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Don't Go Offshore Just Yet
Sending your manufacturing overseas is one strategy, but there may be another way that can bolster profits and improve products. In the face of intensifying competition and rising cost pressures, American manufacturers are turning to off-shoring in growing numbers. But closing US plants and transplanting manufacturing overseas may not be the best strategy, says major North American robot manufacturer, FANUC Robotics America Inc.
We must consider another option -- automating and streamlining existing facilities. Through this alternative, firms can increase profits and improve product quality. That's the message that Fanuc is trying to get across with its initiative "Save Your Factory,". This collaborative industry initiative is encouraging North American manufacturers to examine the big picture and to look beyond the initial short-term investments before off-shoring.
The decision to move overseas needs to fully explore the product quality, factory efficiency, inventory requirements and environmental impact, governmental support and stability, supply chain strength and intellectual property protection. Additionally, companies should think about their social commitment and consider the motivation, loyalty, strength, skill and work ethic of their labor force.
"Save Your Factory" provides manufacturers with an objective comparison of the advantages, real costs and impact of automating versus off-shoring. It shows that automation, robotics and efficiency measures can be more cost-effective and profitable than off-shoring. Manufacturers can visit the initiative's site for information and to access resources, including audit and analysis tools, which can help maintain competitive manufacturing operations.
Source: Campaign Emphasizes Automation in Mfg by Pat Ropchock, American Machinist, November 24, 2004
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