After massively relocating their production and assembly work overseas, many manufacturers have realized over time that offshoring also comes with its own risks and costs.
Here is what you need to consider to reshore manufacturing successfully.
looking for like mindwd people to improve further by technology transfer in formaldehyde production page 10-11 of this news letter. your valuable comment and advice are welcome.
lets care ,share and grow with rech others respect and knowledge share.
Industrial Adhesives: Products and Applications – A Global Market OverviewIndustry Experts
Industrial Adhesives application areas explored in this report encompass Pressure Sensitive Products, Packaging, Construction, Woodworking, Transportation and Other Applications. The report also analyzes the product segments including Acrylics, Water-Based PVAc & VAE, Polyurethane, EVA & Polyethylene Hot-Melts, SBC Hot-Melts, Epoxy, Polychloroprene and Others. The major product segments further classified in to sub-types as Acrylics – Emulsion-Based Acrylics, Solvent-Based Acrylics and Other Acrylics; and Polyurethane - Solvent-Based, 100% Reactive, Hot-Melt and Water-Based.
Construction chemical industry in indiaBinay Agrawal
Indian construction chemicals market has grown at 17% per annum historically. It is estimated to be approximately Rs. 3,100 Crores in FY 12. While the growth rate is strong, still the penetration level of construction chemicals is very low in India as compared to other peer countries. This is primarily due to low awareness of products and their benefits at application levels by end users.
Going forward the focus will be on price to performance ratio and not price alone. Also, changing regulatory environment and increasing compliance with international manufacturing standards will be driving the requirements of construction chemicals.
Effects of age, size, sponsor and government shareholdings on profitability: ...Md. Atiqullah Khan
ABSTRACT
Purpose- This paper aims at investigating the effects of age, size, fixed assets utilization, sponsor and government shareholdings on the profitability of engineering industry of Bangladesh for the period of 2000-2019.
Methodology- This paper analyzed 37 out of 39 companies under engineering industry listed on Dhaka Stock Exchange. Fixed effects model has been applied after deciding this from Hausman test to estimate the effects of age, size, fixed asset utilization, sponsor and government shareholdings on the profitability.
Findings- Size, fixed asset utilization, and sponsor shareholding have significant impact on profitability. While fixed asset utilization has positive
impact and age, size, sponsor shareholding and government shareholding have negative impact on it. Mixed influences of learning effect and size effect are experienced among the firms.
Conclusion- The findings from the analysis are diversified in nature. The investors and policy makers should have in depth insight to make better
decision.
Keywords: Age effect, size effect, shareholding, profitability, engineering.
JEL Codes: D21, G32, L25
Manufacturing Momentum: The Dayton Region and BeyondCity of Dayton
Three presentations on the importance of American manufacturing. On October 23, Dayton City Commissioner Nan Whaley served as moderator for the Third Annual Dayton Region Manufacturing Forum, entitled "Manufacturing Momentum: The Dayton Region and Beyond." The latest technical innovations in manufacturing and tooling were presented at the Advanced Manufacturing Technology Show at the Dayton Airport Expo Center on October 23 and 24, 2013.
Speakers:
Scott Paul | President, Alliance for American Manufacturing
John Leland | Director, University of Dayton Research Institute
Alan Shaffer | President & Chief Executive, Dayton Progress
China's chemical market is the world's largest which currently faces production overcapacity, slow growth of local demand, and high competition intensity. In this white paper, Solidiance addresses the questions on how to grow and maintain market position as many emerging competitors are moving up to the value chain through product upgrade, continuous innovation, and business expansion.
The answers are “The New Chemical Era in China” which will come up as the phenomenon resulting from the ability of different chemical companies to create their market identities to gain competitiveness.
This phenomenon is expected to gradually open new opportunities in development of different industry sectors, such as automotive, energy, construction, as well as electrical & electronic (E&E).
IDC Manufacturing Insights Accelerating Business Change Through Next Generati...Anthony Robinson
EXECUTIVE SUMMARY
IDC Manufacturing Insights recently conducted a worldwide study of over 375 enterprises, across multiple discrete manufacturing sectors covering 12 countries, on behalf of Infor. The survey showed that:
● Complexity is dramatically growing, with market, operational aspects, and IT the main business areas that will grow significantly in complexity over the next three years. To beat complexity, manufacturers will need to improve and speed up their decision-making capability.
