During the last few years, increased access to low-cost labor has taken production from US companies and redistributed it around the world. China, India, Latin America and other regions expanded the manufacturing landscape with low-cost labor. Looking back, the rapid expansion of globalization brought positive and negative changes.
On the plus side, manufacturers saved money and workers in developing countries had the opportunity to improve their standard of living. As we watched China and India take on more production jobs, the big question was, “How long will it take to level the playing field until workers in developing countries reach a standard of living comparable with those in more-developed countries?”
On the downside, the United States lost valuable production opportunities and manufacturers faced growing challenges. Quality control became more difficult on a global scale. Managing environmental impact became a greater challenge as well. Protecting intellectual property rights was a headache. Additionally, managing the required cost and time for the delivery process took extra effort.
Today, the worldwide economic downturn and credit crisis are adversely affecting globalization. The global capital markets are suffering and cash flows have slowed to a trickle. Political unrest is escalating as financial pressures increase. Thailand has been in the grip of political protesters, while India suffered horrible attacks aimed at western influence. China’s work force is protesting as factories close.
The future of globalization is in question. Will globalization get back on track relatively quickly as we come out of the US recession? or will it take a long time to overcome defensive measures and safeguards intended to protect national interests? We don’t know.
But we do know that with stalled globalization and the difficulties in the world today, businesses of all types need to be more flexible and efficient. The future is uncertain and successful companies will adapt. Graphic producers that have lost work to globalization, now have new opportunities to help meet their customers’ challenge of becoming more flexible and efficient.
The future will belong to those companies that bring value to a changing marketplace.
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