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Perspectives
The greenfield factory journey
12 steps to building a successful greenfield site
As reshoring gains traction amid worldwide disruption, greenfield manufacturing sites are popping up left and right. What strategic considerations should guide the process? This four-part article series details Deloitte’s greenfield factory journey and the steps organizations should take to successfully realize the vision for a new plant.
A rise in reshoring calls for greenfield manufacturing sites
Seismic shifts in the geopolitical and macroeconomic landscape in recent years have forced manufacturers to rethink their approach to fulfilling demand. While global factory networks were commonplace during the last few decades, recent events such as COVID-19, supply chain disruptions, shortage of skilled labor, and inflation have created unprecedented challenges.
To address these challenges, manufacturers are increasingly considering reshoring and building new factories in the United States. Building a greenfield factory can increase overall manufacturing capacity, create redundant supply, reduce unit costs through increased automation, improve quality, and potentially reduce time to market for new products.
A well-developed strategy for a greenfield factory can ensure a digital thread foundation is built in from the start. Advanced digital technologies such as sensors, wearables, and robotics can unlock additional value from the new factory investment. And incorporating exponential technologies like Internet of Things (IoT), cloud, machine learning, and artificial intelligence can turn advanced data into actionable insights.
Building a new factory may be an obvious investment choice, but where to start? In this article series, we dive into each critical phase of the greenfield factory journey, outlining how Deloitte can help develop the right strategy and provide oversight while building a new plant.
Explore each phase of the greenfield factory journey
Bringing a greenfield site online can take three to five years, so we’ve broken down the journey into four phases and 12 steps. Explore each article to better understand the process and how Deloitte can strategically help guide the creation of your greenfield plant.
Arguably the most important phase of the process, planning is where an organization defines its objectives and strategy, selects the location of the greenfield plant, and begins a detailed design of the factory. This phase takes approximately six to 24 months.
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Execution of your greenfield vision starts with sourcing and procurement. From there, construction begins, with heavy oversight and project management throughout. Once the greenfield site is built, equipment installation and design begin. This phase takes approximately 12 to 36 months.
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Startup is where you can really see the pieces come together, beginning with commissioning. Once the systems and equipment are tested, it’s time to start up your new factory! If necessary, product qualification also takes place in this phase, which takes approximately six to 12 months.
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The final phase of the process is ramping up your greenfield factory. Once scaled and launched, the focus shifts to optimization—a part of your journey that is never complete. Finally, it’s time to reflect on lessons learned and prepare for what’s next. This phase takes approximately six to 24 months.
Read moreHow Deloitte can help the greenfield factory journey
With deep expertise across industries, Deloitte has helped many leading global companies build a greenfield site. No matter where you are in the journey, we can help you get back on track and realize your ultimate greenfield goals, using new methodologies that reduce risk, improve performance, and save time and money.
As a strategic partner, our Smart Manufacturing team can also fill knowledge gaps across tax strategy, consulting, financial advisory, risk advisory, and business process transformation. Contact us today to learn how we can work together to bring your greenfield vision to life.
Optimize your greenfield smart factory with Deloitte’s 10 objectives
Optimize your Greenfield smart factory with Deloitte
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Principal, Deloitte Consulting LLP
Smart Manufacturing Senior Commercial Advisor
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