Bringing Manufacturing Home
The rising costs of transportation, reinforcement of import duties, and softening of labor arbitrage with emerging markets has seen resurgence in new manufacturing operations being opened closer to consumers.
For the established manufacturing nations like Germany, Canada and the United States this has meant both organic growth of their manufacturing base as well as an increase in “foreign” manufacturing operations within their borders.
Competition now for operations locations is weighted in favor of those who automate and manage their operations most effectively. This is truer now than in the past based on what we have seen with automotive manufacturing in the United States over the last 24 months.
Additionally some states in the northeast US are seeing themselves as supply chain states. My home state – New Jersey, was once a stronghold for pharmaceutical, telecommunications and automotive manufacturing, but the manufacturing base has moved to chemical and raw input materials to be included in finished product assembly lines elsewhere with more manageable labor costs and centrally located distribution centers.
As an odd balance, New Jersey is also expanding its distribution capacities for consumer goods due to its central location for not just the New York, and Philadelphia Metro areas, but north to Boston and South to Baltimore.
What I find most interesting locally while talking with customers globally is that this trend of diversification of physical centers combined with the centralization of asset management control systems, supply chain visibility and procurement control requires a holistic view of material, item and product data in order to maintain efficiency and maximize operating profit.
Blog: Leveraging Item masters in Procurement
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