Advantages and Disadvantages of Locating a Manufacturing Facility

629 Words2 Pages
Prepare a list of the advantages and disadvantages of locating a manufacturing facility in your current state of residence. The advantages of greater logistics and supply chain agility, greater control over immediate fixed costs, and most important, the ability to serve customers responsively and in real-time all are advantages of locating a manufacturing facility in my current state of residence. In specific regions and cities there are also tax advantages and in one port city, a tax-free zone to encourage international trading and growth. In terms of managing the business, there is also the advantage of using common measurements of pricing, production performance metrics, and comparable measures of customer satisfaction with other local manufacturers, all key points defined in local versus remote manufacturing research studies (Fry, Cox, 1989). The disadvantages include the lack of access to supplies and raw materials that may be located in other regions of the world at a competitive price. Often manufacturing companies create offshore production centers to capitalize on the cost savings of purchasing raw materials and components close to their source, saving on transportation costs (Fry, Cox, 1989). Another disadvantage is the fact that more engineering, product development and manufacturing expertise is available at lower costs in other global locations. Not choosing to move production to these locations could impact the long-term competitiveness of a manufacturing
Open Document