Specialty Graphic Imaging Association
	Executive Summary December 2009

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Globalization? The Answer Isn’t Always Off-Shore

Globalization has certainly changed the business community. The world is a smaller place today. For years, US-based graphic producers have been losing business opportunities as one manufacturer after another went off-shore in search of the lowest bidder. Recently, we’ve seen some push back from this trend. Some of the work that went off-shore a few years ago is coming back to US-based businesses.

The tight economy, rapidly changing marketplace and high fuel costs are driving manufacturers to re-think their approach for some products. The cost savings they realize from off-shore production just aren’t as dramatic as they once were. And, manufacturers are finding that localized production improves their ability to respond to changes in the marketplace. Quickness is a valuable advantage in today’s marketplace.

In most cases, large production runs are required to maximize the advantages of global manufacturing. Manufacturers, however, realize that they are taking a greater risk with large orders. The marketplace is changing faster and faster with less predictability. No one wants to get caught with a big inventory of the wrong product as the market changes direction.

In addition, quality control and environmental impact concerns are helping US-based companies provide value beyond unit cost. For example, the printed electronics sector in the US is growing again as manufacturers work to eliminate errors. They realize the cost generated from a part failure is dramatic, especially in an assembled product. Sustainability also is a prime concern in the business community. Protecting the environment and supporting the community while making a profit is the mantra for many companies today.

SGIA members are stepping up to the challenges of today’s marketplace and helping their customers create effective, sustainable solutions. They are helping their customers succeed in a sea of constant change. The lessons that SGIA members are learning today, as they employ innovation and diverse technology in support of their customers, will provide added benefits tomorrow.