Spend Matters Afternoon Coffee

And the numbers roll in...
Capital Equipment Costs to Repair Flooded HDD Factories in Thailand Will be Considerable -- The impact of the October/November monsoon floods in Thailand on many high technology industries have been considerable. Perhaps none have been as hard hit as the HDD industry where major plants for Western Digital and Toshiba were flooded and many major HDD component suppliers were flooded as well. Even non-flooded production facilities such as those of Seagate and Hitachi GST have been shut down for several weeks. Overall about 50% of total hard disk drive assembly capacity is in Thailand with WD's Thailand production representing about 60% of its total HDD output. As a result of this flooding and the long term damage to equipment and facilities in Thailand there will be a shortage of HDDs in December 2011 and throughout 2012. In addition, replacing and repairing capital equipment in the flooded plants will lead to large increases in capital equipment spending through 2012 that will likely approach $1 B.

Wine wine wine.
Fine wine must crack supply chain issues to achieve full potential, says Liv-ex chief -- The future of the international fine wine market rests on radical changes to the supply chain and accounting systems used by most of the major global players, according to James Miles, head of fine wine trading website, Liv-ex. He told the Wine Future conference in Hong Kong that most of the accounts and logistics systems that manage post trade transactions are "not fit for purpose" and had hardly changed in the last 20 years. Until they are dramatically improved the fine wine market will not be able to fully capitalise on the global potential of fine wine trading. Whilst the internet had opened up the world of fine wine to the general consumer, it was now being held back by inefficiencies in the supply chain.

If NASA's not going to do it, Boeing will?
Boeing Might Make Big Money Sending Tourists To Space -- Boeing's recent announcement that it plans to return to the Kennedy Space Center to build passenger spaceships was heralded by all parties involved. In addition to expected job growth up to 550 in the next three years, the combined effort with Space Florida (a state-backed agency that works with space-related companies) will allow Boeing to ramp up production of the company's CST-100.

What's the diff?
Reshoring, Onshoring: the Opposite of Offshoring Anyway -- There's considerable evidence that the past surge of offshoring isn't just slowing down, it's actually going into reverse. US and EU companies are bringing production back from low wage places like China to the same high wage places they took it away from in the first place.

Sheena Moore

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