Electronics Manufacturing Services in Mexico and China Compared in Offshore Group Podcast

TUCSON, Ariz., Aug. 31, 2011 /PRNewswire/ -- Eric H. Miscoll, a researcher and principal at Charlie Barnhart & Associates, recently sat down with The Offshore Group to discuss his recently conducted study that compares the relative attractiveness of Mexico and China as destinations for electronics manufacturing services (EMS) investment.

One of the main themes of the Charlie Barnhart & Associates study is regionalization. He points out that "The trend of electronics manufacturing is regionalization. The data that we have collected over the last couple of years verifies this. Electronics OEMs are building in a region for a region."

Miscoll also observes that instead of a narrow focus solely on wages, electronics manufacturing services providers are conducting what he terms "TCO," or "Total Cost of Outsourcing" analyses. Companies are increasingly scrutinizing all cost inputs and variables that affect the end price of the product that they send to market. In addition to wages and benefits, these include items such as energy costs, costs related to transportation and regulation, tax burdens, industrial real estate costs, as well as a host of other considerations that get factored into the value of the product that is offered to the consumer.

The main focus of the Charlie Barnhart & Associates study is a comparative analysis of the relative attractiveness of Mexico versus China for electronics manufacturing service company executives. According to Miscoll, "Labor rates and other costs in EMS production hubs are changing. When an electronics manufacturing service provider is commercializing its production in the United States, Mexico is the best cost option in terms of manufacturing."

The complete electronics manufacturing services podcast can be accessed by clicking on the link.

ABOUT CHARLIE BARNHART & ASSOCIATES

Charlie Barnhart & Associates is a strategic research firm focused on electronics manufacturing services (EMS). Its studies concentrate on examining the intersection between OEM, EMS and ODM industry. Charlie Barnhart & Associates studies and dissects electronics industry data to report on EMS labor rates and other costs in the worlds EMS manufacturing regions.

About The Offshore Group

The Offshore Group is the largest provider of outsourced manufacturing support, or "shelter" services in Mexico. Currently 57 manufacturers are in production at The Offshore Group's three industrial parks in Sonora and the city of Saltillo, Coahuila. Through its Vangtel subsidiary The Offshore Group also offers services to companies occupying the call center, IT development and BPO markets, while the International Logistic Solutions Company (ILS) is a leading provider of supply chain services. The Offshore Group has recently initiated operations in Mexico's second largest city, Guadalajara.

Website: http://www.offshoregroup.com

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SOURCE The Offshore Group