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 …
Will Global Conditions Bring Back Offshore Production?
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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