There is a growing trend that bodes well for the American economy – China is no longer the de-facto “go to place” to build your product. Companies like SeaMicro, Sleek Audio and SunReports are manufacturing their products in the U.S.A.
Articles in the March 2011 issue Wired Magazine (not yet on news stands) and the latest issue of Bloomberg Business Week describe the nexus of economic forces behind this trend.
- Labor costs in China have risen 250%
- Shipping costs from China have risen 300%
- the cost of robotics for manufacturing has dropped by 500%
The issues of control, just in time delivery, and IP protection never went away, but now they are no masked by the lure of cheap labor. Sell Global and Make Local. Bring it home and reduce COGS, decrease TAT and increase EBIDTA. Changes in the “T” in EBIDTA are still needed to fix this economy.