There goes the neighbourhood?

Traditionally, major production organisations have been the focus of regional and national development, drawing around them an infrastructure that is often economically more significant than the core organisation. As low-cost supply chains emerge on a global basis the original industrial springboard becomes weaker and possibly unsustainable.

The established supply chain built upon small specialist suppliers has seen a market challenge to its future. These SMEs have provided both a resource training ground and innovation for industrial development

The concept of open sourcing will seriously impact many current economic models. Future stability should always be a feature of supply chains. Major organisations may, in the future, look to utilisation of their global presence to 'pull through' these SMEs rather than simply disregarding them.

They will take their expertise into new markets to create globalisation with the second and third tier suppliers - thus providing new business opportunities and longer term benefits.

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