September 3, 2008 - Modern Distribution Management

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September 3, 2008

Will Global Conditions Bring Back Offshore Production?

Leave a Comment / Economic Trends, Research & Analytics, Free, Subscriber Only /

Are global conditions at a tipping point? Should offshore production move back home -or at least closer to home? That's what manufacturers need to consider, says this article in the McKinsey Quarterly. "Turbulent" economic winds are undermining some of the factors that pushed production offshore in the first place, according to McKinsey.
 
The article presents some interesting numbers, based on the fact that crude oil has risen from $28 a barrel in 2003 to more than $100 a barrel now: The cost of shipping a standard 40-foot container has tripled since 2000. Wage inflation and a weaker dollar aren't helping matters. Wages in China have increased on ...

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Federal Reserve Beige Book: Consumer Spending Slowing

Leave a Comment / Economic Trends, Research & Analytics, Free, News, Subscriber Only /

According to the Federal Reserve Beige Book economic report release Wednesday, consumer spending is slowing. The report is based on information from 12 Federal Reserve Districts in the U.S.

Here's a broad overview of what they said. (For more, including district detail, click here.)

Overall, reports indicate economic activity is slow and business conditions are "weak," "soft" or "subdued." Not all markets are seeing this, however, as Boston and New York had signs of stabilization and Kansas City has seen a slight improvement.

Auto sales are falling or steady at low levels; tourism was mixed; and demand for services has lessened. The transportation ...

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