During the last decade, a hot topic in Japan and America has been the “hollowing out” of their industrial bases. The share of Japanese-owned productive capacity located abroad has grown from 8% in 1994 to 40% today. The United States currently has just over 50% of its manufacturing base located offshore. For both Japan and America, the large outflows of direct investment, especially to China, have caused an uneasy feeling that both countries had bleak futures as manufacturing centers.
Surprisingly, in Japan the pendulum is now moving back as large Japanese multinationals are busy investing in manufacturing plants at home. Here are just a few examples of this trend. Canon is building a large digital camera facility and plans to spend 80% of its $7.2 billion capital budget in Japan over the next three years. This is a reversal from the past ten years when 80% of its capital budget was spent overseas.
Toshiba is building a $2 billion semiconductor facility. Sharp, Matsushita and Nippon Steel are also building major plants in Japan. Overall, spending on plants and equipment in Japan is rising at a 10% clip.
It's not that China is not important to Japan's economic growth. China has passed America to become Japan's largest export market. In addition, it needs a strong presence in China to tap its rapidly growing consumer market as well as a low cost base to manufacture lower tech products. For certain products like cars it is also likely to keep large manufacturing bases in countries like America. For example, Toyota produces more than 1 million cars annually at eight manufacturing plants in America and has two plants under construction in Texas and Tennessee.
But for the more advanced capital-intensive products, the investment is clearly coming home. How can we account for this surprising turnaround and what are the lessons for America?
Lose Now, Lose Big Later
First, Japanese firms have learned the drawbacks of outsourcing. Supply bottlenecks, poor infrastructure, power shortages, uneven quality, difficult inventory management and high employee turnover are just some of the problems. Secondly, even though China's wages are about 5% of Japan's, its increasingly sophisticated factory automation has lessened the importance of labor costs. For advanced high tech products it accounts for only 10-15% of total costs. Having manufacturing closer to home also shortens new product lead times and increases cooperation between R&D and production teams leading to a crucial edge in staying ahead of its nimble competitors. Supply lines of 2,000 miles can be problematic.
Finally, and perhaps most importantly, there is the critical issue of protecting intellectual capital. Having research, development and production closer to headquarters better protects proprietary technologies. Unfortunately, here in America the outsourcing trend does not appear to be reversing even in capital-intensive products. Many of the new high tech jobs are for managers to manage the outsourcing process. Microsoft, Intel, IBM and Motorola all have large and growing R&D centers in China to take advantage of Beijing's cheaper pool of talent. Given China's disregard for intellectual property rights, perhaps American executives should pause and reconsider the long-term costs of growing outsourcing programs.
Their offshore R&D staff may very well walk off with proprietary knowledge and the company's future. Many Americans believe the loss of manufacturing jobs is just about lower wage rates in other countries but this is not always the case. One example is Whirlpool which makes its high-end front loading washing machines in Germany ($32/hour labor) and ships them to US ($23/hour labor). The reason given by Whirlpool: trained German workforce, available capacity, and necessary technology. Whirlpool could have produced these washing machines at their Ohio plant and saved the $50 per unit shipping costs while creating high wage American jobs.
Leverage Our Strengths
Then there is America's growing annual trade deficit that exceeds $600 billion a year with $200 billion attributable to our trade gap with China. You have to admit that it is harder to make a strong case against Chinese trading practices when 40% or more of American imports from China come from American multinationals with China-based manufacturing plants. Why not sell more of the stuff we make in China to China's 1.3 billion consumers? If these markets are not open to American companies, let's use the leverage of access to America's vast consumer market to bust them open.
There are some economists and policymakers who claim a strong manufacturing base is not important. I beg to disagree. History shows that manufacturing is the foundation of all wealth and that research and development follows manufacturing rather than the other way around. There are now more American workers in state and local government then in the manufacturing sector, and manufacturing as a percentage of GDP has fallen from 20% in 1980 to less than 10% today. This is not a call for isolationism or rolling back globalization, just a reminder that outsourcing has its downside. How about a little common sense and balancing short-term cost savings against long-term strategic risks?
Stop Accepting the Risk for Short Term Benefits
Instead of just taking the comparatively easy step of lowering labor costs by outsourcing, let's roll up our sleeves like the Japanese, improve manufacturing techniques and reap the benefits of keeping more production and technology closer to home.
The Cows Come Home
Taking stock, you're feeling pretty good about yourself. You're totally refreshed, tanned and feeling ready to face the world again. Your holiday has done you the world of good.
Then reality strikes!
Changing back into your going home clothes you notice that the waist is a fair bit tighter than before you left, your hips are bulging a bit and your thighs just about fit into your trousers. Basically, the lard-monster has paid you a visit, and the likelihood is that he's going to be staying for a while!
For many women the above scenario is all too familiar. Two weeks of overindulgence and poor food choices leave the average woman with a weight gain of about 5 to 7 pounds. Nearly all of it fat!
Now, obviously this isn't great. We all like to think of our holidays as being a rejuvenating experience, not one which will leave us fatter and less energetic than before we left for the sun, but what can we do to avoid piling on the pounds whilst still having the holiday experience we're hoping for?
