Executive Summary
We have decided to open a production plant in Europe to serve the market because of the high cost of transporting the products from our US plant. This report provides an evaluation of the attractiveness of moving our manufacturing operations to Spain.
In making our decision, we referred the 2012 Chartbook of International Labor Comparisons. All of our facts and statistics can be referred to within that report. We compared the location for our new plant in Europe with Spain, Italy, and Portugal. We looked at labor market indicators and competitiveness indicators for manufacturing.
Italy was the only country with less than half of its working-age population in the workforce but it also has the highest labor costs. Portugal has the lowest unemployment and the cheapest labor but also has the least educated workforce.
Spain has a high unemployment rate with eighteen percent of adults age 25 and older and thirty-seven percent of adults age 20-24 unemployed. Fifteen percent of those unemployed between ages of 25-64 have a high school education and eight percent of those unemployed have a college education. Spain has the least amount of working-age population employed in the manufacturing sector. Manufacturing output has decreased by seven percent since 2007 which tells us that the workforce is there just waiting to be employed.
International Association of Outsourcing Professionals (IAOP)
Ranks global outsourcing service providers
a. What criteria are used to rank companies
i. Size and growth ii. Customer references iii. Organizational competencies iv. Management capabilities
b. Identify 10 best companies and their key strengths
RANK COMPANY NAME KEY STRENGTH
1 KPMG
Balanced Performance
2 Deloitte
Balanced Performance
3 PwC
Balanced Performance
4 Alsbridge
Demonstrated Competencies
5 Ernst & Young
Demonstrated Competencies
6 Avasant
Customer References
7 Baker & McKenzie
Management Capabilities
8 Kirkland & Ellis
Balanced
In making our decision, we referred the 2012 Chartbook of International Labor Comparisons. All of our facts and statistics can be referred to within that report. We compared the location for our new plant in Europe with Spain, Italy, and Portugal. We looked at labor market indicators and competitiveness indicators for manufacturing.
Italy was the only country with less than half of its working-age population in the workforce but it also has the highest labor costs. Portugal has the lowest unemployment and the cheapest labor but also has the least educated workforce.
Spain has a high unemployment rate with eighteen percent of adults age 25 and older and thirty-seven percent of adults age 20-24 unemployed. Fifteen percent of those unemployed between ages of 25-64 have a high school education and eight percent of those unemployed have a college education. Spain has the least amount of working-age population employed in the manufacturing sector. Manufacturing output has decreased by seven percent since 2007 which tells us that the workforce is there just waiting to be employed.
International Association of Outsourcing Professionals (IAOP)
Ranks global outsourcing service providers
a. What criteria are used to rank companies
i. Size and growth ii. Customer references iii. Organizational competencies iv. Management capabilities
b. Identify 10 best companies and their key strengths
RANK COMPANY NAME KEY STRENGTH
1 KPMG
Balanced Performance
2 Deloitte
Balanced Performance
3 PwC
Balanced Performance
4 Alsbridge
Demonstrated Competencies
5 Ernst & Young
Demonstrated Competencies
6 Avasant
Customer References
7 Baker & McKenzie
Management Capabilities
8 Kirkland & Ellis
Balanced