Outsourcing and Manufacturing - Assignment Example

Outsourcing and manufacturing Outsourcing and manufacturing The best time to outsource manufacturing services is when the company in question is in need of cutting on its production costs. The company may be in search of cheap labor that may not be present in their company and thus they choose to outsource their manufacturing services (Whitford, 2011). Secondly, a company may choose to outsource in the event that it is willing to share the risks associated with manufacturing. By choosing to outsource, the company does not have to face the risks involved alone.

They share the risks with the outsourced vendor thus increasing on their revenues. In addition, labor shortages in the manufacturing industry may compel them to outsource their services. This is mostly evident in china where most individuals are opting to remain in the rural areas due to the rising costs in urban areas (Loyalka, 2012). The fact that their population is fast aging is also a compelling factor for manufacturing industries in the country to outsource. For America to succeed, it ought to educate most of its students mostly in science, engineering, math, and technology (Malone, 2012).

This is because most of the manufacturing positions are lacking applicants due to unavailability of the necessary skills required to partake those manufacturing jobs. Moreover, for a manager to succeed in the 21st century, they ought to have a good working relation with their employees to enable them fish out and solve any arising problems. The managers also ought to be on the lookout for any sign of labor shortage or increased cost of production that might bring their organization down. Where need be, the managers should outsource some of the services that they find expensive for their companies to handle.

ReferencesLoyalka, M. D. (2012, Feb 17). Chinese Labor, Cheap No More. Retrieved from http://www.nytimes.com/2012/02/18/opinion/chinese-labor- cheap-no-more.htmlMalone, S. (2012, Feb 13). After "lemming" exodus, manufacturers look to U.S. Retrieved from http://www.reuters.com/article/2012/02/13/us-usa-manufacturing-onshoring- idUSTRE81C1B720120213Whitford, D. (2011, March 22). Where In The World is Cheap Labor? Retrieved from http://money.cnn.com/2011/03/22/news/international/fair_labor_china.

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