Movement of manufacturing operations to lower cost area

Movement of manufacturing operations to lower cost area
Picking up and moving might sound expensive, but over the long term it may prove to be cheaper – and may help your business grow and thrive.Aside from the cost of labor, the cost of owning/leasing and maintaining your facilities could be your largest expense. Plus, the wrong space could dramatically impact the productivity of your company,lowering profits and making it tougher to compete in the marketplace.
Deciding to relocate should be based on an objective analysis of your needs, the costs involved, and whether a new locationwill improve your chances for success. Don't decide to move simply because you "want" to; move because it makes great business sense.
Typically these analyses will include issues such as accessibility;operational costs comparisons (rents, rates, service charges, utilities etc); the availability, quality and cost of staff in the new area; the costs of staff relocation, recruiting and redundanciesand how to minimize staff losses and maintain efficiency before, during and after a move.
If we analyze the number of places in which Artemis sportswear has branches we could determinate the advantageof both the costs of maintenance of property and equipment in the manufacture of our products such as spending cuts that could lead to find a more economical labor in the manufacture of the same inother countries.
In South America for example we could benefit not only of free trade agreements that many of the countries in the area has with the United States, for which tariff impositions whenexporting and importing goods necessary for the development of our business would not be so high, but also the fact that the exchange rate would put us in a very advantageous in reducing costs; inColombia for example the exchange rate is almost $2,000 pesos per $1 dollar.
In addition to this we also find that due to the high rate of unemployment in these countries handled the direct cost of labor...