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Offshoring is not the panacea : ensuring sustainable employment in the US manufacturing industry by leveraging demand proximity

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dc.contributor.advisor Yossi Sheffi and John Williams. en_US
dc.contributor.author Bartolin, Alexandre (Alexandre Fernand Sauveur) en_US
dc.contributor.other Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering. en_US
dc.date.accessioned 2007-01-10T21:02:36Z
dc.date.available 2007-01-10T21:02:36Z
dc.date.copyright 2006 en_US
dc.date.issued 2006 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/35705
dc.description Thesis (S.M. in Transportation and S.M. in Civil and Environmental Engineering)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering, 2006. en_US
dc.description Includes bibliographical references (p. 207-216). en_US
dc.description.abstract This thesis investigates the theme of "manufacturing offshoring" that became a political issue during the 2004 U.S. presidential election. As during previous elections, employment became a key focus on the home front. Whereas the 1992 presidential election was marked by the debate around the loss of manufacturing jobs due to NAFTA, the 2004 election focused on both manufacturing and services jobs lost due to offshoring to low cost countries. For the first time, well paying jobs, such as IT programming, were outsourced to emerging countries like India or China. Offshoring of "white collar" jobs became the focus of academic, consultant, and journalist discussions in U.S., whereas offshoring of manufacturing activities generated comparatively less interest. For decades offshoring of manufacturing activities to low cost countries was used by American companies to either reduce production cost or to avoid high tariffs on exports. Offshoring strategy was historically applied in labor intensive industries, such as the apparel and electronics sectors. On the other hand, the influence of offshoring on high-tech industries was assumed to be limited. However, with the fast technological development of China and India, this paradigm might change quickly. en_US
dc.description.abstract (cont.) This thesis explores the U.S. manufacturing sector by looking at employment and trade data at a macro-level. The terms offshoring and outsourcing will be defined and the main international trade theories discussed. The thesis develops a model to show that offshoring was only a part of the reason for the shrinkage in manufacturing employment between 1997 and 2003; the others being a drop in demand and gains in productivity. After introducing several case studies of companies in the apparel sector and the semi-conductor industry, a framework for understanding the offshoring decision process is developed. This framework defines the conditions needed to make manufacturing in U.S. competitive with production abroad. Finally through a detailed study of the expansion of the Chinese economy and the Wal-Mart phenomenon, the thesis presents the next challenges of the U.S. manufacturing sector: the birth of new competitors for high value added products and the rising constraints on price due to the pressure of retailers on manufacturers. en_US
dc.description.statementofresponsibility by Alexandre Bartolin. en_US
dc.format.extent 216 p. en_US
dc.format.extent 42653169 bytes
dc.format.extent 42652467 bytes
dc.format.mimetype application/pdf
dc.format.mimetype application/pdf
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582
dc.subject Civil and Environmental Engineering. en_US
dc.title Offshoring is not the panacea : ensuring sustainable employment in the US manufacturing industry by leveraging demand proximity en_US
dc.title.alternative Ensuring sustainable employment in the US manufacturing industry by leveraging demand proximity en_US
dc.type Thesis en_US
dc.description.degree S.M.in Transportation and S.M.in Civil and Environmental Engineering en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering. en_US
dc.identifier.oclc 71667234 en_US


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