As component availability improves, original equipment manufacturers (OEMs) are starting to rationalize their outsourcing strategy. Not surprisingly, interest in shortening supply chains and avoiding geopolitical risk is influencing a lot of those decisions. Mexico’s shared border with the US continues to make it an attractive nearshore option. However, Southeast Asia and China, still represent viable manufacturing solutions for many projects. Every solution has advantages and disadvantages.
This whitepaper looks at factors that can influence choices and their impact in three areas:
- Product development/supply chain considerations
- Demand variation and scalability