quickly and based on elelctronics manufacturing industry data sets that we update quarterly. In many cases OEMs are surprised at how expensive low cost really is.



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