Next-shoring – the latest trend?
The manufacturing industry has been affected by many thing over the years, and factory location has tended to be a prominent factor in managing both cost and worker availability. Offshoring has been prevalent in recent years, where factories have sought to save cost by relocating factories outside the country where that company is based. India and China have been prime locations where labour and space is cheaper.
The emergence of ‘next-shoring’, the proximity to demand and innovation, is now playing a factor for manufacturers. According to Mckinsey who coined the term, next-shoring “encompass[es] elements such as a diverse and agile set of production locations, a rich network of innovation-oriented partnerships, and a strong focus on technical skills”. The ability to react quickly and agilely to changing conditions is key in the modern market and due to such the nature of manufacturing everywhere is changing. Agility is key in order to react to fluctuating market conditions, more demanding customers, and an increasing number of competitors made easily accessible by the connectivity of devices.
The nature of manufacturing everywhere is changing due to increased market saturation, new products, demand and changing customer expectation and needs and in this, automation in capacity planning and resource scheduling is key.
Automation enables flexibility like never before and allows factories to plan to maximum capacity, view real-time orders, and quickly see and manage bottlenecks in production. Next-shoring may not be here to stay, but process automation is. Find out how LYNQ can help you automate your systems, plan ahead effectively and efficiently manage your customer demands.