Hints of the Future
The Wall Street Journal published on November 23, 2015 has two fascinating articles that might be hints of the future.
The first uses Levi Strauss to show how the rising compensation in China and technology are reducing the viability of “chasing the needle” to ever-cheaper wage overseas locations.
The second highlights the role of parcel delivery services on retailers’ inventory and supply strategies. While the article is focused on the disparate impact of parcel shipping compared to long-haul freight, it does take a pass at mass customization and how it might restructure markets.
Taken together, we might be looking at a very different manufacturing world, with more emphasis on proximity to the ultimate consumer.
Read the article on the impact of rising compensation in China:
www.wsj.com/articles/as-chinas-workforce-dwindles-the-world-scrambles-for-alternatives-1448293942?tesla=y
Read the article exploring the effect of the holiday rush on different shipping companies: www.wsj.com/articles/who-is-winning-the-holiday-shopping-season-1448188203
Article recap by Robert McCrillis, VP Commercial Lending, Bucks County Bank, 200 S. Main Street, Doylestown, PA 18901, Phone: 215.589.6976, Email: rmccrillis@buckscountybank.net