Why manufacturing companies are outsourcing? what is the main reasons behind it and where they do utsoutsourc

Answer 1

Basic cost savings. An auto worker for the "Big 3" cost the company $65 - $72 an hour with benefits and pensions. In Mexico, that cost is less than $5 per hour. Remember that next time you go to buy a vehicle that cost the same annually even thought 70 to 90% is now made in Mexico. You didn't save, only the company did.


I have been in automotive for 20 years and Mexico and China are the biggest areas currently.