Similar Sentiments Were Expressed Concerning Optimal Facilities Respondents Looking to Open in Overseas Markets ...

Again, with extremely high deviation, the emphasis on US-oriented solutions and minimal overseas commitments was further reflected in opinions regarding the types of facilities respondents were most interested in opening in overseas markets.

In another clear demonstration of the difficulties respondents had in making the commitments necessary to establish a credible overseas presence, "Sales Office" (6.09), was the only option that received a positive ranking. While not especially high, this was notably above the neutral rating for "Distribution Point" (5.17), with all other options including "Manufacturing" (4.77), "Design Center" (3.48), "R&D Laboratory" (3.16), "Headquarters" (2.88) all receiving negative rankings. Furthermore, accentuating this reluctance was the fact that respondents accorded a minimum "1 – not at all interested" as their most common ranking in all the options cited, including "Headquarters" (60%), "R&D Laboratory" (46%), "Design Center" (44%), "Manufacturing" (26%) and "Distribution Point" 24%). "Sales Office" was the sole exception, which was reversed with 21% of respondents ranking it "10 – extremely interested" and 45% according it an 8-10 ranking.

One Design Consultant summed up the view of many respondents declaring "We should not make a big investment from the beginning", and others such as a Sales Rep for a major component manufacturer noted, "It is critical to have a "stocking manufacturer's Sales Representative' in the buyer's country to do business with large OEMs." Noting the difficulties companies face in deciding where to base operations and still focusing through a view that emphasizes cost reduction rather than revenue growth, one Technology Executive stated "I will look carefully at these opportunities to enable my organization to participate in the South East Asia and China markets. Over time the cost will rise everywhere and we will be looking for new opportunities. Japan, Korea, Taiwan and others have gone through such transitions and their costs have risen. The same will happen to other countries once the cost of living and taxation will rise and it will." Finally, one Appliance Manufacturer noted the concerns that kept them from developing intellectual property offshore commenting "We prefer to keep all R&D and manufacturing here. Our designs are optimized for manufacturing and we've found we are able to keep pricing very competitive with overseas while keeping the flexibility of having the line nearby."

Respondents' quotes

"Distribution & Sales are already in-place overseas; Research & Design have primarily shifted to Europe."

"It is important to us to not make a big investment from the beginning."

"I will look carefully at these opportunities to enable my organization to participate in the South East Asia / China markets. Over time the cost will rise everywhere and we will be looking for new opportunities. Japan, Korea, Taiwan and other have gone through such transition and their costs have risen. The same will happen to other countries once the cost of living and taxation will rise, and it will."

"It is critical to have a 'stocking manufacturer's Sales Representative' in the buyer's country to do business with large OEMs."

"We prefer to keep all R&D and manufacturing in the US and Europe. Our designs are optimized for manufacturing and we've found that we are able to keep pricing very competitive with overseas while keeping the flexibility of having the line nearby."