● Ineffective or inadequate IT is emerging as the single most critical barrier to mastering complexity. Discrete manufacturers also recognize that their current ERP systems have a number of limitations or weaknesses that hamper their ability to improve decision making.
Other findings were that:
● Modernizing IT architectures and business applications used to support new, customer-driven operating models is a priority for companies across all industry segments. Manufacturers now have the opportunity to simplify IT architectures by leveraging the four IT forces of mobility, social technologies, big data analytics, and cloud computing. We believe that those companies that are currently investing aggressively in these four areas will soon enjoy the benefits of higher revenue growth, improved profitability, and customer-led innovation.
● New, enterprisewide "operational ERP" is needed as opposed to mere "financial ERP." Operational ERP will encapsulate the most critical operational processes — customer order management, manufacturing operations management, and supply chain execution — in a tight, integrated, and coordinated environment based on the four IT forces.
● Manufacturers may be in for a shock when it comes to managing this IT change. They will realize that past investments in traditional technologies are now rapidly becoming redundant.
The report introduces the current scenario of the market for plastic containers. The executive summary section of the report offers information regarding the future scope of the global plastic containers market. Brief information on the vital aspects, facts, and statistics on the global plastic containers market is emphasized in this section.
Global Perspective and Issues Relating to Product RecallIOSR Journals
The paper aims to analyze the various issues related to a product recall in the globalized world where the market has become a single trading place. A recall acts like an alarm that makes the company realize that it is the time to take corrective action by reviewing and making changes in the required areas. It is very important to understand the various issues related to the product recall like the factors related to costing, legal framework, recall planning, and management’s perspective and so on. The paper aims to discuss the issues identified with recall with the examples of global companies that have faced a recall. Further the paper also focuses on the recall framework with respect to India. The paper has a practical implication both for the academicians and for the readers in terms of their concern with the aspect issues regarding product recall.
If you are currently manufacturing your products in China, but find the tariffs imposed by the United States are hurting your bottom line, you may consider moving your production out of China to another country like the US or even possibly Mexico.
Moving production from one location to another is always challenging, even more so when moving from across the Pacific. There are many details that need to be adhered to, and not following or paying attention to these details could be costly down the road. The following article details information you may need to know when moving out of China, and what some of the best manufacturing options for your company may be, like manufacturing in Mexico.
25.5 billion euros - these are the total maintenance costs in the European pulp & paper/wood industry. The ConMoto Consulting Group has analysed the Maintenance and Asset Performance of 26 different mills and plants in nine countries. A detailed examination reveals that this industry sector still has a considerable potential for improvement. The ConMoto study points out how a Value oriented Maintenance and Asset Management contributes to a sustainable, profitable enterprise development.
Villiina Kazi: Migrant Integration in Finland: Policies and Practicesmisakonverents
International conference "Integration Challenges in Radicalizing World", 29-30 November 2016 in Tallinn, Estonia. More presentations: www.misakonverents.ee
UN RESUMEN DE NUESTRO PROCESO A SEGUIR EN EL PEQUEÑO PROYECTO DE PREHISTORIA PARA EL CURSO DE 3º DE INFANTIL EN EL COLEGIO ROSALES DEL CANAL DE ZARAGOZA
looking for like mindwd people to improve further by technology transfer in formaldehyde production page 10-11 of this news letter. your valuable comment and advice are welcome.
lets care ,share and grow with rech others respect and knowledge share.
Industrial Adhesives: Products and Applications – A Global Market OverviewIndustry Experts
Industrial Adhesives application areas explored in this report encompass Pressure Sensitive Products, Packaging, Construction, Woodworking, Transportation and Other Applications. The report also analyzes the product segments including Acrylics, Water-Based PVAc & VAE, Polyurethane, EVA & Polyethylene Hot-Melts, SBC Hot-Melts, Epoxy, Polychloroprene and Others. The major product segments further classified in to sub-types as Acrylics – Emulsion-Based Acrylics, Solvent-Based Acrylics and Other Acrylics; and Polyurethane - Solvent-Based, 100% Reactive, Hot-Melt and Water-Based.
