Expansion and optimization approaches for US manufacturers
Vital need for manufacturing companies to optimize their footprint in a way that drives performance by putting assets in the right place, at the right time.
Where is next for US manufacturers?
The next shift in manufacturing locations is imminent. To prepare, it is important to consider forward looking footprint strategies that examine realignment trends and offer expansion and optimization perspectives. To that end, Deloitte collaborated with MAPI (Manufacturers Alliance for Productivity and Innovation) to conduct the Footprint 2020: Expansion and Optimization Approaches for US Manufacturers study. The study asks companies which geographies they plan to invest in next and which levers do the intended countries pull in terms of increasing shareholder value.
Optimizing a manufacturer’s footprint can yield benefits
While optimization of the enterprise footprint takes more effort due to the continuous monitoring required to ensure assets are in the right place at the right time, there are significant benefits to be had. Typically, manufacturers can experience significant savings when they make a concerted effort to engage in footprint optimization.
Footprint of the future
Ultimately, to be effective, enterprise footprint optimization needs to be a continuous process.
Proactively responding to dynamic company strategy, revenue growth, and cost containment, in concert with growth decisions, can create a framework for continuous improvement that maximizes value.
As manufacturers embark on the journey of global expansion, a few key things to keep in mind include understanding the complexities created by a global footprint, assessing the risks, and focusing on the long-term.