Hershey’s Outsourcing

Entire towns often grow up around a company. For example, Hershey, Pennsylvania, was nicknamed “the sweetest place on earth,” after Milton S. Hershey built what was then the world’s largest chocolate factory in 1903. Hershey constructed not only a factory that provided a luxury product to the middle class, but a community with comfortable homes and services for his employees. More than 100 years later, the Hershey Co. follows competitors by outsourcing work overseas, and Herb Field of “The Patriot-News” questions whether manufacturers’ downsizing will erode customer bases. “Can we maintain a viable middle class based on selling each other services, entertainment, gambling, trucking and other non-manufacturing enterprises?” Field asks. “I have my doubts.” Modern managers, unlike Milton Hershey, lack vision for improving communities. However, the small towns could once again become competitive. As energy costs rise, Field predicts that companies may want to relocate close to markets, in communities with managers who can problem-solve at many levels with limited resources. – YaleGlobal