Construction chemical industry in indiaBinay Agrawal
Indian construction chemicals market has grown at 17% per annum historically. It is estimated to be approximately Rs. 3,100 Crores in FY 12. While the growth rate is strong, still the penetration level of construction chemicals is very low in India as compared to other peer countries. This is primarily due to low awareness of products and their benefits at application levels by end users.
Going forward the focus will be on price to performance ratio and not price alone. Also, changing regulatory environment and increasing compliance with international manufacturing standards will be driving the requirements of construction chemicals.
Effects of age, size, sponsor and government shareholdings on profitability: ...Md. Atiqullah Khan
ABSTRACT
Purpose- This paper aims at investigating the effects of age, size, fixed assets utilization, sponsor and government shareholdings on the profitability of engineering industry of Bangladesh for the period of 2000-2019.
Methodology- This paper analyzed 37 out of 39 companies under engineering industry listed on Dhaka Stock Exchange. Fixed effects model has been applied after deciding this from Hausman test to estimate the effects of age, size, fixed asset utilization, sponsor and government shareholdings on the profitability.
Findings- Size, fixed asset utilization, and sponsor shareholding have significant impact on profitability. While fixed asset utilization has positive
impact and age, size, sponsor shareholding and government shareholding have negative impact on it. Mixed influences of learning effect and size effect are experienced among the firms.
Conclusion- The findings from the analysis are diversified in nature. The investors and policy makers should have in depth insight to make better
decision.
Keywords: Age effect, size effect, shareholding, profitability, engineering.
JEL Codes: D21, G32, L25
Manufacturing Momentum: The Dayton Region and BeyondCity of Dayton
Three presentations on the importance of American manufacturing. On October 23, Dayton City Commissioner Nan Whaley served as moderator for the Third Annual Dayton Region Manufacturing Forum, entitled "Manufacturing Momentum: The Dayton Region and Beyond." The latest technical innovations in manufacturing and tooling were presented at the Advanced Manufacturing Technology Show at the Dayton Airport Expo Center on October 23 and 24, 2013.
Speakers:
Scott Paul | President, Alliance for American Manufacturing
John Leland | Director, University of Dayton Research Institute
Alan Shaffer | President & Chief Executive, Dayton Progress
China's chemical market is the world's largest which currently faces production overcapacity, slow growth of local demand, and high competition intensity. In this white paper, Solidiance addresses the questions on how to grow and maintain market position as many emerging competitors are moving up to the value chain through product upgrade, continuous innovation, and business expansion.
The answers are “The New Chemical Era in China” which will come up as the phenomenon resulting from the ability of different chemical companies to create their market identities to gain competitiveness.
This phenomenon is expected to gradually open new opportunities in development of different industry sectors, such as automotive, energy, construction, as well as electrical & electronic (E&E).
IDC Manufacturing Insights Accelerating Business Change Through Next Generati...Anthony Robinson
EXECUTIVE SUMMARY
IDC Manufacturing Insights recently conducted a worldwide study of over 375 enterprises, across multiple discrete manufacturing sectors covering 12 countries, on behalf of Infor. The survey showed that:
● Complexity is dramatically growing, with market, operational aspects, and IT the main business areas that will grow significantly in complexity over the next three years. To beat complexity, manufacturers will need to improve and speed up their decision-making capability.
● Ineffective or inadequate IT is emerging as the single most critical barrier to mastering complexity. Discrete manufacturers also recognize that their current ERP systems have a number of limitations or weaknesses that hamper their ability to improve decision making.
Other findings were that:
● Modernizing IT architectures and business applications used to support new, customer-driven operating models is a priority for companies across all industry segments. Manufacturers now have the opportunity to simplify IT architectures by leveraging the four IT forces of mobility, social technologies, big data analytics, and cloud computing. We believe that those companies that are currently investing aggressively in these four areas will soon enjoy the benefits of higher revenue growth, improved profitability, and customer-led innovation.
● New, enterprisewide "operational ERP" is needed as opposed to mere "financial ERP." Operational ERP will encapsulate the most critical operational processes — customer order management, manufacturing operations management, and supply chain execution — in a tight, integrated, and coordinated environment based on the four IT forces.
● Manufacturers may be in for a shock when it comes to managing this IT change. They will realize that past investments in traditional technologies are now rapidly becoming redundant.
