Recently, I received an e-mail from a U.S. electrical products company warning me that, on Oct. 15, the tariff on power supplies and power cords imported to the U.S. from China would increase from 25 percent to 30 percent.
In our last column, we discussed how “total cost of ownership” (TCO) could reveal the hidden costs of offshoring and quantify the real profit and loss impact of reshoring or offshoring.
Several respondents to my original blog say the 787's battery problems are a minor blip that Boeing will correct quickly. My impression is that the battery is becoming aviation’s equivalent of the Ford Pinto.
CHICAGO—Boeing is actively encouraging its suppliers to outsource work to Mexico. Patrick McKenna, director of supply chain strategy and supplier management at Boeing Commercial Airplanes, has urged suppliers to attend a Nov. 15 workshop in Chicago to learn how to do business in Mexico.
TOKYO—Nissan has abandoned plans to have Canadian auto parts company Magna International assemble the new compact model for its Infiniti luxury brand in Austria. Nissan now plans to build the future compact Infiniti vehicle in-house.
TOKYO—Magna Steyr has signed a contract with Nissan to assemble Infiniti’s future entry-level luxury compact car. Production is expected to begin in 2014.
No matter what type of product they make, all manufacturers walk the same fine line and face many of the same burdens. For example, when the path to profitability reaches a T or a Y, management often must make a critical decision: go left and invest in assembly automation technology, or go right and outsource production.