Setting up a new factory is a major strategic decision. It is not just about finding cheaper land, moving away from China, or following other companies into Vietnam, Mexico, or another popular manufacturing location. In this episode, Renaud speaks with David Collins, CEO of Manufacturing Transformation Group, about what companies need to think through before relocating production or building their own factory. They discuss why more companies are considering factory relocation or ownership again, especially after COVID, tariff changes, supplier dependency, and IP concerns. But David explains why the first question should not be “where should we move?” It should be “what are we actually trying to accomplish?” The conversation covers the real trade-offs between China, Vietnam, Mexico, and other locations; why labour cost should not be the only driver; how supplier location, workforce skills, logistics, and infrastructure affect the decision; and why companies need a proper BOM, cost model, and feasibility study before making a move. They also get into greenfield vs brownfield factory projects, equipment selection, factory layout, commissioning, factory acceptance testing, and why automation can be a waste of money if it does not fit the real production process. The key message: moving to a new factory is a rare chance to redesign your manufacturing system properly. But if you simply copy the same poor layout, weak supply chain, bad inventory habits, and unsuitable equipment into a new building, you may just move the mess. Show Sections 00:00 – Introduction: setting up a new factory 01:43 – Who David Collins and Manufacturing Transformation Group are 05:04 – Why more companies are considering factory relocation 05:50 – China, Vietnam, Mexico, and the real trade-offs between locations 08:10 – Why some companies want to own manufacturing again 09:32 – Don’t just move the mess to a new factory 11:45 – The first question: what are you trying to accomplish? 12:02 – Supplier location, workforce skills, logistics, and infrastructure 14:18 – Why a real BOM and cost model are essential 15:27 – Feasibility studies and idealised factory planning 16:07 – Why automation is not always the right answer 17:34 – Comparing factory setup scenarios and locations 18:16 – Why labour cost should not be the only driver 20:48 – IP risks and supplier dependency 22:15 – Learning from the problems in your current factory 23:46 – Project management during a factory move 24:03 – Greenfield vs brownfield factory projects 26:09 – Layout planning, implementation, and local specialists 27:13 – On-the-ground project management and construction risks 28:33 – Equipment commissioning and factory acceptance testing 29:50 – Choosing equipment that fits your real needs 31:41 – Equipment maintenance, spare parts, and supplier risks 32:40 – Why factory setup is a once-in-a-decade decision 34:12 – Disciplined planning and avoiding old mistakes 36:45 – Closing thoughts Related content How To Plan for Transferring Production To a New Factory: 45 Point Checklist Transfer Manufacturing From One Chinese Factory To Another With Fewer Risks How To Diversify Manufacturing Sources Out of China and Cut Risk Sofeast can help you > Electronic Production Transfer from China to India OR Malaysia Supply Chain Risk Management, Part 5: Moving Manufacturing to Vietnam, Thailand, Malaysia, or India (Pros & Cons) Production Transfer: A Roadmap (Assembly Operations Only) Get in touch with us Connect with us on LinkedIn Contact us via Sofeast's contact page Subscribe to our YouTube channel Prefer Facebook? Check us out on FB