The report introduces the current scenario of the market for plastic containers. The executive summary section of the report offers information regarding the future scope of the global plastic containers market. Brief information on the vital aspects, facts, and statistics on the global plastic containers market is emphasized in this section.
Global Perspective and Issues Relating to Product RecallIOSR Journals
The paper aims to analyze the various issues related to a product recall in the globalized world where the market has become a single trading place. A recall acts like an alarm that makes the company realize that it is the time to take corrective action by reviewing and making changes in the required areas. It is very important to understand the various issues related to the product recall like the factors related to costing, legal framework, recall planning, and management’s perspective and so on. The paper aims to discuss the issues identified with recall with the examples of global companies that have faced a recall. Further the paper also focuses on the recall framework with respect to India. The paper has a practical implication both for the academicians and for the readers in terms of their concern with the aspect issues regarding product recall.
If you are currently manufacturing your products in China, but find the tariffs imposed by the United States are hurting your bottom line, you may consider moving your production out of China to another country like the US or even possibly Mexico.
Moving production from one location to another is always challenging, even more so when moving from across the Pacific. There are many details that need to be adhered to, and not following or paying attention to these details could be costly down the road. The following article details information you may need to know when moving out of China, and what some of the best manufacturing options for your company may be, like manufacturing in Mexico.
25.5 billion euros - these are the total maintenance costs in the European pulp & paper/wood industry. The ConMoto Consulting Group has analysed the Maintenance and Asset Performance of 26 different mills and plants in nine countries. A detailed examination reveals that this industry sector still has a considerable potential for improvement. The ConMoto study points out how a Value oriented Maintenance and Asset Management contributes to a sustainable, profitable enterprise development.
Villiina Kazi: Migrant Integration in Finland: Policies and Practicesmisakonverents
International conference "Integration Challenges in Radicalizing World", 29-30 November 2016 in Tallinn, Estonia. More presentations: www.misakonverents.ee
UN RESUMEN DE NUESTRO PROCESO A SEGUIR EN EL PEQUEÑO PROYECTO DE PREHISTORIA PARA EL CURSO DE 3º DE INFANTIL EN EL COLEGIO ROSALES DEL CANAL DE ZARAGOZA
Quali sono gli obiettivi concreti di un blog aziendale? Ecco 5 punti che devi sempre avere come riferimento. Per approfondire: obiettivi del blog, come trasformare le chiacchiere in azioni http://bit.ly/2hUBxgF
The way you communicate your message will either keep you small fry and struggling, or spring board you to greater and greater success.
I’ve been lucky enough to work with some of the best independent agents in the country, and over the years, have distilled the elements of brand communication success into these four essentials:
1. Memorable communication
2. Helpful communication
3. Positive communication
4. Honest communication
In this deck, I dive deeper into each one of these four factors of successful brand communication. There's also a link to take you to my blogpost on this, in which I show you which agents are getting it right.
There’s no place like home. That’s what companies like Apple®, Ford®, Whirlpool®
and others are discovering. The trend is a growing number of organizations
clicking their heels and bringing overseas operations back to the U.S. According
to Harold Sirkin, a senior partner from the Boston Consulting Group®, in the
upcoming years 20 to 25 percent of products that were sent offshore will
eventually return to the United States.1 Even more telling, research shows that
more than half of executives at manufacturing companies with sales exceeding
$1 billion either plan to, or are thinking about, bringing overseas operations
back to the United States from China. Since 2012, there’s been roughly a 15
percent increase in companies that return to the U.S.
A detailed study to evaluate the financial impact of demanding made in usa pr...Charm Rammandala
The purpose of this article is to investigate the notion that increasingly companies trying to promote products made in USA over imported products. Due to the increased influence by politicians and perception of segment of population, companies are looking in to bringing certain manufacturing plants back to USA. This study will focus on understanding motivations behind it and how feasible and practical the notion is and whether it makes any financial sense
Manufacturing & Distribution Pulse Survey Report: An Economist's PerspectiveCitrin Cooperman
Citrin Cooperman's Manufacturing and Distribution Practice hosted an informative webinar and were joined by guest presenter Anirban Basu, chairman and CEO of Sage Policy Group, Inc.
