Key Manufacturing Trends for 2023
This excellent research from Katana into manufacturing trends for 2023 should make interesting reading for manufacturers and entrepreneurs. The two key highlights for me were:
On-shoring
For years, the standard orthodoxy in supply chain management is to manufacture your products offshore and sell them back in your home country at a cost-effective retail price. I think this strategy has been failing for some time in the eyes of the consumer as the market has become swamped with opportunists and there is a perception that quality control is lower and that not all the cost-saving are being passed to the consumer. It’s no surprise to see therefore that Katana found that 70% of US consumers prefer products made in their home country and 20% are willing to pay more for home-produced goods. This was partly to do with the pandemic and now Ukraine which has exposed the operational fragility and economic volatility of global supply chains.
Customers seeking customized products
Again, not surprising given the current cost-of-living crisis which may encourage people to not only shop cheaper but to shop smarter. Customers are becoming more informed, realizing that cheaper is not always better and may be a false economy: quality over quantity may be the most financially prudent option during a cost of living crisis.
So, with customers willing to pay 20% more for domestically produced goods and and 20% more for customized products is now the time to be focussing on producing custom premium goods made in your home country in order to enjoy a competitive advantage in the market-place?
