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Is Industry 4.0 creating a downfall for the “cheaper production” slogan?

With the rise of digitalization and the evolution of the automation world. Customers are focusing more on the quality level of products than just the quantity. Can Industry 4.0 become the reason for its downfall and become a slogan for “cheaper production”.

The countries with cheaper values of their production line were selling their products. With the slogan tag of availability of area at a cheaper. Or economical price. However, the way digitalization led to the rise of the economy. The demand around the globe is changing every time.

The low-cost nations are somehow losing the battle of being the first choice. For any new manufacturing or production facilities. The decision-makers are looking for a location at the main centre so that speedy delivery.

And more in contact with the customers. Or among the customers can be increased. Some like-minded thoughts shared are by companies like Adidas ‘Speed Factory’ in Germany and Atlanta.

A complete autonomous machine tool production facility in Japan. Or full digitized workshops with the local motors for manufacturing customized cars in the US.

Any investors, business owners, or manufacturers would like to save the early pennies. Surrounding the investment made on localising their production facilities.

But the growing competition. And mass customisation have increased the demand of having a conversation with the customers. More and focus on the buyer and consumer relationships more.

Where the company can leave its mark on their consumer segments in terms of gaining their trust. And loyalty for quality and faster supply as per their demands.

Digitalisation involved customers engaging with their likes and dislikes. Thereby letting the manufacturers know which product is on-demand. And letting them understand the demand.

And the current trend of the consumer. Or the generations and what way they can get influenced. Or they can influence in selling other products. On the similar variants being accepted already the consumer.

Usually, once you have made a presence like Apple or Tesla. The name itself sells the product among the consumer. They would like to try out the new products before it becomes outdated.

But for any new venture cheaper production locations still is in demand. Nobody can rely on such patterns. It is thereby highly possible that cheaper location areas may lose their charms to attract manufacture.

To invest in their zone until. Unless they focus on uprooting. And levelling up their zone as to the demanding centers.

In my opinion, it might somehow balance out the competition. And preserve the demand of attracting new manufacturing plants.

Source:- Statista.

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