New Study Weighs Pros, Cons of China v. Mexico
CHICAGO, IL ― The decision of whether to offshore to China or Mexico isn't one of capability but rather of fit.
So says electronics manufacturing consulting firm Charlie Barnhart & Associates, which recently completed a study looking at the respective nation's contract assembly environments.
The study, conducted by Eric Miscoll, examines the capabilities of the EMS industries in China and Mexico for their fit with the needs of mid-market OEMs.
“China and Mexico both possess many world-class manufacturing facilities capable of producing any electronic product being designed today,” Miscoll said. “The question, therefore, is not one of capability but fit. Which country best fits the manufacturing needs of a particular OEM? For OEMs selling high-volume products in the 3Cs (consumer, computer, communications) sector, the answer is undoubtedly still China. For mid-market USA-based OEMs selling lesser volume products, the answer has become less clear. Many of these companies have been caught up in the China hype only to become frustrated."
CBA said the study is based in part on a survey of OEMs, which were asked to rate the capabilities of both China and Mexico in providing electronics manufacturing services to a North American-based OEM along a manufacturing life-volume continuum provided. The results, the firm says, examine the strengths and weaknesses of each country and how they should influence the fit of the electronics manufacturing assigned there.
