Quote:
Originally posted by Paul J. Stiles:
Maybe the other way around...I think it depends upon the factory and its quality control procedures (maybe overseen by the companies contracting with these factories)as to whether the product put out is of high quality or not... The most price sensitive products will be move to a factory/country offering lower production costs.


Well, I was being a bit facetious. However, I think you'd find that the relative manufacturing overhead costs of these countries is pretty consistent with my ranking. I would also question your point about the signficance of the emphasis on quality control in these countries. You don't have your products out-sourced to Taiwan or move your manufacturing facilities down to Mexico because you value quality. Increasing the level of quality control in these situations would start to erode the cost benefits from using the site in the first place, and you are already at a QC disadvantage since you are probaly dealing with company that is remotely located and has a language barrier with your own, employs untrained/uneducated workers who are making grossly inadequate wages, and adheres to very few manufacturing standards -- if the country even acknowledges any. (At least that has certainly been the case in my industry.) Sure, your company may have some influence over quality, but more influence means more costs means less profit. I would also argue that it is the mentality of most corporations to move ALL products to low-cost manufacturing sites, not just price-sensitive ones. After all, increasing profit margins is increasing profit margins.