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In additon to wage rates, manufacturers must be aware of supply chain, transportation and other costs.
EL PASO, TX, April 28, 2014 /24-7PressRelease/ -- The Tecma Group of companies recently recorded a podcast with the Los Angeles-based CEO of Group 50 Consulting, Jim Gitney, regarding the growing interest in the global manufacturing trends of "total cost of ownership" and "nearshoring"
During the approximately thirty minute session, Gitney explains how the industrial site selection process is no longer an exercise in chasing low manufacturing wages around the globe in order to determine which country, or countries to produce goods in. He asserts that the process is most effectively driven by identifying all the components of cost associated with the production and distribution of a product , calculating them, and, based on this careful research and analysis, choosing the country in which the "total cost of ownership" is the least.
A secondary focus of the Tecma Talk podcast is nearshoring and other global manufacturing trends that drive manufacturers to locate facilities in close proximity to the primary points of consumption. The CEO of Group 50 asserts: "making product closer to the markets in which end users purchase and use them is an integral part of what is required to lower the total cost of ownership." Given this reality and other macro-economic trends, nearshoring, or bringing production back to the US and Mexico from far flung places, such as China in particular, is becoming more commonplace.
Group50's works with companies to effectively implement strategic change and accelerate performance. Group50's Manufacturing and Distribution practice focuses on helping companies develop and implement the most flexible and cost effective supply chain possible. Group50 consists of seasoned operational professionals who understand global supply chain operations and learned best practices from companies such as GE, Black & Decker, P&G and many others.
About the Tecma Group of Companies
The Tecma Group of Companies, Inc., headquartered in El Paso, Texas provides services that have enabled firms from a wide range of industries to establish and maintain production facilities in Ciudad Juarez, Mexico and beyond, for almost three decades. Under its Mexico Shelter Manufacturing Partnership (MSMP) companies control and focus on their core manufacturing functions, while Tecma tends to their human resource, payroll, accounting, logistics, and other needs that, although important, are not part of the manufacturing process.
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