Three events occurred in the last four years changing technology development and manufacturing that, combined, created an environment where new nations are emerging as potential providers of outsource services, former manufacturing nations like the US are being flocked back to, and current providers of outsource services are outsourcing themselves.
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Outsourcing & Offshoring
Why I believe the outsourcing trend is reversing
2011 Report: China manufacturing hourly labor rate, compensation costs impact EMS
China’s hourly manufacturing labor rates are far below rates in Japan ($27.80) and Taiwan ($8.68) but roughly on par with nations like the Philippines ($1.68). China manufacturing compensation costs slightly higher than those in India. Many EMS / ODM companies in China, especially those making PCs, are moving operations inland.
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EMS manufacturing site relocation and selection in North America
Some states offering incentives for EMS providers are really just imposing more taxes. Understanding which states are more aggressive when it comes to incentives capabilities is key to selecting geography.
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Understanding working with Chinese state-owned enterprises
Your chances for success increase if you align your objectives with government of China’s local, regional or national pathway.
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2011 Forecasts global EMS / ODM growth slowing with China no longer the exception
Margin improvement now a function of end-market mix. Given rise of material costs and wages in areas like China, 2011 margins are apt to be heading sideways or downward.
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How to build trust in your OEM-EMS global partnerships
Electronics manufacturing services (EMS) providers routinely struggle to gain insights on how they can fit into an OEM’s product roadmap. And rightly so, since many OEM’s are concerned their product roadmaps, if revealed, could be given to a competitor the EMS provider is also serving.
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Hong Kong as base camp for western companies in China
China-based author informs our western business readers about things to do in Hong Kong while managing operations in China.
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Worldwide EMS / ODM five year forecasts deals blow to pure ODM model, reflects trends and challenges for industry, OEMs
IDC’s five year forecast (2009 – 2014, see chart) for the worldwide EMS and ODM sectors, plus worldwide total EMS industry, reflects the cost (spend) for product outsource design and manufacturing services and MCOGs sourced to EMS and ODM companies across the Americas, Europe and Asia.
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India business visas create challenges for western companies
Changes affect technology companies wanting to seize new opportunities for international suppliers in India’s $40 billion electronics manufacturing and services industries. India must avoid restrictions that could crimp Indian economic growth. No longer permissible to use business visas to enter India for project or contract services work. Foreign expatriate community frustrated with Indian visa unpredictability.
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7 China purchasing, supplier mistakes to avoid
China’s electronics industry is a marketplace full of competition. Learn to avoid common mistakes working with Chinese suppliers and vendors. Ignoring any of the key points in this article will bring troubles to you and make you frustrated.
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