Highlights:
- The current economic circumstances for manufacturing and distribution companies
- How difficult things are likely to become over the foreseeable future
- The contours of the brisk recovery to come thereafter
Made in America, Again: Third Annual Survey of U.S.-Based Manufacturing Execu...Boston Consulting Group
BCG's latest manufacturing survey finds decision makers at large manufacturers expect the U.S. share of their production to rise an average of 7 percent in five years; half expect to boost U.S. factory jobs by 5 percent or more.
In this year's 10th anniversary of the Global Innovation 1000 study, we looked back at a decade's worth of data on R&D spending patterns and surveys of innovation executives, and we looked ahead to the next decade, asking our respondents how they expect their innovation practices to evolve. We've identified the core strategies that can improve a company's return on its R&D investment--and we've witnessed some convergence around the key success factors that drive results. For more information, visit: http://strat.bz/gap6jsj
Winners will improve responsiveness while cutting costsCBX Software
In today’s highly complex global sourcing environment, apparel companies must aggressively explore more opportunities, including the pursuit of new sourcing countries and partners, increasing value-added services and upping supply chain efficiency.
#KPMG Manufacturing outlook 2014. #SCM transparency, cost insight and supply chain integration is main focus for global manufacturers. Development of S&OP will help to achieve these goals.
Recent political trends suggest reshoring would protect and promote US manufacturing jobs. Political protectionism, demand for local products and a renewed interest in manufacturing make the US attractive. However, the economics of globalization, affordable foreign labor and consumers' expectations make foreign markets enticing.
Learn how big brands like Apple, Nike and Walmart approach a ‘Made in the USA’ strategy, and the factors your company must weigh before deciding whether to relocate your manufacturing operations.
Green Rush: The Economic Imperative for SustainabilityCognizant
Green business is good business, according to our recent research, whether for companies monetizing tech tools used for sustainability or for those that see the impact of these initiatives on business goals.
This survey seeks to understand some of the key priorities for manufacturers as well as their strategies for growth, specifically with respect to capabilities, physical resources and human capital.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
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3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
The Reshoring Decision | Bringing Production Home Successfully
1. About fifteen years ago companies were massively
relocating their production and assembly work
overseas to take advantage of low labour costs,
especially in countries like China and India. However,
these same companies realized over time that
offshoring also came with its own risks and costs.
Today, some prominent manufacturers are bringing
work back home, prompting other companies from
around the world to rethink the benefits of reshoring
and its long-term implications.
Many manufacturing organizations moved their
operations to China based on the assumption that the
country provided tremendous cost advantages. This
was true 10 or 15 years ago, but not anymore.
The reshoring decision
BRINGING PRODUCTION HOME SUCCESSFULLY
2. 1
The Boston Consulting Group August 19, 2014, The BCG global manufacturing cost-competitiveness index, viewed April 22, 2015
2
Sirkin, H, Zinser, H & Rose, J April 25, 2014, The Shifting economics of global manufacturing, viewed April 22, 2015
According to the Boston Consulting Group (BCG)
Global Manufacturing Cost-Competitiveness Index,
the difference in manufacturing costs between China
and the United States has become negligible. As a
matter of fact, for every dollar required to manufac-
ture in the U.S., it costs 96 cents to manufacture in
China. And that is before taking other factors into
consideration such as the cost of transportation1
.
The Index measured changes in direct manufacturing
costs from 2004 to 2014 among the world’s top 25
exporting countries, and indicates that old percep-
tions regarding manufacturing competitiveness no
longer hold.
China may still be the world’s largest exporter, but
wages have risen 4 times faster than productivity over
the past 10 years and higher energy costs for both
electricity and natural gas have diminished its
long-standing edge. Hence, the study found that the
country with the lowest manufacturing costs is no
longer China, but Indonesia, then India, Mexico and
Thailand.
But regardless of where production has been
outsourced, the cost of offshoring is almost always
more than anticipated. Some of the tangible costs that
are often underestimated include transportation,
expediting, custom duties, warehouse space/costs,
salaries for personnel overseas and domestic staff
managing overseas suppliers, material handling,
procurement staff, inventory carrying, debt, product
damage, and potential hidden costs such as
occasional trips to Asia.
Intangible costs are just as real. They include the cost
of managing offshore suppliers, the cost of corruption,
and the possibility of losing intellectual property or
damaging customer relationships with late deliveries
or poor quality.
