The spike in risks due to the COVID-19 pandemic and the US-China trade war has compelled Hi-Tech companies to diversify their supply chain activities from China. As they plan to de-risk, it is critical to evaluate new alternate locations that would be apt for conducting their manufacturing operations.
While moving out of China has become the top priority for organizations, business leaders are devising optimal strategies to set up and flourish in a brand-new location. Various emerging economies are taking this opportunity to lure global businesses that are keen to shift its production base with their unique incentivized offerings:
- Japan recently reserved $2.2 billion package to fund firms out of which $2 billion is for the companies moving their production back in the country. Enterprises looking to set up their operations in other countries have been provided with a $0.2 billion relief package.
- India is making amendments on the nation’s tax and labor laws that could be favorable for companies based in foreign locations like the USA. States such as Maharashtra allowed the supply chain functioning of foreign manufacturers amid nationwide lockdown.
- Vietnam is providing manufacturers access ASEAN free trade locations and preferred trade agreements across Asia and the EU, including the United States. During COVID-19, it skyrocketed the production of medical equipment to make donations to countries in need of these essentials.
Deep dive into Hi-Tech Manufacturing Hotspots
At Draup, we have evaluated multiple locations closer to the US market that can be suitable for your decentralization measures. While researching big markets like Mexico, Poland turned out to be optimal locations to fulfill your supply chain initiatives. On the other hand, analysis of APAC regions exhibited India, Vietnam, Malaysia, Taiwan, Thailand as highly favorable locations for Hi-Tech Manufacturing.
Highly demanded manufacturing and production job roles
Talent analysis based on relevant job roles/skillsets and availability is a crucial factor that needs to be considered when moving the production base from one country to another. We have analyzed 200+ Manufacturing & Production job roles and respective skills across global locations. Our study showed that India has ~300K Hi-Tech talent pool across Manufacturing jobs like Production Management, Machine Operations, etc. with better incentives and suitable policies.
Some of the crucial skilled job roles in this industry include – Material Handler, Manufacturing Engineer, Equipment Technician, etc. These are critical for success in Hi-Tech manufacturing operations/functions.
Leveraging Draup platform to decentralize manufacturing operations
Apart from the workforce, Draup has analyzed multiple dimensions such as Ecosystem maturity, Policies, Cost of operations, etc. to shortlist potential Hi-Tech Manufacturing locations. Using Draup’s AI-driven talent intelligence platform, HR leaders can get detailed information on manufacturing talent across various locations globally. With this, they can easily acquire resources in their ideal location to continue their manufacturing and supply chain activities seamlessly.
Download the report to get an overview of convenient global locations for Hi-Tech manufacturing as you plan to de-risk your supply chain operations.