HOME  |  NEWS  |  BLOGS  |  MESSAGES  |  FEATURES  |  VIDEOS  |  WEBINARS  |  INDUSTRIES  |  FOCUS ON FUNDAMENTALS
  |  REGISTER  |  LOGIN  |  HELP
Blogs
Blog

Industry 4.0 May End Outsourcing

NO RATINGS
View Comments: Newest First|Oldest First|Threaded View
Greg M. Jung
User Rank
Platinum
Re: Profitability vs. Outsourcing
Greg M. Jung   7/8/2014 11:50:09 AM
NO RATINGS
I agree with you Rob.  To your point, there may be additional international tariff codes and regulations that will encourage manufacturing of certain goods to be closer to our foreign customers.

Rob Spiegel
User Rank
Blogger
Re: Profitability vs. Outsourcing
Rob Spiegel   7/8/2014 8:28:06 AM
NO RATINGS
Good point Greg. Even with the most efficient systems, some outsourcing would be necessary just to keep manufacturing close to customers. US producers will probably still want to manufacture goods in Europe for Europen customers, and in Asia for Asian customers. 

Greg M. Jung
User Rank
Platinum
Profitability vs. Outsourcing
Greg M. Jung   7/2/2014 1:10:37 PM
NO RATINGS
I believe there will be a reduction of outsourcing, but we won't see the total 'end of outsourcing' as some in the article may foresee.  As long as outsourcing is perceived to generate more profitability due to lower material costs, importing of parts will continue (but perhaps at a reduced rate).  There will always be other countries that will offer lower cost goods.

One reason for this will be a non-level playing field that other countries have.  The United States has stricter EPA,  OSHA regulations etc. than other lower cost regions and this will continue to be a factor in lower pricing.  Another reason is that many corporations have accounting models that do not take in the total cost of ownership during the decision process.  Lower material costs look very attractive until cost of quality, expedited freight, product shipping delays and personal travel expenses are also factored into these accounting equations.

Again, I believe Industry 4.0 can help, but until some of the other critical cost factors are addressed, I am concerned that the perception of profitability will still bias towards outsourcing.

isaacsam
User Rank
Iron
Re: bring it back
isaacsam   7/2/2014 3:39:11 AM
NO RATINGS
It is really interesting and I must appreciate for such brilliant task.

Chemdry

Rob Spiegel
User Rank
Blogger
Re: bring it back
Rob Spiegel   6/20/2014 12:53:04 PM
NO RATINGS
I agree it's very interesting Naperlou. I remember the mass customization concept from the 1990s. Nothing much happened with it until recently. Now the term has been brought out from the mothballs. It can be done now.

naperlou
User Rank
Blogger
bring it back
naperlou   6/20/2014 11:48:21 AM
NO RATINGS
Rob, a strong link between engineering and manufacturing?  That's such a 1980s concept. 

I am involved in the IIoT and Big Data areas.  These are important in implementing a dream for manufacturing of mass customization.  This is something that the cars companies have been talking for a long time.  It has been a reality, but we don't generally take advantage of it becuase of the lead time.  With Industry 4.0, that lead time can be significantly reduced.  This makes obsolete the process of making something en mass overseas and shipping it. 

It is an interesting time to be invovled with these technologies.

Partner Zone
More Blogs
At some point in the distant future, we may all be driving electric cars. Until then, however, the debate over their ongoing viability rages on.
The choice between helical and spur gears in gearboxes may seem straightforward. But with planetary gearboxes, however, the choice between helical and spur gears requires some additional thought. Here’s what you need to know to make the right choice.
With outsourcing down and reshoring up, the US saw a net gain of 10,000 manufacturing jobs that would have gone overseas last year.
Cas Smith is a biological engineer at Terrapin Bright Green, a consulting firm that specializes in green and sustainable design. At the core of his work is to explore how biomimicry can inform sustainable design. He discussed biomimicry and its implications for design and solving some of the world’s sustainability issues in an interview with Design News.
Effective cyber security requires auditing and clearly defined security clearances.
Design News Webinar Series
3/31/2015 11:00 a.m. California / 2:00 p.m. New York
2/25/2015 11:00 a.m. California / 2:00 p.m. New York
12/11/2014 8:00 a.m. California / 11:00 a.m. New York
5/7/2015 11:00 a.m. California / 2:00 p.m. New York
Quick Poll
The Continuing Education Center offers engineers an entirely new way to get the education they need to formulate next-generation solutions.
May 4 - 8, Designing Low Power Systems using Battery and Energy Harvesting Energy Sources
SEMESTERS: 1  |  2  |  3  |  4  |  5  |  6 |  7


Focus on Fundamentals consists of 45-minute on-line classes that cover a host of technologies. You learn without leaving the comfort of your desk. All classes are taught by subject-matter experts and all are archived. So if you can't attend live, attend at your convenience.
Last Archived Class
Sponsored by Proto Labs
Learn More   |   Login   |   Archived Classes
Twitter Feed
Design News Twitter Feed
Like Us on Facebook

Sponsored Content

Technology Marketplace

Copyright © 2015 UBM Canon, A UBM company, All rights reserved. Privacy Policy | Terms of Service