29 Feb '12, 11am

EBN - Bolaji Ojo - 5 Reasons Western Factories Will Hum Again via @ebnonline

Manufacturers cannot afford the dominance of the system by a single region. This is probably the strongest case for moving some manufacturing activities back to Western countries. The risks to the global supply chain inherent in the current system are too great for everyone to ignore. Last year's earthquake and tsunami in Japan and the flooding in Thailand exposed a serious flaw in high-tech manufacturing strategies. The industry overcame most of the associated problems within months, but it has also begun to reorganize production to avoid future problems. A real sense of urgency has yet to grip the industry, but many companies hurt by last year's earthquake, especially Japanese firms like Renesas Electronics Corp. (Tokyo: 6723), are quickly diversifying operations. In many cases, they are implementing redundancies, not just at home, but also in higher-cost but more stable...

Full article: http://www.ebnonline.com/author.asp?doc_id=239867&section...

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