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BRUSSELS 29 JUNE 2006

SESSION 3. BRUSSELS 29 JUNE 2006. RELOCATION - CHALLENGES AND OPPORTUNITIES. EESC/CCMI CONFERENCE BRUSSELS, 28/29 JUNE 2006. SESSION 3: RELOCATION - A DOUBLE-EDGED SWORD.

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BRUSSELS 29 JUNE 2006

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  1. SESSION 3 BRUSSELS 29 JUNE 2006

  2. RELOCATION - CHALLENGES AND OPPORTUNITIES EESC/CCMI CONFERENCEBRUSSELS, 28/29 JUNE 2006 SESSION 3: RELOCATION - A DOUBLE-EDGED SWORD JÜRGEN NUSSER, DELEGATECONSULTATIVE COMMISSION ON INDUSTRIAL CHANGE EUROPEAN ECONOMIC AND SOCIAL COMMITTEEGENERAL DIRECTOR, BDSVICE PRESIDENT, EUROMETAL

  3. OUTSOURCING MEANS THAT WESTERN EUROPEAN GROUPS OR COMPANIES STOP PRODUCING PARTS OF THEIR PRODUCT OR SERVICE INPUTS IN WESTERN EUROPE AND INSTEAD PROCURE THESE INPUTS FROM CENTRAL OR EASTERN EUROPEAN COUNTRIES. OFFSHORING MEANS THAT WESTERN EUROPEAN PRODUCERS ESTABLISH OWN NEW PRODUCTION LINES OUTSIDE WESTERN EUROPE TO PRODUCE PARTS, PRODUCTS OR SERVICES TO SUPPLY THEIR CUSTOMER BASE IN WESTERN EUROPE AS WELL AS IN OTHER PARTS OF THE WORLD. OUTSOURCING OUTSIDEWESTERN EUROPE OFFSHORING OUTSIDE WESTERN EUROPE = = RELOCATION: AN ONGOING DEBATE IN EUROPE RELOCATION OUT OFWESTERN EUROPE

  4. LARS BERGE-KLEBER VICE PRESIDENT RELOCATION - MOBILISATION RELOCATION - A DOUBLE-EDGED SWORD

  5. RELOCATION - A DOUBLE-EDGED SWORD RELOCATION OFFERS CONSIDERABLE OPPORTUNITIES FOR THE ECONOMIC DEVELOPMENT OF THE DESTINATION REGIONS AS WELL AS FOR RELOCATING COMPANIES REGARDING THEIR GLOBAL COMPETITIVENESS AND THEIR ACCESS TO NEW MARKETS WITH LOCAL INTEGRATION OPPORTUNITIES CHALLENGES RELOCATION GENERATES CONSIDERABLE CHALLENGES FOR THE ECONOMIC DEVELOPMENT OF THE SOURCE REGIONS (SOCIAL SYSTEM, EMPLOYMENT STRUCTURES) AS WELL AS FOR RELOCATING COMPANIES (STRATEGIC POSITIONING AND OPERATIONAL MANAGEMENT)

  6. RELOCATION - A DOUBLE-EDGED SWORD JEAN-LOUIS COTTIGNY COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS EUROPEAN PARLIAMENT RESTRUCTURING AND EMPLOYMENT

  7. CHANGES OF INDUSTRIAL STRUCTURES (OUTSOURCING AS A SPECIFIC WAY OF VERTICAL DESINTEGRATION) GOOD MARKET PERSPECTIVES AND GOOD BUSINESS ENVIRONMENT (ACCESS TO NEW MARKETS) INVESTMENT INCENTIVES IN THE NEW MEMBER STATES AVAILABILITY AND RELATIVE LOW COST OF LAND, PREMISES AND OFFICES AVAILABILITY OF SKILLED LABOR FORCES TAX DIFFERENCES DIFFERENCES IN LABOUR COSTS COMPETITIVE SOURCING OF RAW MATERIALS, SEMIS, ETC BUSINESS MOTIVES FOR RELOCATION: TAKING ADVANTAGE OF NEW CHANCES

  8. RELOCATION: `DOUBLE EDGE SWORD` – IMPACT ON SOURCE AND TARGET COUNTRIES ? BÉLA GALGÓCZI SENIOR RESEARCHER RELOCATION - A DOUBLE-EDGED SWORD