Truth be told, assessing a country’s relative competi-
tiveness is a complex task, because it is determined by
a number of fluctuating factors. The past ten years
have been marked by high volatility. Some countries
have seen more than 10 years of 10 to 20% sustained
wage growth. Productivity has doubled in many
countries while declining in others. Energy costs have
increased in many countries, sometimes by up to
200%, and currencies have fluctuated greatly,
ranging from -20 to +35% versus the U.S. dollar2
.
Under these conditions, trying to
identify the best country to offshore
production for the next 10 to 25 years
is at best a guesstimate.
THE CHALLENGES OF OFFSHORING
3. From a locational perspective, manufacturers typically have three options: onshoring
(within the nation), nearshoring (in a neighbouring country) and offshoring (in a
geographically distant country). 3
Companies that have brought outsourced personnel and services back to the
location from which they were originally offshored—what is effectively called reshor-
ing—include large corporations like General Electric, Motorola, Lenovo, Google,
Apple, Boeing, and Ford. However, several studies have confirmed that the reshor-
ing trend is growing.
In 2014 the BCG published its third annual survey of U.S.-based manufacturing
executives, which showed that more than half of the respondents were considering
bringing production back, thus corroborating the findings from the previous year. In
addition, the 2014 study confirmed that these executives were acting on their
intentions: the number of respondents who said that their companies were already
bringing production back from China to the United States had risen 20% from rough-
ly 13 to 16% the previous year.4
Similarly, a 2013 study by Grant Thornton predicted that over the course of one
year, about one-third of U.S. businesses would be moving goods and services back
to the United States, and a similar percentage would be reshoring to places closer
to home such as Mexico. According to the study, the trend would even hold true for
sectors such as IT services and call centres, which have traditionally been largely
outsourced abroad.5
In Canada, the reshoring trend may not have gained as much momentum yet.
Nevertheless, companies are increasingly realizing the benefits of local manufactur-
ing, especially with the volatility of the Canadian dollar. A 2014 KPMG report
indicates that just 14% of Canadian manufacturers plan to source from China,
compared to 31% the year before.6
Whether the reshoring trend accelerates or not depends on a
number of factors, including the overall state of the economy,
but one thing is certain: corporations are no longer just look-
ing at labour costs when they elaborate production strategies.
THE RESHORING TREND
3
Zhang, M 2012 Sher-Wood Hockey sticks: global sourcing, Ivey Publishing
4
The Boston Consulting Group October, 2014, Made in America, avgain, viewed April 22, 2015
5
Grant Thornton, November 19, 2013, Reshoring likely to radically reshape U.S. economy in next year, viewed April 22, 2015
6
Giguère, L & Matthew, D 2014, Canadian manufacturing outlook 2014, viewed April 27, 2015
5. TOP MOTIVATORS
FOR RESHORING
Although in the past the primary driver for offshoring was
labour arbitrage, several studies show that today companies
are not interested in lower manufacturing costs alone.
According to a study by the global management consulting
firm A.T Kearney, the main reasons manufacturers are bring-
ing production home are delivery time improvement, total
cost of ownership, quality improvement, freight cost improve-
ment, wage cost improvement, customer responsiveness, and
to a lesser extent image, higher productivity, innovation, and
inventory improvement.7
Similarly, respondents to the BCG survey indicated that the
top three motivators for reshoring are the needs to8
:
•Shorten the supply chain
•Reduce shipping costs
•Provide local control over manufacturing processes, in that order.
7
Van den Bossche, P, Gupta, P, Gutierrez, H, & Gupta, A February 2014, Solving the reshoring dilemma, viewed April 28, 2015
8
The Boston Consulting Group October, 2014, Made in America, gain, viewed April 22, 2015
6. 9
Slavin, C March 24, 2015, Walmart’s made in USA initiative bodes well for U.S. packaging sourcing, viewed April 30, 2015
SUPPLY CHAIN MANAGEMENT
TOP MOTIVATORS FOR RESHORING
Closer geographical proximity with both customers and
suppliers helps reduce shipping costs and delivery times. As a
result, manufacturers don’t need to keep large quantities of
finished products in stock, which in turn lowers inventory
costs. And since local suppliers typically offer longer
payment terms than their Chinese counterparts, companies
have the added benefit of improved cash flow.
