Shipping costs, increasing wages in Asia and the need to reconnect important aspects of the manufacturing process are leading companies to rethink their off-shore manufacturing strategy. This article examines one company’s experience and the decision to bring it’s manufacturing back home.
“For years, the NCR Corporation simply followed the pack. Like many other large U.S. manufacturing companies, in the past couple of decades the maker of automated teller machines (ATMs) relied heavily on offshoring and outsourcing to trim factory costs. But recently, NCR has rejected this strategy — at least to a degree. In 2009, the company decided to move its most sophisticated lines of ATMs from its plants in China and India, and from a Flextronics facility in South Carolina, and instead manufacture the machines in Columbus, Ga., not far from the NCR innovation center, where its new technology is on display. The reason: The company was concerned that outsourcing distanced its designers, engineers, IT experts, and customers from the manufacturing of the equipment.” Source: The Case for Backshoring
If you’re considering the implications and benefits of off-shore manufacturing, we can help. We have first hand experience to help with your evaluation. Give us a call or use the “contact us” tab to get more information.