Software

Importance of Choosing a Right Manufacturing Location

The issue of where a spherical manufacture analogous Toyota should locate its manufacturing facilities is a critical managerial decision because of the fact that brick and mortar investments are expensive to pee-pee and the hardest to change. Choosing the right location can provide a strategic advantage to the enterprise. Apart from the speak to of labour, the flexibility, qualifications and attitudes of employers are important arguments for western investors when assessing a location. In 1999, Ford Motor Company unyielding to build an advanced engine adjust in Windsor, Ontario, Canada, alone five miles from the4 United States to the Canada border. The engines are shipped from there to automotive conclave plants in Michigan across the Detroit River. The main issue was the cost of employee health insurance. Canada has a national health insurance plan, enchantment in the United States health insurance is private, expensive and a major concern in labour contracts between the employer and the employee.

otherwise deciding factors for plant location might be local anaesthetic tax rates, g overnment environmental regulations, and government subsidies for new plant constructions.



For example, Intel built a Pentium 4 fabrication plant in Israel in 1999 largely because of a government cash al minusculeance of $600 million against their total investment of $108 billion. Ireland, in addition to having an side speaking population, has succeeded in attracting new manufacturing plants by offering rugged corporate taxes and large cash subsidies.

Even so, low labour-cost countries like China, Mexico and Brazil have continued to be attractive manufacturing sites over the past decades. However, it may not be economical to twain produce parts and assemble them to final products in low cost countries. Refrigerators, for example, should be built close to the target market place because transporting them can turn to be very expensive specially when it is determined by volume as...If you want to get a full essay, order it on our website: Orderessay



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