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Home » The True Cost of Offshore Assembly

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Automated Assembly

The True Cost of Offshore Assembly

Shifting production to China or Mexico can be more expensive in the long run

March 1, 2003
Austin Weber
KEYWORDS manufacturing competitiveness / manufacturing logistics / offshoring / outsourcing
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A popular cult movie from the 1960s called Endless Summer depicts the antics of two surfers who travel the globe searching for the biggest and best waves to ride. Perhaps it’s time for Hollywood to film a sequel called Endless Profits, which would focus on a globetrotting chief financial officer searching for the cheapest spot to manufacture his company’s products.

The action could start in Hong Kong or Taiwan, then shift back and forth to Mexico, China, Brazil and India, with a few other spots in between. All the time, the CFO would be cavorting with local politicians and basking in the praise of shareholders back home.

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