9 years ago
Thomas Mayor, a senior adviser with Booz & Company who specializes in
manufacturing strategy, says that in industry after industry, he is seeing
the same kind of reassessment GE has made. When asked about the value of the
original rush offshore, Mayor laughs.
"Twelve years ago, I saw a lot of boards of directors and senior executives
saying, 'Three years from now, I'm going to be sourcing $4 billion in
product from China. Go figure out how to make it happen.' " Part of the
rationale, from the start, was merely to gain a foothold in the Chinese
market. And for many companies, that made sense, at least to some extent.
"But if you press them on their savings by sourcing from China for North
America, I get stories like 'Oh, I asked about that six months ago. I had
five finance guys working on it, and they couldn't come up with any
savings.' At the end of the day, they say, 'If we were doing this for the
U.S. market, we should never have gone to China in the first place.'?"