How Smaller Companies Can Bring Manufacturing Closer to Home

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How small producers can reshore their supply chains.

But while large‐scale producers can distribute required heavy investments across high volumes, small‐scale producers do not have this luxury. They cannot fully utilize asset‐heavy production processes, leading to high machinery costs relative to their volume. A new production model, Production as a Service , is emerging as a solution to this problem. They first gained scale in IT, when software providers shifted to a subscription model for their products.

PaaS expands this approach to the scope of an entire factory. The fully realized concept has three elements: flexible production, asset sharing, and financial transformation.In a limited number of product categories, factories can make multiple different products on the same manufacturing process — an injection molding producer can produce wine storage boxes and industrial pallets on the same machine using different tools.

” as a 50‐50 joint venture with Schuler, a press manufacturer, supported by additional debt financing provided by a consortium of banks. The Smart Press Shop is a highly flexible press shop, specializing in producing small lot sizes efficiently. Many smart features enable flexible production, such as fully automated tool change‐over, a laser blanking line, and many others.

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