April 17, 2013 | Written by: Thorsten Schroeer
Low cost country sourcing and manufacturing comes back from cheap Eastern Europe and Asia mainland to their home regions.
Over the last 10-15 years all long established manufactures focused their business expansion into the growth regions including China and India. Besides new sales subsidiaries companies positioned themselves in those regions also for the extension of their procurement reach and extending their manufacturing footprint.
In recent months more and more news come out on manufacturing companies moving back to their original manufacturing footprint away from low cost regions triggered by the burden of supply chain risks, economic uncertainties and increasing value of brand reputation.
“Google Inc. made a big splash by announcing that its Nexus Q music and video player will be manufactured in the U.S”
“President Obama notes Apple’s plan to bring Mac manufacturing back to U.S. in 2013”
“Philips Lifestyle brings back shaver manufacturing from China to The Netherlands”
Besides economic value “Assembled in US” or “Made in Germany” set quality standards for a long time which come more and more back to the mind of the customer building brand value.
Also latest IBM Global location trends: 2012 annual report (www.ibm.com/gbs/pli) reflects this latest trend on reshoring.
So how will this continue? Let me know what your Point of View is.