Over-Supply and Manufacturing Localization

Abstract

Market instability is reflected in the manufacturing sites, by quickly cancelling out benefits derived from the adopted localization solutions, and thus making it difficult for businesses to make choices, that is, adopting options that remain valid and almost unchanged over the long term.Keywords: Over-Supply; Manufacturing Localization; Manufacturing Localization Choices; Dynamic Localization; Market-Driven Management Over-Supply and Localization ChoicesThe highly intense competition businesses have to face in many of today's markets is due to the complex interaction of many factors: over-supply 1 (the proliferation of brands and products, way beyond demand absorption potential), the importance of time 2 in manufacturing processes and in satisfying demand, globalisation processes and environment instability (and the ensuing business instability).Businesses confronted with this complexity find new ways to face the manufacturing problem, and hence its relationship with time and space (manufacturing localization). The existence of markets dominated by the mechanisms typical of over-supply stimulates businesses to search for manufacturing solutions that can combine manufacturing time requirements (the need to reduce the action-reaction times related to demand requirements) with spatial requirements (the importance of controlling the areas deemed important for

Global Networks, Knowledge Management and World Cities

“…functions) mark the success of the urban development of world cities. Knowledge-production-based companies concentrate in certain locations, unlike firms that produce tangible products or operational services, which tend to be dispersed in the territory, according to location logics imposed by demand (Gnecchi, Corniani 2003), or favoured by lower location costs (Garbelli 2002).…”

Market-Driven Management, Global Markets and Competitive Convergence

“…A cooperative manufacturing agreement at a competitor's plant (the Fiat-Suzuki case) allows for a presence (albeit not independently) in an area. At the same time, the agreement implies loss of control over the sitethus manifesting the dynamic nature of manufacturing localization without any physical movement (of machinery or other tangible assets)' (Garbelli 2002).…”

Networks Sustainable Development in Global Competition

“…Certainly, global corporations are linked to local territories for better or for worst but they are also able to live countries and move around the world searching for better places where to do their business (Garbelli 2002). Indeed their influence by staying in a territory or by looking for new territories has great impact on the nations and on all the economic, social and environmental development indicators.…”