Sunday, November 23, 2003
We often hear about plant closures when the are announced. Rarely do we see the process unfold in the press. Here is an excellent article on the decision Electrolux is facing on whether to close its refrigerator manufacturing facility in Michigan.
It will give you a sense of the dynamics that companies are facing on some manufacturing that has a relatively high labor content.
Refrigerators involve a lot of relatively low skilled assembly work. That's why they are so vulnerable to migration to Mexico. Read more.
Contrast the manufacturing economics for Plantronics, a manufacturer of headsets. Labor accounts for only 1.5% of the company's revenues. So the company does not see an advantage of shifting production from Mexico to lower cost China. Read more.
posted by Ed Morrison |
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
Anatomy of a plant closure?
