The concept of total cost of ownership (TCO) is not new to the electronics industry. In essence, it is defined as the total direct and indirect cost and benefits associated with the purchase of any part, assembly, sub-assembly or product. There are many models, tools and techniques for evaluating TCO in different industries. The electronics industry has its own set of unique costs and economic realities. To evaluate TCO here, you need to understand the product in detail.
- Chinese labor costs are expected to rise at a rate of 13 percent per year through 2015;
- The cost of shipping products around the world is dramatically increasing;
- Distance is making it difficult to design and collaborate on products; and,
- It’s increasingly difficult (and expensive) to protect intellectual property in China.
- Create a more educated workforce that can fill skilled labor gaps and get Americans interested in manufacturing careers at all levels (e.g., assembly, engineering, management, etc.).
- Use automated assembly processes to limit the labor input of production more extensively.
- Help companies evaluate their true total cost of ownership (TCO) to help model the risks and costs of offshoring production.
Topics: electronics manufacturing, contract manufacturing, manufacturing services, contract electronics manufacturing, Zentech technologies, smt manufacturing, total cost of ownership, Reshoring, offshoring, made in america