Bringing it home

Perhaps I am dreaming, but there appears to be a “nudge” (not yet a trend) amongst the manufacturing firms I talk to towards a review of the cost/benefit of overseas sourcing of manufactured products.

At the end of the spectrum where ownership of IP, and innovation are important, firms appear to be reconsidering the value of “off-shoring”  recognising that keeping the processes that create value closer to home, where they can be developed, and leveraged with a more sensitive hand over the long term is better than taking a short term cost benefit.

This is not to say that there is any real future for commodity manufacturing in a high cost environment like Australia, apart from the very few areas where we should have a natural advantage, wool processing for instance, but there is a rich future for the development of sophisticated, market sensitive, innovation led manufacturing, so long as we are able to grasp the drivers of that success.

 

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
This entry was posted in Change, Innovation, Marketing, Strategy and tagged , , , , , , . Bookmark the permalink.

3 Responses to Bringing it home

  1. Pingback: Another nail in the logic of outsourcing « Strategyaudit’s Blog

  2. Pingback: Lean operations undermine “offshoring?”. « Strategyaudit’s Blog

  3. Pingback: Manufacturing capability shortcomings « Strategyaudit’s Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s