Improved customer responsiveness is another reason
manufacturers want to bring production home, or at the very
least closer to home. In certain sectors, the ability to turn
around a product in days instead of months confers an
undisputable competitive advantage. This is particularly
important in sectors such as fashion apparel or for technology
products where demand varies unexpectedly and production
adjustments need to be made quickly.
Similarly, reshoring minimizes the risk of supply chain disrup-
tion. Manufacturers can oversee manufacturing processes
locally and should the unforeseen happen, they can react
much faster than if production was overseas.
From a quality standpoint, the label “Made in America” has
always been synonymous with higher quality for sensitive
products like food, baby items, or medicines, but the
phenomenon is gaining momentum. Companies are becom-
ing increasingly aware that this is what customers want. After
conducting its own research and realizing that the country of
origin was the second biggest indicator of purchasing prefer-
ence—right after price—Walmart famously committed in
2013 to buy an extra 250 billion of “made in USA” products
over the next ten years.9
The widely advertised announce-
ment certainly benefited the company in terms of brand
image, but there was also a strong desire to support the local
economy.
More and more businesses see the benefits of maintaining
closeness between their R&D department and the manufac-
turing/assembly line. This approach reinforces collaboration
and minimizes the risk of miscommunication due to language
barriers. Besides, it makes it much easier to run tests or work
on prototypes in iterations. All in all, this translates into even
shorter lead times, and can even stimulate creativity and
innovation. This has proven to be quite beneficial for complex
products.
Some businesses are nonetheless deliberately deciding to
either stay local or reshore, even when the benefits are less
tangible. Sometimes it is a branding decision, and sometimes
it is a long-term commitment to the green movement, since
manufacturing eco-friendly products overseas has proven to
be more challenging.
8. 10
Van den Bossche, P, Gupta, P, Gutierrez, H, & Gupta, A February 2014, Solving the reshoring dilemma, viewed April 28, 2015
11
The Boston Consulting Group October 23, 2014, U.S. executives remain bullish on American manufacturing, study finds, viewed May 4, 2015
12
Campeau, M December 2, 2014, What will the end of cheap Chinese labour mean for Canadians? viewed May 4, 2015
STRATEGIC PERSPECTIVE
BRINGING PRODUCTION HOME SUCCESSFULLY
Clearly, reshoring is a better decision for industries
that are largely influenced by macroeconomic
factors such as labour productivity, currency fluctu-
ation, and energy costs. So, companies that are
either in computers and electronics, appliances
and electrical equipment, primary metals, machin-
ery, furniture, plastics and rubber, paper, or
fabricated metals should at least give some
thought to the reshoring question.10
Furthermore, organizations located in countries
with higher productivity levels are more likely to
reshore. In this respect, the large productivity gap
between Canada and the U.S. is one of the
reasons American companies tend to jump sooner
on the reshoring bandwagon than their Canadian
counterparts. Manufacturers in the U.S. are
typically larger firms and can therefore exploit
bigger economies of scale, especially when they
have invested in advanced manufacturing technol-
ogies such as 3-D printing, robotics, and digital
manufacturing. 11
To complicate matters further, the reshoring
decision needs to be future-proof. As indicated
before, one of the key premises behind reshoring is
that the benefits of being closer to the customer
offset higher labour costs. But that line of reasoning
assumes that the goods produced locally are be
sold locally.
Meanwhile, emerging markets are growing much
faster than domestic markets. General Motors, for
example, now sells more cars in China than in any
other market.12
So, organizations need to look at
their markets globally, otherwise they will simply
have the reverse problem in 10 or 20 years.
9. 13
Shih C. Willy. August 7, 2014, What it takes to reshore manufacturing successfully, MITSloan Management Review, viewed April 22, 2015
SUPPLIER ECOSYSTEM
BRINGING PRODUCTION HOME SUCCESSFULLY
Whether companies decide to reshore all or part of
their product-assembly operations, they should
learn from those who have brought work back from
abroad.
In this regard, the U.S. Competitiveness Project at
Harvard Business School offers precious insight. It
shows that reshoring impacts all the levels of the
supply chain and that manufacturers need to
prepare for challenges that range from rebuilding
the supplier ecosystem to hiring and retaining
skilled workers, as well as relearning how to manu-
facture locally.13
These aspects may influence the choice of the
reshoring location as well. Should companies
reshore to an existing factory or to a new one?
