Setting up a new factory is a major strategic decision. It is not just about finding cheaper land, moving away from China, or following other companies into Vietnam, Mexico, or another popular manufacturing location.
In this episode, Renaud speaks with David Collins, CEO of Manufacturing Transformation Group, about what companies need to think through before relocating production or building their own factory.
They discuss why more companies are considering factory relocation or ownership again, especially after COVID, tariff changes, supplier dependency, and IP concerns. But David explains why the first question should not be “where should we move?” It should be “what are we actually trying to accomplish?”
The conversation covers the real trade-offs between China, Vietnam, Mexico, and other locations; why labour cost should not be the only driver; how supplier location, workforce skills, logistics, and infrastructure affect the decision; and why companies need a proper BOM, cost model, and feasibility study before making a move.
They also get into greenfield vs brownfield factory projects, equipment selection, factory layout, commissioning, factory acceptance testing, and why automation can be a waste of money if it does not fit the real production process.
The key message: moving to a new factory is a rare chance to redesign your manufacturing system properly. But if you simply copy the same poor layout, weak supply chain, bad inventory habits, and unsuitable equipment into a new building, you may just move the mess.
Show Sections
00:00 – Introduction: setting up a new factory
01:43 – Who David Collins and Manufacturing Transformation Group are
05:04 – Why more companies are considering factory relocation
05:50 – China, Vietnam, Mexico, and the real trade-offs between locations
08:10 – Why some companies want to own manufacturing again
09:32 – Don’t just move the mess to a new factory
11:45 – The first question: what are you trying to accomplish?
12:02 – Supplier location, workforce skills, logistics, and infrastructure
14:18 – Why a real BOM and cost model are essential
15:27 – Feasibility studies and idealised factory planning
16:07 – Why automation is not always the right answer
17:34 – Comparing factory setup scenarios and locations
18:16 – Why labour cost should not be the only driver
20:48 – IP risks and supplier dependency
22:15 – Learning from the problems in your current factory
23:46 – Project management during a factory move
24:03 – Greenfield vs brownfield factory projects
26:09 – Layout planning, implementation, and local specialists
27:13 – On-the-ground project management and construction risks
28:33 – Equipment commissioning and factory acceptance testing
29:50 – Choosing equipment that fits your real needs
31:41 – Equipment maintenance, spare parts, and supplier risks
32:40 – Why factory setup is a once-in-a-decade decision
34:12 – Disciplined planning and avoiding old mistakes
36:45 – Closing thoughts
Related content
How To Plan for Transferring Production To a New Factory: 45 Point Checklist
Transfer Manufacturing From One Chinese Factory To Another With Fewer Risks
How To Diversify Manufacturing Sources Out of China and Cut Risk
Sofeast can help you > Electronic Production Transfer from China to India OR Malaysia
Supply Chain Risk Management, Part 5: Moving Manufacturing to Vietnam, Thailand, Malaysia, or India (Pros & Cons)
Production Transfer: A Roadmap (Assembly Operations Only)
Get in touch with us Connect with us on LinkedIn
Contact us via Sofeast's contact page
Subscribe to our YouTube channel
Prefer Facebook? Check us out on FB
Ireland