Many U.S. companies are considering moving their manufacturing out of China. Producers of Crocs shoes, Yeti coolers, Roomba vacuums and GoPro cameras have done it, but it’s harder than it looks.
Velong Enterprises, which serves big retailers/brands such as Walmart and Weber grills from six Chinese factories, has expanded into Cambodia and entered joint ventures in Vietnam and India. They are also scoping out factories in Mexico, Turkey and the Philippines, but it can be slow, difficult, expensive and risky. Each option has drawbacks. They have spent several decades building their Chinese manufacturing and supply chain to operate like a Swiss watch, which is hard to match.
Big changes have big ramifications. You need to get it right. MOSIMTEC simulation modeling can help. How should you modify your manufacturing strategy? Should you continue to manufacture in China, move to other countries or re-shore to the U.S.? What does it mean for your production levels, capital/operating cost, supply chain, product quality, business risk and other factors? Explore options virtually with digital twins for manufacturing to see what works, what doesn’t and the best ways to thrive with such uncertainty. MOSIMTEC data scientists/industrial engineers can help future-proof your business.
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