A NEW MANUFACTURING MODEL FOR SUCCESSFULLY COMPETING IN HIGH LABOR RATE MARKETS
Author: Tom Borkes Company: The Jefferson Project Date Published: 1/22/2013
Pan Pacific Symposium
Abstract: This paper presents the results of a study that challenges a widely accepted tenet of industry “wisdom.” Specifically, the axiomatic claim that to be most competitive in the global high-tech electronic product marketplace, the assembly of the product must be done in the lowest available labor rate environment. This “given” is thought to be especially certain for high volume applications. A new assembly high labor rate model is developed on the basis of the key cost variables, LMNOP: (L)abor, (M)aterial, and NOP (N)ational (O)ut-bordering (P)redisposition).
U.S. competitiveness, offshore manufacturing, Concurrent Education, electronic components