Tag Archives: Global

Volkswagen (VW) and its Modular Transverse Matrix strategy for part commonality

An article in Fortune (July 23, 2012) describes VW’s plan to standardize the 60 % of a car model’s cost – the front axle, heating, air conditioning etc across 40 car models and thus seven million units. The projected savings … Continue reading

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Lending plants to get OEMs back on track after the Japanese earthquake

A report published by the Congressional Research Service (“The Motor Vehicle Supply Chain: Effects of the Japanese Earthquake and Tsunami” by Bill Canis, May 23, 2011) describes an example in which Denso, a Tier 1 supplier to Toyota, decided to … Continue reading

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Planning for Greece exiting the euro

An article in the New York Times (September 3, 2012) describes plans by US companies in the event of an announcement that Greece will exit the euro and move back to the drachma. Some of them include sending employees into … Continue reading

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Robots and the new US manufacturing competitiveness

An article in the New York Times (August 18, 2012) describes a solar panel plant in San Francisco that uses a significant amount of robots and few people, a Philips plant in the Netherlands that uses 10 % of the … Continue reading

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Shift to territorial tax regime, or reduce environmental regulations to grow US manufacturing ?

An article in the Wall Street Journal (August 29, 2012) describes recommendations by manufacturers to the US government to enable growth in US manufacturing. Some recommend reducing environmental laws and thus decrease costs for US production – but this will … Continue reading

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Indonesian illegal tin mining and the smartphone and tablet connection

An article in Bloombergbusinessweek (August 23, 2012) describes the dangerous conditions faced by miners at illegal mines in Indonesia, with demand and price increased riven by the collateral impact of bans against “conflict materials” in the Congo. With the tin … Continue reading

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Making shoes for the world in Ethiopia ?

An article in the Economist (June 9, 2012) describes demand for $2 shoes in Ethiopia, as protection against injuries, worms etc that affect bare feet. The population of Ethiopia is expect to double by 2040, chronic hunger impacts fewer Ethiopians … Continue reading

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Moving production to the US despite lower Chinese manufacturing costs

An article in Bloombergbusinessweek (June 25, 2012) describes several examples of companies that moved production to the US from China, despite up to 30% lower Chinese manufacturing costs. For Lightsaver, the 30% lower manufacturing costs were compensated by costs of … Continue reading

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A shortage of jute bags hurts storage of a bumper wheat crop in India

An article in the Wall Street Journal (June 23, 2012) describes the large wheat harvest in India, but a shortage of jute bags. Indian law specifies that 100% of the wheat should use jute bags, to protect the industry and … Continue reading

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Google’s “Made in the USA” media player

An article in the New York Times (June 27, 2012) describes Google’s new media player assembled by a contract manufacturer in California, about a 15 minute drive from Google’s office. Rising wages in China, worries about intellectual property and an … Continue reading

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