Possible Trend Developing with Foxconn Mulling US Plants?

Taiwanese mega giant electronics manufacturer, Foxconn, may be considering opening a plant or plants in the US sometime soon. Reports have them looking at and doing evaluations in cities such as Detroit, MI and Los Angeles, CA.

Foxconn, the world’s largest electronics manufacturer, produces the iPhone and other Apple products, and manufactures products for the likes of Samsung, Sony, Acer, Motorola, HP, Dell, Toshiba and a host of others.

While headquartered in Taiwan and with plants around the world, the bulk of Foxconn’s manufacturing is done in China. With rising labor cost and even unrest (reportedly, there are over 100 protests a day in China, some political, some labor), coupled with the always high cost of shipping, could this Foxconn announcement be the start of a new trend?

Could current Chinese labor and logistic factors and conditions mean that multi-nationals and even American companies who look to China for product and manufacturing savings, might visit the idea of investing domestically?

Or, is this a PR stunt and a one-off attempt to deflect criticisms of harsh working and living conditions of one of the largest companies in the world—publicity that is trickling down to the brands themselves—tarnishing their image?

We would like to hear from you!

Is this the start of a new ‘insourcing’ trend; a PR stunt; or really not much news at all, just an international company planning on a little expansion?

Comments (1) -

Jerry Roraback

Absolutely. We are the largest manufacturer of lock components in the world. Our reach is world-wide with service to over 32 of the largest lock manufacturers. The trend in the 80's and 90's targeted China and Mexico with China getting the lion's share. Now since 2008 the trend is headed back to the United States. It will take between 3 - 5- years to feel the full impact but it is reality. We see this with many of the lock manufacturers from the United States that we service who in the 80's and 90's moved manufacturing to China or other parts of Asia. We still serviced their needs overseas since our product we produce for them are very cost effective and are of extreme quality.The Chinese could not compete with us with our exclusive technology. Now the trend at least for our company is us not having to place our product on an airplane or ship but to ship it within the United States or Mexico. The business is coming back. Be prepared.

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