Smarter growth, lower risk: Rethinking how new factories are built
A tailored, thoughtful combination of cutting-edge technologies, stronger contracting skills, and deep supply chain capabilities can get a new factory up and running—without costly delays. Today’s environment is giving manufacturers even more reasons to reassess their footprint strategies. For some, localisation of production may now seem increasingly attractive—particularly amid rising volatility in tariff and trade policy, evolving incentives for manufacturers Manufacturers know that building new factories—and doing so quickly—can be incredibly complex. It is possible for the chief manufacturing officer to have never overseen the expansion of an existing factory—let alone the development of an entirely new “greenfield” site. The construction industry’s capacity for new factory construction is also constrained, especially by the demand for skilled workers. The sheer scale of the capacity gap is daunting even before confronting the very real risks that major projects face, from spiralling labour costs to vulnerable supply chains. There’s no single technology or template that manufacturers can deploy in response. Instead, to close the gap, manufacturing leaders need an integrated approach to factory building, one that encompasses thoughtful factory design, a reassessment of the supply chain, and effective construction management. A blueprint for revamping factory floor design The first step is undertaking a meticulous factory design process that seeks to ensure consistent flow of production, with adequate redundancy in capital assets Heightened competition for capital under current market conditions means it’s more critical than ever for manufacturers to deliver major capital projects on time and on budget. Higher labour costs in a new location require a company to rethink the entire value chain for the new plant—and with it, core production processes. Executives need to recognise that a greenfield development offers a unique chance to invest in Industry 4.0 technologies, maximising ROI and minimising production disruption Industry 4.0 user cases can show high potential for […]