Ceramic Industry Blog


Is Outsourcing the Answer?

July 28, 2008
/ Print / Reprints /
ShareMore
/ Text Size+

The question, of course, is “How can my company save money and remain competitive in this increasingly difficult economy?” It’s not a new question, for sure. For decades, U.S. manufacturers have moved services, logistics, engineering and production operations off-shore in order to reduce costs. Labor is much less expensive overseas, and manufacturers need not worry about as many pesky environmental regulations when operating far from the reach of the EPA.

Of late, however, rapidly escalating oil prices have pushed fuel costs through the roof for many manufacturers, resulting in supply chain questions and untenable transportation costs. Subsequently, many U.S. manufacturers are actually relocating production operations back to domestic locations.

Outsourcing is still a viable option for many manufacturers, however, despite fuel costs and the increasing complexity of the global marketplace. Sourcing advisor EquaTerra predicts that “demand for business process and IT outsourcing (BPO and ITO) is expected to exceed 2006 and 2007 levels. [Second quarter 2008] demand and supply increased for emerging knowledge process outsourcing functions such as engineering, research and development, financial modeling and analytics, and legal process work. There was also growth in areas like document services, facilities and real estate management, and logistics services.”

A recent report from the National Association of Manufacturers (NAM) offers advice on “Forging New Partnerships: How to Thrive in Today’s Global Value Chain.” According to John Engler, president and chief executive officer of NAM, “Small and medium manufacturers account for 40% of U.S. production value, and their successes and failures can have a substantial impact on America’s economy. Manufacturers must collaborate closely with new domestic and overseas partners to survive and thrive in the global supply chain. In today’s economy, small and medium manufacturers are more than just suppliers. They are helping to create the new technologies, products, services and business models that are vital for success, both here and abroad. By connecting with outside resources – customers, government, academia – small and medium manufacturers can swiftly expand their core competencies and gain economies of scale.”

A copy of the full NAM report is available at www.nam.org/supplychain. Additional information from Equa Terra is available at www.equaterra.com.
You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

In-Depth Features

These articles detail innovative advanced ceramic and glass materials and technologies.

Podcasts

Sapphire: An Extreme Performer

Ian Doggett of Goodfellow and CI Editor Susan Sutton discuss the benefits and opportunities provided by industrial sapphire.

More Podcasts

THE MAGAZINE

Ceramic Industry Magazine

CI April 2014 cover

2014 April

Our April issue features details on advanced materials such as ceramic matrix composites and piezoelectric ceramics, among many others. Be sure to check it out!

Table Of Contents Subscribe

THE CERAMIC INDUSTRY STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Ceramics Industry\handbook of advanced ceramics.gif
Handbook of Advanced Ceramics Machining

Ceramics, with their unique properties and diverse applications, hold the potential to revolutionize many industries, including automotive and semiconductors.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Directories

CI Data Book July 2012

Ceramic Industry's Directories including Components, Equipment Digest, Services, Data Book & Buyers Guide, Materials Handbook and much more!

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40