More companies are taking a serious look at setting up a new factory, relocating production, or bringing manufacturing back under their own control.
The reasons are understandable. COVID exposed supply chain risks. Tariffs and trade policies have made some China-based production less attractive. Some companies are too dependent on one supplier. Others are worried about IP leakage, rising costs, or losing control over how their products are made.
But setting up a new factory is not simply a question of choosing China, Vietnam, Mexico, India, or another “lower-cost” location.
As David Collins, CEO of Manufacturing Transformation Group, explains in this episode of China Manufacturing Decoded from Sofeast, the first question should be: what are you really trying to solve?
A factory move can be a rare chance to redesign your manufacturing system properly. Or it can become a very expensive way to copy the same poor layout, weak processes, inventory problems, supplier risks, and equipment mistakes into a new building.
In this post, we look at the key questions to ask before committing to a new factory location, including supplier access, workforce skills, logistics, BOM control, feasibility studies, automation, greenfield vs brownfield projects, and equipment selection.
Listen here
Listen to the episode or watch on YouTube
Podcast sections
- 00:00 – Introduction: setting up a new factory
- 01:43 – Who David Collins and Manufacturing Transformation Group are
- 05:04 – Why more companies are considering factory relocation
- 05:50 – China, Vietnam, Mexico, and the real trade-offs between locations
- 08:10 – Why some companies want to own manufacturing again
- 09:32 – Don’t just move the mess to a new factory
- 11:45 – The first question: what are you trying to accomplish?
- 12:02 – Supplier location, workforce skills, logistics, and infrastructure
- 14:18 – Why a real BOM and cost model are essential
- 15:27 – Feasibility studies and idealised factory planning
- 16:07 – Why automation is not always the right answer
- 17:34 – Comparing factory setup scenarios and locations
- 18:16 – Why labour cost should not be the only driver
- 20:48 – IP risks and supplier dependency
- 22:15 – Learning from the problems in your current factory
- 23:46 – Project management during a factory move
- 24:03 – Greenfield vs brownfield factory projects
- 26:09 – Layout planning, implementation, and local specialists
- 27:13 – On-the-ground project management and construction risks
- 28:33 – Equipment commissioning and factory acceptance testing
- 29:50 – Choosing equipment that fits your real needs
- 31:41 – Equipment maintenance, spare parts, and supplier risks
- 32:40 – Why factory setup is a once-in-a-decade decision
- 34:12 – Disciplined planning and avoiding old mistakes
- 36:45 – Closing thoughts
Further content
- How To Plan for Transferring Production To a New Factory: 45 Point Checklist
- Transfer Manufacturing From One Chinese Factory To Another With Fewer Risks
- How To Diversify Manufacturing Sources Out of China and Cut Risk
- Sofeast can help you > Electronic Production Transfer from China to India OR Malaysia
- Supply Chain Risk Management, Part 5: Moving Manufacturing to Vietnam, Thailand, Malaysia, or India (Pros & Cons)
- Production Transfer: A Roadmap (Assembly Operations Only)
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