Pan Pacific Symposium Conference Proceedings


A NEW MANUFACTURING MODEL FOR SUCCESSFULLY COMPETING IN HIGH LABOR RATE MARKETS

Author: Tom Borkes
Company: The Jefferson Project
Date Published: 1/22/2013   Conference: 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).

Key Words: 

U.S. competitiveness, offshore manufacturing, Concurrent Education, electronic components



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