Recently, I received an e-mail from a U.S. electrical products company warning me that, on Oct. 15, the tariff on power supplies and power cords imported to the U.S. from China would increase from 25 percent to 30 percent.
CHICAGO—Boeing is actively encouraging its suppliers to outsource work to Mexico. Patrick McKenna, director of supply chain strategy and supplier management at Boeing Commercial Airplanes, has urged suppliers to attend a Nov. 15 workshop in Chicago to learn how to do business in Mexico.
No matter what type of product they make, all manufacturers walk the same fine line and face many of the same burdens. For example, when the path to profitability reaches a T or a Y, management often must make a critical decision: go left and invest in assembly automation technology, or go right and outsource production.
Most people who purchase a BMW X3 have no idea that it's not built by the company from Munich, Germany, that claims to provide "the ultimate driving machine." The $36,000 sport utility vehicle is actually assembled by Magna Steyr, a contract manufacturer that builds cars for several other automakers, including DaimlerChrysler (Auburn Hills, MI) and General Motors Corp. (Detroit).
As outsourcing continues to evolve, it’s becoming more complicated. Indeed, depending on what acronym you use, outsourcing can mean different things to different people.
