Over the last couple of decades, many U.S. companies have recognized the benefit of significantly lower labor costs by having production located in lower-wage countries such as China or India.
With the cost of labor in many emerging market countries increasing 15%+ per year over recent years and no end in sight to this trend, the labor cost advantage of being overseas is quickly deteriorating, and it may be time for U.S. CEOs to re-analyze the cost benefits of offshore production that is distantly located from the point of customer demand.
For an increasing number of companies (albeit still a small minority of the total number of companies that at one time moved production overseas), there has been a dramatic change to key cost assumptions, and the diminishing overseas labor cost advantage is no longer the key factor driving their location strategies.
One example is companies such as petrochemicals whose production costs are tightly linked to the cost of natural gas, which has dropped by nearly two-thirds in the U.S. since 2007. But more importantly to smaller companies, improvements in automation (both in cost and capability) may allow them to overcome the remaining wage cost gap using the current generation of robotics.
Even when there is no single compelling change to key cost assumptions, there may be a collection of variables whose sum will allow CEOs to conclude that the reduced labor gap no longer justifies having production remote from demand. These variables may likely include:
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
