We Saw This Coming


Reading time ( words)

There have been quite a few predictions and studies, along with plenty of wishful thinking, about the cost of manufacturing in the U.S. The onshoring/re-shoring movement has gained a lot of attention from media like ours over the last couple of years. IPC even issued a report last year providing their take on the movement, which garnered a lot of interest from the industry.

Now, The Boston Consulting Group (BCG), a global management consultant, has released new research on the “dramatic” change of manufacturing cost competitiveness around the world. BCG’s press release is entitled, “Study Reveals Striking Shifts in Global Manufacturing Costs over the Past Decade.” I found the use of the word “striking” to be interesting. It almost leads me to believe they were surprised by the trends in manufacturing costs.

For those of us watching the shift over the last few years, it isn’t striking at all. It’s been coming for some time. As I’ve said in the past, all things come back into balance. The rising costs in Asia, and China in particular, have made it very clear that you can only sustain dirt-cheap manufacturing for so long. At some point, lax or non-existent labor and environmental standards, ridiculous lending policies, manipulated currencies, etc., will yield a day of reckoning. People get tired of breathing bad air and drinking polluted water. Trading partners say “enough is enough” and demand fair currency valuations. And banks struggle to survive under the weight of bad loans made during the heady days of unbridled growth.

Read the full column here.


Editor's Note: This column originally appeared in the June 2014 issue of SMT Magazine.

Share


Suggested Items

Demand Forecasting: The Art of Knowing What You Need Before You Need It

08/17/2018 | Patty Rasmussen, East West Manufacturing
Forecasting is a skill born out of experience, intuition, and most of all, knowledge. But what do you need to know when you’re creating an accurate demand forecast? What data is needed? Are there tools you can use? Where do you start? Find out here.

5 Supply Chain Questions to Ask Your Assembly Partner

08/16/2018 | Neil Sharp, JJS Manufacturing
A key question for any OEM who may be considering outsourcing production is whether to maintain its existing supply chain or to hand those crucial purchasing decisions over to its assembly partner. This article highlights five questions to ask a potential assembly partner before handing over the responsibility for your supply chain management.

How Investment in Staff Well-Being Impacts Manufacturing Productivity

08/09/2018 | Sue Poole, JJS Manufacturing
As manufacturers seek to address the challenges of increasing efficiency, there's a greater emphasis on the value of high-performance working practices such as Lean manufacturing. But the emphasis on continual quality improvement processes can also have an indirect effect on employee health and well-being. Here's why manufacturers should invest in the well-being of its employees.



Copyright © 2018 I-Connect007. All rights reserved.