This Case is about Manufacturing
Publication Date: January 15, 2014 Product #: BH580-PDF-ENG
With price edges from making in Asia and Mexico steadily deteriorating, U.S. companies are reassessing the choice of national outsourcing to stay internationally competitive. In assessing international versus national outsourcing tactical choices the challenge lies in that first movers are deliberately and tremendously vague about how they reach their conclusions.
The aim of the post will be to show these motives by giving statistical and business-established signs on five important variables which are affecting the choice regarding where U.S. businesses should make to optimize their gross profits. The variables include (1) increasingly competitive U.S. labour prices; (2) raising productivity of the U.S. work force; (3) increasingly competitive national production costs; (4) incentives from federal, state, and local authorities; and (5) improved synchronization of creation with other company functions.Why Domestic Outsourcing is Leading America's Reemergence in Global Manufacturing Case Solution