About 18 months ago, a plastics factory in Santa Rosa started getting inquiries from small U.S. companies looking to bring some manufacturing back from China.
The inquiries to Wright Engineered Plastics started amid soaring oil prices. Even after oil went down, the interest continued as raw plastic became more expensive in China while the local firm's material costs dropped, helping offset the advantage of lower overseas labor.
"We're actually winning bids based on quoting prices, which is extraordinary," said Barbara Roberts, chief executive of Wright.
To what is the ability to win new business attributed?
Though still lower than in the United States, the Chinese advantage has been eroded by other costs like communications and transportation.
If you go to Japan you find large companies contract the tiered supplier work to many smaller local companies. The relationship and proximity count for a lot. Some benefits are quick reaction time, long term relationship and trust, and smaller focused suppliers.
I know from where I work that on the other side of this economy we will be leaner and quicker.
No comments:
Post a Comment