Here is a great video I found that discusses the future of manufacturing in the global economy and what this means for the major international business systems.Â Globalization is here to stay and business owners need to understand the pro’s and con’s of being involved in this process. Manufacturing is not a dying art throughout the world. it is simply going through a relocation process, where the labor intensive processes are being taken offshore to low cost countries such as India and China. However, the key question that any any business owner must be asking is this: “How do I maintain the level of capability to meet the demands of the global markets?”
When the basic, labor intensive production activities are taken offshore, the advanced technical capabilities often follow soon after as the low cost countries are establishing themselves as key players in the global supply chain. This should be a disturbing trend to politicians and business owners in the US because it erodes the innovative capabilities and research and development as these low cost countries increase their internal capability to achieve parity with organizations in the US and Europe. Watch the video and see for yourself!
The Future of Manufacturing
This video is thought provoking because it clearly demonstrates what the future of manufacturing is going to be like with increasing globalization. Our lean supply chains are going to become more international based entities. Companies will have their corporate offices located in one country while their manufacturing and assembly processes will be located elsewhere around the globe. Unfortunately,Â these decisions are currently based on financial strategies, which in my opinion is shortsighted. Eventually these decisions will have to be based on market demands and supply chain capabilities to give the customer what they want, when they want it, on-time, every time!
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