Off-shore opportunities growing

The bulk of unit growth over the next 10 years will be in emerging markets such as China, Brazil, India and Mexico, says Ellen Hughes-Cromwick, manager of corporate economics, Ford Motors. In many of these countries, average incomes are expected to reach US$6,000 to $8,000 per year, an amount considered to be indicative of an economy at the “take-off” stage of self-sustaining growth. Such growth will in part offset flatter expansion expected in the more mature U.S and European markets and provide suppliers with new business opportunities. Capitalizing on these opportunities will for the most part mean locating in the country where the car is being built and sold.

According to a study done by Repton Group for Injection Molding Magazine, setting up a molding operation in a foreign country is becoming more and more common for North American manufacturers. OEMs and Tier one suppliers would prefer working with U.S. and Canadian companies with a reputation for being top in technology and high in quality, and local governments are usually ready to provide business incentives. Items to consider before opening a manufacturing plant abroad include how much profit the host country will permit you send home, taxes, regulations, availability of local qualified managers and labor availability and skill-level.