Global pandemics, trade wars, and geopolitical conflicts pose challenges to the manufacturing industry. A recent survey among manufacturing executives revealed that 44% of respondents consider supply chain risks among their top three concerns.
How Smaller Companies Can Bring Manufacturing Closer to Home
The “production as a service” model enables firms to contract with independent factory operators on an as-needed basis.
December 07, 2022
Luis Alvarez/Getty Images
Summary.
As companies re-shore production operations to the developed world they need to invest in automation. This is often unfeasible for small to medium sized companies. Production-as-a-Service offers a model in which these companies can contract with independent factory operators to provide production services on an as-needed basis. These operators spread the fixed investment costs of machinery over multiple customers. Germany’s Smart Press Shop offers an example of this new model in the automotive industry.
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Sharpening Your Business Acumen Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Sharpening Your Business Acumen. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Take your career to the next level by learning business and finance basics, and developing an enterprise mindset.