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If Have These Signs, It’s Time To Move Your Factory !

by industrialexpert

As a professional with 10 years’ expertise in the sector of industrial property, we’ve identified 5 signs that it may be time to move your factory. There are many factory for sale at outside which are affordable, don’t let these cost issues cloud your company’s prospects.


If you experience all 5, it’s time to move.


1.Costs rising


As production costs rise, many of our clients consider moving. Costs drove North American manufacturers to China. Due to rising wages, supply chain issues, tariffs, etc., the cost of Chinese-made goods is rising, and clients are looking for alternatives.


We’ve covered other manufacturing areas in previous blogs, but it’s worth noting that there are many other costs beyond labour. Total costs depend on productivity, supply chain availability, and tariffs.


2. Quality problems


Cheaper offshored manufacturing often had poor quality that the buyer either dealt with directly with the supplier (returning poor quality, increasing quality inspections, etc.) or with the consumer (easy returns, refunds, etc.). Increasing costs and consumer expectations make this arrangement unsustainable. Supply chain shortages can cause long delays between product deliveries.


This isn’t about quality issues or new product launches. Persistent quality issues persist despite years of fixes. It’s time to find other suppliers or start manufacturing yourself.


3. Flexibility


Offshoring production can be great for any company: management and product costs are lower, and you can usually switch suppliers if needed. However, many companies are losing flexibility. Reshoring or nearshoring can increase flexibility. Zara illustrates this. It been nearshored its production so it could move from inspiration to retail in less than 3 weeks. Zara can quickly adapt to new market trends by incurring higher costs. Other clothing companies are low-cost and high-volume. They gamble that their trend will sell well. If not, they cut prices to clear inventory.


If you need market flexibility and responsiveness, reshore or nearshore.




Business isn’t conducted in a vacuum because the world is inherently unstable. Trade disputes can lead to tariffs and trade barriers that hurt even the biggest manufacturers. Wars and war rumours disrupt trade and raise prices. Instability threatens projects.


After political violence in Sri Lanka, a company interested in a new factory for sale ‘s facility pulled out. Russia’s invasion of Ukraine shocked companies moving there.


Regular risk analysis can help you understand the situation and determine if you should move.


5. Hard-to-please vendors


This may be the “fuzziest” of the 5 signs, but it’s worth considering. Some suppliers are challenging. Unresponsive, unreliable, underhanded are all examples of difficult. If you dread working with your suppliers and can’t trust them, they are difficult (they may be selling your product to another buyer, stealing IP, etc.). Cooperative supplier relations are most productive.


Sometimes reshoring is better than finding a new supplier.


Follow signs


These are signs that you should move. Not immediately, though. If you see any of these signs, you should consider the cost and benefits of reshoring. Too many companies consider signs a cost of doing business. Nope.


Follow the signs and do your research.


Article You May Interested If You Are Planning To Buy A Industrial Property,

What you Must Know for Stamp Duty Tax And Exemptions When Buying Industrial Properties in Malaysia



Posted by Zip Article 

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