Business Blog
White Papers

CRM A Short History

Back in the mid to late 80's, marketing concepts emerged in response to changes in the marketplace that forced many large companies...

Getting real ROI from CRM Collaboration and Technology

The field of Customer Relationship Management (CRM) is at a crossroads. The promise - while still very much alive - has in too many cases not been...

How to Align Sales Compensation with Corporate Objectives

Sales people are more likely to perform activities which support the corporate objectives when their compensation plans are in alignment

How to Develop an Effective Sales Forecast

The ability to effectively forecast sales can have a significant and positive impact on sales and operations as well as the overall financial health of a corporation.

Blog Roll
Business Challenges
Main | America‚Äôs Manufacturing Renaissance »
Monday
Jan212013

The Evolution of Offshoring

Multinationals and large corporations that have in the past outsourced and/or offshored manufacturing and service work are now coming full circle with this process. As outlined in a few previous Gilmore Lewis, LLC blogs, companies have begun to see an increase in wages overseas as well as in some cases issues with quality and a compounding of shipping costs thus causing them to rethink the process and to “reshore” some of their overseas manufacturing.


The theme that is now emerging (pun intended) is that many of these companies are bringing the manufacturing process back to the US for products produced here and reducing or repurposing their outsourced operations to address the local emerging markets that have become consumers of their products such as India and China.


Even China sees value in this and with Lenovo as an example has opened a facility in North Carolina in order to manufacture PCs for the US market. The political implication of this is not lost on many Americans, but there is a value to having the R&D and production right here in the US in order to speed delivery to market of their products.


Tata Motors of India is even brining some manufacturing capacity for Range Rover back to the UK for the local market there.

For more on this topic see the Economist’s Special Report: Outsourcing and Offshoring, and the section titled Reshoring Manufacturing: Coming home.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>