Tag Archives: manufacturing

Is US Inshoring of manufacturing and services a trend ?

An article in CNN Money (http://money.cnn.com/2011/06/17/news/economy/made_in_usa/index.htm?hpt=hp_t2) asks if the examples of companies inshoring i.e., bringing outsourced activities back to the US, is a long term trend. The articles identifies GE’s appliance plan in Kentucky that will produce refrigerators and water … Continue reading

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China cost advantage for manufacturing to disappear by 2015 ?

A report by the Boston Consulting Group (BCG) summarized in Supply Chain Digest (June 6, 2011) describes wage growth in China of 17 % a year (vs 3 % in the US) , increasing appreciation of the Yuan and labor … Continue reading

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China’s electricity rates and global supply chain impact

An article in the International Herald Tribune (25 May 2011) describes the fact that China’s central government has forced lower electricity prices to maintain export competitiveness. But utilities have responded with lower production, thus increasing production costs for factories. A … Continue reading

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Volkswagen’s considers building the Audi in it’s US plant

An article in the Wall Street Journal (May 25, 2011) states that  US production enabled VW to drop prices for the Jetta by $ 8,000 thus enabling it to compete with Honda and Hyundai’s cars in the category.  In addition, … Continue reading

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Power cuts in China and manufacturing impact

A Wall Street Journal article (18 May 2011) describes electricity rationing in Taizhou, China, which required some factories to halt production one day a week in March, two days a week in April and three days a week in May. … Continue reading

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Royal weddings, product design and manufacturing

An article in the New York Times (May 5,2011) describes how Pippa Middleton’s (Kate’s sister) gown (worn during the British wedding celebration of William and Kate)  inspired the company Faviana as well as David’s Bridal to create versions for the … Continue reading

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Opening a US plant to make candles

A Wall Street Journal article (May 5, 2011) describes the travails of Chesapeake Bay Candle as they tried to open a plant in the US. Candles face a 108.3 % inport duty and thus only 20 % of their volume … Continue reading

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Fragmented Trucking in China and Supply Chain Impact

An article in the New York Times (April 29, 2011) describes the fragmented, unregulated trucking industry in China and the consequent cost per mile of $ 2.50 to $ 3.00 per mile vs the US coat of $ 1.75 per … Continue reading

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Rethinking JIT under supply disruptions and erratic growth

A Wall Street Journal article (April 29, 2011) describes companies like Terex and Al-jon Manufacturing and their increased inventories of raw material and finished goods given supply disruptions and increased sales growth.  Whil Just-In-Time inventories enable supply to be maintained synchronized … Continue reading

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Swatch sales growth and its component supply impact

A New York Times article (April 23,2011) describes the 42 % net profit increase and sales growth at Swatch, the Swiss watch company. The company is rushing to satisfy demand in Asia and expects to add over 2,000 employees in … Continue reading

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