
Daniel Griswold
Designing or selecting the basic corrugated shipping case is typically considered to be a job for marketers and engineers. While the marketing department concerns itself with the appearance and utility of the consumer package and the engineering group typically focuses on cost effective packaging, neither group usually considers logistics or supply chain issues adequately. As a result, most firms end up with less than optimal packaging and higher total costs.
For at least the past three years, general managers of China-based manufacturing operations have been sharply aware of tightening labor supply and rapidly increasing labor costs. Indeed, qualified labor availability and sharply increasing wage levels have risen to the top of the list of operating challenges across a wide range of industries and sectors.
After four years of stasis on the trade front, the new post-election environment is a welcome change. Removing barriers to trade—in both directions—is essential to sustained economic recovery and long-term growth.
The recent visit of China’s President Hu Jintao was considered a diplomatic success. But it seems only to have hardened the determination of New York Sen. Charles Schumer and other Chinese critics.
It’s a mistake to see China as a monolithic economic rival to the U.S. And while certain U.S. companies do compete head to head with Chinese manufacturers, producers in both countries occupy different locations in an increasingly complex global supply chain. In fact, U.S. companies are more likely to be collaborators than competitors.
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