The World is Finally Getting Round

Final_assembly_3

The most interesting thing that I've heard recently is that Foxconn is planning to offshore some of its production to the USA. After more than two decades of USA offshoring manufacturing first to Mexico, then to China and India, and recently to even more exotic places such as Vietnam and Kenya, the business fashions are changing again. As explained in this brilliant The Atlantic piece, China is no longer that cheap, it is far away from American consumers, and product development is substantially slower due to product designers and factory engineers not speaking the same language. So Gorenje, better think twice before moving your production to Serbia. You might just be loosing your competitive advantage!