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    Low Cost Manufacturing Center: United States

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    1.) Next low-cost manufacturing center: the United States
    If you think the future of manufacturing belongs to China, India or other emerging economies with lower wages, think again. At least one analyst firm is predicting that reinvestment during the next five years could "usher in a 'manufacturing renaissance' as the United States becomes a low-cost country among developed nations."

    This fresh thinking comes out of The Boston Consulting Group, which predicts that within the next five years, the United States is expected to experience a manufacturing renaissance as the wage gap with China shrinks and certain US states become some of the cheapest locations for manufacturing in the developed world.
    For the complete article link to:

    http://www.smartplanet.com/blog/business-brains/next-low-cost-manufacturing-center-the-united-states/15731
    After you have had a chance to review the thinking presented by this article do you think the US could become the next low cost manufacturing center?

    2.) The reduction of boundaries between countries can be very beneficial to a growing market for a company's products. There is also another impact globalization has on businesses and that is one of fair and unfair competition. You have to look beyond the growing available market for products to the risks globalization can present a company. A perfect example of the impact of a global market was seen earlier this year when Solyndra declared bankruptcy.

    Solar energy company collapse a worrisome sign for 'green-tech' hopes
    Two main factors led to Solyndra's bankruptcy: China exporting increasingly cheap solar panels and the company using a design that made sense only when costs of materials were high, said Severin Borenstein, professor at UC Berkeley's Haas School of Business and co-director at the school's Energy Institute.
    http://www.mercurynews.com/top-stories/ci_18798500
    This was a highly visible example of government support of industry even in a market that is known to be highly cost sensitive. A question to everyone is this an example of a US investment failure or a Chinese investment success?

    3.) There are always mixed messages when you look at the issues of local languages and local customs. While it is a benefit, there are also risks. Consider a company with a high level of technical requirements for it products. People who are locals most likely don't have the technical skills to support the company. As a result there is the need for a number of expatriates to transfer and support the technology. On the other hand standard financial management and general management of a non-technical subsidiary can be handled by people with local customs and language skills.

    Sounds logical right? Well every Asian company I have worked for and all of them I know around the area have one thing in common - the CFO is always from the country of corporate origin and the general manager is usually from the country or origin. There is a strong fear amongst most business cultures that a person from the home country is required to keep control of the money and direction.

    Is this anything you have observed and is so why do you think this is?

    © BrainMass Inc. brainmass.com October 10, 2019, 4:32 am ad1c9bdddf
    https://brainmass.com/business/bcg-matrix/low-cost-manufacturing-center-united-states-465571

    Solution Preview

    1.) Next low-cost manufacturing center: the United States
    If you think the future of manufacturing belongs to China, India or other emerging economies with lower wages, think again. At least one analyst firm is predicting that reinvestment during the next five years could "usher in a 'manufacturing renaissance' as the United States becomes a low-cost country among developed nations."

    This fresh thinking comes out of The Boston Consulting Group, which predicts that within the next five years, the United States is expected to experience a manufacturing renaissance as the wage gap with China shrinks and certain US states become some of the cheapest locations for manufacturing in the developed world.
    For the complete article link to:

    http://www.smartplanet.com/blog/business-brains/next-low-cost-manufacturing-center-the-united-states/15731

    After you have had a chance to review the thinking presented by this article do you think the U.S. could become the next low cost manufacturing center?

    I believe that the United States could become a low cost manufacturing center. The article made a good point by indicating that our wages are similar to that of China because theirs are rising too. This now gives up the opportunity to grow with our manufacturing because skilled jobs will require less pay. With the way the world is going today, yes, this is a good possibility. I think about on many occasions how minimum wage has increased through the years, and now China is doing the same thing. Because of this, the competition has become closer than ever, which is probably why that part of the world despises us. Now all the businesses that are in that part of the world, they could very well end up here because of not earning enough overseas, which is a good possibility. I have no idea how soon that would happen, but I would concur that technology is having a part in this as well as that of the state of the worldwide economy. Many of those in politics desire to have a new world order with a one ...

    Solution Summary

    This solution discussed manufacturing, reduction in boundaries between countries and local languages/customs.

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