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Expansion in the US?

Characteristics of Companies that can Benefit By Expansion into the US, or North America

 

 

Large companies, and smaller ones as well, can benefit from an expansion into a strong market for their products. Certain areas offer physical proximity to those who may be suppliers, or customers, or employees. 

Companies with several of the following characteristics will find that a manufacturing facility in North America offers attractive benefits.

 

A. Adequate size to make such an investment practical

1. Sales of at least $100 million annually.

2. A potential to expand by some 100 or more jobs.

 

B. There is a North American market to justify the project

1. The company exports to North America customers, or the product is especially designed for the North American market, or technology is based in North America.

2. High duties into North America exist, or import quotas.

3. Customer service requires rapid reaction from manufacturing, frequent model changes, product or people near the market, or rapid delivery of product or service into North America.

4. New products are introduced frequently.

 

C. Company strategy would be reinforced by a North American facility

1. The company has a desire to integrate vertically by extending the process upstream or downstream, or to have inventories located near the market, or to link inventory control electronically with customers ( a popular strategy in the U. S. now.).

2. Qualified labor resources are needed.

3. Foreign exchange exposure can be minimized by manufacturing and selling in the same currency.

4. The company practices manufacturing strategies of Just In Time, or continuous flow manufacturing, small lot sizes; which can be integrated with North American suppliers.

 

D. Major costs can be avoided at the existing facility by adding a facility elsewhere

1. More manufacturing capacity is needed, and space to do so is limited or costly.

2. Significant upgrade of facility is needed.

3. Utilities are scarce or expensive.

 

E. Logistics would be improved for product to be sold in North America

1. Materials are internationally available.

2. Shipping costs of finished products are significant.

3. Components are already sourced from North America, or can be.

4. Shipping causes product damage or obsolescence.

 

F. Environmental problems related to manufacturing are not serious

1. Emissions and discharges from the process are not toxic, or if they are, equipment to reclaim, recycle, or treat is readily available.

2. Water usage is not excessive.

 

G. The process is able to be recreated in another location

1. The process may be technical and complex, but not overwhelmingly so.

2. The process is in control and well documented now.

3. Upstream or downstream steps in the process already occur in North America.

4. Synergies would be created with another North American facility, of the company's, a vendor, or a customer.

 

Success in international site search is easier with experienced, objective, confidential assistance in the destination country. JPR does not work for communities or states, to avoid conflict of interest. Our objective is to find the most satisfactory solution for our clients.

 

Please contact Jack Greene to discuss your situation and possible actions. There is no obligation for discussions or proposals.

843-422-1298

E-mail jack@jacksonproductivity.com 

 

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