The Mechanics of Manufacturing: Location Drivers in a Shifting Landscape

CBRE releases Industrial and Logistics research The Mechanics of Manufacturing: Location Drivers in a Shifting Landscape.

These shifts can have major implications for the way in which manufacturing production is organised and located and the criteria by which manufacturers evaluate and select locations and sites for different activities. Clearly this has the scope to impact, and indeed be constrained by, conditions in land and property markets. For many industries, a significant decision-making factor in evaluating changes to operational footprint is the availability and cost of suitable sites and buildings.

Garrett McClean, Executive Director, EMEA Industrial and Logistics, CBRE, commented:

“There are a whole range of factors which are fundamentally changing the manufacturing sector, forcing some longstanding assumptions to be challenged; maybe even torn up and replaced.

“Global shifts in production and consumption, changes in cost structures, and the growth of disruptive technologies, are all major issues facing manufacturers. These changes can have substantial implications for the way in which manufacturing is organised, and more importantly where it’s located.

“At CBRE, we understand how important this sector is; as manufacturing accounts for 18% of the world economic output. To put that into context, that’s only 3% less than the combined total of distribution, transport and storage. Europe is still a major player, with around a quarter of global industrial production; surprisingly it’s about the same level as the Americas, and only 12% less than Asia. So manufacturing is big business in Europe and it’s a big focus for us.

“We’ve developed our service offer to include, location and supply chain analysis, incentive negotiation, right through to acquisition, and project management. Our philosophy is to fully understand our clients, and their location decision drivers. Whilst there are general trends emerging in each of the various sectors; it is vital to understand that every manufacturer has different drivers, whether it’s increasing capacity, cost reduction or servicing new markets.

“Over the past few years we’ve been working closely with manufacturers, understanding the criteria by which they evaluate, and select property locations. Much of this information is contained in our most recent research; ‘The Mechanics of Manufacturing’.”

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