The advantage of using an existing location—as
long as it has the necessary capacity—is that
manufacturers face fewer logistical challenges
such as warehouse space and transportation.
Moreover, they can tap into their supplier network,
although they need to ensure their suppliers can
ramp up as well.
However, when companies need to find a new
location with suitable capacity, the location of their
suppliers is a crucial factor to consider. With the
offshoring movement, many suppliers have
followed their customers overseas. As a result, the
supplier ecosystem has completely evaporated in
certain industries.
10. LABOUR
BRINGING PRODUCTION HOME SUCCESSFULLY
Likewise, the shortage of skilled labour has
proven to be a tremendous challenge. Finding
enough people with the right skills over a relative-
ly short period of time and keeping them motivat-
ed to stay requires a lot of preparation. General
Electric had a goal of hiring 2 500 new workers
for its reshoring project in Kentucky. However, the
company had to hire no less than 6 500 workers
to yield the required 2 500 employees. When the
employee turnover is that high it creates unpre-
dictability in production schedules, which inevita-
bly affects productivity, not to mention the reper-
cussions on recruiting and training costs.
Unfortunately, the lack of skilled workers will only
escalate over time as more people reach the
retirement age.
There is no easy solution. Some corporations are
trying to fill the gap with in-house training, others
are recruiting abroad or from local related indus-
tries. Many manufacturers are also working
collaboratively with community colleges and
universities, but it will take years before significant
results can be achieved.
Admittedly, automation can fill the labour gap,
but only to some extent. This solution tends to work
well for companies that don’t need a lot of manu-
facturing flexibility. However, humans are still
more flexible than machines when manufacturers
need to produce small quantities of mixed
products or adapt to frequent market changes.
So, it is often more a question of finding the right
mix of manual and automated processes. Besides,
it only shifts the recruiting problem, because these
manufacturers still need to hire qualified workers
to run their expensive machinery.
11. BRINGING PRODUCTION HOME SUCCESSFULLY
14
Vechiola R May 14, 2014, United States: reshoring is gaining momentum, viewed April 27, 2015
LEAN PRACTICES
Another key lesson from the recent reshoring of
manufacturing to the U.S. is that companies
cannot expect to manufacture products locally
the same way they manufactured them overseas.
In low-cost countries, the focus was on leverag-
ing cheap labour, but with reshoring the focus is
more on adopting lean manufacturing principles.
This often means that manufacturers need to
change their mindset around working with
suppliers. For years, they have focused almost
exclusively on achieving cost efficiencies through
low-cost, competitive sourcing. But now they
need to work more strategically with their key
suppliers to optimize the supply chain. A
relationship that entails a much higher level of
information sharing and collaboration can go a
long way to solve design and production
problems.
There is no doubt that big projects like reshoring
require a lot of advanced planning and active
project management skills. Organizations need
to handle myriad of details such as timing
existing contracts, maintaining inventory levels
throughout the transition, transporting various
resources, and enforcing intellectual property
rights overseas.14
12. The companies that are the best positioned to compete in
the future are those that are getting closer to customers,
both in emerging markets and in developing countries.
And to that end, reshoring is very much a lesson in manu-
facturing globalization.
When companies initially decided to offshore work from North America or
Europe to low-cost developing countries, they made their decision primarily
based on low-cost wages. Two decades later they realized that manufacturing
costs were only part of the equation.
So far, the reshoring trend has been quite strong in the United States. And
although it is likely to continue and even spread to other countries, it will not be
across the board. Just like offshoring was not for everybody, reshoring will vary
by industry and depend on the degree of reshoring readiness of each company.
Meanwhile, organizations are acutely aware that they don’t control their macro-
economic and industry environments, which is why they increasingly opt for a
diversification strategy that requires them to maintain manufacturing operations
around the world.
As companies work through the challenges of reshoring, they learn that a collab-
orative approach with suppliers can lead more lasting competitive advantages
than a short-term focus on sourcing the lowest price.
JUST LIKE
OFFSHORING WAS
NOT FOR EVERYBODY,
RESHORING WILL
NOT BE ACROSS THE
BOARD.
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