Plan, plan, plan
The main reason that so many of us put weight on during our holidays (or any other time for that matter) is that most of us are 'reactive' eaters. We never pay much attention to what we're eating or when we're going to eat it and either wait until we're ravenous before we find food or simply eat 'because it's there' (especially on all-inclusive getaways).
Neither of these scenarios are great. Waiting too long between meals usually means that you'll overeat when you finally do sit down to a meal and the other approach is an obvious route to obesity.
If you want to win the battle of the bulge you've got to think ahead. Plan for AT LEAST three meals per day (though ideally, five or six SMALLER feedings work best) with a good rule of thumb being that you should not eat again within 2 hours nor leave it longer than four. The result of this approach is that you are giving the body regular, yet small, quantities of food and then digesting them before you eat again, meaning that there is very little left to lay down as fat.
(Note: This only works if you consume smaller quantities of food. Six pizzas will still make you fat!)
Ideally, your planning should also include WHAT you are going to eat as well as WHEN. This reduces the likelihood of eating rubbish or 'non-foods' as we rarely, if ever, actually plan to eat poorly, we simply eat out of a reaction to hunger and immediate availability.
Fresh is best
If you really want to avoid piling on the holiday pounds this summer then avoid processed foods at all costs!
Laden with sodium, sugar and all manner of artificial colourings and preservatives, processed foods fall into the category of 'non-foods', meaning that they lack the vitamins and minerals that are needed in order to maintain optimal health. In addition, these foods are calorie dense and appetite stimulants of the highest order. Eat them at your peril!
Avoid ANYTHING from a packet, jar or tin, opting instead for fresh produce such as locally grown fruit, vegetables and meat or fish dishes.
This isn't as difficult as it may sound. Normally, you'll find that as long as you have a little meat or fish, some steamed, roasted or stir-fried vegetables and the herbs and spices that are grown in the region that you are taking your holiday in, that you'll be onto a winner. It'll be healthy and taste delicious too.
Whatever you do, avoid the 'chips with everything' approach. Not only are most chips pre-packaged and processed mush (instead of real potato) but they're fried in polyunsaturated oils that have been found to contribute to numerous medical conditions including obesity and some cancers.
Mix and Match
During our holidays (though it's true in day to day life too) we tend to 'pad out' our plates with carbs, carbs and more carbs.
Everything from bread (including croissants and pastries) to pasta, pizza to ice cream and even the beer, wine or cocktails that you drink around the pool are predominantly made up of carbohydrate.
It has been proven that excessive ingestion of carbohydrates, particularly those with high glycemic values like potatoes, wheat, sugar and alcohol, can lead to excessive insulin output which is known to increase fat retention leading to obesity and diabetes.
If we want to avoid the pitfalls associated with carbohydrate consumption there are three things we need to do:
1.Determine your biochemical individuality to find out how much or little carbohydrate you should include in your diet (See accompanying article)
2.Cut back on all high glycemic index carbs opting instead for those that release their sugars more slowly.
3.ALWAYS eat protein and fat with your meal. This is important in reducing the effects of insulin as well as providing a well-rounded supply of vital vitamins, minerals and amino acids that will also serve to suppress your appetite.
You need to drink more than you think
Though water consumption has just about been 'done to death' in the media recently, still too many people are oblivious to its importance in maintaining optimal health and vitality, opting instead for fizzy drinks, fruit juice, tea, coffee and alcohol as their main sources of fluids.
The problem is that NONE of these fluids do the job of water and nearly all are damaging to the body.
Even if you drink a couple of litres of fruit juice or lemonade you still cannot consider yourself to be hydrated. These fluids, due to their carbohydrate content, actually require water so that they can be digested properly. They will dehydrate you.
There is simply no substitute for water. You're either drinking it or you're dehydrated.
Dehydration is bad enough back here in the UK but add the holiday sun and the obligatory alcohol into the equation and you've got serious problems. Not only are sunburn and heat stroke going to get you but you're more likely to put on weight too as the body mistakes this thirst for hunger. Found yourself incessantly snacking on holiday? This may be the reason!
So, how much should you be consuming? At least 1 litre of WATER (any other fluids do not count) for every 50lbs of bodyweight, so if you're ten stones (140lb) you'll need around 3 litres just to maintain balance. And remember, if it's particularly hot, if you sweat a lot or you're being active, you'll need a fair bit more.
Eating healthily on holiday doesn't have to be a bore or a chore that detracts from your enjoyment of the experience. You don't even have to count calories, miss out on treats or abstain from alcohol. In fact, by paying more attention to what you eat you'll find yourself more alert, energetic and able to enjoy the experience so much more.
And just think; you may even come home looking better than you did before you went away! Wouldn't that be great?
Both Carl Delfeld & Dax Moy are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Dax Moy has sinced written about articles on various topics from Fitness, Writing and six pack. Dax Moy is a performance enhancement specialist and master personal trainer with studios in and around London.Voted one of the UK's leading fitness experts, Dax is a regular guest on TV, radio and print publications on the subject of health, fitness and t. Dax Moy's top article generates over 14800 views. Bookmark Dax Moy to your Favourites.
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