Financial News

The Future of Manufacturing is Local

By: NewsUSA

(NewsUSA) - Ongoing news reports of global supply chain challenges highlight the need for improvements and changes in the manufacturing infrastructure.

A report by McKinsey & Company describes sustainable infrastructure as "resilient to climate change, socially inclusive, technologically advanced, productive, and flexible."

What do these kinds of changes mean for the average consumer who wants quality products delivered on time? Global supply chains are susceptible not only to weather, but also labor shortages and cyberattacks. Today's smart consumers find opportunities to support companies that provide alternatives to these global manufacturing models.

Other factors that make for successful companies in the future include organizational design, digital tools, and joint involvement among all parties involved, according to the McKinsey article.

Custom furniture maker Baru, an American-based company, is one example of how putting these factors into practice on a local level supports the American economy, serves customers, and fosters environmental stewardship.

"Baru supports the American spirit of innovation by using technology to streamline the process and avoid costly inefficiency, and manufacturing nearby strengthens the local economy and conserves the environment in meaningful ways," says Baru founder and CEO Tino Go.

- Organizational design. Baru's organizational structure involves a network of local builders and suppliers of raw materials, ideally within 50 miles of customers. This strategy prevents the damage and delays associated with shipping a finished product long distance, because the manufacturing takes place close to the customer.

- Digital tools. Baru lets customers use customized programs to design products specific to their needs and sends these manufacturing instructions directly to local workshops. This customization reduces the creation of excess inventory that might end up are landfills.

- Joint involvement. Local manufacturing benefits communities by creating local jobs and supporting local artisans and craftspeople. Many customers are eager to support companies when they know the materials and workmanship is locally sourced and that the company is mindful of its carbon footprint. Baru also shows its commitment to the environment with an ongoing tree-planting initiative as part of its sustainable manufacturing model.

Visit hellobaru.com for more information about the way an American company is putting principles into practices that reflect a new way of manufacturing.

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