Trend in near-sourcing instead of outsourcing overseas
Thursday, October 1, 2009 at 12:00PM Companies like Tesla Motors are re-thinking their manufacturing outsourcing strategy and looking at near-sourcing their crtitical components. Tesla just shifted production of their 1,000 pound batteries from Thailand to near their facility in California. With volatility in fuel costs and overall high freight costs, there has been a shift towards "reverse globalization". Another factor in this trend comes from increased strength in Asian currencies which has made outsourcing to be less attractive to manufacturers. How will the trend of near-sourcing affect you and it makes sense to evaluate whether this strategy makes sense for you.

