A Role for Thailand in Your China +1 Strategy?

SEMINAR:

A Role for Thailand in Your China +1 Strategy?

A Role for Thailand in Your China +1 Strategy

About The SEMINAR

Meet Senior Thailand Government Officials who will Outline Thailand’s Investment Opportunities.

Thursday, April 11, 2024

Registration: 8AM CDT
Conference: 8:30AM – 10:30AM CDT

Event Location:

777 East Wisconsin Avenue, Milwaukee, WI, 53202-5306

HOSTED BY:

East West Associates
Foley & Lardner
Thailand Board of Investment

Manufacturing & Supply Chain Seminar Roundtable Discussion with Senior Executives


Who Should Attend?

Executives of U.S. manufacturing companies:

        • Who face manufacturing, contract manufacturing or sourcing challenges in China
        • Are expanding Asian Supply Chain & Manufacturing to better serve European and U.S. markets
        • That include Automotive; Electronics; Industrial; Medical devices & Medical technology; Automated manufacturing systems; companies in the Bio-Circular-Green (BCG) Economy

Why Companies Like Yours Are Attending

U.S. companies with China manufacturing or sourcing are diversifying beyond China. Thailand is becoming the country of choice for many of them. This roundtable discussion will provide you with useful information to understand why companies look to Thailand as part of their global manufacturing & supply chain strategy.

A Role for Thailand in Your China +1 Strategy

Speakers

Welcoming Partner and Seminar Moderator
    DAVID SIMON | Partner, Washington, D.C./Milwaukee
    • Welcoming Foley & Lardner Partner
      Alex Bryant
      Alex Bryant | President, East West Associates
      • Moderator
        Roundtable Speakers
          Nanthapol Sudbanthad | Director, Thailand BOI New York Office
            • The Thai Board of Investment [BOI] is the governmental agency responsible for direction, oversight and approval of foreign investment incentives to locate to Thailand.

            Vanessa-Miller-Foley-Lardner
            Vanessa Miller | Partner, Foley & Lardner Detroit Office
              • The international law firm of Foley & Lardner is a preeminent law firm that stands at the nexus of the Manufacturing, Energy, Health Care & Life Sciences, and Innovative Technology Sectors. Foley’s 1,100 lawyers across 25 offices worldwide partner on the full range of engagements, from corporate counsel to intellectual property work and litigation support, providing clients with a one-team solution to all their needs.
              Mark Plum
              Mark Plum | Director, East West Associates
                • East West Associates (EWA) and the Thai BOI have worked together for a number of years. EWA supports U.S. companies with evaluating Thailand and other attractive countries and establishing operations and sourcing capabilities in those countries.
                John Turlais-Foley-Lardner
                John Turlais | Of Counsel, Foley & Lardner Milwaukee Office
                  • The international law firm of Foley & Lardner is a preeminent law firm that stands at the nexus of the Manufacturing, Energy, Health Care & Life Sciences, and Innovative Technology Sectors. Foley’s 1,100 lawyers across 25 offices worldwide partner on the full range of engagements, from corporate counsel to intellectual property work and litigation support, providing clients with a one-team solution to all their needs.

                  Webinar agenda

                  • Brief Introduction and description of each speaker’s firm.
                  • Summary of current state of China and the China +1 Strategy, and its global effects on US-based companies.
                  • Current state of Thailand. Thai BOI will discuss the business environment in Thailand, their Target Industries rationale, and Thailand’s foreign company incentives.
                  • Case Study of Wisconsin-based company who established a Thailand manufacturing operation and received 29M USD of financial investment incentives.
                  • Extensive Q&A.

                  Speakers will aslo answer registrants’ questions, including:

                    1. How does the current situation in China affect western companies? What are specific challenges companies face in addition to U.S./China tariffs?
                    2. What are the effects of current conditions on companies that produce in China and sell the majority of their products within China? Conversely, what are the effects on companies that produce in China and export the majority of their products outside of China?
                    3. What strategies are companies employing to address the current China situation? How have these strategies affected countries in Southeast Asia?
                    4. Some companies may wish to relocate or establish a facility outside of China but continue to source their products (or components) from China (example: electronic manufacturers). How does the concept of local content/local certificate of origin affect these companies?
                    5. How do China’s and Thailand’s costs compare? Skilled labor costs? Labor availability? Corporate Income Tax? Land costs? Land availability? Utility costs? Inflation? Lease rates? Building costs?
                    6. Could you talk about site selection factors in Thailand? Land; build to suit; lease existing facility, etc. Does Thailand allow for 100% ownership by U.S. companies (including land)?
                    7. If a company leaves China, what are the challenges of closing their China manufacturing plant? What are closure considerations like severance and personnel? How does a company protect Intellectual property (IP) and physical property? What about relationships with customers, vendors, Labor Bureau, PSB, et. al.? Disposition of equipment? Duties on equipment relocated out of China?
                    8. What financial & operational incentives does the Thailand government provide U.S. companies to establish operations on leased or owned land?
                  A Role for Thailand in Your China +1 Strategy

