PLANS TO EXPAND
Asian and South American markets .
With slow economic recovery in Europe , many companies are considering whether they can better serve European markets from their Asian manufacturing locations to better manage costs and preserve margins .
Asian markets , explains the report , have embraced an open door policy attracting FDI through strong incentive packages for manufacturers , alongside their already competitive cost structures and the availability of a skilled / educated workforce . However , South American markets have been more closed . Bazil , for example , has continued tis protectionist measures , particularly in the form of high custom duties , which has led many companies to serve the Brazilian market locally to avoid being priced out of the domestic market .
Understanding trends The objectives of the study are to understand trends driving global manufacturing footprint strategy shifts and to indentify the next generation of locations manufacturers are considering as markets and strategic imperatives evolve .
Manufacturers can better position themselves for success by viewing their growth and expansion decisions as a dynamic , fluid strategy
The study states : “ Manufacturers can better position themselves for success by viewing their growth and expansion decisions as a dynamic fluid strategy , encompassing their entire footprint .
“ Maintaining a proactive stance on managing the global footprint using cyclical planning can help manufacturers ensure their assets are aligned to changing market and manufacturing conditions and can avoid issues with business as usual approaches that result in severe misalignment .”
Jennifer Callaway , a MAPI council director , said : “ Entering a new up-andcoming market can be alluring , but single location expansion should be considered in isolation .”
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