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
It's been two years since the Mac Mini's last appearance on iFixit's teardown table, but a newly revised version joins Apple's lineup this week.
More often than not, with the purchase of a sports car comes the sacrifice of any sort of utility. In other words, you can forget about a large trunk, extra seats for the kids, and more importantly driving in snowy (or inclement) weather. But what if there was a vehicle that offered the best of both worlds; great handling and practicality?
Kevin Gautier of Formlabs describes the making of a carbon fiber mold for an intake manifold, using a $3,300 3D printer, during Medical Design & Manufacturing Midwest.
Science fiction author Isaac Asimov may have the best rules for effective brainstorming and creativity. His never-before-published essay, "On Creativity," recently made it to the Web pages of MIT Technology Review.
Much has been made over the potentially dangerous flammability of lithium-ion batteries after major companies like Boeing, Sony, and Tesla have grappled with well-publicized battery fires. Researchers at Stanford University may have come up with a solution to this problem with a smart sensor for lithium-ion batteries that provides a warning if the battery is about to overheat or catch fire.
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
Next Class: 11/11-11/13 2:00 PM
Sponsored by Littelfuse
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