by Brianna Crandall — September 7, 2015—CoreNet Global and Colliers International have released a new research report that reassesses conventional thinking about global manufacturing and the supply chains that support it, analyzing the effects of technology, speed to market, consumption trends and a “new” China.
The report cites these significant global economic trends as catalysts for redrawing the manufacturing landscape, as outlined below:
- China is not the go-to country for off-shoring manufacturing anymore. Increasing hourly wages, quality controls, and other factors, including a desire to bring production closer to market, are threatening the “Made in China” model.
- The balance between the “factory of the world model” and the “local production model” is shifting as companies feel the risk of disruption to global supply chains as well as news specialized consumer tastes that demand closer production.
- Technology, specifically robots, will drive down manufacturing costs, as less space will be required.
- Regions such as Mexico, Central and Eastern Europe that are closer to major markets are becoming more attractive as major manufacturing centers.
“Global trade will continue to increase as emerging economies grow and develop, alongside more established global regions,” according to the report’s authors. “However, in a world where cost savings will be increasingly difficult to find as economies move up the value chain, and as consumers become more demanding and sophisticated, this will put increasing pressure on supply chain optimization and the location decisions which come with it. The rationale for keeping production away from consumers is only set to weaken.”
The report was written by Colliers International’s Guy Douetil, managing director, EMEA Corporate Solutions; Karel Stransky, director, EMEA Corporate Solutions; and Bruno Berretta, EMEA senior research analyst, and researched and produced in conjunction with CoreNet Global.
A New Era for Manufacturing? Changing assumptions about how organisations view manufacturing and supply chains is available from the CoreNet Global Knowledge Center.
Colliers International Group Inc. is a global provider of commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, including brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership.
CoreNet Global is the worldwide professional association for corporate real estate (CRE) executives with strategic responsibility for the real property used by multinational corporations for their own operations. CoreNet Global’s more than 9,500 members include 70 percent of the top 100 U.S. companies and nearly half of the Global 2000.
