3D printing, simulations, and AI-powered tools are making it easier (and more affordable) to invest in local manufacturing.
Logistics technology.is pouring into this area — especially in tools for warehouse management, matching freight loads to transportation capacity, and cost-effective routing. The rate of investment by venture capital firms suggests that VC funding for “supply tech” will overtake that for fintech before the end of this decade.
Consider a manufacturer of industrial tools that had seen its products grow increasingly complex with many subcomponents such as motors, switches, controllers, and wiring and many raw materials such as resins, plastics, and copper. Before bringing manufacturing from Asia and closer to the preponderance of their customers’ locations in North America and Europe, the company took a hard look at what its customers really cared about.
First, because higher-margin products are often more complex , the use of the new technologies to produce them and manage their supply chains can generate the maximum benefits.