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                  Establishing Manufacturing & Sourcing in Poland.: The Why & The How

                  Webinar:

                  Establishing Manufacturing & Sourcing in Poland:
                  The Why & The How

                  Establishing Manufacturing & Sourcing in Poland

                  About The Webinar

                  East West Associates Roundtable with Senior Executives


                  Who Should Watch?

                  Executives of US companies:

                      • Expanding Supply Chain & Manufacturing to better service European customer base
                      • Facing manufacturing, contract manufacturing or sourcing challenges in China

                  US companies are establishing or relocating to Poland for a number of reasons, not the least is diversification from China. Poland has become a preferred destination as China labor costs and geopolitical concerns increase, and as US/China tariffs remain.

                  Poland is the fifth largest manufacturing country within the EU and contributes 22.4% of the country’s GDP. Germany is the largest importer of Polish products, followed by the rest of Western Europe.

                  The leading Polish industrial sectors are automotive, aviation, pharmaceuticals, household appliances, metal products, electrical equipment, electronics, chemical products, and rubber & plastic. As a result, Poland has a large supply chain base of raw materials and component products servicing these manufacturing operations.

                  East West Associates’ speakers addressed these questions, including:

                    • Why are companies diversifying from China and leveraging Poland’s Supply Chain & Manufacturing capabilities?
                    • How are US companies developing sourcing, contract manufacturing & manufacturing capabilities in Poland?
                    • What industry sectors are finding sourcing & manufacturing success in Poland?
                    • How to identify & qualify Polish suppliers?
                    • How to conduct Site Selection in Poland to establish Polish manufacturing site?
                    • What financial & operational incentives does the Polish government provide to US companies to establish operations on leased or owned facilities?
                    • How should our investment strategy be designed to best meet the Polish Investment goals?
                    • Can you summarize the Polish/US trade relations and tariff policies?
                    • What is the availability & quality of local labor (production & engineering talent)?

                  Our speakers presented two recent case studies:

                    • EWA & a PA-based manufacturing client identifying and qualifying Polish suppliers
                    • EWA & a MN-based manufacturing client relocating their European operations from Spain to Poland
                  Establishing Manufacturing & Sourcing in Poland

                  Speakers

                  Mike Jacobs | Chief Operating Officer, Weber, Inc.
                  • Responsible for end to end product life cycle, including product management, research & development and end-to-end supply chain and operations functions (Strategic Sourcing, Demand & Supply Planning (ES&OP), Global Manufacturing, Logistics & Distribution and Quality)
                  • Former Vice President, Logistics & Material for Rockwell Automation (NYSE: ROK)
                  • Director, Global Sourcing – Fabricated Components for Schneider Electric 
                  Dariusz Pielach | Director, Central Eastern Europe
                  • EWA Director of Poland/Central Eastern Europe
                  • Resides in Warsaw, Poland
                  • Former Project Manager/Director and Interim Manager for Western multinationals 
                  • Primary focus in strategic and operational procurement, sourcing, and project management 
                  Mark Plum | Director, East West Associates
                  • Former President of Briggs & Stratton Asia (NYSE: BGG)
                  • VP Sales & Marketing, American Standard Thailand & American Standard China
                    Establishing Manufacturing & Sourcing in Poland

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                    Establishing Manufacturing & Sourcing in Poland

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                    OPERATIONAL & COMMERCIAL PERFORMANCE: Employee Turnover & Compliance

                    OPERATIONAL & COMMERCIAL PERFORMANCE:

                    Employee Turnover and Compliance

                    Operational & Commercial Performance: Employee Turnover and Compliance

                    BACKGROUND

                    A Florida-based mid-size private company engaged EWA to advise on performance improvement for their 160 employee plant in Zhongshan China. The client’s owner was concerned over recent productivity declines in the plant.

