Monday, December 27, 2004

Outsourcing can come full circle

Not All Outsourced Jobs Are Lost Forever (Newhouse News Service)

    (Epson Portland President Dave) Graham says Epson and other companies that outsource abroad encounter unexpected costs moving raw materials around. Firms can save money and time, he says, by manufacturing close to markets.

    Global companies make those calculations constantly, says John Mosier, director of worldwide operations for material and logistics at FEI Co. The maker of nanotechnology tools distributes manufacturing among its plants at Hillsboro headquarters and in Massachusetts, Germany, the Netherlands and the Czech Republic.

    Tariffs, currency fluctuations, freight charges and other costs can wipe out labor savings abroad, Mosier says. "Those considerations are always in play," he adds. "We look at total delivered cost." More here

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