Presented by: Deloitte Consulting

January 25, 2011

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Part 3: Where did my customers go?  Dealing with migration of manufacturing for B2B suppliers

During the recent downturn many factories shut down or cut out lines.  The downturn may have only accelerated a shift that was eventually going to happen anyway.  Many of those assets that were curtailed were older or less competitive facilities that may not ever re-start given the capacity overhang in some parts of industry and the lower cost production economics in developing parts of the world.  If that production move becomes permanent, as it has in other industries following major disruptions, what are the implications for the suppliers to those industries?

•    Are suppliers prepared to follow their customers?
•    How does the move of my customer’s center of gravity effect how I operate?
•    How do I properly service a satellite that may now be the mother ship?
•    How do you migrate your own assets that may soon face the same fate as those of my customers?