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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (50236)	5/20/2009 4:23:56 PM
From: energyplay	Respond to of 217917

If it is harder for corporations to borrow money, having 45-60 day of inventory in an Asian supply chain vs. 15 days in North American one becomes an easy decision. If sources of working capital might be restrained, this can effectively be a forced decision. Even companies that have sufficent capital may want to use that capital to finance thier customers who can't get bank financing. Note that most tech companies are sitting on huge amounts of cash, and don't have this problem. What has alreay occured are contract manufacturers and some China based companies buildign subsidiaries in Mexico and Central America to proide faster service to customers in this hemisphere, while using manufacturing expertise from Asia, and othen processing a 'base load' of orders in Asia.