Absolutely, JayBond. The multifacted relationships that make up the supply chain are all affected by the world's ability to buy and spend. Countries are no longer immune to global influences, even Communist countries. China remains a fascinating mix of capitalism and communism, and the mix is working for China. I hope we are all around 10 years from now to discuss how this model evolves!
One thing that was left out of this discussion was the affect on the global economy. For the last few years the gobal economy has relied on strong growth in China. If these companies are forced out of China, not only will there be layoffs and a reduction to personal spending in China, but the economic growth that the world needs will take a huge hit.
@jacob: it is a neverending dilemma. Companies are beholden to shareholders who also want to maximize profits. In fact, some companies count their shareholders as customers, even though the deliverables (products to customers, profits to shareholders) are sometimes at opposite ends of the spectrum.
"Let's say that pressure from consumers begins to have a positive impact on Chinese working conditions. Again, higher wages will mean higher costs of manufacturing. Those costs will be passed on the consumers. Prices will increase on all products"
Barbara, always the ends suffer is customer. If any increase in cost like transportation, insurance for the workers, infra structure etc, all such facilities are tied up with a cost factor and finally it's passing to the customer shoulder. This is because none of the companies want to share a part of their profit for employee's welfare.
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.
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.
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.