Tag Archives: manufacturing

The Impact of concentration in the Global Electronics Supply Chain

Posted on October 8, 2011 by aviyer2010

An article in the Economist (Oct 8, 2011) describes how concentration of manufacturing by Taiwanese firms has enabled price decreases and feature increases faster than chip prices. At HTC, new product development time has dropped by six months compared to two … Continue reading →

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Yuan Appreciation, labor flexibility and back to US manufacturing

Posted on October 7, 2011 by aviyer2010

A Wall Street Journal article (Oct 7, 2011) describes decisons a furniture manufacturer and high end earphone to move production back to the US. The reasons – a 30 % yuan appreciation from 2005 to 2011, US union flexibility and … Continue reading →

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Otis decides to return manufacturing to an American plant

Posted on October 7, 2011 by aviyer2010

A Wall Street Journal (Oct 6, 2011) report describes a decision by Otis to move production from Mexico to South Carolina. Reasons cited include (a) 70 % of its customers will be closer to the new plant, (b) Freight and … Continue reading →

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Sprint guarantees Apple it will take 30 million iPhones ?

Posted on October 5, 2011 by aviyer2010

A Wall Street Journal article (Oct 4, 2011) describes a guarantee by Sprint that it will buy at least 30.5 million iPhones in return for the opportunity to offer those phones on its network.  Such volumes in turn enable Apple … Continue reading →

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Estimating Apple’s potential revenue based on supply chain partner volumes

Posted on October 4, 2011 by aviyer2010

A Bloombergbusinessweek (Sept 12-16, 2011) article describes the Apple company forecast that sales will drop 12 % this quarter. But analysis of Apple’s outsourced supply base consisting og Foxconn, Samsung etc that provide 75 % of Apple’s cost of goods … Continue reading →

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Rising leather prices and supply chain impact

Posted on October 2, 2011 by aviyer2010

An article in Bloombergbusinessweek (Sept 19, 2011) describes the surge in leather prices – 21% in 2011 and 43 % in 2010. The reasons (a) decreased beef consumption in response to health concerns and income slowdown and thus reduced cattle … Continue reading →

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The US Navy’s concern about sole suppliers for defense

Posted on October 2, 2011 by aviyer2010

An article in Bloombergbusinessweek (Sept 5, 2011) describes the worry in the Navy that their sole sourced contract for the Aegis Combat System with Lockheed Martin may not have delivered the best deal. Past contracts to Lockheed have been under … Continue reading →

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Small tractors at John Deere and potential global growth

Posted on October 2, 2011 by aviyer2010

A Bllombergbusinessweek article (Sept 26, 2011) describes plans by John Deere to build small tractors that are more suitable to the 3 acre farms that are typical in India. Given the anticipated large growth in agricultural land that will demand … Continue reading →

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Organizing Chilean rural carpenters into networks to sell sustainable wood furniture

Posted on October 1, 2011 by aviyer2010

A report by the WEF and BCG (http://reports.weforum.org/new-sustainability-champions/#view/new-sustainability-champions/case-studies/florida-ice-farm/) describes a Chilean wood producer Masisa. The company gets wood from pine and eucalyptus farms it owns, which are processed to form wood boards.It organized remote rural carpenters into networks that can … Continue reading →

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Indian manufacturer exporting Jaguars from Britain to Asia

Posted on October 1, 2011 by aviyer2010

The Economist (Sept 24, 2011) describes the Halewood plant (near Liverpool) , part of the Jaguar Land Rover plant owned by Tata Motors. Addition of the Land Rover to the plant has increased its manufacturing capacity and associated employment.  But … Continue reading →

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