We Saw This Coming


Reading time ( words)

There have been quite a few predictions and studies, along with plenty of wishful thinking, about the cost of manufacturing in the U.S. The onshoring/re-shoring movement has gained a lot of attention from media like ours over the last couple of years. IPC even issued a report last year providing their take on the movement, which garnered a lot of interest from the industry.

Now, The Boston Consulting Group (BCG), a global management consultant, has released new research on the “dramatic” change of manufacturing cost competitiveness around the world. BCG’s press release is entitled, “Study Reveals Striking Shifts in Global Manufacturing Costs over the Past Decade.” I found the use of the word “striking” to be interesting. It almost leads me to believe they were surprised by the trends in manufacturing costs.

For those of us watching the shift over the last few years, it isn’t striking at all. It’s been coming for some time. As I’ve said in the past, all things come back into balance. The rising costs in Asia, and China in particular, have made it very clear that you can only sustain dirt-cheap manufacturing for so long. At some point, lax or non-existent labor and environmental standards, ridiculous lending policies, manipulated currencies, etc., will yield a day of reckoning. People get tired of breathing bad air and drinking polluted water. Trading partners say “enough is enough” and demand fair currency valuations. And banks struggle to survive under the weight of bad loans made during the heady days of unbridled growth.

Read the full column here.


Editor's Note: This column originally appeared in the June 2014 issue of SMT Magazine.

Share


Suggested Items

3D Printing and Medical Electronics: A Disruptive Beneficial Technology

12/11/2018 | Dan Feinberg, Technology Editor, I-Connect007
We are seeing significant advances and increased uses for 3D manufacturing in medicine—many more than 3D-printed and conductive circuits on device structural components. There is enough movement in this area that 3D additive fabrication in medicine—including but not limited to 3D-printed circuits—has become its own topic, and one that we will be watching and continuing to cover.

I-Connect007 Research

12/05/2018 | Stephen Las Marias, I-Connect007
In a recent SMT007 survey, we asked our readers how inspection has helped them improve their manufacturing process. Here are just a few of the answers, edited slightly for clarity.

CFX: Building the Foundation for Industry 4.0

11/02/2018 | Stephen Las Marias, I-Connect007
IPC has been showcasing the Connected Factory Exchange (CFX) initiative in action at the many industry events this year, providing a technical demonstration operating in real time with standardized machine data delivered from participating exhibitors through the cloud and onto visitors' cellphones. In this interview, Dave Bergman, VP for international relations at IPC, discusses the latest developments with IPC’s CFX standard, including key highlights, impact in the electronics assembly industry, and what’s next.



Copyright © 2018 I-Connect007. All rights reserved.