CBA Publishes ONC Special Report on South America

2013-08-27 08:43:00


CBA has released its latest Special Report to members of the Outsourcing Navigator Council. The report is titled Electronics Manufacturing in South America: Market Potential, Infrastructure and Geopolitical Risk in Six Countries.

Manufacturing electronics is a complex endeavor requiring stability and predictability. As global electronics OEMs refine their manufacturing solution in search of a regional approach — build in the region for the region – they look for new geographies in which to find new customers.  Some of our clients are talking about expanding their manufacturing footprint in South America again, prompting our research.

Yes, that title is a mouthful, but we wanted to be specific in the report objectives to help focus attention on these key points:

  • South America is not one thing.  The continent has rich natural resources and a growing middle class making it an attractive investment destination. However, global managers that haven’t spent much time studying the region often equate South America with Brazil and don’t know too much about the other 11 independent countries and 3 territories. Each has a unique history and national objective that may or may not be aligned with an OEM’s global business objectives. Our report focuses on six that illustrate the things managers should be looking at as they do their own analyses.
  • The trajectories of emerging markets like the BRICs (Brazil, Russia, India, China) have taught us many important things about what can go horribly wrong when electronics manufacturers rush into a geography because their CEO read something in the WSJ. The risks are real and knowable.
  • Population numbers alone do not guarantee a stable middle class prepared to pay enough for electronic products in the near enough future to deliver profitability to all the participants in a supply chain.
  • Corruption and geopolitical instability matters. Negotiating with foreign governments investing in infrastructure can be challenging. The political climate in most of the countries in South America is particularly risky for global managers; trade rules and currencies are in flux, making strategic planning a challenge.

The Report addresses these key issues to help bring objective data to the planning process

  • Overall market potential for each of the six countries: Argentina, Brazil, Chile, Colombia, Ecuador, and Peru
  • Ease of doing business in each of the countries
  • Transparency, corruption and geopolitical stability
  • Mercosur vs. Pacific Trade Partnership and the potential for the future of each approach
  • EMS in South America
  • And much more

For more information about how to get the free executive summary and Table of Contents, please contact Eric Miscoll, eric@charliebarnhart.com. If you are a member of the Outsourcing Navigator Council and have not yet received your copy, (which is part of your membership), please contact me.


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