Thth Essay

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DUE: April 12, 2013, 23:55 HR, SUBMIT ONLINE IN THE DROP BOX COMM 225, WINTER 2013: CASE STUDY TO BE DONE INDIVIDUALLY OR IN GROUPS OF MAXIMUM 3 STUDENTS FROM THE SAME SECTION (WITH SAME CONTENT EXPECTATIONS) A growing number of North American companies are moving their manufacturing back to the United States and Canada. Refer to one of the recent report on outsourcing and off shoring from The Economist: Case A: Reshoring Manufacturing: Coming Home Jan 19th 2013 | The Economist Source: http://www.economist.com/news/special-report/21569570 IN 2005, A START-UP Company from California called ET Water Systems decided to move its manufacturing operations to China. At the time there was a general exodus to Asia in search of lower costs, recalls Mark Coopersmith, the firm’s chief executive. ET Water Systems, which builds sophisticated irrigation devices for businesses, quickly started losing money, not least because it had so much capital tied up in big shipments of goods which took weeks to cross the oceans. Innovation suffered from the distance between manufacturing and design, and quality became a problem too. When five years later, Mr Coopersmith investigated the difference between the total cost of production in China and America, including the cost of shipping, customs duties and other fees, he was amazed to find that California was only about 10% more expensive than China. And that was just on the immediate numbers, without allowing for the intangible benefits of making the devices almost next door. ET Water Systems’ new manufacturing partner, General Electronics Assembly, is in San Jose. As it happens, the firm’s owner has a Chinese background and a large portion of its employees are of South-East Asian origin. The number of firms known to have “reshored” manufacturing to America is well under 100. Doubtless many more are doing so

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