                    The operation served the mother company as a captive supplier. It exported nearly all its product to the company’s Distribution Centers that served customers in Latin America and the southern U.S.

                    Initially, EWA was tasked to look at process improvement and productivity issues, and perform some staffing in anticipation of growth. However, the EWA team’s evaluation of plant operations uncovered internal process issues; certain financial irregularities; and unacceptable employment practices. The client then commissioned EWA to investigate further.

                    Operational & Commercial Performance: Employee Turnover and Compliance

                    APPROACH

                    Step 1

                    Series of structured interviews

                    EWA conducted a series of structured interviews over several weeks with senior management, middle management and a sample of the hourly workers, to take the pulse of employee relations and to assess compliance with employment law.

                      • Top Management
                      • Middle Management
                      • First line managers
                      • Conducted individual interviews with members of a representative stratified sample of hourly employees
                      • EWA team members also made many plant tours to see employees at work and observe their interactions with managers and fellow employees.
                    Step 2

                    Gathering Information and Data

                      • The EWA team spent two months in the plant gathering data through interviews and observations of the interactions among workers and their leaders.
                    Step 3

                    Delivered Report to Company Executives

                    Turnover

                      • EWA implemented new employment standards and expanded the recruiting base. The plant was a shrine to nepotism which caused problems in discipline and accountability, thus fueling the turnover and lack of productivity. EWA revamped training and set up a mentor system.

                    Outside and Child Labor

                      • The practice of taking work home was abolished, with pushback from some employees. We made it clear that underage children could not be employed in any capacity. Also, with food-related products, quality assurance and hygiene are essential for both end-user safely and regulation compliance. We explained that after the proper employee and management incentives were put into place, the plant would become more productive and experience fewer quality problems.

                    Welfare Benefits Compliance

                      • EWA performed a full benefits audit, and calculated the costs of remediation based on three start date options:
                        • Beginning of benefit program;
                        • Beginning of current year; or
                        • Now and into the future.
                      • The client selected the third alternative.
                      • EWA re-designed a new benefit plan, and the communications of the plan presented several options to employees.
                      • Most enrolled under the least expensive benefit alternative; employees were more interested in today’s take-home pay than future benefits.

                    Living Conditions

                      • The leased factory complex was located near the ocean, and consisted of two L-shaped 4-story production facilities facing the main road, with a large 5-story dormitory 150 yards in back, with a grassy field in between. The facility was prime breeding ground for vermin attracted to the canteen on the ground floor of the dorm. While many of the resident employees were not deeply troubled by the conditions, they were simply unacceptable from a Western management standpoint.

                    Management and Culture

                      • The client insisted that negative and ineffective management behaviors be corrected immediately.
                      • The EWA team coached the facility’s GM, and teaching him how to coach his subordinates.
                      • EWA introduced Basic Supervisory Training on interpersonal skills needed to improve management’s attitude and behavior toward employees.
                      • EWA designed and implemented simple recognition programs to reward good results in production, quality, housekeeping and safety.
                    Operational & Commercial Performance: Employee Turnover and Compliance

                    RESULTS

                    Based on the data we gathered, EWA made recommendations for recommended tactics and strategies to address the issues.

                      • Employees responded positively to all these changes and programs. A number of employees openly expressed gratitude that the Company was finally showing that it cared about their welfare.
                      • As employees enjoyed better living and working conditions, employee turnover declined, and the attention to hygiene was sustained.
                        Welfare Benefits compliance was achieved, and employee contributions implemented.
                      • The client avoided a potential six-figure liability.
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                    Human Resource Services: Resolving Employee Relations Issues

                    Human Resource Services:

                    Resolving Employee Relations Issues

                    Human Resource Services: Resolving Employee Relations Issues

                    BACKGROUND

                    EWA was engaged by a large multinational manufacturer to address their U.S. headquarters’ perception that employees of their Guangdong area factory were disgruntled, unmotivated and underperforming. Factory management had reported to client headquarters an increase in complaints regarding workload and work hours, and the plant was experiencing rates of employee turnover that were high even by Chinese standards.

                    Client Headquarters (HQ) management asked EWA to visit the Guangdong plant to validate the reported issues and recommend solutions.

