Essay About Cheap Laborgood Transportation Infrastructuregovernment Incentives And Energy Cost

Finding a Location for Electronics Component Manufacturing in Asia
finding a location for electronics component manufacturing in asiaWhat advantages and disadvantages does each potential location offer?CountryAdvantage(s)Disadvantage(s)SingaporeRelatively cheap laborGood transportation infrastructureGovernment incentives if stay :5-year of tax exemptionSubsidizing labor, water and energy cost for 5 yearsNo need to build new plantIncreasing of labor and  utility costsOld plant/factory which is less productive and energy-efficientMalaysiaEasy access to raw materials and vast natural resourcesInexpensive laborTransportation infrastructure is good and has a deep sea port for moving in and out the goodsConcern with frequency of ship visits as Kuching port is not as ‘well-known’ as Singapore and Hong Kong port.Hong KongConsistently cheap laborGood transportation infrastructure (busiest port)Need to build the plant/factory on an expensive land as Hong Kong is an island with most densely populated area in the world.What other relevant factors that are not mentioned in the case study might play a role in this decision?The other factors that might play a role in the decision making are:Education of the workforce (both current workforce and future generations). This includes labor talent and attitudes towards the work.Political stability of each countryExchange rates and currency riskWhy is transportation infrastructure so important in this decision?ACM rely on the logistics in order to move in the raw materials and move out the final product to customer. The transportation cost the incurred will definitely give bigger impact on the decision of relocating to new location.This is a long-term strategic decision; what factors might change in the next ten to twenty years? How will this influence the decision? Since the plant will “pay for itself” over a long period of time, the decision relevant to costs must be examined not only at their current level but also how this is expected to develop over the years.