Case Study: Fortune 500 Consumer Electronics Company Reduces Operational Costs Through Labor Market Study

Even prior to the US-China trade war, rising labor costs in China prompted many large corporations to relocate manufacturing facilities. Covid-19 related supply chain troubles further underlined the need to diversify production sites and reduce the risk of future disruptions.

This Fortune 500 company has an intricate supply chain - contract manufacturing hundreds of components and parts for its consumer electronics products. Previously based primarily in China, manufacturing has slowly been moved to other locations around Asia.

Executive Summary

Challenges

The Company lacked sufficient data on labor markets in specific industrial zones across South and Southeast Asia – without which they did not know where they could relocate their intricate and sizeable supply chain to reduce manufacturing costs.

Solutions

We performed an in-depth labor market study on 10 electronic manufacturing clusters across five countries, providing a comprehensive report, presentations, and a competitive analysis on local opportunities.

Impacts

With a comprehensive report in hand, the well-informed Client was ultimately able to select a location most advantageous for managing their labor costs in the present and the future.

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