                    Human Resource Services: Resolving Employee Relations Issues

                    APPROACH

                    Step 1

                    conducted a series of structured interviews

                    EWA sent a small team to the plant and conducted a series of structured interviews with Senior management, middle management and a sample of the hourly workers.

                    EWA team spent more than a month interviewing Guangdong employees and management, and observing and documenting interactions among workers and their leaders.

                    Step 2

                    Implement recommended actions

                      • Spent several months coaching the General Manager of the facility, and teaching him how to coach his subordinates
                      • Provided Basic Supervisory Training on the interpersonal skills needed to improve management’s attitude and behavior towards employees
                      • Implemented Job Rotation where practical and employees with potential were identified and given greater responsibility
                      • Trained supervisors to focus on finding and rewarding good deeds, rather than on policing and criticizing unwanted behaviors
                      • Created basic employee consideration programs to reward positive results and quality-saves, such as departmental “Employee of the Month” awards, birthday recognitions, and more frequent rest breaks to allow employees to refresh and socialize
                      • Introduced a structured compensation approach, and opened up the employee welfare benefits program to assure fairness and full legal compliance
                      • Defined Employee Standards and implemented a realistic job preview process to acquaint prospective hires with the realities of the job environment, enabling them to set realistic expectations
                      • Launched a semi-annual Employee Attitude Survey program to measure results in the collective temperament of the workforce and their perceptions of change
                    Human Resource Services: Resolving Employee Relations Issues

                    RESULTS

                    The solutions that EWA implemented resulted in sustained levels of improvement in plant performance: Product Quality, First-Pass Acceptance, Scrap, Throughput, On-time Delivery, and Safety.

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                    HUMAN RESOURCES SERVICES: Solving Root-cause Employee Relations Issues in U.S. Multicultural Company

                    HUMAN RESOURCE SERVICES:

                    Solving Root-cause Employee Relations Issues in U.S. Multicultural Company

                    HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

                    BACKGROUND

                    A mid-west U.S. private equity firm retained EWA to address problems in two recently-acquired portfolio holdings with complementary lines of analytical testing equipment products. Along with their U.S. locations, one of the companies had a plant in China, the other in Vietnam.

                    EWA was asked to conduct an Organization Assessment to validate the issues and their causes, and provide solutions to resolve them.

                    HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

                    APPROACH

                    Step 1

                    Data collection, analysis and recommendations

                    Performed the Organizational Assessment by conducting 3 group interviews to obtain information in the context of their Core Values, and to get input on what managers perceived as conditions on the floor:

                      • Top Management
                      • Middle Management
                      • First line managers
                      • Conducted individual interviews with members of a representative stratified sample of hourly employees
                      • EWA team members also made many plant tours to see employees at work and observe their interactions with managers and fellow employees.
                    Step 2

                    Implement recommended actions

                      • EWA prepared a report to management that included recommendations for improvements. EWA reviewed the report and recommendations with management to get agreement on specific steps and priorities.
                      • After joint review, EWA finalized a roadmap for improvement. In addition, EWA helped management establish metrics to measure change in hard issues (productivity, financial results), and soft issues (employee relations, complaints).
                    Step 3

                    Measure near-term, mid-term and long-term results

                    Short Term

                      • Reset all branding to new company
                      • Improve top down and upward communications
                      • Establish and reinforce formal recognition programs
                      • Accelerated start to develop more effective supervisory skills

                    Mid Term

                      • Expand ESL classes to improve facility communications and foster better team work
                      • Resolve lingering transition issues
                      • Improve retention of new hires
                      • Develop HR systems
                      • Continue to develop more effective supervisory skills
                      • Identify and rectify any internal equity issues
                      • Develop a meaningful Safety program with accountability

                    Long Term

                      • Study ways to adapt effectively to changes in workforce and labor market demographics
                      • Develop innovative approaches to recruiting sources
                      • Continue supervisory training and bench strength development
                    HUMAN RESOURCE SERVICES: Solving Root-cause Employee Relations Issues

                    RESULTS

                    Based on the data we gathered, EWA recommended short-term, mid-term and long-term tactics and strategies to address the issues.

                      • Created a “One Company/One Culture” environment using the PE firm’s Corporate Core Values as a framework.
                      • Suggested resolutions to employee relations issues.
                      • Gained consensus with Executive Management on issues, priorities and next steps.
                      • Developed metrics to measure progress and to guide clear and open communications.
                      • Facilitated implementing solutions to enhance employee cooperation, engagement and participation.
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