What that means is you either have to invest in your own manufacturing, which can be an expensive proposition, particularly if you're not already a low-cost producer, or what you can start to do is think of using somebody else's flexibility or agility in manufacturing.
Colin Masson
start flexibility
That may be the right time for you to say, 'OK I might need to move production to someone who is quite frankly better at manufacturing lower cost and make room for my next development drug to come through, and I'll move the product whose margins have now been eroded to a contract manufacturer.
time development
At the very least, I have to have very good visibility into my contract manufacturer in China as to any quality hiccups that might affect me. I need to get early warning of those, and potentially I may have to source locally to remain responsive to fluctuations in demand.
quality good warning early source china demand
Relatively few manufacturers have the luxury to choose a different product mix based on energy prices.
luxury energy choose
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