Re-shoring manufacturing?
Key take-aways from the "Gospel on Manufacturing" episode
“If you’re not making your own stuff, you’re not in control of your future. The key is to bring manufacturing back, but do it smartly and with the right technology.” - Sandy Munro, automotive engineering guru.
In the podcast episode "Gospel on Manufacturing" from Mika Tienhaara's See Beyond series, key arguments are presented for why companies should reconsider bringing manufacturing in-house. The episode emphasizes that re-establishing in-house manufacturing can lead to greater control over quality, faster innovation cycles, and enhanced agility in responding to market changes. It also highlights that companies need to consider investments in advanced technologies, such as automation and digitalization, to achieve cost efficiencies and flexibility. Additionally, having direct oversight of production processes can improve sustainability and supply chain resilience. Ultimately, the episode advocates for a strategic approach where companies evaluate their core competencies, market demands, and technological capabilities to decide when and how to re-shore manufacturing operations effectively.
Key Strategic Steps to Re-shore Manufacturing:
Assess Core Competencies: Identify which manufacturing processes are critical to your company's competitive advantage and should be brought in-house.
Invest in Technology: Adopt advanced manufacturing technologies such as automation, robotics, and digital twin systems to improve efficiency and flexibility.
Develop Skilled Workforce: Build or train a workforce capable of managing modern manufacturing equipment and processes.
Upgrade Infrastructure: Modernize facilities to support flexible and scalable production, ensuring infrastructure aligns with technological investments.
Implement Quality Control Systems: Establish rigorous quality assurance measures to maintain high standards in in-house production.
Build Supply Chain Resilience: Design manufacturing setups that can adapt quickly to changes and disruptions, reducing dependency on foreign suppliers.
Strategic Planning & Phasing: Develop phased plans for re-shoring, starting with pilot projects and gradually expanding in-house capabilities.
Cost-Benefit Analysis: Carefully evaluate financial implications, including potential savings and investment costs, to ensure re-shoring is viable long-term.
Partnerships & Ecosystems: Consider collaboration with local suppliers or technology partners to enhance capabilities and reduce risks.
Want to learn more and get inspired? Listen to the full podcast episode:
S5E4 Gospel on Manufacturing
Yet, another inspiring encounter with the great Sandy Munro, of Munro & Associates, and with their activities in product design, engineering and manufacturing solutions, that has revolutionized industries over decades.
/Mika