The global plant location decision


The global plant location decision is important since it involves the allocation of significant resources and may influence the long term competitiveness of firms. The decision is also complex, taking into account a wide range of factors. The decision should involve the consideration of both international business issues as well as manufacturing strategy. Firms may be seeking access to markets, to low cost labour, or new skills and competencies. In the past there has been some emphasis on firms offshoring production to lower cost regions. Case studies from the authors’ experience of advising clients in this decision show that for ‘luxury’ products, firms have chosen to invest further capacity in home country engineering and manufacturing to maintain quality and brand integrity, despite the fact that these locations are higher cost. On the other hand, for ‘standard’ products, firms have located additional capacity closer to target markets to access lower costs.

Divisions: Aston Business School > Operations & Information Management
Event Title: 10th International Conference on Manufacturing Research
Event Type: Other
Event Location: Aston University
Event Dates: 2012-09-10 - 2012-09-13
ISBN: 978-1-90586660-1
Full Text Link: http://www.asto ... ce-proceedings/
Related URLs:
PURE Output Type: Conference contribution
Published Date: 2012
Authors: Owen, Chris D. ( 0000-0001-7305-119X)
Baker, Stephen P.

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