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I worked for a company that moved a major product from being manufactured in Canada to Mexico. At the meeting where everyone was laid off the manager had the n
by YZF 10y ago
I worked for a company that moved a major product from being manufactured in Canada to Mexico. At the meeting where everyone was laid off the manager had the nerve to tell people they are moving the product because they estimate they can save 5%-10% of the manufacturing cost. 5 years later manufacturing was moved back to Canada after it ended up being more expensive and the quality was lower. OTOH there was another product that was successfully built in China but it involved a complete redesign and was essentially a different product.
There's definitely more to this than meets the eye and the decisions weren't always motivated by pure economics. Sometimes managers decided to move something to China just because everyone was doing it and they were under pressure to do so. Not because it was the right thing for their business. Managers making bad or short term decisions isn't exactly a new thing, their incentives/motivation varies.
- allengeorge 10y agoBombardier?
- deleted 10y ago[deleted]
- YZF 10y agoEven though this was 10 years ago it's probably still confidential. This was a Canadian company acquired by a US company which then went through a series of "cost cutting" measures.
- Spooky23 10y agoThat's amazing. 5-10% is a really small savings. When people here eye roll union guys they should think about that. I bet the executive bonus plan accounted for 5% of COGS.
- adrianN 10y ago5-10% is a pretty big saving if your profit margin isn't all that big.