Mexico vs. China. Which is the Better Plant Location?
The question of whether Mexico is a better place to manufacture a product versus China seems to come up frequently. A recent Los Angeles Times article combined with my experiences in closing a USA plant and building a new plant in Shanghai are the sources for the following: Since 2000, the 3,700 Mexican Maquiladoras have declined to 3,200 with a loss of over 250,000 jobs. Most have relocated to China. These include operations of Hasbro, Sanyo... Read More
Outsourcing from China – Avoiding this Horror Story
A recent article in Manufacturing News described the outsourcing horror story that has engulfed Fellowes Inc. The large paper shredder manufacturer has suffered a significant loss in China. A Chinese joint venture partner stole Fellowes Inc.’s proprietary assets and forced the operation into bankruptcy. The estimated cost is valued at a $100 million. Now the former Chinese partner is planning on entering the shredder business independently,... Read More