  9. RELOCATION - A DOUBLE-EDGED SWORD GERMAN COMPANIES HAVE STARTED THEIR FOREIGN INVESTMENTS TO ENHANCE THEIR ACCESS TO NEW MARKETS AND/OR TAKE ADVANTAGE OF FAVOURABLE PRODUCTION CONDITIONS EVEN BEFORE THE WAVE OF GLOBALISATION ASKED FOR AN ACCELERATION OF SUCH ACTIVITIES - A LOGICAL FOLLOW-UP OF AN EXPORT ORIENTED ECONOMY ECONOMIC ACTIVITIES WORLD-WIDE TODAY RELOCATION TO OTHER ECOMOMIC REGIONS TO MAINTAIN COMPETITIVENESS ON GLOBAL MARKETS LEADS TO A REDUCTION OF DOMESTIC INDUSTRIAL STRUCTURES AND - LONGTERM - TO THE TRANSFER OF KNOW HOW RELOCATION ENDANGERING NATIONAL STRUCTURES

  10. RELOCATION - A DOUBLE-EDGED SWORD ASHUTOSH SHESHABALAYA BUSINESS CONSULTANT RELOCATION: IS THERE A WAY FROM ZERO SUM TO WIN-WIN

  11. RELOCATION - A DOUBLE-EDGED SWORD INNOVATION IN TECHNOLOGY AND ECONOMIC PROCESSES HAS LARGELY PUSHED GERMAN COMPETIVENESS AND MUST BE UNDERSTOOD AS THE MOST IMPORTANT DRIVING FACTOR ALTHOUGH THE DIRECT AND INDIRECT EFFECT ON EMPLOYMENT STRUCTURES IS OFTEN UNDERESTIMATED - I.E. CONSTANT MODERNISATION REGULARLY MEANS RATIONALISATION KILLING JOBS INNOVATION: ALSO A DOUBLE-EDGED SWORD HIGH SOCIAL STANDARDS INCLUDING LABOUR COSTS PROVE TO BE A MORE AND MORE LIMITING FACTOR REGARDING THE PRESERVATION OF LABOUR INTENSIVE INDUSTRIES WITH LOW ADDED VALUE POTENTIALS SOCIAL STANDARDS: A DIFFICULT ACHIEVEMENT

  12. RELOCATION - A DOUBLE-EDGED SWORD DANNY VAN ASSCHE ADVISOR ON SOCIAL AFFAIRS RELOCATION AND EMPLOYMENT

  13. HIGH INTENSITY OF PARTNERSHIP MODEL LEVEL OF ORGANISATIONAL READINESS • KEY DRIVERS • BETTER MANAGEMENT • OF BUSINESS CYCLE • VOLATILITY • INCREASED • STRATEGIC • FLEXIBILITY • COLLABORATIVE • OPPORTUNITIES • ENHANCED GLOBAL • FOOTPRINT STRATEGIC IMPACT • KEY DRIVERS • HIGHER REVENUES • IMPROVED CUSTOMER • SERVICE • INCREASED • PRODUCTIVITY • REDUCED TIME TO • MARKET • KEY DRIVERS • LABOR COST SAVINGS • ECONOMIES OF SCALE • COST VARIABILITY LOW DEGREE OF OUTSOURCING/OFFSHORING HIGH SOURCE: BCG ANALYSIS RELOCATION IS ABOUT STRATEGIC IMPACT, AND NOT JUST COST CUTTING! COMPETITIVE ADVANTAGE LONG TERM VALUE CREATION COST REDUCTION

  14. RELOCATION - CHALLENGES AND OPPORTUNITIES EESC/CCMI CONFERENCEBRUSSELS, 28/29 JUNE 2006 SESSION 3: RELOCATION - A DOUBLE-EDGED SWORD OPEN DISCUSSION OF ISSUED RAISED

  15. JÜRGEN NUSSER JÜRGEN NUSSERTHANK YOU FOR YOUR ATTENTION EESC/CCMI CONFERENCEBRUSSELS, 28/29 JUNE 2006 SESSION 3: RELOCATION - A DOUBLE-EDGED SWORD JÜRGEN NUSSER, DELEGATECONSULTATIVE COMMISSION ON INDUSTRIAL CHANGE EUROPEAN ECONOMIC AND SOCIAL COMMITTEEGENERAL DIRECTOR, BDSVICE PRESIDENT, EUROMETAL

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