Need for Supply Chain Resiliance & Diversification
Centralized Factories create major supply-chain vulnerabilities in the modern day context of trade wars and import tariffs, geopolitical crises, pandemics, and wars. Global disruptions have pushed 60% of pharma companies to explore nearshoring or localizing production[8]. This is creating demand for distributed production sites, however standardizing quality and reducing cost while distributing the production is a concern. Modular, Software driven factories solve for both standardization & cost-control, enabling decentralized production sites with remote supervision.
Reshoring / Nearshoring Movement & Localized Production
Trade restrictions & tariffs, Geopolitical dynamics, rising freight costs and logistical disruptions are accelerating the shift towards local and nearshore manufacturing. Governments worldwide are offering grants and tax breaks for companies investing in onshore manufacturing capabilities[9], [10]. However, set-up and operating costs in certain geographies remain prohibitively high. Modular Production facilities could help bridge this gap by enabling low-investment production setups and near autonomous operations. Software-led factories allow hiring cheaper, local workforce that can be upskilled fast to man these near-autonomous factories.
Sustainability Imperative
Governments and consumers demand eco-friendly production – pushing brands to reduce carbon footprints, waste, and excessive energy use. Traditional large-scale factories generate significant waste due to overproduction, cold-start problems, inefficient batch processing, downstream fulfillment logistics and cold chain requirements. Distributed, Continuous Production can cut down on wastes by producing On-Demand, requiring fewer factors of production and utility for the same production volume, alongside cutting logistics and warehousing costs and employing local workforce. [11]
