Posted on 01/03/2006 8:18:08 PM PST by jb6
Jan. 3, 2006 -- Currently 29% of U.S. manufacturing companies are outsourcing part of their new product development process, with 41% reporting that they are evaluating outsourcing options within the next 12-24 months.
According to a recent survey by Boston, Ma.-based AMR Research Outlook authored by Lance Travis and David O'Brien, these outsourced services include not only the low-value activities that many would expect, but also encompass the complete spectrum of product engineering. Software-related activities are growing the fastest, but mechanical design and engineering analysis are also showing strong growth.
One reason for the growth of these outsourcing activities is cost savings. The study found that 57% of companies named labor cost savings and 47% report manufacturing cost savings as benefits of outsourcing. Additionally companies saw a 33% improvement in quality after outsourcing.
Furthermore, 45% of the companies reported improved time to market -- which is especially important since new product introductions can be problematic. Manufacturers have reported, in related AMR studies, that 50% of new product introductions fail.
And what is Washington's answer to this? Well keep taxing and regulating businesses out of existence in this country. And the libs want nothing but power and control, so they keep the extortionist unions in control with support while industry keeps pandering to the unions.
How long before the U.S. auto industry moves overseas?? Not long IMHO. Way to go Washington -- another fine example of national leadership. Just put this one on the growing list.
Greed is a destructive thing. Big government is part of the problem, but even more is that American executives are only thinking of their own bonuses.
My own employer, the All-American truck company, is out-sourcing engineering design work to Indians - both in India and imported contractors!
Who do you think will have the truck design expertise when this program is completed?
That's right: India.
What sort of greed makes someone so shortsighted as to approve a stupid idea like this?
And those bonuses are pinned to quarterly reviews, the long term viability of the corporation be damned.
I'd like to see a comparison of company stock prices and the amount of work outsourced from over the last five years.
And Indians or Chinese will NEVER understand what will sell (or how to sell) in the US better than Americans.
The problem is US corporations who think that Americans will continue to buy over-priced crap JUST because it was produced in America [Yes, I own a Honda because it's cheaper and of higher quality than anything the UAW can put out...].
CLOSE ALL THE GUBMINT SCHOOLS! THE MOST IMPORTANT THING IS TEACHING ID!
I'm sorry, is this the wrong thread for that thought?
America's problem at root is the manufacture of fake money, courtesy of the Federal Reserve. Until the problem is addressed and cured, America will export jobs. This isn't hard to understand -- but most 'conservatives' will never 'get it.' Pity for us all.
Washington is allowing replacements or guest workers as
they are refered to, to immigrate unofficially, and provide
a low wage labor base Americans refused to provide.
Estimates are 3mil.-7mil. guest workers.
Im sure employers arent to worried about the sudden influx
of cheap help.
many Japillacs are built here now, and many parts of Toyotas are made here also.
Who needs a mechanical or electrical engineer when there are no factories around? Who needs R&D when the brain power is Over Der!
Rule #1 of outsourcing: NEVER, EVER outsource your core business activity. That is like selling your company for a fraction of its market price, without the liquidity.
And Indians or Chinese will NEVER understand what will sell (or how to sell) in the US better than Americans.
Don't think so? They're making huge inroads with electronics and appliances.
http://www.haieramerica.com/news_and_new_products.php
Bet you can't wait for this baby to hit the market...
http://www.chinadaily.com.cn/english/doc/2005-12/16/content_504044.htm
Instead of simply assuming that being #1 for fifty years meant that GM would be #1 forever, maybe GM should have been spending time trying to figure out how to produce a five passenger vehicle that doesn't fall apart after three years and gets 35 miles/gallon.
Don't tell me American engineers don't know how to do it. Their bosses simply were blind to the fact that people would buy it.
I've seen a lot of the Chicom products coming over. They're good. In fact they are very good in terms of engineering and design. In fact, at this moment -- weirdly -- there's a labor shortage in china among certain industries. Nobody wants to work making the cheap plastic crap anymore for 50 cents an hour. They'd rather work making electronics for 75 cents an hour.
This stuff -- higher end electronic and appliances -- is hitting the States now. But it isn't going to take 25 years to take over markets like it did with the Japanese influx. Supply chains are already established. "China price" already known and outlets already online. It's gonna take less than ten years before we're up to our eyeballs in "China Price" cars, fridges, air conditioners, big screen TVs and bikes.
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