Black & Decker (BDK) continues its never-ending search for a cheaper manufacturing venue. Next move: India and Vietnam? From the company’s Q408 conference call:
The difference between our restructuring in early 2001 was our manufacturing footprint. We were manufacturing at a lot of high cost areas in Western Europe and the US and we dramatically changed our manufacturing footprint to low cost areas. We are in low costs areas and I think have a very good manufacturing footprint now so that opportunity to the same extent is not available to us.
However, we continue to look at low cost regions. We’ve seen cost increase recently in China and therefore we continue to look at India and Vietnam and other places. As you recall when we put those plants in these low costs areas we put them in such a way where we wouldn’t have the dramatic costs of shifting our manufacturing from one facility to another or even to lower costs countries.
So, we continue to evaluate that and we’ll make manufacturing footprint changes as the market demands.
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