Impacts of computer-aided manufacturing on offshore assembly and future manufacturing locations

New technologies, such as computer-aided manufacturing and robotics, have the potential for altering location decisions, in particular co-production activities between developed and developing countries. Compares manual offshore assembly in Mexico and Singapore with automated manufacturing in the United States. Results show that for generally less-sophisticated products currently assembled there, Mexico retains its cost advantage for all volumes considered. However, for volumes exceeding 310 000 units per year, US flexible assembly begins to show lower unit costs than manual assembly in Singapore. (Abstract amended)