HOME  |  NEWS  |  BLOGS  |  MESSAGES  |  FEATURES  |  VIDEOS  |  WEBINARS  |  INDUSTRIES  |  FOCUS ON FUNDAMENTALS
  |  REGISTER  |  LOGIN  |  HELP
Comments
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
Latest Analysis
Advertised as the "Most Powerful Tablet Under $100," the Kindle Fire HD 6 was too tempting for the team at iFixit to pass up. Join us to find out if inexpensive means cheap, irreparable, or just down right economical. It's teardown time!
The first photos made with a 3D-printed telescope are here and they're not as fuzzy as you might expect. A team from the University of Sheffield beat NASA to the goal. The photos of the Moon were made with a reflecting telescope that cost the research team 100 to make (about $161 US).
At Medical Design & Manufacturing Midwest, Joe Wascow told Design News how Optimal Design prototyped a machine that captures the wing-beat of a duck.
The increased adoption of wireless technology for mission-critical applications has revved up the global market for dynamic electronic general purpose (GP) test equipment. As the link between cloud networks and devices -- smartphones, tablets, and notebooks -- results in more complex devices under test, the demand for radio frequency test equipment is starting to intensify.
Much of the research on lithium-ion batteries is focused on how to make the batteries charge more quickly and last longer than they currently do, work that would significantly improve the experience of mobile device users, as well EV and hybrid car drivers. Researchers in Singapore have come up with what seems like the best solution so far -- a battery that can recharge itself in mere minutes and has a potential lifespan of 20 years.
More:Blogs|News
Design News Webinar Series
10/7/2014 8:00 a.m. California / 11:00 a.m. New York
9/25/2014 11:00 a.m. California / 2:00 p.m. New York
9/10/2014 11:00 a.m. California / 2:00 p.m. New York
7/23/2014 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.
Oct 20 - 24, How to Design & Build an Embedded Web Server: An Embedded TCP/IP Tutorial
SEMESTERS: 1  |  2  |  3  |  4  |  5  |  6


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.
Next Class: 10/28-10/30 11:00 AM
Sponsored by Stratasys
Next Class: 10/28-10/30 2:00 PM
Sponsored by Gates Corporation
Learn More   |   Login   |   Archived Classes
Twitter Feed
Design News Twitter Feed
Like Us on Facebook

Sponsored Content

Technology Marketplace

Copyright © 2014 UBM Canon, A UBM company, All rights reserved. Privacy Policy | Terms of Service