Steve Hedrick , CEO of AVN Corporation , examines why contract manufacturers are so important in these difficult times
Contract manufacturers : Essential drivers of innovation
Steve Hedrick , CEO of AVN Corporation , examines why contract manufacturers are so important in these difficult times
Supply chain disruptions can be catastrophic for manufacturers . Although global networks of suppliers have connected companies with a vast array of goods and services , these systems are inherently fragile . The COVID-19 pandemic starkly highlighted the problems of complex supply chains , while extreme weather events and geopolitical conflicts have continued to affect raw material supply and availability .
In light of these now-visible risks , companies have begun to invest in reshoring manufacturing capabilities to decrease reliance on supply chain elasticity . In the US , the trend is driving more companies to move manufacturing operations back from overseas locations .
Since the end of 2021 , the Department of the Treasury reports that construction spending on manufacturing facilities has doubled . 1 Motivated by market proximity , raw material availability , federal policies and sustainability advantages , reshoring and nearshoring efforts are driving the domestic expansion of manufacturing .
Bringing new manufacturing processes and facilities onstream is no easy task , however . In addition to building and securing a reliable supply chain , companies must also focus on efficiency and sustainable practices to remain competitive and align with consumer preferences . Reshoring manufacturing offers many economic benefits , but it will require innovations in process design and manufacturing technology , supported by agile , research-focused contract manufacturers .
Contract manufacturers provide technical insight and in-depth
Pilot plant equipment used to develop and scale up processes for efficient operation during commercial production
Pilot plant staff preparing to analyse samples taken from a small-scale production run designed to evaluate and optimise the process .
20 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981