All electronics manufacturers in the Americas are invited to participate in IPC's new study about the impact of on-shoring – the migration of electronics manufacturing operations back to the Americas from overseas. Data from "On-Shoring in the Electronics Industry: Trends and Outlook" will measure the impact on revenue and jobs, and explain the drivers and future outlook. To take the survey by May 25, please go to www.ipc.org/on-shoring. The results of survey will be published in June. Companies that participate in the survey will receive the complete report of the findings for free.
Syedzunair, opening factories at different locations are not only for savings in tax and labour, there are many factors behind that. Eventhough it's an MNC, production at their place makes the people a native feelings. It's also better for the companies to know the in & out, guiding factor and requirements in market without depending a third party. More over they can buy the raw material from local market, using the available local skills etc can help them to sell the product at a competitive price.
@Bolaji, you brought up some very good points. I have read many articles over the last couple months that are stressing how the US can bring manufacturing back stateside. We are already begining to see onshoring, and there is so much potential. Many of these articles on CNNMoney and other sites highlight how manufacturing is not dead.
I agree with you that making products for the internal US market alone will not be feasible in this era of globalization. But I think that outsourcing - or putting up factories in different locations is primarily based on the cost savings you get by deploying cheap labor and lenient tax laws.
You make an interesting point that the ability to manufacture high tech goods could be lost in the traditional Western countries. I had always believed that this would not be the case but if it is then Western companies should ensure they retain that capability for disaster recovery at least.
Bolaji, globalization is a general phenomenon in industrial world and it’s difficult for any country to take a stand alone position. MS/Intel/Ford cannot make any particular products for US (internal market) itself and may not be feasible for a long run. They are looking for business outside the country, so inorder to support these decisions they may start different factories at different locations. We cannot blame anybody for this because the main intention for any business is maximizing the profit. Minimizing the working capital and selecting the raw materials are the cheapest rate are the key factors.
This two-part series is set up like a reality show: can a cushion factory in Merseyside challenge the might of Chinese manufacturing in three months? In fact it's an interesting real-life story: cushion king Tony Caldeira wants to expand his factory in Kirby and take on jobless youngsters; meanwhile his plant in China is struggling with a labour shortage. Is this a chance for British workers to show their mettle?
There are telling scenes: an open-air Chinese labour exchange with picky punters, a machinist in Kirby struggling to sew her cushions — and in the end it's a perfectly formed parable of life in the global economy.
About this programme
1/2. Two-part documentary following cushion manufacturer Tony Caldeira, who like many other businessmen makes his products in China, where costs and wages are cheap. However, with Chinese staff now demanding much higher pay, the executive embarks on an experiment to bring manufacturing back to Britain by opening a factory in Kirkby, near Liverpool. But he has a lot to do. While his new supervisor and machinist set to work training the recruits in the art of sewing, Tony tries to inspire them to commit to the company, despite the fact they are only earning the minimum wage. But when they start falling like dominoes, it becomes clear his dream is fading fast.
Pretty simple manufacturing went to China and elsewhere because it was cheaper. Business just showed the same behaviour ninety nine percent of people do when they go shopping. Does your average shopper check where a product is made or just what's the best deal?
A lot of China's edge is down to them treating the workforce like serfs but I expect wages to rise as Chinese workers get tired of that and want a bigger piece of the pie themselves.
Workers at a Chinese factory owned by Foxconn, Apple Inc's main manufacturer, threatened to jump off the roof of a building in a protest over wages just a month after the two firms announced a landmark agreement on improving working conditions.
Foxconn has been hit hard by reports about its hiring and compensation practices in China. In recent months, the company has had to increase salaries for many of its workers (as much as 25 percent in some cases), and this has hit its margins hard. Foxconn is also being forced to hire thousands of workers while it adds plants in China's hinterland to keep costs down and reduce the psychological problems for employees working thousands of miles from home.
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.