[PAID] ProCESsing Tomorrow: Big Bets Reshaping Industry
Product glocalization and nearshoring supply chains is reshaping the technology bets manufacturers need to make to remain competitive.
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Glocalized Products with Reduced Production Steps
Traditional manufacturing strategies have relied heavily on global labor arbitrage, often requiring companies to locate production steps across multiple countries to access competitive labor rates. This approach has created vulnerabilities in supply chains and challenges in serving local markets efficiently. At CES, the Siemens US CEO recently called out this ‘glocalization’ trend during her interview:
Additionally, the Wall Street Journal discussed regional supply chain uncertainties in a gloomy article about the future of North America border towns explaining how the regional arbitrage works:
Hundreds of trucks move daily through a single 480,000-square-foot warehouse north of Laredo. Glass and aluminum go into Mexico; bottles of Modelo and Corona come back. Car batteries and other automotive parts go south; cars come north. Clothing, construction, railroad and medical supplies fill shipments.
While this is a North American-specific example, similar regional labor arbitrage exists in Europe as well.