Today's time throws a lot at us: Global shortages, supply chain disruptions, inflation, a challenging geo-political climate, and a still-ongoing pandemic. We don’t have to look far nowadays to find reasons for bringing manufacturing back to our shores.
Let’s look at some of the benefits of New Zealand manufacturing. Whether you are a manufacturer of consumer or industrial products, reshoring might be an option for you that pays off in the long run.
Benefits of manufacturing in New Zealand
1. Cost-effectiveness
Businesses in New Zealand, like those in many other countries, opted for outsourcing a major part of their manufacturing to offshore markets because it was believed to be cheaper.
Outsourcing is a viable strategy for achieving a leaner approach to manufacturing, and it applies to New Zealand contract manufacturers as well as those overseas. It’s a way to save money on overheads.
While moving manufacturing from overseas production lines back to New Zealand may require an initial investment, it can also reduce expenses for logistics and the cost of risk in the long run. Savings on transport and supply chain bottlenecks can contribute to lower costs.
2. Supply chain security
The last two years have been challenging for businesses relying on complex global supply chains. To mitigate the risk, businesses need to have a clear understanding of all partners throughout the chain, specifically the inter-reliance of those partners – a task made easier when the supply chain is local.
3. Carbon footprint reduction
Bringing your manufacturing back to New Zealand can make a serious impact on the environment. Did you know that shipping makes up for 3% of global climate change emissions (Bloomberg, 2021)? If carbon footprint reduction is your goal, manufacturing locally can help achieve that. With shorter transportation routes, your supply chain uses less CO2 emissions.
4. Innovation & IP protection
Outsourcing offshore, like China for example, was appealing because businesses would benefit from the latest innovative developments used in mass production. However, this can also go the other way. Your own IP is not as protected in some foreign jurisdictions as it is in New Zealand.
New Zealand contract manufacturers are catching up in terms of innovation. Local manufacturers like us are investing in IOT technologies to enable more flexible production, and ramping up their automation to cope with demand.
5. Quality products at a one-stop-shop
A local contract manufacturing business that has leading-edge technology and equipment, as well as highly qualified staff, means that you have a partner to rely on. You are getting all the advantages of their innovative thinking, quality controls, and efficient processes. They will have different – and better – ways of making things.
They will be experienced in a wide range of metalwork areas, and able to offer advice, guidance, and a wealth of knowledge. At ENI, we pride ourselves in our broad range of technical capabilities, which means we can offer “from-crate-to-carton” solutions.
6. True partnerships
There is a risk that a project with offshore manufacturers could be compromised through a loss in translation. Dealing with local manufacturers will make communication easier – leading to a faster turn-around for a better outcome.
At ENI, we value true partnerships. We work together for an ideal outcome - from the prototyping process and fabrication through to on-time delivery and logistics.
Bring it home
There is no doubt manufacturing in New Zealand has many upsides. Besides the benefits for individual businesses, there is also the benefit for our economy and the environment. Reshoring to New Zealand means our economy can grow further and global emissions can be reduced, which will ultimately benefit us all.
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